the music industry is changing which trends and services will prevail in 2012

the music industry is changing so rapidly that it’s difficult to predict which trends and services will prevail in the year ahead, but here are a few things we’re seeing:

Streaming companies such as Spotify will continue to gain traction, so sharing music online will be more important than ever. Musicians will have to find new ways to encourage fans to share their music without sounding like they are begging.

– As there is no shortage of new content being created, it will continue to be challenging for an artist to cut through the noise. Although release-frequency will be higher than it was ten years ago, with EPs and singles dominating the market, there is still plenty of room for the release of an album as an event.

– Monetizing music will continue to shift to ancillary sources of revenue. Sync licensing of music for uses in traditional broadcast media, film, and on YouTube will pay the bills for many musicians. (In fact, some of our artists have sold thousands of albums in a week after getting a sync spot on a minor show – and that’s in *addition* to the actual payment for the spot itself and the publishing royalties that will come in as it’s replayed!)

The non-digital aspects of music, such as for vinyl, tapes, CDs, live shows, events, appearances, collaborations, and merch will continue to offer musicians new ways to make money. And direct-to-fan sales will coexist with “traditional” online retail outlets to offer places for consumers to find, hear, and purchase music.

Mobile – Mobile has been hot for a couple of years, but I think in the next year you are going to see mobile becoming your primary source for creating content and engaging with your fans. You need to see your smartphone as something as important to your career as a guitar or microphone. Your smartphone is your new computer and it is how you connect with Facebook, Twitter, YouTube, and your website. Your smartphone is the tool that is going to capture photos and videos that your fans are waiting for you to post to your social networks and website. Get a smartphone and start getting comfortable.

Facebook Commerce – I thought that 2011 was going to be the year of Facebook commerce. It didn’t completely take off, but 2011 set up Facebook commerce for 2012. Artists need to think of commerce differently on Facebook than they are used to on their own website. Commerce on Facebook has the potential to be so much more powerful than traditional commerce. With all the social aspects of Facebook, your fans will become your best sales team, and they will do it at your request. But, you have to lead them. You have to think of your products as news, as information worth sharing. You need to ask them to share your products. Lead your fans to help sell your products.

Being Overwhelmed – This is an unfortunate trend I have seen growing over the last year and it is not going to get any better in 2012. Artists need to get their career and life organized and in order if they plan to take on the DIY challenge. There are so many social networks, tools and services out there that becoming overwhelmed is very easy if you aren’t in control. You don’t need to use every website, every social network. Prioritize where to spend your time: Your website, Facebook, Twitter and YouTube. Those four are the most important. If you can get them in control, then look at expanding into other services. Don’t fall into the trap of signing up for everything and then not using anything.

The more things change, the more they stay the same. By this I mean that the core fundamentals of music are still the same. Playing live and building a fan base. Everything that is coming in 2012, all the new technologies, new tools, new applications, new sites … none of it will replace a fan base. And one of the best and most consistent ways to build a fan base (along with improving your music, I might add) is playing live. Get out there and do shows. Treat them all like a major gig to a sold-out audience. Work each show with a plan and a purpose. Use everything available to you online to help you build, manage and engage with your fan base.

Before you worry about marketing your music, make sure you’ve got music that “practically sells itself.” If your songs are so good that one person tell another, then marketing becomes your way to pour more fuel on the fire. My prediction for 2012 is that more musicians will become keenly aware that they need to make a product – their music – that is SO good, they will actually have something that IS marketable. Great songs practically sell themselves!

One of the most notable developments in 2011 was the beginning of the mainstream acceptance of digital music subscription services. Spotify clearly led the pack but was backed by strong competition from Rdio, MOG, Slacker and Rhapsody (and Deezer in Europe).

We also saw deeper integration of mobile devices into the lives of everyday people. What was once thought of as toys for techies are now commonplace. Virtually everyone is now walking around with full-featured, Internet-enabled smartphones in our pockets, equipped with amazing cameras and instant access to the Web, digital cloud services, and all of the social media networks which our culture has become addicted to.

2012 is going to see a continued convergence of these trends into our lifestyles. A digital and connected life has become the norm, replacing almost all of the old ways we used to consume media.

Mainstream acceptance of streaming music, social media, social recommendation apps, social sharing, cloud computing, and everything-mobile has created the perfect environment for artists to get their music heard and to create a meaningful community of passionate fans.

A year from now we’ll be much further along in accepting that people no longer want to buy digital album downloads. Music fans want to simply stream their music, having everything available no matter where they may be or what device they’re using. By embracing this fact as the Future Of Music, artists can now focus on building their music career outside of focusing solely on iTunes or Amazon sales.

The spotlight will continue to shine brighter on the successes of direct-to-fan marketing and the selling of limited-edition physical goods (scarcity).

2012 will be a year of opportunities for any artist who isn’t afraid to embrace all aspects of the digital lifestyle. The artists who win will be those who aren’t afraid to take chances and be creative in the online world.

This is the year to go for it. Build your online community and crush it like no other artist around you. Embrace crowd sourcing, fan funding, and direct-to-fan marketing. Build your websites and social profiles, invest time in them and create relationships with your fans. Be creative and try new things using the endless array of digital tools that are now at your disposal.

By focusing on where the music fan is going, not where they’ve already been, you’ll be able to carve out a niche for yourself that’s all your own.

1) As the shift from buying music to renting (subscriptions) accelerates in 2012, artists and the industry must adjust their marketing efforts to also encourage discovery and the play of both new releases and back catalog.

2) As people consume more music and information on mobile touch screens running on multiple platforms, how we deliver and market music must also change. 2012 will see an explosion of mobile friendly sites alongside artist and album apps.

3) The rapid fall of MySpace and rise of Facebook serve as powerful reminders that in 2012, an artist’s own website and email list are still the hub.

4) Direct-to-fan. Direct-to-fan. Direct-to-fan.

1. Staying Positive and In Gratitude Will Help Tremendously
Before I make any music marketing trends and predictions for 2012, here’s a good place to start …

Remember: Success in today’s quicksand-like music business is HARD and takes WORK. Getting into a negative, overwhelmed and angry place will directly affect your success. I’ve seen it now thousands of times in 12 countries. The artists I know who manage to stay positive and who are grateful for the little wins and the small miracles are happier, more successful, and go farther than their counterparts who let it all get the best of them.

2. Music Subscription Sites (Spotify, Rdio, Rhapsody, Deezer MOG, Slacker & Rhapsody) Will Continue to Take Over
These subscription-based streaming sites are great for music consumers and not so great for artists. To stay ahead of the pack, smart artists are going to have to come up with clever ways to incorporate their music and sharing on these powerful platforms that have music consumers going gaga. Sadly, this will mean less revenue from sales of music but could provide great opportunities for discovery-based creative marketers.

3. Be Mobile
It’s been on the horizon for a long time but smart phones are getting smarter, app developers are getting more nimble, and options more affordable. Smart musician marketers will need to have a mobile strategy moving ahead.

4. Get Back to Basics
Let’s never forget, it all starts with the greatness of your music and live show. But social media overwhelm, more apps, mobile trends and new fandangled opportunities will keep cropping up all of the time. Smart musicians should be focused on the basics:
1. Your website – Is it clear and consistently updated?
2. Your mailing list – Is it growing? And are you sending regular communications?
3. Your products – Are you still offering music only? You better not be.

5. Direct to Fan
I’ve been blogging my “In Defense of 1,000 True Fans” series for years. I won’t stop because this is the way that you can still achieve your goals. Is it easy? No. Is it fast? No. Does it work? YES! The smartest artists know it’s all about one-on-one fan building with authentic engagement every step of the way.

6. Fan Funding / Crowd Funding
I know a lot of artists say it makes them feel like carnival barkers, but fan funding is a wonderful way to make money. Of course, you need to have a loyal base of fans to achieve it (see #5).

People want to connect with others on an authentic level and experience something that doesn’t involve a screen. A live performance is the perfect solution.

With that said, mobile phone technology and the growth of social media will make it easier for people to combine “real life” things, such as going to see musicians play live, with their online lives. Musicians who understand how to engage their audiences to take advantage of things such as sharing photos, audio, and video online will benefit tremendously, especially when they’ve developed a real world, offline community of people.

I would predict that this year will be about artists connecting direct with fans, more on this on all fronts. From website and marketing restructuring, less mystery, the walls will come down, as more direct one-to-one connections are made.

I also foresee smaller venues for fan-based crowds only and fan supported records and tour support. Less about the glory of mega-fame, and more about the intimacy and appeal of mini-fame, less pockets soaking the pie, and more interdependence.