creative deconstruction

3 Ways to Make Music Worth Paying For

Posted on 08. Jun, 2009 by refe in INNOVATION

The future of the music industry as we know it will depend on how it responds now that the product on which they’ve built their empire is no longer profitable. While the major players are intrenched in red tape and beauracracy, independent artists and record labels have an incredible opportunity to adapt and thrive under the new market conditions. So here’s the question: what do listeners and consumers value, and how can artists provide it to them in a way that enriches the experience of their music?

Six Different Forms of Supplemental Scarcity

First a little recap. Recorded music lost a lot of value when it transitioned to digital formats. Digital files can be freely copied an infinite number of times, which means that demand can never catch up. How can finite demand compete with infinite supply? (Read more about this subject here.)

That’s where ‘supplimental scarcity’ comes in. The idea is that if you have an infinite good such as digital music, something scarce (as in, existing in limited supply) must be offered alongside it in order to add value. There is a fantastic article at the Technium that has become something of an Internet classic. In it, author Kevin Kelly describes eight different forms of supplemental scarcity.  I have chosen the six concepts that I felt were most relevant and applied them directly to the business of being an artist. I’ll talk about three of them here and the rest in a separate post due to length.

1. Personalization

Fans love feeling like they are part of the music - part of the experience. Personalization makes the experience that much more valuable. The different ways that an artist can personalize their products for their fans are limitless. Jill Sobule, in an effort to fund her next album and avoid signing with a record label, offered personalization in exchange for donations on her site. Donate 10 grand and you get to sing on the record. Five thousand dollars bought you a private concert in your living room. There were different “gifts” at each donation size, each one welcoming the fan further into the process in some way. Sobule’s fans loved it and she reached her goal of $75k in only 53 days.

A more classic example of personalization would be to utilize packaging to engage fans. Radiohead recently charged an arm and a leg for a special-edition vinyl package of In Rainbows. Imagine what they could have charged if they had offered to sign and dedicate a limited number of copies. Offer something unique at key gigs in order to drive ticket sales, and make sure you aren’t offering it anywhere else. Provide functionality on your website that caters the user’s experience based on a profile they create for themselves. I could go on and on, but you’ll be most successful if you and your band figure out what kind of personalization would be most valuable for your core fans and working out a way to give it to them.

2. Interpretation

Authors have been doing this for decades at their book signings. They come to a local bookstore with their new hardcover novel displayed prominently, and their fans show up to hear them talk about the new book. What was the author’s inspiration? What was his process? Where did he write it? What does it mean to him? They go out of their way to meet the author in person so that they can hear his interpretation of his work. This kind of interpretation is even better suited to music because lyrics are so often somewhat cryptic and mysterious. Find an unique way to let some of your fans in on your secrets – I guarantee they will be more committed to your art when you are finished with them.

3. Authenticity

The music industry has suffered a huge blow in this category over the past decade. Elements of pop music have always had an element of fake-ness to them – those acts are meant to provide entertainment, not create art. Yet, from the assembly-line boy bands to the Britney Spears albums written by pale-faced men in their fifties, I think the industry has overplayed its hand. Listeners want something real.

There are a lot of different ways to let fans know that what they are getting is authentic. Release a studio b-side of something you recorded when you were just goofing around. Live albums can have a similar effect. Think about the prevalence of online file-sharing and illegal copying. If a listener is downloading a track on Limewire she has no idea what it will sound like once it’s finished. Yet, if she knows that the download is coming straight from the band itself she can trust that she’s getting the very best quality out there – first generation stuff. Kevin Kelly writes, “Digital watermarks and other signature technology will not work as copy-protection schemes… but they can serve up the generative quality of authenticity for those who care.” Find ways to set the products you sell apart from those who resell them. Bonus tracks, bundled music videos, etc. Anything that will let your fans know that what they are purchasing has come straight from you.

Share Your Ideas

So there you go: personalization, interpretation, and authenticity. I have only related the basic concepts here – there is so much that can be done with this list. Let me know what you think, and please post what you come up with in the comments section so that everyone can benefit! If you follow a band that has done something creative or innovative with supplemental scarcities please share that as well. The last three items on the list, embodiment, patronage and findability are described in Part Three. I’ll try to have it finished up and published here by tomorrow so check back soon. Also, remember that you can find out when new articles post by following me on Twitter.

Tags: artist resources, business models, creative deconstruction, economics, free music