Business to business
In the beginning of the digital era, the number of opportunities for indie artists had grown and indie music labels were hoping that every customer would find an individual consumption model. However it did not happen. And for the indie music market, there is another problem: it cannot be really independent. What a pity, because indie labels are the ones who are investing the most to bring new artists into the market. Indie labels are numerous. For example, there is a federation of 160 independent labels. Their relationships with music streaming services are not always so easy. For example, Youtube is paying advances to the majors for future music releases, but not to indie labels. Music labels are in competition: sometimes, however, it may happen that they create synergies. In each case, the more a label takes responsibility for an artist, the more everyone is successful, the label, the artist, online music services and event organizers. Labels may empower artists through new media. However these media, which involve musicians, are not made especially for them. A music ecosystem exists, but musicians, generally, do not have the skills to do efficient business themselves. The self-publishing and self-releasing ecosystem is not really strong enough to replace traditional business contacts acquired through labels. So, to have a valuable product and a vision is helpful. And it is necessary for musicians to perform their music production on every occasion.
What kind of business-to-business products may musicians sell to telecommunications companies, music licensing companies, labels, and music streaming companies? Each brand involved within the music industry has to be a marketing machine sustaining customer retention and acquisition by getting fans and followers. It is necessary to diversify strategies. First because music industry companies are different: the strategy of a general telecom company is not the strategy of a music licensing company. And musicians are in a different position compared with different types of firms. During the 2000s, a German telecom company created a subsidiary company whose purpose is to promote the products of the parent company through marketing: it organizes global events, local events and online events. It is also developing elementary music apps to create beats. The subsidiary company is active in ten countries, produces 1.5 billion media each year and has already worked with 400 artists. Its core product is a very abstract product, as it is the experience that users will have concerning the parent company. It is an example of successful business where music, media, and technology meet. At the level of business models, innovation must be present in a company that wants to be competitive. And at the marketing level, the strategy must include an active presence on social media. Especially when it comes to capturing attendees' attention and selling tickets. In the media company, the editorial team is especially active when it comes to product creation with musicians and relationships with the press but also with streaming companies. The place of the musicians is between strategy and marketing: they may be key these key partners that a media company is searching for. So artists may sell concert time as well as recorded music to media companies, for example via a label. Every business-to-business partnership will be different. Each musician creates specific content with the media company and each agreement has a specific duration.
Musicians and licensing
Now, let us see how musicians create relationships with a music licensing company. The process is different. First musicians are helped to understand that a licensing company's main task is to find new music and use it in cool new ways. For example, it is putting artists into software, commercials, TV shows, live events or campaigns created by all kinds of companies. All of that helps the artists to get better exposure and make more contacts, even when it does not lead to celebrity status. A brand whether it is a beverage or a perfume company is asking for a specific type of music; the music licensing company brings corresponding samples, and the brand makes its choice. So, different types of companies are helping musicians to link their 'music mind' and their 'entrepreneurial mind'. They provide opportunities so that musicians may create their own career, making their choices after having considered all elements, like their budget and their time, making something unique out of it. They can make use of a new innovation to do things in the framework of the digital marketplace. That is why a lot of decision makers in the entrepreneurial ecosystem, including investors, naturally collapse the distance between music content producers and marketing companies.
To get along with music streaming companies, emerging musicians must integrate the idea that music streaming may want to think of themselves as a neighborhood cafe because they now want more high-value listeners, who will pay a fee to get access to more music and more features. And it is not an easy task as a lot of people actually resist to technology changes in technology, even when they buy products. So ways must be found to connect fans and artists very quickly. Touring and merchandising are the ways labels and musicians make a living out of music. Everything is about making people thirsty for music when they actually just have to open what could be called the global music spigot to get most of it.