Tag Archives: Digital

How can struggling live-music venues and musicians move forward?

Published 02/14/2017

By Shawn Wilson, CEO/Chef de la direction, Muzooka

Smaller live music venues across Canada are struggling, and the climate for local, small-scale live music in Canada is challenging. It’s hard for venues to remain profitable enough to stay open, and to hire and pay the best musicians for their venue. It’s also hard for musicians to find places to play live, with fewer venues at their disposal. This is especially important for musicians, because with the bulk of music sales lost to streaming, live performance has become a crucial component – some would say the most crucial – in their ability to earn a living. And this is especially true for those who play smaller, local venues.

Some would say that without the right support and tools, a full-scale crisis could emerge, with a trickle-down effect on local economies, neighborhood culture and community pride. Both venues and artists need better tools – faster, easier, cheaper, and more effective – so that they can spend more time doing the things they’re expert at, like making music and running an establishment, and less time with niggling and often expensive details that, more often than not, are simply bypassed, with fingers crossed that everything might work out.

Muzooka recognizes, understands and is working to solve these problems.

The nucleus of the Muzooka digital platform is the Artist Page, which serves as a valuable link between musicians and venues or festivals, where each party can find the other and explore the possibilities of working together. The Artist Page is a great way for SOCAN members to find live gigs, and for venues and festivals, Licensed To Play by SOCAN, to source great new talent. The Artist Page serves up all the content needed for a festival or venue lineup, and Muzooka’s Demo Submission tool streamlines the booking and programming processes. Artists, managers, and agents can update their information instantly over multiple venue and festival websites. Artists can keep their online content up-to-date, no matter where it’s shared or embedded online.

Another tool that’s useful to both musicians and venues is the Digital Gig Poster. Like a physical poster for a gig, it announces all the details for an upcoming performance. But the digital version can include live videos, songs, and all of the artist’s social media, so venues, festivals, artists, and fans can all quickly and easily share the posters online.

Muzooka Digital Gig Posters are automatically added to a venue’s Facebook page. Potential ticket buyers can listen to featured songs and watch live videos to get a taste of what the artist’s live show is like. Fans can invite their friends to have a look and listen, and most importantly, they can actually buy tickets. One click adds the Muzooka Gig Poster to Twitter, tags the artist(s) and venue, and posts it as a media-rich Twitter Card. Fans can play featured songs, learn more about the event, and buy tickets, all inside of Twitter. Muzooka also e-mails the artist an Instagram-friendly video that plays 15 seconds of the featured video with a text overlay of the show’s details, as well as copy/paste text with proper @mentions.

And it’s all 100% free for participating musicians and venues.

In another initiative aimed at helping musicians – and music publishers – Muzooka is working directly with SOCAN on strategies for their application program interface (API) portal. SOCAN’s APIs have the potential to enable a marketplace of new innovative apps, that could revolutionize how writers and music publishers work with SOCAN, to get paid when their music is played.

SOCAN has already launched two APIs, for song registration and concert notification. The former enables tech developers to build new workflow apps and software to allow songwriters to register their songs more accurately with their music publishers, labels, digital services and SOCAN, while the latter enables those developers to build apps that allow songwriters and music publishers to more easily register their concerts with SOCAN, to get paid faster and more accurately for their live performances.

SOCAN is leading the transformation of music rights, and Muzooka is proud to support them by helping SOCAN members and licensed venues be more effective and productive, so that they can focus on the stuff that they’re actually good at – like making and presenting music.

Streaming requires new business model for record companies

Published 11/5/2014

By Terry McBride

Streaming is the future of music consumption.

In Nielsen and Billboard’s sales numbers for 2013, streaming music increased 32 percent over the previous year, to 118.1-billion track streams. Overall music sales dropped 6.3 percent to about 1.5-billion tracks, albums, and videos. Digital music sales (downloads) dropped too, by 6 percent, about the same rate.

The Recording Industry Association of America recently announced that revenue from streaming-music services overtook that from the sale of physical CDs, and came in just a hair behind total physical sales. The RIAA also said that streaming now accounts for 27 per cent of recording industry revenues in the first half of 2014, versus 20 per cent the year prior.

About 35 percent of the revenues of my record company, Nettwerk Records, already come from streaming, and that amount is only going to grow in the coming years.

When music is streamed online, songwriters in North America are currently being vastly underpaid for the music they create, some thousandth fraction of a penny for each streaming play (though, as SOCAN CEO Eric Baptiste pointed out in his last SOCAN blog, there are reasons for this).The same is generally true for the artists, and the non-major record companies whose music is being streamed, which is why streaming is not yet offsetting the decline in physical sales and downloads in North America.

The solution to this problem is for record companies to seek a percentage of the revenue earned by the streaming companies, rather than a penny rate “per play” (or in this case, “per stream”). The solution must also create equitable deals between the labels and their artists to ensure that the artists are fairly compensated after such negotiations.

There’s a great deal of generational resistance to this idea. Past generations are strongly invested in the attitude that rates of remuneration for recordings have to be set by a governmental regulatory body. But in the online world, where borders are becoming more and more meaningless, where a song streams to one person at a time rather being played to hundreds of thousands of people via a spin on radio, and where streaming companies’ revenues are dwarfed by many orders of magnitude when compared with traditional media such as TV and radio, the only practical way forward is to abandon penny-rate regulations and negotiate percentage deals directly with the streaming companies. In addition to payment for access to their music, major labels are already obtaining equity in music streaming companies.

This approach can work. In fact, it already has. Nordic European countries are seeing growth from streaming music, and their artists are earning a significant portion of their living from it. The Norwegian recording industry reported that streaming revenue was up 66 percent in the first half of 2013. Streaming revenue accounted for two-thirds of total music revenues in Norway. It’s been a similar story in Sweden, Finland and Denmark. Sweden’s music industry is now back to double-digit growth, even though about 90 percent of the music consumed there occurs via streaming.

By comparison, if the penny-rate mentality doesn’t disappear sooner rather than later, the North American record industry will continue to shrink annually at a rate of five to six percent. In fact, one of the reasons Nettwerk has been able to prosper in the face of this continuing decline is that 90 percent of our income comes from outside of Canada.

The writing is on the wall. The old way needs to go. The record industry has got to get moving, and moving fast, to adapt to the new reality of music streaming.


Views expressed in this and all posts on this blog are not necessarily those of SOCAN.