Austrade opinion piece

13 April 2007

By Tony George
Manager, Austrade’s Australian Music Office in Los Angeles

With the constant erosion of record sales wreaking havoc on major record labels across the globe, artists have had to look at other means of promoting themselves and making money.In fact, for many artists and their managers, the CD has become little more than an advertisement for more lucrative goods like concert tickets and t-shirts.  Many look at the CD as part of the marketing of an artist, rather than a source of income.  Artists need to be aware that the majority of their income will come from touring and merchandise, truly proving that they aren’t in the record business at all, but rather show business.

The music industry has become a decentralised and fractured market offering more opportunities to artists for exposure in a global market.  Artists looking to crack into other markets should come prepared with a clear knowledge of their strengths and weaknesses, and realise that the business is a nuanced environment that defies traditional generalisations about the ‘correct’ way to break into the United States and overseas markets.  In fact, there are many ways to skin a cat, and rarely does the same formula work twice in an artists’ quest to break into a market.

There really has been a monumental power shift in the past five years in respect to the major labels traditional role.  In the past, labels controlled production, distribution, and most forms of marketing.  With the advent of digital and internet based tools, an artist can now record a professional sounding record in a home based studio, promote themselves through MySpace.com and similar sites, and have worldwide distribution of a record on the iTunes music store and a video on YouTube.com.  Recently we’ve seen how powerful that distribution can be, with Sydney band Sick Puppies YouTube-based video becoming a viral phenomenon, leading to a major deal with Virgin Records. 

There is no shortage of excellent export ready artists in Australia.  Still, there is a tyranny of distance that exists for Australian artists wishing to expand onto other shores.  There is still no substitute for building relationships with industry as well as fans in foreign markets than being there.  However, by utilizing digital tools, as well as aggressive moves into film, TV and video game licensing we are seeing Australian artists better able to build the all important ‘story’ that is needed to convince overseas industry gatekeepers to take notice of the act. 

The good news is that music is being consumed in ways we didn’t dream of 10 years ago.  Some examples include iPods, podcasts, internet radio, video games, television, MySpace.com, ring tones and mobile phones, peer to peer sites and satellite radio.  Innovative new ways to hear and experience music have led to new fans and niches that artists can target through direct contact.  Austrade’s Australian Music Office in Los Angeles is helping to educate artists about these tools and boost Aussie music exports into the US.  We firmly believe that there has never been a better time to export music, despite the gloom and doom many hear about the industry. 

The record business is in trouble, but the music business is alive and well!

ENDS

For more information about the Australian Music Office visit www.australianmusicoffice.com

Media contact

Adam Blight
Tel: +61 2 6270 7148
Mob: 0412 890 599
Email: adam.blight@austrade.gov.au

For further news and information from the Australian Trade Commission (Austrade) visit www.austrade.gov.au/mediacentre.