An Executive Review On How You Can Capitalize Off The Music Industry’s Rapid Transition To Virtual
Updated: Oct 1, 2020
The pandemic has opened many new opportunities for artists to find new sources of income. From e-commerce to live-streaming, there has been a surge of new platforms and strategies that we’ve studied and wrote about.
A prime example of the explosive growth that has occurred during this acceleration towards a virtual music industry:
Recently, a virtual concert called BANG BANG CON broke the record for the largest streaming audience. The label of this concert, BIG HIT, was able to disclose that their streaming audience was equivalent to 15 live shows at a 50,000-capacity stadium.
A review by Music Business Worldwide discusses how the label BIG HIT increased their half revenue by 47%. In 2019 their total half revenue was $166 million and in 2020 their half revenue was $249 million. Their success is partly attributable to streaming services and monetization. The virtual entertainment industry is ever expanding with the music industry and it’s only the beginning.
Below is a breakdown of a few different ways you can start monetizing.
Several websites have platforms that allow artists to perform and promote merch during these difficult times. This eliminates certain expenses such as store rent, retail certificate for specific states, and restrictions on store hours at certain outlets. Online stores open opportunities where there were regulations. Most of all, many of these merchandise shops online can be monetized for further profit.
According to a case study by telescope, Ariana Grande’s virtual album release party was the marketing strategy that helped give Ariana the number 1 Album in the country with 'Sweetener'. She had an exclusive release party live-stream from her home (leading up to the midnight release). When an artist allows the fans that pre-ordered their album to share the same experience as their closest friends and family, it builds a sense of trust and authenticity that can make the release that much more impactful. Also, pre-sales give you a good sense on budget for future projects while executing a tactical marketing strategy.
iHeartRadio Music Festival’s 10 year anniversary is going virtual. Fans will have to pay to watch the virtual concert. Normally, the concert seats up to 18,000 consumers for a live concert. Now that the concert is virtual, it can sell as many tickets as their server can handle.
These ideas have never been done before and would not have been thought of if it wasn’t for COVID-19. Within the music industry, this is the time for innovation and adoption.
Bandsintown, a data-driven platform where more than 530,000 artists utilize to promote events and engage in social media outreach with their fans, partnered up with Twitch to expedite rising artists’ eligibility to become a verified streamer on Twitch. Twitch has become successful in becoming the major streaming platform for both the gaming and music industry. With Twitch’s user-friendly interface and efficient monetization platform, fans could subscribe to artist channels with monthly rates starting from $4.99, $9.99, and $24.99. Different tier subscription comes with custom emotes, ad-free interface, subscriber-only chat, and badges that provide a more intimate interaction between fans and streamers.
Latin music revenue has had a significant increase over the last few years, having completed a third straight year of growth in the United States. It has reached its highest revenues since 2006, according to the Recording Industry Association of America (RIAA). Streaming accounted for 95% of the U.S. Latin music revenues in 2019. The 2019 Year-End U.S. Latin Music Revenue Report done by RIAA stated the Latin music market ended the year with $554 million dollars in revenue. This number went up by 28% since the previous year, the highest figure the market has seen since 2006. As seen with BIG HIT, marketing for international artists just got sky rocketing!