Royalties from Writing a Hit Song with Justin Bieber
This is a story about middlemen.<p>30 years ago, the supply chain for recorded music went something like this:<p>creator -&gt; music label &amp; radio -&gt; retailers -&gt; audience<p>Now it&#x27;s something like this:<p>creator -&gt; (label) -&gt; digital platform -&gt; audience<p>Huge power is concentrated in the platforms, which essentially combine curation, distribution, sales, and marketing. They control pricing. They control the playlists. They control the relationship with audiences and <i>understand</i> them far more than record retailers or radio ever did.<p>Labels now provide questionable value -- I would expect that some platforms may start to move into that area, in order to guarantee exclusivity, which is one of the few ways for labels to establish competitive differentiation. This is already happening in other media, such as books (ex: Amazon-owned book labels signing top authors or strong up-and-comers) as well as Amazon video and Netflix funding promising scripts and creative teams.<p>What can artists do? They have a few cards to play. One of them is exclusivity. Another is the ability to build their own connections with audiences (often using free or low-cost communications platforms). And dedicated audiences will do what is asked of them, within reason.<p>Some also perform, which is one of the few areas to make money these days. But platforms are also horning in on that pot. Ticketmaster is ruthless when it comes to manipulating pricing and forcing artists to play by its rules.<p>If I were an up-and-coming artist, I would concentrate not on becoming a &quot;star&quot; but rather making music that both you and your audiences can love, and building indestructible bonds with audiences that they will follow you no matter where you go, whether it&#x27;s jumping platforms, going on tour, buying new march, or taking part in other activities that respect their love for the music while helping you make a living.