Amp Communications is my new business. I’ve been working with a handful of Irish musicians for the last year or so helping them navigate the world of online and get their music heard. It’s been going so well that I decided to make it my full time job.
The business models of the recording industry have been shattered by the internet, but I firmly believe that the opportunities it provides for the future far outweigh the negatives. Tools like YouTube, Facebook and Twitter will be at the heart of many new business models that hope to replace the old. It’s imperative that musicians and labels learn to make the most of all that “social media” has to offer.
With Amp I hope to be at the heart of this next step in the industry (in Ireland at least) and to help the many creative talents in this country earn the living they deserve.
7 Comments
Jamie
Peter, it looks great. I know you've done fantastic work with the musicians you've been working with so far, so things can only get better! Best of luck with everything, you've done a really brave thing but it's what you want to do. :)
Peter Tanham
Thanks Jamie! It wouldn't be possible without your support :D
Ciaran
Hey Peter,
Fair play to you! The best of luck on what's bound to be an exciting adventure!
Ciarán.
Eilish Burke
well done - a brave move and i'm sure it will pay off. best of luck, but hope you keep blogging too!
Peter Tanham
Thanks guys!
Normal blogging should resume soon enough once I get the business up and running :)
Keith
Peter.
Interested in this business idea. Do you see the music model changing to one of free content (music) and growth in audiences to live events? Are the goalposts moving?
Keith.
Peter Tanham
Hey Keith,
In essence - yes.
The simplest way to think about it looking at the economics involved.
An economic good can only command a price if it is scarce in relation to demand, with air being the classic example of something too abundant in supply to command a price.
It used to be the case that the only way to own a song was to purchase a CD. A CD is a physical product, a scarcity, so it can command a price (and when combined with the music and the brand of the artist, you can command a nice high margin too).
The internet caused havoc in the music industry because it took away the important caveat that "the only way to own a song was to purchase a CD." Legal issues aside, if your content (an mp3, a movie, a news article) can be copied and pasted it is effectively infinite in supply. This makes it next to impossible to command a price for this content.
So as for the goalposts question, the way I think about it is that an important element of the business model has switched from one side of the equation to the other.
Your content is now your marketing. It is another one of those intangible elements, like doing interviews or being on the radio, that increase your fame (brand equity?) So the more people that download your Mp3s for free, the more t-shirts, limited edition box sets and, as you mentioned, concert tickets you'll be able to sell.
This theory is shown in the data too, the recording industry has been in freefall since 2000, but the music industry as a whole has been growing in value, driven mainly by live performances.