Guest Feature: The New Music Economy

By Seth “tower” Hurd

In the past eight years, popular music has undergone more changes than it had in the previous 50. While it’s easy to stand up and shout “the Internet!” as the catalyst for all this, that would only describe the vehicle. The true change has come because of the transformation in how people buy music.

Nearly since the inception of popular music, everything was a one-way flow. Labels signed a handful of up-and-coming acts, and put a physical product in stores (vinyl records, then 8 tracks, cassettes, and finally CDs), and kept the majority of the profits. Only a few artists were able to function without a record label … and even if they did, their reach was only as far as the shows they played and the albums that were sold off of a merchandise table.

The shot heard round the world was the launch of the iTunes store in 2001. More than 1 million songs were sold for 99 cents each in the first week. It was the first time in the history of popular music that a fan could get their favorite song without dropping $13-$18 on a physical CD in a store. Below are some of the biggest changes that have happened as a result of music’s digital revolution.

The Price Tag Gets Cheaper

In the eight years since, we’ve seen the “powerhouses” who once controlled who the artists were and what they sounded like come crumbling down. EMI Worldwide, the largest record label on the planet, lost more than a billion dollars last year. Meanwhile, everyone from global acts like Radiohead down to indie worship artists like The Glorious Unseen (get their EP for free here) have chosen to “skip” record labels altogether, and deliver music straight to fans, often via a “pay what you want” model, or even for free.

When I first started with Shine.FM in 2002, playing an artist in Christian radio who didn’t have a record label was almost unheard of. In three years, it’s possible that 25 percent of the artists on Christian radio will be unsigned.

Decline of the Album, Rise of the Fan Pack

This is the first generation of teens to come of age with digital music as the norm. The nostalgia of listening to an “album” in sequential order (the only way to listen to music before iPods) isn’t in this generation, and they’re much more likely to buy a handful of songs from one project, as opposed to the entire album.

However, even as the album spirals into obscurity, new music packaging is emerging. More and more “superfans” of any given artist want more … more memorabilia, more access, more exclusive content. A great example is former Caedmon’s Call member Derek Webb, who is offering a new “fan pack” that includes immediate download of his new album, a physical CD, a “making of” DVD, and an exclusive monthly download of a cover song, in which the fans choose which songs from other artists Derek will re-record.

What all this means for Christian Music

Like every other genre, Christian music appears to be “getting smaller.” In the 90s, CCM’s Amy Grant played Chicago’s United Center, a venue that holds more than 30,000 people. Today, there isn’t any single Christian artist with that kind of draw. Despite the first impression of the numbers, Christian music is actually bigger. The genre sells more music than it did a decade ago, but those numbers are spread over a larger number of artists and sub-genres. Instead of one pop powerhouse doing a show, there may be 10 or 15 concerts in any given month in the Chicagoland area, ranging from the multi-platinum MercyMe to new Shine.FM (and unsigned) artist Attaboy.

Ultimately, this means a larger variety of music. It also means that artists are much more accessible to their fans. With that many voices out there, it’s vital for artists to stay in real connection via whatever online tools dominate the scene. While some have tried third party PR agencies to twitter as the artists themselves, younger music fans always spot what’s fake.
Finally, the new music economy means better music, as fans are the final “vote” with their purchases, rather than a 53-year-old exec who’s trying to guess what his 14-year-old niece might purchase.

As these changes continue to mature, it also means that Christian radio is expanding. Whenever the next version of broadcasting comes fully into the market (be it HD radio, wifi streaming or something not invented yet), the market for niche broadcasting — such as a mini-station dedicated exclusively to unsigned artists, or a hard rock streaming station — is going to explode. Currently, Shine.FM is moving into the future by launching two new Internet streams, one dedicated to worship music and one dedicated to Christian rock.

The best news is that music consumption is at an all-time high. Christian artists are being a light in dark places with song placement on major network dramas, commercials and other outlets. Today’s generation of college broadcasting and music students don’t just have the chance to join a whole new music economy, they will have the power to shape and define it.

ONU alum Seth "tower" Hurd, 26, can be heard on 89.7 Shine.FM, and seen on "The Merge Out Loud" on channel 387 on Direct TV, starting in October. He owns a $4,000 racing bicycle, but no new furniture.