“Panos’ Brew” is Sonicbids founder/CEO Panos Panay’s weekly (or more) post about whatever happens to be on his mind. Look for musings and observations on entrepreneurship, the state of the music business, his experiences with members, interesting things he’s seen in his travels, or just about anything else.
For Raw RSS Feeds
As long as there’s been art, there have been wealthy patrons that have sponsored artists. Many of the world’s biggest masterpieces would have never seen the light of day had it not been for some rich individual who funded its creation (Van Gogh, Mozart, Da Vinci, all had wealthy backers).
In the modern music business, these patrons were once major record labels that plucked artists from obscurity and made them into mass consumed mega stars. They funded their time in the studio (production), paid money to distribute their records in retail stores (distribution), paid money for promotion through outlets like radio and TV (promotion) and hired managers, agents and publishers to help maximize each artist’s income potential (professional connections). In return, they kept the lion share of each artist’s income and held the keys to the kingdom called “viable music career”.
With the advent of the Internet and the shift of consumer tastes from mass to niche, labels have experienced a steady erosion of their incomes over the past eight years and consequently they have ceased playing the traditional role of art patron for up and coming musical artists. (And artists have used the Internet to replace labels’ production, distribution, promotion and professional connections roles with Apple laptops, and sites like CD Baby, MySpace and Sonicbids respectively).
In their place — as both art patrons as well as popular taste curators – have stepped in major (and niche) consumer brands who have figured out that music can help them sell whatever product they produce (coffee, electronics, carbonated beverages, clothing, video games, hand bags, financial services, insurance, etc.) This year it is estimated that in the US alone, total sponsorship spending by consumer brands for music festivals, tours and other campaigns will exceed $2 billion.
Even more promising for independent (read: empowered) artists, recent years have seen a steady shift of this sponsorship money towards more “niche” artists who do not yet have an entrenched public image like say, 50 Cent or (gulp) Celine Dion. Why? Because more and more companies are realizing that coveted young consumers, coming of age today, demand authenticity from the brands they will endorse – a trait most associated with independent, non-major label artists.
In the past couple of years on Sonicbids, we have seen large consumer brands ranging from Coke, Burger King, Converse, Jeep and Fisher-Price, to more niche ones like Harpoon Beer, Zippo, Jagermeister, and JanSport, all post gig listings looking to connect with and sponsor in one way or another independent bands.
So, why look for a record label contract when so much money out there is being invested by consumer brands that are not even looking for a share of your future income and rights to your first-born?
My advice is that if Sony Records comes knocking, ask them to speak with Sony PlayStation instead. It’ll take you much farther and with less trade-offs.
Panos
![[del.icio.us]](http://images.del.icio.us/static/img/delicious.small.gif){kind=small}
