Are digital channels in the music industry here to stay?

Remember the excitement of going to your local record store with your friends? As a teen, I remember camping outside for hours, sitting on lawn chairs with my friends because I just had to be the first in line to get my hands on that Motley Crue Dr. Feelgood album at Tower Records the minute that clock stroke midnight. 

Those are memories today, as music fans will never experience something like that again. 

As discussed last week, the customer journey and how the industry adapted by seeing this not only as a process but as a tool that innovates fan experiences has reshaped the music industry, particularly with the shift to digital channels. 

Tommy Lee Signing at Tower Records

West Hollywood, CA

As a music fan, the nostalgia of purchasing music at a record store makes me wish those channels still existed, as the experience of visiting an independent record store is much more than buying an album. It was indeed a magical experience as a consumer. 

But, as a music marketer, adapting to digital channels has become essential and a strategic advantage in connecting with audiences and driving engagement. 

Leveraging digital tools enhances the fan experience, boosting loyalty and engagement.

Adapting to Digital Production and Distribution

One of the ways that our industry has navigated this switch is by utilizing digital channels through the supply chain. 

The first significant change has been in music production and distribution. Traditional physical formats like CDs have given way to digital downloads and streaming services. We have embraced this shift by partnering with platforms such as Spotify, Apple Music, and Tidal to instantly ensure our artists’ music reaches global audiences. This move has reduced production costs and eliminated geographical barriers that once hindered music distribution. 

Retail Minded Founder Nicole Leinbach states, “It may be better to recognize the murky waters that lie ahead and pivot when necessary, rather than stubbornly keep toiling away at a floundering business model that’s quickly becoming obsolete.”

Artists like Beyonce have started releasing albums exclusively on streaming platforms, creating buzz among their fanbase and demonstrating the power of digital distribution. Independent artists now have much bigger artists to distribution platforms than ever before, allowing them to release music directly to streaming services, leveling the playing field. 

Goo Goo Dolls Instagram Post

Bands’ post featuring my handwritten postcard at their hometown show in 2018

Using Social Media for Promotion

Over the years, social media has significantly impacted how artists promote their music. 

For example, the rock band Goo Goo Dolls uses Instagram to engage with fans and promote their music and upcoming shows. Pictured is a postcard written by yours truly at a pop-up event they had in their homework of Buffalo, NY, for the Dizzy Up The Girl anniversary tour in 2018. 

When they engage with fans, posts like this have brought the artist closer to their fanbase, making them feel included, sharing experiences, and closing the gap between artists and fans like never before.

Marketers have also had to learn how to use social media to run campaigns, reach specific target audiences, plan campaigns, and even assist in routing a tour by looking at target market demand.

Integrating E-Commerce and Direct-to-Fan Sales

E-commerce platforms and direct-ti-fan sales have become crucial revenue generators. Fans can now purchase merchandise, limited album releases, and exclusive content directly from the artists. This direct sales approach increases revenue and strengthens the artist-fan relationship. 

Taylor Swift’s use of her website for direct sales with her new release of “The Tortured Poets Department” is a great example. By offering exclusive merchandise bundles, she drives album sales and increases fan engagement, showcasing how direct-to-fan sales can be integrated into her marketing strategy. 

Social media has revolutionized how fans discover and engage with new music.

In addition to these channels, crowdfunding is a new way in which artists can fund their passion projects directly through fan support. Platforms like Patreon have allowed for ongoing support where fans can subscribe to exclusive content and experiences. 

“Artists are now positioned better and can often attract some degree of success before labels get to them; this way, they come to the table with a loyal followership and can add directly to the bottom line,” says the CEO of the Hendrix group, Dr. Rick Hendrix. “These platforms are making it a reality for the next generation of musical talent.” 

Takeaways

Digital tools provide innovative ways for fans to connect with and support their favorite artists. Integrating digital channels throughout the industry directly enhances the customer journey by offering more touchpoints for fans. 

By learning how to leverage licensing, crowdfunding, and exclusive digital content for their fanbase, music marketers and artists can make strategic adjustments that enrich fan experiences, increase loyalty, and give the artists another avenue to connect with their fans throughout the customer journey.