The Impact of Social Media on Touring and Live Performance Doni Tavel Senior, Management School of Public and Environmental Affairs DTavel@umail.iu.edu Introduction • Research question: ▫ Whether or not social media has had a significant impact on touring and live performance. • Inspiration ▫ Aware Records | A-Squared Management Chicago, IL – Summer 2011 A Rocket To The Moon (www.arockettothemoon.net) Chicago, IL 2012 Manila, Philippines 2012 The Old Model • Offer: • Key Resources: ▫ Physical Album ▫ Copyrighted Content ▫ Live Performance • Revenue: ▫ ALBUMS! ▫ Tours and Concerts ▫ Merchandise • Customer Segments: ▫ Mass Market • Customer Relationships: ▫ None • Channels: ▫ ▫ ▫ ▫ TV Radio Print Tours • Key Activities ▫ Marketing & Promotion of Album For detailed Music Industry Business Model Analysis: AlexOsterwalder.com Enter The Digital Age • Digital Music Explodes ▫ 1994 – MP3 Encoder Enabled transfer of songs from CDs to computer ▫ 1999 – Napster Introduced peer-to-peer file sharing ▫ 2001 – iTunes Brings millions to online marketplace New, legal distribution of music • Result ▫ Digital Piracy 2001 – 99% of music files available online were unauthorized (IFPI Music Piracy Report, 2002) ▫ Price of songs trends toward ZERO ▫ Music Discovery and Sharing The Old Model • Key Resources: • Offer: ▫ Copyrighted Content ▫ Live Performance ▫ Physical Album • Revenue: • Channels: ▫ ALBUMS! ▫ Tours and Concerts ▫ Merchandise ▫ ▫ ▫ ▫ • Customer Segments: • Key Activities ▫ Mass Market • Customer Relationships: ▫ None TV Radio Print Tours ▫ Marketing & Promotion of Album For detailed Music Industry Business Model Analysis: AlexOsterwalder.com Social Media Explodes • Social Sites Emerge ▫ 2001 – Ryze.Com To help people leverage business networks ▫ 2002 – Friendster.com To connect friends-of-friends ▫ 2003 – MySpace (MUSIC!) • Results ▫ ▫ ▫ ▫ Bands, Fans, Venues, Promoters, etc. connect Specific place to find and share music you like The artist-fan relationship is born 23% of time spent online (Nielsen State of the Media Report) A Shift Occurs • Offer: • Key Resources: ▫ Tours and Concerts ▫ Live Performance ▫ Licensing • Revenue: • Channels: ▫ Tours and Concerts ▫ Merchandise • Customer Segments: ▫ Geographic ▫ Interest-Based ▫ Music-Related • Customer Relationships: ▫ Social Media ▫ ▫ ▫ ▫ ▫ Band Websites Social Media Online Radio Mobile Applications Tours • Key Activities ▫ Marketing & Promotion of BAND For detailed Music Industry Business Model Analysis: AlexOsterwalder.com Social Media as an Advantage • 2 Overarching Opportunities 1. Increased Connectivity Fans Industry professionals 2. Access to a Global Audience Increased Connectivity - Fans • Psychographics > Traditional Demographics ▫ Relating by interest, habit, trend • Establish Communities ▫ Engage the fan base • Increased Awareness & Sharing ▫ “90% of consumers surveyed noted that they trust recommendations from people they know.” (Nielsen, 2009). ▫ “Active adult social networkers are 75% more likely be heavy spenders on music.” (Nielsen State of the Media Report, 2011) Increased Connectivity – Industry Professionals • Venues ▫ Venue – Fans, Venue – Bands ▫ Case Study: The Roxy, Los Angeles • Promoters ▫ Social media trends signal demand ▫ Case Study: A Rocket To the Moon in Indonesia • Managers ▫ Social Media trends signal profit Access to A Global Audience • No geographic limitations • Define and target new markets ▫ A Rocket To The Moon • Local Acts ▫ Difficulty, but still success Recommended Additional Reading: Carey Sargent (2009): LOCAL MUSICIANS BUILDING GLOBAL AUDIENCES, Information, Communication & Society, 12:4, 469-487 Ticketing • Eventbrite ▫ “To make events as easy to create, find and attend as possible.” ▫ “Shares” are valued at over $12 per share • Ticketfly ▫ Independent ticketing and social marketing platform. ▫ Each FB or Twitter share sale of 3.25 tickets • Ticketmaster ▫ Ticketing service (largest market share) ▫ Facebook-integrated Social Seating ▫ Facebook share alerts $5.30 additional ticket revenue Artist Discovery, New Tours! • Mac Miller ▫ No radio rotation ▫ No major label ▫ Discovery & popularity through YouTube ▫ Sold out tour • Justin Bieber ▫ Started on YouTube ▫ Sold out Madison Square Garden in 22 minutes ▫ $83 million in ticket sales revenue ▫ “Beliebers” Concert-Related Apps • Ticketmaster Social Seating • Pandora, Spotify, Online radio ▫ Integrating with ticket sites, social music & sharing • ReverbNation ▫ “PROMOTE IT for Shows” feature • SongKick ▫ Users attend 70% more shows ▫ To encourage more sharing, and more attendance Conclusion • Advantages ▫ Increased Connectivity ▫ Global Audience • New Resource for ▫ Venues ▫ Promoters ▫ Managers • Ticketing ▫ The numbers are up! ▫ Sharing profits • Artist Discovery ▫ No Major label necessary ▫ HUGE successful tours • Just getting easier! ▫ Concert related software ▫ Increased Social Media Use • Hugely significant impact on touring and live performance. Thank You! • Questions?