A Quick Quiz to Test Your Knowledge of Today's Music Industry

When I was first starting out as a young professional in Nashville, my mentor told me that there are three kinds of people in the music business:

1. People who make things happen: AKA movers and shakers
2. People who watch things happen: AKA watchers
3. People who wonder what happened after it happened:  AKA most people

My mentor was a mover and shaker in the music industry. He opened doors and made things happen.  I was very wet behind the ears when I was first starting my career, but I aspired to one day be like my mentor.  As a result, I listened to every word he said and studied his actions closely.  At the time, I was content to be a watcher.
 
When I started to practice what I was learning, my career took off full throttle.  I received promotions, I began to meet other movers and shakers, and Industry recruiters were constantly calling me with new job offers.  I was starting to make things happen!  I was on my way to becoming a mover and shaker.

Perhaps the biggest lesson I learned from my first mentor was to stay current.  That meant keeping up with music trends, monitoring the music industry charts, seeking out networking opportunities, and reading industry periodicals.  I also learned that it was important to keep up with what was happening in other industries and the world in general.

If you dream of a professional career in the music industry or you want to advance your existing career, you need to keep current and be aware of what’s happening day to day both inside and outside the industry.  Here’s a 5 question pop quiz to determine what type of person you are presently:

Q1)  Is the music industry growing or shrinking?

A1)  If you’re like most people, you probably think that the music industry is currently growing and will continue to do so for the foreseeable future.  Unfortunately, this answer is simply way off the mark.

A2)  Watchers take a look at industry revenues year over year and believe that the industry is in rapid decline.  That about sums up the perspective of industry analysts and most record label executives today.  However, it’s only partially true.

A3)  Movers and shakers would answer both.  Both in the U.S. and worldwide, revenues of the major record labels have declined dramatically over the past decade.  In fact, 10 years ago the average person spent almost 3 times as much on recorded music products as they do today.  At the same time however,  music is available to the consumer like never before as more and more people turn to digital distribution to discover and purchase new music.

 Movers and shakers realize that the industry has now come full circle from the 50’s and 60’s.  The era of the single is back and the movers and shakers are preparing to play a whole new ballgame.

Q2)  What’s the biggest opportunity for songwriters, artists and musicians today?

A1)  Most people would answer reality television.  Shows like American Idol and The Voice are surfacing more and more vocal talent, giving more people a chance to make the big time and become pop singing sensations. These are the same people who lined up around the corner waiting to buy Paris Hilton’s debut CD.

A2)  Watchers know that Digital Distribution is where it’s at right now.  Artists who are adept at managing their own marketing are finding out that they can make a very lucrative living through digital downloading and live performances.  And, it’s only getting bigger.  Nevertheless, watchers only focus on the current trend and are not necessarily aware of what’s beyond the horizon.

A3)   Movers and shakers are already aware of what the next groundbreaking trend will be.  That trend is mobile media.  They’re starting to view the market much like their predecessors did back in the 50’s and 60's:  That was a time when the car radio was the only mobile device, radio airplay exposed fans to new music and compelled them to go out and purchase 45's of hit songs.

Today's movers are shakers and studying the mobile communications industry in order to develop distribution methods that will rectify the industry’s present declining revenue situation.

Q3)  Do you know the latest “shake” in the mobile media industry?

A1)  Most People have no clue when you ask them.  In fact, they’d probably answer it's the invention of the ringtone.

A2)  Watchers are amazed by the advancement of mobile devices and realize that the mobile media industry is still in its infancy.  Technology continues to outpace music distribution and record labels don’t know what to do about it. The record labels are just catching up with the iPod through iTunes. However, the latest smartphone products are continuing to revolutionize the market. The iPhone is the most recognizable smartphone product available to consumers. However, the industry recently experienced dramatic entrances into the market from lesser known companies like Nokia and BlackBerry.  

A3) Movers and Shakers know that the winners in this highly competitive industry will be the companies which most effectively mesh new mobile devices with social media and entertainment delivery.  They’re aware that Internet companies like Google and Facebook are entering the marketplace with mobile devices of their own. Bill Gates and Microsoft have also done the very same thing with the Windows phone. 

 The questions that music industry movers and shakers are now asking themselves are:

1. What mobile products will be the next big thing?
2. How will social media shape user experience with these products?
3. How will they package and sell these new bundled products to consumers?

Q4)  Who cleaned up at this year’s GRAMMYs?

A1)  Most People would say Adele.  She won a total of 6 awards and captured the hearts of the viewing audience with her live performance.

A2)  Watchers took note of the show’s television ratings and answer the show itself.  With 39 million U.S. viewers, this year’s show was the second most watched in history.  And, except for Nicki Minaj’s nauseating and entirely inappropriate act to close the show, the audience as a whole witnessed several very entertaining performances.

A3)  Movers and shakers can’t deny that Adele was the star of the 2012 GRAMMYs.  However, most savvy industry insiders are likely to answer that the show’s sponsors and advertisers were the biggest winners. Brands continue to rely on music and celebrities to both underscore the thematic connections they want to create with consumers and, in a targeted way, to appeal directly to the right customer for their product. Chipotle, Bing and Chevy's ad for the Cruze were among the winners that used celebrities and music to connect with viewers this year.

 Movers and shakers know that big ratings equate to higher sales for advertisers.  This in turn means a financial windfall for the music industry in the months to come as more and more brands turn to recognized artists and popular songs to promote their products.  

Q5)  What is the biggest threat facing the music industry today?

A1)  Most people believe that new talent is lacking in the music industry given what the mainstream media distributes to consumers through traditional channels (CD’s, radio, big venue concerts, etc.).  

A2)  Watchers refute claims that talent is the problem, pointing to the dramatic rise of independent artists who profitably manage their own distribution over the Internet as proof.  Watchers know that digital distribution is reshaping the landscape and threatens the industry’s traditional business model.  That said, they don’t know how to return the industry to profitability. 

A3)   Movers and shakers are beginning to cope with digital distribution as the new industry norm and recognize that many talented artists are now independently marketing their music. Apple’s iTunes, and dozens of other reputable companies are piling into mobile music looking to capitalize on the opportunity.  However, they’re all scrambling to stop the industry’s biggest financial threat: Music Piracy.

 Pirates have decimated the industry. Juniper analyst Daniel Ashdown recently told mocoNews that iTunes currently accounts for nearly 60 percent of mobile music market revenues. Meanwhile, in digital music overall, iTunes accounts for just 66.2 percent of all downloaded music according to December 2011 figures from NPD Group.  P2P file sharing is getting more prevalent on mobile devices, as are apps that encourage this. For example, a BitTorrent client—creatively named “BitTorrent Client/aBTC” provides consumers with no-cost music downloads. 

The companies behind these app makes money when the customer purchases the app.  However, artists, song writers and the record labels that have long employed them don’t see a dime of this money.  Movers and shakers are taking drastic steps to halt the illegal download of music in order to salvage revenues.

After answering these five questions, what did you learn about yourself?


If you’re like most people entering the music industry you had better latch on to a strong mentor and begin to develop a game plan for your career!  Becoming a professional member of AMP is a good starting point.  AMP members benefit from professional networking events where you’ll meet a number of music industry movers and shakers and have the opportunity to ask questions about navigating your career in the music industry.


If you’re a watcher, it may be time for you to get in the game yourself.  Again AMP membership is a natural starting point.  AMP provides direct access to unparalleled training materials, the latest industry news, and career management resources all for the cost of your low annual dues.


And, If you’re already a mover and shaker, you’re probably a current AMP professional member.  If not, you should really consider taking advantage of our limited-time free trial membership offer which affords you all the benefits of our paid membership.


As for the industry’s pesky and persistent Pirates, what do you think needs to happen to protect the industry and prevent pervasive Piracy?  Leave us a comment and let us know your personal perspective on the problem!