What Are the core objectives of record companies? ADVANCED COURSE MUSIC
By Joyce Dijkgraaf Student number 2186143 Cohort 2011 Lecturer Jan Bijlsma Word count 3013
What are the core objectives of record companies?
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TABLE OF CONTENTS
Introduction
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The Golden Circle
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Entertainment vs. art
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How it all began‌
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What Are the core objectives of record companies?
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The Expectations of a record company
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The arise of the independents
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what should the strategic goal for record companies be?
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Conclusion
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References
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Introduction Music has always been one of my fascinations. Not just music, but the music industry itself. For me it is a giant puzzle that needs to be solved. The challenge for me is in that it is missing pieces and there are some parts that do not quite fit. And that while the puzzle is constantly changing. During the Advanced Course Music at Fontys Academy for Applied Sciences our lecturer, Jan Bijlsma, gave us the challenge do think about the music industry as it is today. How did it derive from the choices that have been made in the past? And what can we learn and maybe alter out of that knowledge to benefit from in the future of the music industry? Music is about giving and receiving energy. It influences our emotions, our mind and our body. Through music people share stories, experiences and knowledge from the old days on. It is of such emotional value that some people might say that they can not live without it. The choices made by record companies only seem to be having a financial motivation instead of sharing the energy music gives us with millions of other people around the world. So why is it that the music industry seem to focus on making money? Are they forgetting what music is about? What was the motivation of the people who started to make an industry out of music? I do not think money was the driver for the arise of the music industry but sharing energy was. So are record companies failing to achieve their core objectives? Or what are the core objectives of a record company?
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The Golden Circle But what are the core objectives of a record company? Is there a common factor for both music and industry? The model of the Golden Circle was developed by analyzing why great leaders are successful. It can be compared with the human brain. The outer circle, the what, represents the neocortex. That part of the brain is involved with rational and analytical thoughts and language. The inner two circles, the how and why, corresponds with the limbic system within the brain. Here emotions like loyalty and trust are being formed. (Sinek,S 2009) Before
After
What How Why
If I put the model of the Golden Circle on top of the brain, that shows a brain after listening to music, and I can clearly see a resemblance. But what does this mean? The “Why” in Sinek’s model represents the vision of a company. Sinek states that is not about making profit, but about what companies believe in and what motivates them. These companies think, act and communicate from the inside out. So they are driven by emotions. The music brain shows that when listening to music our emotions become more active (Zatorre 2006). Conclusion is that both listening to music and a companies belief can cause an emotional reaction which can emerge to loyalty and trust. The “How” represents “How does a company do what they do”. When you have a belief you need to have a plan to execute that, and gain trust and loyalty with people. This plan needs to be in line with your beliefs or else people will feel that you are not true to your “Why”. The “How” for music could be, how the musical part is presented. In other words, how do you listen to, or get in touch with the song. When you are sad and you listen to a happy song the credibility of the song is not as strong as when you are in a state of happiness. The common factor for both music and industry applying the Golden Circle are emotions. But are record companies today driven by emotions?
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Entertainment vs. art During the late seventies and early eighties marketing in music began to focus more on the consumer and his needs. By understanding what consumers want they could develop product and services in line with their needs. They found out that products were much more easy to sell applying a marketing concept. This way music artists were created and became an entertainment product. (Music marketing: A history and landscape 2011) The main difference between the arts & entertainment: Entertainment gives you a predictable pleasure. Art gives you pleasure but leads to transformation. It awakens you rather than just satisfies a craving. This is a quote from artist Makoto Fujimura I completely agree with. According to research there is a difference in feelings and emotions. Emotions can be related to a person’s interpretation of a work in terms of artistic taste, knowledge and personal life experiences. The search for deeper layers of meaning leads to more engagement and emotional elaboration. Feelings on the other hand are selected motivations which modulate feelings of pleasure or excitement. This process is superficial in the sense that there is no need for deep processing in order to determine the value of the motivation. (PsycINFO Database Record 2012) I conclude that entertainment is a product to retrieve a temporary fulfillment which stimulate feelings. And art can result in an alteration in a persons development and vision. So again we come back to emotions. In the previous part I concluded that emotions are the common factor for music and the industry. But most record labels sell entertainment products. But how can you anticipate on what people want with something as intangible as music? My opinion is that you can not. A product created purely for entertainment is a predictable pleasure, which is not in line with the core function of music. So in other words, you would be lying. Music itself is for a fact art because it triggers the emotions in your brain. It is the feeling you get when listening to a song. Art is being defined as: “The expression or application of human creative skill and imagination, typically in a visual form such as painting or sculpture, producing works to be appreciated primarily for their beauty or emotional power” (Oxford Dictionaries) Translated for a music part: “The expression or application of human creative skill and imagination, works to be appreciated primarily for their beauty or emotional power” Therefor the question that raises my mind is, has the industry not made a huge mistake by not letting the music do what it does best? Research shows that music has effect on our emotional system and that is why music is such a strong means. But if we sell music like entertainment products, people will never experience the true power of music. Entertainment generates a temporary fulfillment.
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How it all began… What was the motivation for the people who started to make an industry our of music? When the phonograph was invented by Thomas Edison in 1877, his first idea was to use this device as a dictation machine to replace the need to write letters in the business world. The founder of the Columbia Grophophone Company, Edward Denison Easton, was a young stenographer, when he encountered with the “talking machine”. I can only assume he must have been a music lover seeing the opportunities the device had. In his death notice are writings about him being determined, loyal and enthusiastic. He gave to charities and was ever inclined to help people in need. (The Music Trade Review 1915) Thanks to the Phonograph people of all classes could enjoy music other then just the rich. People were able to listen to different kinds of genre and therefor it transformed society. (Music marketing: A history and landscape 2011) I can not imagine Edward Denison Easton allowing this transformation if his motivation was money. Taking in mind what music does to us, I think Edward Denison Easton wanted to share the experience he had with music and saw a chance when he encountered with the “talking machine”. The death notice did not refer to a man that made a lot of money. It was about changing society and a person having the willpower and stubbornness to stick to his vision.
What Are the core objectives of record companies? Just like the Phonograph, history shown us much more technological developments that changed society and therefor changed the music industry. Actually the music industry derived out of these developments. They all improved life in their own way and also brought change. Change stimulates the prefrontal cortex, an energy-intensive part of the brain responsible for insight and impulse control. But the prefrontal cortex is also directly linked to the most primitive part of the brain, the amygdala, which is the brain's fear area, which in turn controls our "flight or fight" response. When the prefrontal cortex is overwhelmed with complex and unknown concepts, the amygdala connection gets boosted. All of us are then subject to the physical and psychological disorientation and pain that can manifest in anxiety, fear, depression, sadness, fatigue or anger. (Carol Kinsey Goman 2007) The music industry is undergoing constant change. And in a world where information is easy accessible, new additions to current models are put together every day. If Edward’s motivation was to share music and help people, he clearly had a vision and was not afraid of change. Record companies nowadays still do the best they can for the circumstances they are in. After 125 years of change they still have not found a way to respond to change or What are the core objectives of record companies?
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maintain a clear vision. They do offer artists a network, knowledge and if possible financial needs but I think they still do not know why. What is the strategic goal of being a record label? When looking for a vision on the websites of the three majors, they all state the same message. They are one of the largest record companies in the world, have a lot of experience and list out their successes. Only Warner Music Group shares a little more information. “WMG comprises an array of businesses aimed at helping artists achieve long-term creative and financial success while providing consumers with the highest-quality music content available.” It is clear that record companies know about what they are doing and thrive on their experience. The texts on the websites of the majors clearly state that out. But besides Warner Music Group there is nothing to be read about the “How” and absolutely nothing about the “Why”.
The Expectations of a record company The factors that contribute to being signed to a record label as an artist, according to “The unconventional guide to getting signed by a record label", are great music, a (big) fan base, good marketing and dedication. (Voogt 2013) When reading through the guide it seems like a record company is only looking for entertainment products and the artists who want to be signed should adapt to the wishes of a record company. Artist create music that feels good and derives from the inside out. Record labels have expectations artists need to live up to, to get a chance of getting signed. So they are asking artist to work from the outside in, which is in contradiction to what the artist feels and will eventually have effect on the music. It is often heard that a first album is best because a record label interfered with the creative process of the next releases. Maybe not through creative influence, but time pressure can have effect too. The factors of “giving me energy” or “affect me” are not being mentioned. This while emotion is the common factor for both. Music is an unstable product and you never know when a song becomes a hit song that will result in a decent income for the artist as well as the record company. Because the fact is that these people also have to make a living. They can not have a decent life, living out of thin air and be expected to keep on doing what they do. So record companies think they found a way to reinsure an artist’s future, and their own, through marketing. But just like money, marketing is not a goal by itself. But throughout the years record companies faced barriers they did not foreseen. And because change triggers our “flight of fight” response record company lost their way back to their origin.
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The arise of the independents Joe Daniel, the creator of the Independent Label Market, tells about the experience of independent record companies selling music directly to the fans. It is like buying an apple at the market place and the man selling the apples can tell you everything about it. The original goal behind the Independent Label Market was a reductionist idea about bringing indie labels back to their very essence of one or two people banging on about music very passionately to anyone who'll listen.” With the rise of independent music makers, perhaps the industry as a whole will finally return just that: people banging on about music very passionately to anyone who'll listen.” Independent music companies may all release different kinds of music but all truly love music and what they do. They are definitely all connected. "As the majors struggled to come to terms with the new state of music courtesy of digital distribution, independent labels and artists in particular, seized the opportunity. They understood the power of being able to connect quickly, and directly with their fans," explains Parkes. "It leveled the playing field between the majors and indies in many ways. As a result, you have bands exploding out of nowhere.” (Joe Daniels 2013) So when reading his motivation it sound a lot more like the understand what music is about. I’m not reading anything about the needs of the artist, but they do understand that sharing the experience with people is important and it will get results.
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what should the strategic goal for record companies be? It’s about emotions, beliefs and motivations. Music is about giving and receiving energy. People see music as a product that can be replaced, collected and thrown away. What people do not see it that an artist who creates music is a human being with beliefs and motivations that derive from his or her perception of the world. And every song that he or she creates is a means to share those beliefs. An artist wants his or her songs to be appreciated primarily for their beauty or emotional power. But it is important to make the psychological connection en to truly feel. A kiss without love is just a kiss, but if you give the kiss consciously while connecting to another person it is magic. The way we consume music is not just about listening but involves the way in becomes integrated into our personal and social lives. The role of technology is substantial in the way we experience music. (Kenton O’Hara, Barry Brown 2006) Record labels are the bridge between the music and the people. They are the connection that can create magic. And why do record companies want to do this? Because they experienced the emotional connection to the music which lead to transformation. They are the ones understanding what it is like to give the kiss consciously while connected to the emotional power. That is why they want to share it. So to be more precise: Record companies understand the emotional power of music and want to share that with the rest of the world. How do they do that? 1. Sharing music The core power of music lies in awakening emotions. In communicating beliefs and motivations. This means in what form so ever. And since music is about experience and emotion it is about communication and knowing whom to share with. 2. Believing in the artist By truly understanding the beliefs and motivations of the artist, record companies carry out the right messages and give the artist what he of she needs to stay in line with those beliefs. 3. Connect with people It is not about telling what the emotional power of music is but let people experience it. What can be the concrete result? A product containing music at the quality it needs to carry out the “Why”. Service to the people and artist
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Conclusion Are record companies failing to achieve their core objectives? Were they not just ahead of themselves and forgetting what music is all about? Looking at the model of The Golden Circle record companies clearly know what they do. But why they do what they do is unclear. The actions record companies took over the past years are not in line with the strengths music has. In its core music is a form of art. The brain reacts to music by awakening emotions in the limbic system. This is also where the “Why” in the model of the Golden Circle is stated. Changes trigger our “flight of fight” response. This could be a reason why record labels are not yielding to the rapid developments in music industry and make choices that are not alined to their core. Artists start with their why, but record companies have a checklist of marketing tools they ask of artists and therefor artist are living up to the expectations of record labels. In the end a record label is a service provider for artists and people. They are the bridge between the two groups who have the power to create a magical connection. The strategic thought for record companies should be sounding more like: Record companies understand the emotional power of music and want to share that with the rest of the world. By keeping the “Why” of an artist as the stable factor in every new release record companies can create a loyal and trustworthy relationship between the artist and the people. This can contribute in people having more respect en love for artists and their music. So yes, record companies are failing to achieve their core objectives of sharing, believing and connecting. The reputation music industry has is hard to overcome. But living up to your believes and motivations will only make you stronger. A strong leader starts with the “Why”.
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References
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Cupchik, G. C. (2011, 12). The Role of Feeling in the Entertainment=Emotion Formula. Journal of Media Psychology: Theories, Methods, and Applications, 23(1), 6-11. doi: 10.1027/1864-1105/a000025
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Entertainment vs Art. (n.d.). Retrieved November 02, 2014, from http://illuminate.us/entertainment-vs-art/
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Hollander, M. (2013, April 27). Independent Label Market and the Rise of Indie. Retrieved November 02, 2014, from http:// www.huffingtonpost.com/maggie-hollander/independent-label-market-the-rise-of-indie_b_3171666.html
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O'Hara, K., & Brown, B. (2006). Consuming music together: Social and collaborative aspects of music consumption technologies. Dordrecht: Springer.
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Ogden, J. R., Ogden, D. T., & Long, K. (2011, 12). Music marketing: A history and landscape. Journal of Retailing and Consumer Services, 18(2), 120-125. doi: 10.1016/j.jretconser.2010.12.002
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Peretz, I., & Zatorre, R. J. (2003). The cognitive neuroscience of music. Oxford: Oxford University Press.
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The Sideroad. (n.d.). Retrieved November 02, 2014, from http://www.sideroad.com/Leadership/change-effects-brain.html
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Sinek, S. (2009). Start with why: How great leaders get everyone to take action. New York: Portfolio.
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The Unconventional Guide To Getting Signed By A Record Label. (n.d.). Retrieved November 02, 2014, from http:// www.budivoogt.com/unconventional-guide-getting-signed-record-label/
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Universal Music. (n.d.). Retrieved November 02, 2014, from http://www.universalmusic.com/company
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Warner Music Group | WMG. (n.d.). Retrieved November 02, 2014, from http://www.wmg.com/
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