We continue our ongoing 4QFor (Four Questions For) series with Nick Fitzsimons of Penny Distribution a music distribution, marketing and promotion service based in San Francisco. Nick also blogs about the industry here. (Read more 4QFor interviews with the heads of RouteNote, OurStage, Sonicbids, imeem, We7, ReverbNation, New Music Strategies and Nimbit here.)
Q1. What major changes to you foresee in the music industry in the next year?
I think the major revenue streams that used to make up the majority of an artists earnings (CD sales mostly) have been shattered into hundreds of tiny pieces. There's been a shift in focus to other revenue streams (publishing, subscription based models, ad-supported models, online marketing, cross promotion) and I think this trend will only speed up with upcoming legislative changes to, for example, internet royalty rates as well as changes in the publishing industry. Recorded music has become increasingly less valuable to an artist and will continue to become less so – but opportunities to make a viable career in music are more numerous than ever before.
Q2. How are you and your company prepared to benefit from these changes?. – Right from the outset, we saw a need to re-establish the trust between artists and labels. Providing flexibility and transparency for artists is the key – We wanted to empower artists to take a look...
at what they wanted from a label, and what they could do for themselves. Each deal we do is unique to that particular artist – we fill in the gaps we see in their music business approach and aim to be a true partner in their success. We're here as a service to help our artists become viable, creative enterprises.
Q3. What excites you?
Talking to people about their ideas for the new
music industry. I'm involved in conversations like this one on (at
least) a weekly basis with music industry novices, veterans and artists
alike. It's the willingness to embrace change, to innovate – the
possibilities that innovation presents – that makes this such an
exciting time.
Q4. What's next?
Penny is in a great position to evolve with changing
consumer demands and any particular legislative future. I think
evolution is essential in this environment – and our artists and fans
will be the ones who lead the way in that. That said, one particular
change I see is that local identity in music will become increasingly
important in our global world. The significance of building a vibrant,
supportive local music economy will become ever more vital to the
survival of artists and labels.
