> ## Content Index
> Fetch the complete content index at: https://www.hypebot.com/llms.txt
> Use this file to discover other available public pages before exploring further.

# FutureSound Conference Highlights: Innovation Drove The Discussion
- URL: https://www.hypebot.com/futuresound-conference-highlights-innovation-drove-the-discussion/
- Published: 2012-11-20T08:09:27.000Z
- Updated: 2012-11-20T08:09:27.000Z
- Description: Last week’s second annual Billboard FutureSound conference in San Francisco brought speakers from all facets of the music and tech relationship to speak about innovation in the music industry. Labels,. Continue reading [https://www.hypebot.com/hypebot/2012/11/futuresound-conference-highlights-innov
- Author: Bruce Houghton
- Tags: Uncategorized, #wp, #wp-post, #Import 2026-01-21 10:49

[![image from www.google.com](http://hypebot.typepad.com/.a/6a00d83451b36c69e2017d3dfc5566970c-150wi "image from www.google.com")](http://hypebot.typepad.com/.a/6a00d83451b36c69e2017d3dfc5566970c-popup?ref=hypebot.com)

Last week’s second annual Billboard  
FutureSound conference in San Francisco brought speakers from all facets of the  
music and tech relationship to speak about innovation in the music industry. Labels, investors, start-ups, rights  
agencies, artists, managers and music platforms all gathered for a positive  
discussion looking at the future.

Speakers  
included keynotes with Deadmau5, Marc Geiger, Don Was, and Fred Wilson, and  
panels and presentations with Bandcamp, Bandpage, Beatport, BMI, EMI, Epitaph Ford  
Motor Company, Getty Images, Google,   
Gracenote, GVC Capital, Rhapsody, SoundExchange, TAG Strategic, Topspin,  
WME, WMG and more.

[Bill](https://twitter.com/bwerde?ref=hypebot.com)  
[Werde](https://twitter.com/bwerde?ref=hypebot.com), Editorial Director for Billboard opened the conference highlighting  
it as somewhat of passion project for the team at Billboard who “believe in the  
future of digital music”. Discussing the  
theme of innovation, he added; “We’re not looking to poke sticks, we’re looking  
to find solutions”

**Compensation and Licensing:** 

The Day 1 issue of the discussion was the difficulty of licensing – although  
the need to overhaul and standardize a licensing compensation model that works  
was apparent throughout both days of discussion. While compensation, accountability,  
transparency, and fairness stood out as the concerns, the real issue was lack  
of knowledge and understanding of the challenges that what each party faces.

The real real solution seemed to be  
for parties to work together in order to develop an industry wide  
compromise. As the panel on Innovation  
& Licensing discussed, the pointing of fingers at each other is what  
creates problems. [DDEX](http://ddex.net/?ref=hypebot.com) was used as an example of labels, publishers,  
and services that have simplified their processes by working together rather  
than against one another.

**The Fan Pyramid:**

  
Different variations of the fan pyramid (or funnel depending on the  
speaker) were presented by Google’s [Tim](https://twitter.com/tbquirk?ref=hypebot.com)  
[Quirk](https://twitter.com/tbquirk?ref=hypebot.com), [Topspin’s](http://www.topspinmedia.com/?ref=hypebot.com) [Ian Rogers](https://twitter.com/iancr?ref=hypebot.com), and [GGV Capital](http://www.ggvc.com/?ref=hypebot.com)’s [Hany Nada](http://www.crunchbase.com/person/hany-nada?ref=hypebot.com), and referenced  
by speakers throughout. There are  
different levels of how fans interact and support an artist, and purchase their  
music.

Casual listeners are the largest  
category of a fan with lowest spending (if any) and lowest engagement. The higher the fan loyalty, the easiest to  
monetize and engage fan group. The key message  
was to recognize and engage different fans differently depending on their level  
of fan loyalty – including the levels in between.

**Streaming and Fan Discovery:** 

[](http://www.twitter.com/dvdmarcus?ref=hypebot.com)[David Marcus](http://www.twitter.com/dvdmarcus?ref=hypebot.com), SVP of Worldwide  
[Artist Services, ](http://www.twitter.com/dvdmarcus?ref=hypebot.com)[WMG](http://www.wmg.com/?ref=hypebot.com) later elaborated on how  
[streaming plays a bigger role into the fan ecosystem “streaming …is important](http://www.twitter.com/dvdmarcus?ref=hypebot.com)  
[to get people into the pyramid…first you have to entertain people, they have to](http://www.twitter.com/dvdmarcus?ref=hypebot.com)  
[feel excited about something…streaming leads into that”](http://www.twitter.com/dvdmarcus?ref=hypebot.com)

**Monetization and The Fan:** 

Hany Nada used the now infamous case of  
Amanda Palmer to drive home a well built point on learning to engage and  
recognize the different types of fans.   
48% of the million dollars raised by [Amanda Palmer](https://twitter.com/amandapalmer?ref=hypebot.com)’s [Kickstarter](http://www.kickstarter.com/?ref=hypebot.com) campaign came from only 4%  
of Amanda’s fans. An artist’s loyal  
supporters are willing to pay much more than the casual listener. The need to  
appreciate and engage the other 96% however, were just as important for  
Amanda’s campaign to hit the famous million dollars.

“The way we monetize music is to  
figure out what drives the fans. I don’t  
think we’re doing that today.” Concluded Nada   
“If anyone knows how to do that, give me a call.”

**Billboard’s Innovators Showcase**

: Derrick Fung, CEO of [Tunezy](https://www.tunezy.com/?ref=hypebot.com) – the winner for the challenge – demonstrated  
that what drives fans, is the opportunity to connect on a closer level with an  
artist. His start-up brings indie artists  
thousands of dollars by selling experiences like Skype calls, or merchandise  
like handwritten song lyrics.

Fung’s story captured the audience  
and the entire point of the event. A  
year after spending his vacation attending Billboard’s first ever FutureSound  
event, Derrick Fung stood on the stage and told the audience of how inspired he  
had been. He thought, “now is the time  
for innovation” cashed in his bonus, and quit his job.

[Tunezy](https://www.tunezy.com/?ref=hypebot.com)  
beat [GetMixxd](http://www.getmixxd.com/?ref=hypebot.com), [playground.fm](http://www.playground.fm/?ref=hypebot.com),  
[swarm.fm](http://www.swarm.fm/?ref=hypebot.com), and [Tixie](https://tixie.com/?ref=hypebot.com)  
from the shortlist of start-ups chosen to demo at the event.

Direct to Fan

: [Topspin’s](http://www.topspinmedia.com/?ref=hypebot.com)  
CEO, [Ian Rogers](https://twitter.com/iancr?ref=hypebot.com) discussed the  
correlation of bundling music and the profitability of the music industry. While music sales will likely never return to  
full-album purchase at just under $20 an album, there is large opportunity for  
the artist in bundling. The loyal fans  
are willing to pay a high premium for exclusive or bundled product and fan  
experiences.

[Emily White](https://twitter.com/emwizzle?ref=hypebot.com), Co-Founder of [Whitesmith Entertainment](http://whitesmithentertainment.com/?ref=hypebot.com) had an  
even simpler way of looking at the direct-to-fan approach; “the highest margin  
we see is direct-to-fan, so that is where we prioritize”.

**Direct to Fan Challenge:**

“For the casual listener, how do I reach  
that casual fan to tell them I have a show next week? Asked “[Zoe](https://twitter.com/zoecello?ref=hypebot.com)  
[Keating](https://twitter.com/zoecello?ref=hypebot.com), Artist. “The connections of  
fans aren’t available to us” said David Marcus about the lost potential  
opportunities with music services.

[Bandcamp](http://bandcamp.com/?ref=hypebot.com),  
CEO and Co-Founder [Ethan Diamond](https://twitter.com/ethan%5Fdiamond?ref=hypebot.com)  
built on the missed opportunities in the music industry. While Bandcamp does provide fan contacts and  
data to artists, “the crime is that most artist’s don’t go in to get their  
data”

***This event coverage is by Kat***  
***Drucker, Strategic Consultant for Canadian Music Week and Digital Media Summit***  
***(@kitkat5656)***