There’s a lot of reasons why music startups fail and sometimes these are not immediately observed and addressed. Some of the reasons why music startups fail are pretty obvious and the problem is that most of these music startups are oblivious to these reasons.
Here are some of the alarming evidences that demonstrate the high rate of failure in music startups and how we can best address them:
There’s been a lot of music startups that have risen of the last few years however, only a few and you can now count who have remained in the business. It has been a great debate and a rather sad discussion learning about this particular situation in the music business. It also drove a lot of questions around the reasons and potential causes. One of the major things pointed out was the digital deficiency that these music startups have and they are altogether at a disadvantage from their giant competitors.
Lack of industry standard agreements between artists, publishers and labels
There remains to be an issue with standardizing how copyright and right holders are managed. It is a much too complex a discussion and there are a lot of factors into play. It has jumped exponentially from a straightforward arrangement in the golden age of the music industry, or around the 70s or 80s, to the contemporary and modern times where it has now become too varied. It’s hard to put a standard on how these agreements go between artists, labels and publishers. Somehow, that gets in the way of music startups to navigate through and become successful.
No close relationship between artists and fans
There has to be a great relationship between artists and fans. Ultimately, music is dependent on people. If there are less people who listen to music then the music industry suffers. It is the music industry’s responsibility to bridge that relationship and enrich the listeners’ experience of the music they love. Music startups suffer from this aspect as they are more focused on concert tickets and creating more events and shows for their bands, musicians, etc. There is no adequate investment around keeping the artists and fans in a stronger and more personal relationship. There is just no time and less money. There is a need to compete with the big labels from meager returns of royalties. For a music startup to be successful, it has to bridge that gap between artists and fans and build the community before focusing too much on the business side.
No path to grow in the market
In order for the music startup to become successful, it has to find a way to grow in the market. It’s not reason enough to say that the market has been congested or diluted or matured that there’s no more room for growth. There will always be room for growth and a music startup is capable of thrilling that market if that music startup knows the path. The key to success is to always think and do everything outside the box. Provide more innovation in the music industry and continue to build a culture.