Are you interested in starting a music-related business, combining your passion for music with your entrepreneurial goals? Some consider bridging the gap between creative music and goal-oriented business practices difficult, but the two schools of thought actually have much in common. Innovation and creativity are at the heart of both original music and successful business development.
It comes as no surprise that some of today’s most successful businesspeople are also performing musicians. If you have a love of music, an innovative mind and a desire to work in the music industry, you can learn the effective business practices behind music entrepreneurship by enrolling in an online Master of Music in Music Business and Entertainment Industries (MBEI) program — and you can apply the knowledge and skills you gain in the development of your future business endeavors.
The Common Spirit of Music and Business
In the constantly evolving music industry, innovation guides the next big thing, whether it is a DJ combining old genres into something new, a pop artist’s multimedia album release or an indie label’s subscription-based distribution strategy. Experimentation and innovation are part of the forefront of the music world, both for artists and businesspeople. Musicians benefit from innovations in marketing, promotion and emerging media. In turn, music entrepreneurs must keep a finger on the pulse of modern music in order to stay current in their field.
The Changing Music Industry
The music industry has changed a great deal since the turn of the century. Its primary source of revenue used to be record sales. Record companies sought out talented artists, nurtured their growth, released records, and relied on touring and marketing for promotion. With the advent of digital downloads and streaming, however, record sales have plummeted. Although revenue from digital distribution sources has become a substantial part of the industry, it does not compare to the revenue record sales once generated.
As a result, companies have had to adjust, creating new ways to make money from music. This has also corresponded to the breaking down of many big record labels, as their business models have become unsustainable. Smaller indie labels have sprung up left and right, often led by younger musicians and entrepreneurs well-versed in modern, do-it-yourself business models, social media marketing and direct fan engagement.
Moving Music Forward
Although overall profits in the music industry have declined, these recent developments have actually created new opportunities for music entrepreneurship. Large record companies used to handle their promotion, marketing, distribution, booking and management in-house. With the move towards indie labels, however, many of these roles have been parceled out to different businesses.
There are many sources of funding available to musicians and entrepreneurs, like small business loans and startup grants. In order to make ends meet, today’s musicians have to explore the earning potential beyond record sales and downloads. They work with music publishing companies, promoters, booking agents, managers and labels for assistance. With all of these roles now carried out by individual businesses, the modern entrepreneur looking to start a music business has many opportunities to explore.
If you are interested in studying music entrepreneurship, there are many opportunities to turn your passion for music into a successful career. Enrolling in an online music business degree program, such as the MBEI from Frost School of Music, can help you combine intelligent business practices with the innovative spirit to develop a creative and rewarding business.
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