By: Brian Malouf @bmaloufmix
Editor's note: We received this note from Brian Malouf, Founder of the DJOOKY Music Awards, through Lina Rincón, press officer in Colombia, and due to the importance of its content, we have decided to publish it on Zonagirante.com. Malouf, for those unfamiliar with his career, is a multi-platinum American producer, engineer, and mixer who has worked with Michael Jackson, Queen, Madonna, Pearl Jam and Stevie Wonder, (among others).
Last month, the music streaming provider SoundCloud, announced that The gratification of their artists will be based on and capitalized by their followers and fans. This royalty system based on "fan opinion" has been in effect since April 1st and replaces the traditional "group" system, whereby financial support for artists was based on the total number of downloads. The change that SoundCloud will implement becomes a significant step towards restoring the concept of popular music. and it becomes a new way to promote the talent of artists and composers from all over the world and to give weight to the opinions of their fans.
The power of followers
The arrival of the Internet marked a period of disconnection between music production companies and their artists. The power of dissemination and decision-making remained in the hands of telephone and cable companies, social media platforms, and hardware providers., since each of these actors has different roles and interests in the dissemination of original music, highlighting the lack of connection between fans and artists. I'm not suggesting that everything was perfect before the internet. However, artists and repertoire (A&R) professionals had a decisive say in which groups were signed or promoted., And they did so based on a deep understanding of their audiences, They often knew them to the point of obsession. Back then, A&R professionals demonstrated the true meaning and potential of music. For them, music was a business: He was unlikely to be distracted by hardware sales or the revenue they earned per user when they were looking for talent!
Currently, the reality is different for aspiring musicians and composers, as they face a system based on monetization and boosting market share., instead of a talent.
A study conducted this year by the Centre National de la Musique France sums up the situation perfectly: 101% of all Spotify and Deezer revenue goes to just 10 artists. This represents a large market share (for the lucky 10), compared to the thousands of styles and genres vying for an audience. Why is this important? Revenue from recorded music sales in Latin America increased by 191% during 2019 (This is the latest figure available on the market), excluding performance, marketing and other associated income.
While COVID-19 has severely impacted the revenue of concerts and venues, The figures reflecting the US market provide a guide to recorded sales., and are expected to continue growing despite the pandemic. However, in addition to economic growth and the jobs created, the music, in particular the original composition, It represents one of the deepest and most personal forms of self-expression. Not only for the composer or artist, but also for those whose lives change when they hear each song. These feelings are not limited to the representation of ten "lucky" artists who dominate Spotify.
According to Chartmetric, the origin of musical trends and hits They are located in various cities in Latin America (and South and Southeast Asia), where fans can interact more quickly and easily with new or emerging artists regardless of their market of origin. This trend was evident between 1955 and 1999, as 455 singles from 117 Latin artists reached the Billboard Top 100, including Chicano, Richie Valens, and Miami Sound Machine. According to the investigation “(from Latin America) . . . 658 million people are growing their participation in the global music industry faster than any other region in the world.».
I am aware that Latin America has a history of identifying and fostering musical talent. This was confirmed at the latest edition of the global awards. Djooky Music Awards, where the second place was obtained by the Chilean artist Verdugoivf. But the fundamental role of Latin America in the music sector It falters as the industry consolidates around "tried and tested" genres.
That's why, the royalty scheme «"fan-based"» from SoundCloud represents another step in the right direction. But for Latin American artists and composers to reach their full potential, the entire industry needs to return to its fundamentals: that unique bond between the artist and their audience.