Label 2.0 - Keeping it Local

I just read a very interesting study about regional music economies, by the University of Birmingham’s Tim Wall.  As with most studies in this area, the only thing that’s clear is that there’re no real rules yet that govern the burgeoning new music industry (or MI 2.0 to beat the hell out of that handle!)

That said,  I found it an interesting read considering the consistent talk of the “global economy”.  Yes, the wealth of opportunities that exist courtesy of the web are innumerable and of course, national and international markets are essential for a growing business and the goal is always to get as many ears listening as possible. 

But like everything, it starts with one person, then moves to the neighbors, then the neighborhood.  Austin, Seattle, Manchester, Liverpool: Despite the PR blitz that solidified these places as hubs of various music movements, they all had strong regional music economies.  As I develop the marketing plan for Penny’s upcoming debut releases, it helps to focus on the scale of the local market and the possibilities it represents.

I find the biggest questions raised here are those that concern the paradox of the success of local artists.  How does a regional economy first and foremost develop great musical talent, connect it to the outside world and make it successful?  But just as importantly, how do we translate the success of previous acts into a musical economy that can survive, grow and continue to incubate great music, as well as attract innovators and thinkers from other areas?

Just as a qualifier, my particular interest comes from my being Northern Irish.  There’s always been a great tradition of quality song-writing and successful musicians from my wee corner of the world but, frustratingly, there seems to have been little rhyme or reason for the success.   Not only that, but the successes (Van Morrison, Ash, Therapy?, The Divine Comedy) didn’t have any noticeable impact on the growth of a strong arts & music scene, other than the obvious cultural cache.  

Of course, during a civil war, people have more things to concern themselves with than “art”.  But given the demise of said war, I’m interested to see if Northern Ireland can turn the recent successes of acts like Duke Special and Snow Patrol into some sort of “legacy”, both artistically and economically that might benefit music and culture for generations.

Although not specific to music, San Francisco is a good example of a healthy regional economy.  Although San Jose is the undeniable tech capital, San Francisco’s progressive thinking, mixed with this tech savvy, has created some of the most exciting companies of Web 2.0, and by extension, some of the most exciting digital music companies around.  Social Networks Bebo, Vox and Fuzz call SF home as well as microblogger Twitter.  Real Networks, IODA, IRIS, Pandora, MOG and SnoCap all reside here.

 Not only that, most of these companies are based in San Francisco’s developing SOMA district.  This “cluster” of companies share talent, ideas and inspiration to push innovation and sustain growth, despite the international reach of their creations.

Surprisingly, despite San Francisco’s obvious musical pedigree, it lacks a distinct and thriving music economy.  The greatest innovations in music are those I mention above which have a less “traditional” music focus.   Perhaps, much like the areas in England that are the focus of Wall’s study, SF suffers from its proximity to a major music capital.  

But whatever the reason, I think that an important shift of focus has to widen away from narrow avenues such as recorded music sales and export (“making it big”), to include the entirety of what makes music sucessful:  clubs, retail services and all forms of communication media...And that starts right next door.