This post is sponsored by the Finnish Software Entrepreneurs Association as part of their competition on ArcticStartup. Feel free to participate in the competition for your chance to win a free promotional article.
Live music seems to be one of the few remaining viable business models available for bands. Paul Resnikoff recently provided a quick list of top 13 lessons learned in digital music. Not only is the recorded music industry slowly but surely diminishing, it has never been a very lucrative business for most bands. There are simply too many middle-men. In the recorded music industry the average artists is estimated to earn only $23,40 for every $1000 worth of music sold.
While the live music revenue has also been hit by the recession – especially the over-priced stadium-sized concerts – the smaller acts are actually doing quite well despite the economics climate.
We came out of the closet earlier this year with our analytics platform to help bands make better decisions on where to play live. This beta service for bands has already attracted more than 500 registered users worldwide. GigsWiz is now preparing to launch easy-to-use tools for bands and promoters to join forces in leveraging social media in the gig promotion and tickets sales process. The problem has been that very few bands actually get involved in promoting gigs and tickets online because they are lacking tools and incentives to do so. GigsWiz is on a mission to change that. We are currently running commercial pilots with selected partners in the UK and laying out the stepping stones for our international expansion.
Promoters and ticketing companies have not been able to leverage social media efficiently so far because the bands have been out of the equation. Promoters and ticketing companies have been trying to optimize the way they carry out push marketing to consumers. Wake up to 2010! We believe it’s about empowering bands and their fans to plan the gigs and tours, promote them in social media – and making sure the bands make money in the process.
Image by Kmeron