Power of Live
Chris Walker
I really enjoyed reading the “Power of Live” market study. Countless times I have read or have been told in conversation that most musicians in today’s economy are making the majority of their income from performing live. However no one ever really explained why this was happening – they just seemed to accept that this is a current phenomena or sometimes offer some anecdote about the declining value of recorded music sales…….blah, blah, blah.
The “Power of Live” is the first of its kind large (number of respondents), powerful (methodology) and insightful (correlations and data analysis) study from which we can learn a great deal about why live performance music is in high demand.
In our discussions over the last few months we have emphasized that Krisirie must prioritize the development of her live performance set. Truthfully, from my perspective I was thinking about the economic opportunity to earn more – even in the face of higher production cost. In retrospect I am willing to accept that the priority of performing live was born more of economic desperation (make money to survive) than any structured decision making process. And the result – we shot gunned it and exhausted limited resources with very little to show for it. According to (Keat, Young, Erfle, 2013) Managerial Economics is “The use of economic analysis to make business decisions involving the best use of a firm’s scarce resources. (p.2) I think we can all agree that Krisirie has very scarce resources and we need to become better at making those economic decisions about resource allocation.
Economic Decisions for the firm. “What goods and services should be produced?” – the Product decision. “How should the goods and services be produced?” – the hiring, staffing and capital budgeting decision. “For whom should these goods and services be produced?” – the market segmentation decision. (Keat et. al., 2013)
Let’s break it down using Krisirie as the example:
The product decision – Live Performance Sets? Merch? Records? Sync-Licences? Memberships (Fan-Club)?
The resource decision – Musicians-for-hire? Recording studios? Video production? Website, Cash? Etc.
The market segmentation decision - New York? London? Germany? Men? Women? GEN Z Age 13-22? Millennial Age 23-39? GEN X Age 40-49? (DEMOGRAPHIC SEGMENTATION)
I made a conscious effort to focus more on the market segmentation decision (“For whom should these goods and services be
produced?”) as I read the Power of Live and asked myself who is going
to purchase the products Krisirie produces and most importantly why?
Below I have quoted directly from the study some of the really exciting things I learned - much of which I believe provides answers in the form of Psychographic market segmentation. I also attach an image which most clearly differentiates between demographic and psychographic segmentation
"Passion for live music knows no age. While it’s sometimes helpful for marketers to place the values, beliefs, attitudes and behaviors of generations into buckets, it’s best to view these patterns as a guide, not a hard and fast rule. Keep in mind that 1) generations continue to age. The “18- to 34-year-old Millennial” for example, is growing up. This study covers Generation X, Y (Millennial), and Z, aligned with their year of birth. And 2) generational breaks are blurring. The pattern of traditional life stage markers not aligning with age have become commonplace."
WHO WE SPOKE TO: GEN Z Age 13-22, Millennial Age 23-39, GEN X Age 40-49
Respondents spanning three generations and five continents all say that music expresses more about who they are as people than their hometowns, religions, political beliefs, race, cultures, or social media profiles. More than just a form of entertainment, music is a driver of identity and the ultimate unifier. Katie, 24, said it best: “A more vulnerable, authentic side of yourself comes out at concerts versus day-to-day life; a rawer version of yourself,” which explains why the love of live is irresistible – more than two-thirds of 18- to 34-year-old across the world are attending live music events.
In our conversations with 22,500 people in 11 countries spanning five continents, one finding stood out: people are starving to connect with “the real world.” In fact, almost three-quarters (73%) of 13- to 49-year-olds globally agree with the statement: “Now, more than ever, I want to experience real rather than digital life.”
This craving to connect is the result of Sensation Deprivation. And no wonder so many of us feel this way - we’re inundated with information, constantly distracted, and hitting peak collective digital burnout. In response, people of all generations are seeking device-less, human-centered experiences—two-thirds (66%) of global respondents report they are starving for experiences that put them back in touch with real people and raw emotions.
Perhaps the most exciting insight is that Krisirie can now use this information to make better economic (business) decisions about how to satisfy the demand in the market place for live music. What are your thoughts?
