The Big Shift: Why Record Companies Need to Pivot From a B2B to a B2C Model (Column)

Let’s be honest: in this industry, community equals power. The bigger your community, the more power you have. Conversely, the smaller your community, the less relevant you are, especially to artists and their 100 million-plus active fan bases with whom they’re in constant touch via social media. It’s not hard for them to get the word out when they release a new video.

The direct-to-fan channels controlled by the record labels are unfortunately of little use to their community-building efforts. To put it bluntly: record labels need to catch up fast if they want to retain relevance and optimize growth. Labels need to scale their marketing capabilities to target whole communities rather than single customers and they need to do this right now. Literally this very minute.

Understanding the distinct communities that are present within an artist’s audience can be the record label’s secret sauce for an artist. Specifically, by using AI and ML tools to parse data and make connections, the label can offer a higher level of service to their artists by curating and providing new audience insights. By upgrading their capabilities in these areas, labels will also reclaim some lost relevance.

But that’s just the start. A deeper understanding of the unique communities within their artist’s varied audiences provides a roadmap for effective messaging and higher performing engagement strategies. When a marketing department understands the interests, language and passions of these communities, they can tailor the right messages at the right time and place so they resonate with the audience and inspire them to take action.

For record companies, the timing couldn’t be better. In a world where the size and makeup of one’s circle is more relevant than ever, understanding an artist’s or brand’s affiliated communities drives the real business growth.

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