January 23, 2014, National Association of Music Merchants, Anaheim—Craig Anderson moderated an executive roundtable comprised of Bob Ezrin, producer, Henry Juszkiewicz from Gibson, Hartley Peavey from Peavey, Gene Joly from Guitar Center's Musicians' Friend division, Chuck Surack from Sweetwater, and Marcus Ryle from Line 6.
The changes in technology are facilitating the symbiosis of technology and art. Monetization is not relevant to this part of the industry. The iPad is allowing more people to make music, while better and simpler tools are making music creation easier.
Juszkiewicz noted that the big issue is that of numbers. The industry success is in serving consumers, but the percent of income available for music has been dropping for over 30 years. Overall, the industry is a bad deal. The competition for dollars from other alternatives is increasing as more areas are available for fun.
The music industry is seeing reduced dollars versus other leisure activities, so we have to change the question from "what are others doing for us?" to "what are we doing for consumers?" Much of the industry's efforts are in selling to the converted. We don't have to sell music, instead we need to reduce barriers. Humans have a need for music, but the complexity, confusion, presentations are hard, and the learning curve is difficult. Too many choices are not good for beginners. Tennessee has legislated 3 hours of music per week in schools, but the requirement is unfunded. Funding for the arts is local.
Joly agreed and noted that all kids like music, but they need more education in music and the arts. Music is not a core part of the curriculum, and cannot be an add-on part of education.
Juszkiewicz considers that a part of the problem is old people. The aging voter population is not interested in schools and is changing the school structures to increase localization. This balkanization of education further reduces the potential for changes. Other countries make education a national priority. We need to change from local to state or national school curriculum standards.
Peavey suggested that the industry has to change to address the lack of educational emphasis. The dealers need to step up, since they are currently ignoring basic retailing. Technology and greater efficiencies will make stores like delivery boys, they lost their jobs to UPS. We need to ask questions about our focus. Change needs to come from the dealers. Music is universal, but it is also like a religion.
In comparison to car dealers with only 3-4 lines, music dealers have dozens of product lines. Demonstrations and sales need more customer hand-holding. The Web is not going to produce product education. Some stuff needs improvement. The music industry needs to develop more promotion and change to emphasize the dream business.
Government and the Web are affecting sales and our futures. Government support for railroads revived the industrial sector, the interstate freeway system opened the country to cars. The Internet is here to stay, and will affect everyone's business?
Surach responded that the government is not limiting, but is increasing access. Today's public school parents don't see the value of music, and are influenced by the calls for more STEM ( Science, technology, engineering, and math) which is not a government function. These parents need to change to accept more culture.
Technology increases the interest in music by making more music and more outlets for that music. These new musicians are not buying instruments yet, because most instruments have a long learning curve. We have to educate our sales people. We have new hires go through 300 hours of training plus 4-6 hours per week to stay current and understand our business. We also have to educate our customers.
Ezrin offered a prescription for retail. Consider starting repair training and lessons. Help find rehearsal facilities and put more efforts into rentals. Stores have to reduce staff turn-over. Some stores have good presentations, but most still need more work. play should be fun, and the process fro getting from the box to hands-on should also be fun.
Wish?
Ryle suggested to make the music store a destination that feeds passion for music and gear. Retailers need to increase educational promotions. The Internet fooled people into thinking that they have knowledge, when actually they just got access to the information and not true knowledge. The tools and opportunities are already here, we just need to increase passion and enthusiasm.
Ezrin the music industry has to get more records into a single session. A compilation is better than a single or a track at a time. The albums are better as integrated wholes than singles.
Surach offered greater industry emphasis on the importance of music. The industry is interesting and criteria for new entrants is fairly low. The industry needs to increase professional accreditation for the individuals and for the stores.
Joly wants to see more live music in stores. Jamming and performances bring in casual visitors and influence more to become involved. Support random visits from stars as added draws.
Juszkiewicz opined that richness in life is driven by richness in music.
Peavey desires greater cohesion and leadership. The industry needs to change and increase encouragement to people to play more music. Without direction, everyone becomes Christopher Columbus. He didn't know where to go. When he got there, he dind't know where he was, and when he got back, he didn't know where he had been.
We are getting no pull from star bands, and excellence is not being broadcast. There is a lot of low competence, so we need more examples of excellence.
Ryle added that as influential as the Beatles were, someone inspired them also. Interest opens the music to more people.