The Next Big Music Markets

The world is changing, the industry is changing, and the music giants of today will no longer be industry titans tomorrow. In the last five years there has been an explosion of emerging artists popping up from the most unlikely of places. At one point 25% of the musicians on the American Billboard Top 100 music chart weren’t American born, which clearly reflects a huge shift that the music marketplace once controlled by the United States is no longer. The United Kingdom and Latin American countries have exploded onto the scene, and in many cases/genres are controlling the American market. As these countries continue to strengthen, there are several countries that are quickly approaching the same status.

Musicians, both domestic and international, scramble to new venues around the globe to capture their piece of an audience, however it’s important to realize there’s a specific rhyme and reason to global expansion. Some countries are on the up and up with their music industry, while others are only perceived to be successful. It is important to have a plan, a plan that incorporates industry statistics, buying trends, music festivals, intellectual property law, emerging artists, genres, and demographics. Most people don’t take the time to evaluate these aspects. Lucky for you I do. Stay ahead of the game, and if you’re looking to expand your career, label, or market to international areas, there are two countries that will blindside the global market in upcoming years. Please meet: Australia and South Africa. Stay ahead of the curve and learn where/why/and how to capture these markets immediately.

WHERE: Australia
WHY: Industry scholars are already aware that Australia is the ideal music market unfortunately musicians do not. If you monitor the Australian Billboard music charts you’ll notice an eclectic mix of musicians from around the globe. Even though a majority are American A-listers, if you dig a bit deeper you’ll notice Australian acts cluttered throughout. Australian musicians may not be the in the global mainstream yet, but they will be. The musicians are unique, they have their own style, and because everything is recorded in English, the likelihood American labels will begin cherry picking Australian talent is inevitable. If you incorporate Australia’s rising tourism numbers coupled with the countries low piracy rate, talented musicians, new genres, and solid buying market, their music industry expansion is a no brainer.
HOW TO CAPITALIZE: North American musicians will have a difficult time expanding their careers into the Australian market from a touring standpoint simply because of the economics. Traveling to Australia for a tour, shipping product, or jetting over for promotion is unreasonable from a money perspective, however getting radio airplay isn’t. There is a hug radio market in Australia, and because English speaking musicians (more so North American musicians) are already popular in the area, there is an existing demand for good product. As nice as an Australian tour may be, focus on getting radio exposure first, as it will be your best shot to slowly build a fan base. For European artists the opposite is true. Traveling to Australia is reasonable, and with Australia’s strengthening music festival season, getting some face time with fans will prove beneficial. As for focusing on radio efforts, wait until you establish a fan base by touring first, as the chances you’ll trump a North American or Australian band for radio time is unlikely.

WHERE: South Africa
WHY: The African music market in general is booming. Matter of fact, the entire continent is becoming a self sustained, self contained entertainment ecosystem. For the same reasons as above, the explosion of new/unique genres, steady tourism numbers, musicians, festival, language and buying trends in South Africa make it ideal. Even though the American music market is still the controlling industry force around the globe, major labels will adapt to global change very carefully. Careful for U.S. majors mean signing English speaking artists who have sexy/exotic/international appeal, but not TOO sexy and exotic. Tracking down European acts still proves financially risky for American labels, however South Africa fits the bill. The country adds extra incentive because of international trading routes, laws, and market potential that make the country attractive. If you’re thinking there are many other countries that the U.S. has great trading relationships with that would also fit the bill, you’re right -so why South Africa? The South African music market is gaining a closer relationship with the Nigerian movie industry, which essentially means licensing deals, added global exposure, cross promotions, and a huge revenue stream. The Nigerian film industry (ie: Nollywood) produced a 2.3 billion dollar industry in 2008, and is still rising. Believe it or not, Nollywood ranks #2 in the world in terms of films produced each year, ahead of the United States and behind India. Combine a possible Nollywood relationship, South Africans sense of community development with its artists, and rise of popularity for Nollywood films in Johannesburg and Cape Town, not to mention the 2010 World Cup in which the countries artists will be exposed to the world, and you’ve got a potential recipe for success.
HOW TO CAPITALIZE: Without sounding totally repetitive, the same steps that apply in Australia also apply to South Africa. North American artists should focus all efforts on radio, while European artist build a fanbase by touring.

RUNNER UP: The Netherlands
WHY: Quickly speaking, The Netherlands is packed with unique musicians. The country is a nice central European hub especially from a touring standpoint. However the strongest asset of The Netherlands is the fact piracy isn’t as widespread as it is in other European countries. Matter of fact the annual report put out by the International Intellectual Property Alliance, which monitors widespread piracy in each individual country, doesn’t even categorize The Netherlands as a “potential threat.” The likely emerging European markets of Italy, Sweden, Germany, and France, along with a majority of the Asian countries plagued the IIPA’s “piracy watch list” (ie: not good) which makes the likelihood their music markets will explode into the global mainstream rather difficult.

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