Everybody talks about how the new model is going to be great for musicians.   That the big bad Major Labels aren’t in control of anything anymore so the small musician can finally play on their level and so on.

This is true, it IS going to be good for some musicians.  Radiohead is a good example of the kind of band that will be able to capitalize on what’s going on.  Sure, they were launched by EMI which is a major, but this is not why they are here.  They have 3 important qualities that make any band bankable in the 21st century music economy.

1. Good Music

This is obvious right?  Well, obviously not to everybody.  Just because a musician can release the music he or she made last night doesn’t mean he should.  Quality and consistency is equal to trust with your fans.  If the quality slips they stop trusting you.   If they stop trusting you they stop automatically clicking the links to visit your page to stream a video or download a new song.  If they stop doing that then you have nothing to monetize.  You are now dead in the water online and you probably also have fewer fans at shows.  Not a good situation to be in.

Radiohead doesn’t have this problem.  They have consistently released great music.   If they make something available their fans find a way to buy it, or download it, or whatever else they want them to do without even hearing it first.  This gives them critical mass and serious fan to fan viral power whenever they do something online go on tour.  Why?  QUALITY CONTOL.  Just because they can release a track every day online doesn’t mean they will.  The fans trust them.  As Radiohead member Colin Greenwood says,

…For all the giddy prognostications, the most important reason for the success of In Rainbows was the quality of the music. I think this was overlooked, but without the great songs that we were proud of, the online release would have counted for nothing. I am optimistic that if you make good work you can secure the patronage of your fans.

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As record labels, publishers and pundits debate the pros and cons of music streaming, the consumer has already decided. The popularity of streaming in France, Scandinavia and elsewhere is clear, and the music industry is fond of “blaming” Spotify for the trend. But now Americans – even though denied access to Spotify and almost always without writing a check to any rightsholder – are also streaming as much music as they are downloading, according to a new NPD Group survey.

Music downloads to computers in the U.S. grew slightly from 29% percent in March to 30% in August. But during the same month 29% of Americans streamed music, up from 25% percent in March. The survey covered both free services like YouTube and Pandora and paid services like MOG and Rhapsody, but did not differentiate between them.

“Apparently, the purchasing of downloaded music from iTunes or Amazon – or even the free downloading of songs from peer-to-peer file sharing networks – cannot compete with the allure of clicking a link and having the song play instantly,” according to Eliot Van Buskirk of Evolver.fm and The Echo Nest.

Music fans have spoken: streaming is an essential part of their new music landscape. The music industry must embrace this new reality now or miss yet another opportunity to recapture consumer interest.

Companies have to stop focusing on downloads as the main selling options. Monetizing around the stream should be the main focus. We’ve known this for some time. From what we have found over the past few years, the opportunities are much bigger around the stream anyway, so this shouldn’t be a cause for alarm in the industry.