Community Barometer, Q2 2022: The future of work

While the worst of the pandemic may (hopefully) be behind us, the future still feels uncertain for the music and tech ecosystem.

After a record-high $330B investment year for US startups in 2021, many would-be founders may notice that VC funding seems to be drying up. In May 2022, Y Combinator advised clients to “plan for the worst” as we entered what some have called the longest bull market in history.

The bear market has also had an outsized impact on the always-volatile crypto markets, with $2T of crypto’s market value wiped out since its peak in November 2021. As a result, several rounds of high-profile layoffs, including at cryptocurrency exchange Coinbase (who laid off 18% of their staff) and NFT marketplace OpenSea (who laid off 20% of their team), swept through Web3 and closed many companies’ doors altogether.

The music industry also felt the pressure of the bear market’s rise. Layoffs and hiring freezes affected household names, from SoundCloud to BMI and Spotify. Many well-funded startups tanked after blowing through extraordinary amounts of capital — live music startup Pollen and social media startup Crowdmix managed to burn through £124M and £14M, respectively, before being forced into submission. Even investments previously seen as safe bets, like back-catalog rights, have struggled due to soaring interest rates.

The live music sector in particular — already severely damaged by the uncertainty and lost revenue caused by multiple COVID lockdowns — was further impacted by the energy crisis affecting large parts of the UK and Europe, with many venues forced to consider redundancies and downscale operations.

Where does that leave the Water & Music community? In our last community barometer (published in February 2022), many community members had expressed a perhaps unexpected sense of relief and renewed optimism about the music industry. While the pandemic was devastating for many industry sectors, many of us felt that it also offered a “hard reset” — a chance to reconsider the industry’s status quo and usher in new dynamics and ways of working.

With all the dramatic shifts that have happened since then, we thought now would be a good time to check in on how our network feels about the future of work. This edition of our community barometer survey posed seven questions, aimed at better understanding whether the sense of optimism we reported has remained despite current market conditions. The responses we received identified several challenges currently affecting music-industry workers in a rapidly changing market, while providing context on whether workers feel equipped with the skills needed to enact change in their careers and in the wider music business.

In line with several other research/education initiatives at Water & Music — including our Summer School on the artist team, and our CC: newsletter tracking music/tech hiring trends — we hope these survey findings provide helpful guideposts for our members as they progress in their respective careers and continue to move the industry forward.

TL;DR

• The critical challenges reported by our respondents are financial uncertainty, employee burnout, and low pay. These conditions were reported by respondents across roles and seniority levels. It’s clear that the music industry is increasingly becoming a gig economy, adversely affecting industry workers.
• Skills reported as in demand by our respondents include relationship building, knowledge of Web3, and general digital skills. Despite the technological disruption of recent years, many respondents emphasized the importance of soft skills combined with a broad knowledge of/interest in technology, rather than any specific technical skills.
• Most respondents did not feel that the industry provided adequate professional development or educational opportunities, and highlighted the importance of networking, on-the-job training, and self-directed learning. Obviously, the lack of structure around career progression in the music industry will naturally advantage those with industry connections or more bandwidth to invest in self-directed learning.
• Despite the somewhat dismal picture painted by our survey, most respondents felt optimistic about the future — both in terms of their job role and the wider music industry.
• While most respondents were sure that the music industry would thrive no matter what social or technological disruption came, many also expressed concerns about what kind of music industry we’re heading toward.

We received 66 responses from across the Water & Music network. The most represented sector was Labels, followed by Artist management, Marketing/PR and Publishing.

We included an optional question allowing respondents to provide their salary range. Below you can find an overall breakdown, and a breakdown of ranges by job role.

• Notably, the salary ranges reported throughout the industry are vast — and it’s clear that financial precarity is not solely the domain of “starving artists,” with many other music-industry workers feeling the pinch. Our survey reported lower salary ranges I not only for those at earlier stages of their careers, but also for those working directly with artists or on artists’ teams, as well as in back-office functions like A&R, marketing, and production.
• Perhaps unsurprisingly, more technical/corporate roles (like product management, publishing/royalties, and finance) reported significantly higher salary ranges.
• At large, over a quarter of our respondents reported salaries of $100,000+, suggesting that our respondents (and by extension our community) skew toward senior-level roles.

Financial uncertainty was the most-reported challenge by our survey respondents — due not necessarily to wages, but rather to a lack of structure and predictability associated with their work. Respondents reported:

• Scope creep — Work beyond the project parameters, often without a corresponding rise in the budget.

• Project availability — Difficulty lining up projects to ensure consistent work, and the unpredictability of payment being made via commission or through percentage cuts of a project’s profit.

Example quotes:

• “Getting paid for the time it takes to prepare for an event/performance rather than just the performance itself. Having a stable income in general. Not getting paid in general.”
• “Cashflow and raising capital are huge issues.”

While these dynamics are strongly associated with traditional music-industry roles like event coordinators or artist managers, startup founders reported similar sentiments, citing market volatility and unpredictable cash flow as some of the critical challenges they currently face.

Not surprisingly, employee burnout was the second most prevalent challenge among respondents. Post-pandemic burnout has been reported as a problem across industries, with many employees struggling with shifting priorities due to the existential threat of the pandemic, and decreased work/life balance due to increasingly blurred boundaries between work and home. The phenomenon of quiet quitting has also swept social media platforms like TikTok, hinting at a widespread sense of dissatisfaction many employees struggle with across sectors.

When this macro trend is combined with the inherent instability of the creative industries, it’s clear how this would lead to a burned-out workforce. Respondents reported these three factors leading to increased burnout:

• Project juggling — struggling or unable to produce their best work due to a lack of resources, bandwidth, or both.
• Decreased pay for artists — referencing the emotional burden of wanting to see artists they work with succeed while having to contend with ever-shrinking budgets.
• Employee retention — low salaries and inefficient processes often leading to high staff turnover.
• Low pay — work being significantly undervalued by various stakeholders, from freelance clients to large corporations.

Example quotes:

• “The sheer volume of output required to make an impact for an artist and the sustainability on their mental health in trying to keep all plates spinning at all times.”
• “I end up doing a lot of extra stuff for [my clients] because I want to see them succeed and know how hard it is for artists to break through to sustainability.”
• “Salaries are much lower than market value.”
• “Pay is terrible. There is no advancement, nor mobility.”

While the low pay suffered by musicians has made headlines in recent months, many industry-side workers also expressed feeling unhappy with their salaries, and seemed acutely aware that music industry salaries tend to skew towards the lower range for their job roles.

While the demand for technical skills in emerging fields like Web3 and AI is high, respondents cited a broad range of soft skills as paramount for their careers.

Relationship building was the most in-demand skill, according to our survey. Respondents cited a broad range of soft skills — from building an external community around a product or artist, to building trust and accountability with internal stakeholders. Many of our responses cited the importance of networking, suggesting that success in the music industry still very much hinges on who you know and what you know.

This has a direct connection to one of the main takeaways from our Summer School series on artist teams; several of our speakers encouraged aspiring industry leaders to cultivate empathy, respect, and relationship-building in their careers, as music is an inherently personal business.

Web3 knowledge ranked as the second most desirable trait among our respondents. However, technical knowledge of Web3 doesn’t appear to be a prerequisite across the board (despite wider demand). Instead, respondents stressed the importance of combining a solid theoretical understanding of Web3 with creative skills, like marketing, storytelling, or world-building.

• Since Web3 is still an emerging ecosystem and has not been adopted widely, effectively communicating Web3’s value is particularly valuable.
• Additionally, many of the most successful and enduring Web3 projects attracted audiences with unique aesthetics or compelling storytelling rather than any sophisticated application of underlying technologies.

Finally, our survey indicated a strong demand for combining two knowledge bases:

Digital skills or general technological/digital literacy were cited numerous times as desirable traits — perhaps carried over from how the traditional industry struggled to respond effectively to music piracy and the rise of streaming services. While many survey responses weren’t platform-specific, several indicated a wide range of critical digital skills, including e-commerce strategy, social media prowess, and familiarity with emerging technologies at large. Essentially, various roles require digital generalists rather than niche experts.

Example quote: “The world is increasingly becoming digitized and connected. Understanding how web3 and exponential technologies like AI, AR, and VR converge with e-commerce will be very important. Right now a lot of that tech is clunky but it’s improving behind the scenes at a very fast rate.”

Music-industry knowledge was also noted as a crucial trait to pair with digital skills to be effective. Specifically, survey respondents called out knowledge in technical areas like music distribution, copyright, and licensing as key competitive advantages for candidates.

Example quote: “General understanding of the structure of the music industry and the key organizations and levers for revenue generation is always in demand, I think (for instance, understanding even the basics of copyright and royalties is essential for emerging artists to be able to collect the early revenues that will help them have some capital to fund recording and touring projects). Most artists who are trying to establish a foothold in the music industry are coming in with very little knowledge or information on the best channels for doing this, and so this knowledge is always valuable.”

Our survey revealed that 77% of respondents have considered finding new employment in the last year.

10% of respondents stated they wanted to leave the music industry altogether. Many resolved to stay, however, due to their passion for supporting music or because they felt their skill sets were too niche to apply in other industries.

Example quotes:

• “ It frustrates me that the people who get paid the most in a lot of these equations are the ones farthest removed from the actual act of making music.”
• “I fantasize about leaving the music industry every single day.”
• “I would like to move out of music / music tech to find work but employers in other industries are like “you are a music person” so I’m not sure that can happen.”

Nearly 67% of respondents stated that the professional development and education currently offered by the music industry doesn’t meet their needs.

Industry-specific resources aren’t readily available and general resources don’t  cater to the nuances of the music industry. Beyond that, specialized music business education often falls quickly out of date as technology advances at an ever more rapid pace.

Web3 educational resources in particular also reportedly scarce — which makes sense, given how nascent the subject area is (this is something that Water & Music has, of course, tried to course-correct).

• A handful of respondents noted that they were inspired by the relative openness and accessibility of Web3 education compared to traditional music-industry education.
• Several responses suggested that there is no substitute for learning on the job. That said, others referenced a lack of mentorship opportunities and a general dearth of structured development and progression within the industry. Given the importance of networkingwe mentioned previously, it’s easy to see how the music industry may suffer from a lack of social mobility, especially for early career professionals who may not have prior connections within the cultural sector.

Example quotes:

• “I’m pretty much self-taught when it comes to marketing and business, so I know there is a lot of information available. What’s needed are curated sources of actionable info for music businesses professionals. Too many professionals keep their trade secrets siloed, but we could all be much more effective if we share best practices. This is why I’m a big fan of Water & Music.”
• “There are no formal development/educational opportunities, it’s all learn as you go which I feel like is more beneficial than say a LinkedIn learning course. The music business is so nuanced I can’t imagine a formal course working for anyone. Would love internal mentoring programs though.”

Despite the many challenges they face, our respondents ultimately felt optimistic about the future — both in terms of their specific job role, and in the wider sectors within which they operate.

• Some responses referenced the inherent necessity of music to human life, suggesting that the music industry will always be vibrant and active, regardless of social or technological changes.
• Several responses referred to AI and automation in a generally positive light — expressing that their roles were impossible to automate, that technology would automate the boring, less skilled aspects of their role, or that they would comfortably transition into a role managing these new technologies.
• Positive responses generally expressed optimism about the survival of the music industry as a whole.
• Negative responses tended to express concerns about what kind of industry would survive — raising concerns that the music industry would become less adventurous, increasingly precarious, and commercialized.

Example quotes:

• “I feel secure as there will always be people/artists/campaigns that need managing. Even an AI campaign will need direction and strategy management.”
• “Ultimately live music is timeless, and I don’t see the demand ever going away. However we are in very difficult times, and I see a long and rocky road ahead. This is both challenging but also exciting.”
• “I feel optimistic from a ‘what’s possible’ perspective, terrified from a ‘quality of life’ perspective.”

Finally, we asked respondents to share their ultimate career goals.

• Notably, many responses focused on a basic survival level as their ultimate aim, with many noting that they just wanted to pay their rent/mortgage, have stable finances, or achieve financial freedom.
• Similarly, many participants expressed a desire for entrepreneurship by becoming a CEO or running their own businesses. Again, given the financial precarity reported by many of our respondents, it makes sense that many want more financial and creative control over their careers.
• Many participants shared mission-oriented goals and weren’t primarily driven by financial concerns. These participants combined the desire for entrepreneurship with the desire to improve the music industry — whether by improving conditions for emerging artists or creating a more equitable music industry.

Example quotes:

• “A salaried job can only take you so far, so being my own boss is definitely the ultimate goal. As long as whatever I do continues to support and serve artists.”
• “Create transformative and magic live music experiences while also helping millions of artists around the world have self sustaining careers. Other industries have millions of people making good middle class livings. There’s no reason music should be different when you consider how much economic value it creates.”
• “To pay my mortgage.”

While these survey results may paint a fairly bleak picture of what it looks like to work in the music industry at present, it does present some comforting context to the bear market — namely, that many of the people working on improving the music industry and innovating within music/tech are motivated by factors beyond personal financial gain. Hopefully, this means that innovation in the music industry will continue to be pushed forward, regardless of profitability — at least, by a certain subset of people.

However, the numerous reports of music-industry workers burning out and feeling undervalued should be considered an existential threat to the music industry. Those who are working on building solutions for the music industry should consider how they can use their talents to help protect its most precious resource — the people who work in it.