Yes, it can! If your goal as an artist or band is to sign with a Record Label, then having a good online sales record will definitely increase your chances of securing a deal. Many Record Labels, especially the majors, are prone to calculating the risk involved with investing their resources into making an artist or band successful, which makes sense. Most labels aren’t going to throw money at a band which they don´t think has a chance of succeeding (i.e. making money). With this in mind, showing potential labels that you have been able to achieve a good amount of online sales will make you a more attractive prospect. In addition, having a good online following and a large mailing list will earn you brownie points too, as it shows that you have an existing fan base to build on.

The possibilities which have beeen ushered in by the digital music revolution has led many to believe that it is now possible to enjoy a successful career in music without signing to a Record Label, and this may well be true. But the online environment can just as well help artists looking to sign to a Record Label by giving them a platform from which they can develop their music.

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A little while back we wrote an article about the so called “music like water” debate. The idea behind “music like water” is that instead of paying a per unit price to purchase music, listeners instead pay a fixed price to stream music from an existing library. For some, this set up signals the future of the music consumption. For some, the reinstatement or a centralised distribution/consumption oligopoly.  However, these fears should be allayed, for there are some great streaming services now on the market, such as Spotify, Last FM , Deezer, Lala, Napster which are determined to keep their library open and diverse.

From a listener perspective, streaming services have some distinct up-sides. Subscription based services generally allow streaming of unlimited amounts of music until the subscription expires – this makes the music they listen to “feel free” even though the artists are earning money from their music. Advertising based services work in the same way, though you might have to put up with advertising in between songs or some banners here and there. This “feeling free” aspect is quite in tune with how many listeners would prefer to engage with music, and may well dissuade them from not paying for their music – which is great for artists. Though pay out structures vary between services, artists usually receive money based on the percentage of times their music has been played relative to total plays.

Streaming services provide a viable option to those who would like to listen to music for a fixed cost or don’t mind advertising. Streaming services which are similar to radio in that they decide what track comes next (e.g. Last FM) lend themselves well to music discovery, whereas click-to-play services (e.g. Spotify), allow people to chose exactly which track they want to play. All in all, providing the mechanism is in place to make sure artists receive their share from the revenues, and that streaming libraries remain open and accessible, streaming services provide a good balance to the per-unit structure many of us are accustomed to.

Part of the vision of the brave new music industry is a belief in the power of social networks and communities to spread the word and hype new music, as opposed to the traditional channels favoured by the music industry of old (such as radio and TV). These new channels are far more open and inclusive mediums, available to all artists who put the relevant time into networking with similar minded users, and generally don´t cost a penny. An interesting contrast is that whereas the traditional channels rely on key opinion formers at the top spreading the word and guiding opinion, online channels are often driven from the bottom up by the collective wisdom of people who are part of them. Commercial Radio may pride itself on keeping its ear to the ground and feeling the pulse of the present musical zeitgeist, but this doesn’t really compare to the dynamic opinion forming of dedicated music fans on social networks. Besides, on many radio stations one actually has to pay to get airplay – this is not the case on the internet, even with influential music bloggers and podcasts.

The internet is designed for exploring, and there are many great environments for exploring new music which are available to all artists, not just those with a large marketing budget and a major label behind them. Services like Last.Fm, iLike, MySpace, Imeem, Twitter, You Tube (and many more) provide an invaluable resource to all artists serious about developing a solid fan base, both local and global. Beyond this, there are also a huge number of networks and services driven by music lovers on a local level, organising and promoting concerts and blogging to the world about their local music scene for the sheer joy of it. What is also exciting is that the new generation of listeners will be completely adept at navigating this new autonomous user generated environment, so it looks like the potential of the online music environment is just coming to fruition. The same is new for the new generation of musicians.