The reason that mainstream music is losing money is that the labels became complacent, un-reactive and uncompetitive and this never works in the consumer’s best interest. Illegal downloads are not killing the music industry, they are shaking it up, and this is only a good thing.

The music industry has maintained a fairly static business model for the last 50 years, and it is only within the last 10 that it has been required to change. Record labels, if they want to keep up with the file sharers and pirates, need to come up with a strategy.

This does not mean cutting off the internet connections of file sharers (Digital Economy Bill) or taking file sharing websites to court (Pirate Bay.) It means upping your game and an A-Grade example of this happening in action is Stones Throw records.

Stones Throw is an indie hip hop record label that is, in my opinion, one of the most brilliant and forward thinking in the world.

Stones Throw have an incredibly active message board community of around 4,000 fans, with an average post count of 60 posts per user.

They have a facebook page with 21,000 fans, and each receives around 100 likes and 15 comments (around 1/5^th the activity that adidas originals receives from 2.5m fans.)

Their twitter account has 23,00 followers and a Tweetlevel rating of 63 (compared to Universal_Music with a measly 52)

Search for any Stones Throw album torrent or rapidshare file and you will struggle greatly to find high quality versions. This is because they scour message boards, blogs and music communities and get the links removed.

How is this different to what the major labels are trying to do? Well the main difference is that they give something back. Stones Throw have created an incredibly strong presence across Social media and they use this to distribute content to their fans.

You can’t download an album for free but they will often give out free tracks as teasers of upcoming albums, or post the album on youtube so you can stream it there or from their website often before it is released. They also produce a regular podcast and offer exclusive mixtapes to their audience.

The audience reaction? They love the label. Stones Throw explain their actions, and the audience are happy because they have a level of transparency that all the big record labels lack. They are engaged with the brand and happy to pay for the music they love.

This is how I see the future of the music industry, and I think that major labels can learn a lot from Stones Throw’s strategy. Of course it is going to be tricky to scale this method, but if successful, the ones who benefit are the consumers and that in the end will help you sell more music (3 of the last 5 CDs I bought were on Stones Throw.)

Qube’s very first client project – over 6 years ago – was a ground-breaking social media campaign for Connexions Sussex to help engage young people online and encourage their participation. We have continued to work with young people online ever since with other clients including West Sussex County Council, East Sussex County Council, Sony BMG, Electronic Arts and Greenwich University.

This experience has helped us hone down why social media should be at the heart of any council’s strategy for engaging with young people.

1. Efficiency: Connect with young people in the most cost effective way
Social media allows you to create and engage with communities of young people online – something which is easier, much cheaper and possible on a much greater scale than in real life. It removes the difficulty of creating real-life communities across wide geographic areas, of hiring infrastructure or equipment. Using social media to communicate means huge savings in design, printing and media costs. It means faster reaction to young people’s needs and enquiries.

2. Reach: Engage with young people where they actually are
Today’s young people – often known as Digital Natives – have grown up using the internet and social media to connect with each other. The numbers of young people using social media are vast and increasing. It is completely natural to them and increasingly their media of choice, while TV and printed media are all in decline. Trust in advertising is also declining – they see it as a broadcast, one way activity with no opportunity for response or interaction. They increasingly build their opinions and make their choices based on their friends’ and others people’s views online – even when they are strangers.

3. Improvement: Converse with young people and create better services
Having a two way conversation with young people enables the Council to listen to the views of young people on a regular basis and understand how they feel about the services they are offered. It allows their participation in the creation of better services and ensure money isn’t wasted on services which they don’t like or want.

4. Reputation: Proactively manage the council’s reputation where young people are talking about related issues
Social networking sites, Facebook, forums, blogs, Twitter are all places where young people talk about issues that matter to them. These often will include issues such as jobs, education, what’s happening in the local area. Where these conversations become negative about the Council it can effect the Council’s reputation, particularly if left without response. There is the opportunity with social media to ensure that not only do you know about these opinions but that you can change them into positive actions.