Editorial: The Rapidly Changing Face of the Music Industry—What Sansar Is Doing Wrong (and Fortnite Is Doing Right)

Earlier this year, after an extended break, I rejoined the official Sansar Discord server, and while I have not nearly been as active there as I used to be, I still lurk from time to time. I had a good laugh at this snippet of conversation from the day before yesterday (and yes, I do have both Medhue’s and Vassay’s permission to quote them, and to post this image here on the blog):

Medhue: Literally, Ryan Schultz does more marketing for Sansar than Sansar does.

Vassay: Funniy (sadly) enough, that’s true.

Medhue: IMHO, we have a bunch of people who live in the past, when music was a 50 billion dollar industry. It is not anymore, and likely won’t ever be again. Gaming has always been growing and there are really no signs of it slowing, grabbing more and more of the entertainment market each year.

Wookey has been strangely silent since its purchase of Sansar, and their team have been largely absent from the Sansar Discord. And yes, it is indeed true: even though I barely write about Sansar at all now on this blog, I still do more promotion of Sansar than Sansar does! This relative lack of marketing activity is frankly baffling to me. After all, the often ineffective marketing of Sansar by Linden Lab contributed to the difficulties it encountered in enticing people to visit the platform—and keep them coming back for return visits, a key indicator of success.

As you might know, the money-losing Sansar was recently sold by Linden Lab to Wookey. Many Linden Lab staffers who worked on Sansar moved over to Wookey, including Sheri Bryant, who was Vice President of Strategic Business Development and Marketing and then General Manager at Linden Lab, and is now President of Wookey Technologies (LinkedIn profile). She is widely credited with saving Sansar by setting up its sale to Wookey, and it is under her management that Sansar has significantly shifted its primary focus from a VR-enabled platform for world builders and content creators (i.e. a second-generation Second Life), to a VR-enabled live events venue.

An example of the recent shift in emphasis in Sansar (from the Sansar website)

While a quick glance at the Sansar Events calendar shows that the deal Linden Lab previously struck with Monstercat to bring live musical events into Sansar has continued now that the platform is owned by Wookey, the company is going to have to do a lot more work to attract musical artists to give virtual concerts in Sansar.

Let’s contrast the modest success that Sansar has had with Monstercat with what has been happening on other virtual world and game platforms in recent years:

In addition, both Microsoft-owned AltspaceVR (which has recently announced a pivot to live events) and the ever-popular VRChat (which is already home to popular talk shows such as ENDGAME, and many other regular live events) are no doubt eyeing the possibility of hosting live concerts on their platforms. And let’s not forget the upcoming Facebook Horizon social VR platform, where Facebook will probably take what the company has learned over the past couple of years with Oculus Venues, and where they will want to sign their own exclusive deals with musical performers to entice people to visit their platform after it launches.

And this is the important point: some profitable companies with very deep pockets—Epic Games (the makers of Fortnite), Microsoft, and Facebook to name just three examples—are going to want to get into this potentially lucrative market. Smaller companies like Wookey, trying to shop around Sansar as a live events platform, are going to find themselves outbid by companies like Epic Games to bring in top talent, which of course brings in more users to Fortnite. It’s a vicious circle; the big players get bigger, while the small ones fight each other for the leftovers.

Following on from Medhue’s point in the quote above, the music industry has already seen many changes and gone through many wrenching shifts in how it operates and how it makes money in the past (notably, the shift away from physical media like CDs to the now-ubiquitous music streaming services). But now the gaming industry is bigger than both the music and movie businesses combined!

The coronavirus pandemic has shuttered real-world concert arenas for the foreseeable future, which has only increased the economic pressure on the management representing the artists to sign deals with various metaverse-building companies in order to host virtual concerts and events. There’s probably already a lot of activity going on behind the scenes that we can’t see, but I expect we shall see quite a few announcements for virtual concerts with major musical artists, as well as many smaller artists, over the next six months.

Where Fortnite is already running circles around Sansar, even at this very early stage of the game, is their ability to sign deals with the highest level of talent (using all those billions of dollars of profit earned from their games like Fortnite), and their ability to host massive live events for millions of attendees (again, leveraging off their technical know-how to build and maintain the necessary infrastructure to support millions of Fortnite players playing the game simultaneously all around the world).

One thing that Wookey could be and should be doing for Sansar is promotion—and yet they are leaving it to bloggers like me to talk about the product. Where is the marketing? If they are holding off on marketing, waiting until they land some big-name events, I think that would be a tactical error.

Wookey needs to get Sansar’s name out there; many people in our attention-deficient society still have no idea that the platform even exists. Yet everybody and their grandmother has heard of Fortnite by now. That is no accident. Epic Games did a masterful job of fanning the flames of user interest. Wookey should be taking notes.

If no action is taken, Sansar is going to continue on its downward trajectory, slowly circling the drain, and eventually will fold. Linden Lab has already made many grievous errors in trying to effectively promote the platform; Will Wookey continue making the same mistakes?

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