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An article on how listening to music free via streaming is impacting the music industry. Check it out here.

DeepRockDrive is hosting a live show from Whiskey Falls tomorrow night (Thursday).  The band will be playing live in Las Vegas and you can have a front row seat on the net.  The show is free and registration is required for your ticket.  Go here to resereve your spot.  Show starts at 8pm CST.

A very good friend of mine, who is an artist, recently told me that there are two phrases that are the kiss of death for an artist trying to be commercially successful.  I found truth in them based on my own experience in working with many different acts.

One:  “I won’t write with anyone else.”  These are artists that refuse to work with co-writers or accept great songs from outside sources.  Very rarely will they have success, or if they do, will they remain successful. Singer/ songwriters like Alan Jackson are the rare exception.

Two:  “I’ve recorded the album I’ve always wanted to make.”  Which usually means they did indeed make it for themselves and nobody else.  That can be great for arts sake, but not typically for commercial appeal.  Unless the style and taste of the artist is exactly what the public is searching for.  Again, very rare.  This phrase can also be heard from artists who are on the way down or just don’t care as much about making music for the lowest common denominator any longer.

I think my friend was on to something.  Can you think of phrases from artists, record labels, songwriters and other industry folks that usually are the “Kiss of Death”? 

The Lefsetz Letter makes a compelling case for releasing and selling singles rather than complete albums.  Here’s an excerpt:

Everything you know is wrong. The train has jumped the track. The slate has been wiped clean. The old era is over. The Internet and iPod have changed everything. Now you’re only one of thousands of tracks. You’ve got to make it into a listener’s pantheon, or be deleted. How good are you?

New bands… One track only. Maybe you’ll get radio play, good luck. But even so, if it’s that good, people will trade it. And, if you get no traction, you can go back to the drawing board at a much lower price. In the old wave system, you cut an unsuccessful album and you’re over. Today, have a stiff single and you go back to the studio!”

 Read his entire argument here and let me know what you think.

Successful artists typically fall into two categories:  passionate art and commercial appeal.  A third category, between the two sweet spots, is a gap where artists can fall into and have a hard time working out of.

Seth Godin explains in his blog:

“A delta blues guy who plays for tiny audiences in Memphis is in the sweet spot of the passionate. John Mayer is in the sweet spot of pop. Both are great guitarists, neither is too edgy or too trite. Both made a choice. But there are a thousand guitarists who are neither. They’re afraid to embrace one curve or the other and end up with neither.”

I’ve witnessed it only occasionally where art and commerce converge in an ultra successful union.  Typically artists will either be in one of the sweet spots (some sweeter than others) or they will fall through the cracks within the gap because labels, radio, and retail don’t know what to do with them.  It doesn’t necessarily have anything to do with how talented they are either.

Read the rest of Seth’s article which is spot on applicable to what happens often in the music industry.  Check it out here.

Many musical acts come and go as my favorites.  I add their music to iTunes and then I burn it out.  I see them once live and am not motivated to lay down money to see them again.  There are but few who’s music I do not get burnt out on and who I will see every time they come to town if I am able. 

One of those artists is MuteMath.

I first saw their intense show at the Exit Inn in Nashville several years ago and was blown away.  Witnessed the four piece band several more times in Nashville and Austin.  From the initial EP to their first official full length release, they have never failed to impress me with their music and talent.

Check them out for yourself with the creative “backward” video of their single “Typical” below and their Mute Math Myspace and Wikipedia sites.  You may find they have a sound reminiscent of The Police and U2.  Definitely has an 80’s tint to it.

Here’s a video from the second Exit Inn show I saw them at in 2006. It is the uniquely instrumental song “Reset”.

*The Music Advisory will be a regular element on this blog and will spotlight artists I think stand out from the rest.  Whether new or established acts, I pledge to keep this feature unbiased by not including artists I work directly with (even though I do think they are all amazingly talented)

For the first time in Academy of Country Music Awards history, the fans have the opportunity to vote along with the industry for the ACM Entertainer of the Year award.

I won’t say who I voted for in all the other categories, but I did cast a ballot for Keith Urban for Entertainer of the Year.  I love George Strait - he is the King of Country and one of my favorite artists I’ve worked with in my career, but out of these 5 nominees, Urban puts on the best performance I have seen in the past 12 months.  Keith IS an entertainer.

You can vote for your favorite at www.acmvote.com. 

One of the more interesting panel discussions of the Leadership Music Digital Summit yesterday was “Digital Retail: What’s The Future?”

On the issue of the future of CD product, UMG Nashville EVP Sales, Marketing & New Media Ben Kline said, “I can’t imagine CD’s ever going away.  I can’t imagine Wal-Mart and Target not selling hard product.  It’s the ones (retailers) in the middle that will be hurt.  I don’t think you’ll be able to walk into a mall and purchase a CD.”  Kline went on to comment, ”We still can’t afford to be in the singles business” when asked about the current state of selling digital singles and why labels are not being more singles driven.

One of the major discussions prevailing was how to grow digital sales as CD sales fall.  Each panelist had their own ideas including:

• Better devices
• Ubiquitousness
• Multiple product offerings in one bundle
• Player compatibility and coordination between platforms
• Exceed experience of music ownership with consumers
• Stop narrow focusing on subscription based models

On the subject of future business models within retail, the industry vets responded with:

• Ben Kline:  “Demand price models (where price is equal to the demand of the music).  Not every song should be .99 cents.”
• EMI CMG VP Sales & Marketing Mark Adkinson added, ”Steve Jobs can’t run our business for us or he will run it right into the ground.  He wants to sell devices, not music.”  Mark also stressed the need for pervasive distribution within the music industry.

Radio Ink recently released the findings of a phone survey of 1,004 U.S. adults.  Among the findings the survey showed that 53 percent of listeners said they stick with a station through commercial breaks, 35 percent change the station, and 8 percent turn off the radio. And those who change the station tend to do it quickly: Seventy-seven percent of those who tune away do it within 30 seconds after commercials begin.  I‘ve seen other surveys where the numbers for losing listeners during commercial breaks are even higher. 

Personally, I will punch out of a station that is playing a really bad spot, especially if the ad is poorly voiced by the owner of the company (hello Tom Shane?).  I’ll also find another station if an advertisement is loud and annoying or if there are more than three or four 60 second spots back to back.  Production and content of the commercial really does matter.

When I was in radio we had a full time production person and that’s all they did.  Not many of those anymore with budget cuts and staff members wearing multiple hats and spreading themselves thin.

In thinking about the future, how much longer can the current advertising spot system last?  Is there a better way to set up advertising and partnerships to better utilize time, money, positioning and ratings?  Especially with the current battle that has emerged with other entertainment options (some of them commerical free).

The only time I find myself sticking around is if the spot is delivered with personality by the DJ or talk show host.  If it is done live with improvisation, all the better.  Give me authenticity and creativeness.  If a host can pull that off, it is not only entertaining, but the represented company is better served.  However, this can backfire when the host is delivering too many live spots and they suddenly become recorded “live” reads.  Which leads us back to annoying.

An even better scenario for advertisers is the shorter and focused spots that are live or that “sponsor” an entire half hour or other segment of time.  You know the type….”This half hour brought to you by insert company here…..”

Am I the only one that thinks something different should emerge in the way ads are produced, presented and scheduled?  Maybe an entirely new and innovative type of advertising revenue stream will emerge through podcasting, texting, or social networking?  There has to be a better way.

It will take a bold radio company to step out and set a new course.

Tempted to throw away that old promo copy from a label?  UMG says that sort of action is “unauthorized distribution” and therefore illegal.  Read the details here.

So what happens when a radio station gives a promotion CD away and the winner turns around and sells it at a garage sale or tosses it in the trash?  Could the contest winner be sued as well?

Goodwill and Salvation Army better watch their backs!

This is so 1990’s.

From emarketer.com:

A January 2008 Arbitron-Edison Media Research study found that an estimated 33 million Americans had listened to online radio in the past week.  

This represents 13% of the US population ages 12 and older, and is an increase over the previous year when 11% of the population (29 million) had listened to online radio in the past week.

Podcasting use is also rising and now reaches 18% of the US population, up from 13% a year ago. An estimated 23 million, or 9% of Americans had listened to a podcast in the past month.

“Traditional radio and Internet-only radio must realize that they are now part of an even broader world of online information and entertainment options and respond accordingly,” said Pierre Bouvard, president of sales and marketing at Arbitron.

“Advertisers who want to go where the trends are pointing need to be more involved with the new forms of audio media as they continue to expand,” Mr. Bouvard said.

How would you feel about a music site that organizes music according to your moods?  What would be your thoughts about a destination where you can legally download MP3’s based on emotions?

Guitarati is conducting this grand sonically visual experience by assigning colors to music.

It is certainly unique and outside the box, but will it resonate? 

The big partnership announcement between MySpace and three of the four major labels is getting interesting reviews and mixed predictions.  The labels are spinning it as cutting edge, while others are receiving it with a ho-hum and a shrug.

A short Businessweek.com article on labels trying to play catch up with digital opportunties and the latest music partnership with MySpace.  Click this to check it out. 

An integration of CBS Radio’s webstreams into Last.FM is underway and includes all formats. This follows last month’s announcement of AOL and CBS Radio joining together for sharing content.  Last.FM CEO Felix Miller hopes it will lead to more collaboration.

This type of integration and partnership is essential for the long term relevancy of terrestrial radio.  There is still much to do, but it is a step in the right direction.

From portfolio.com:

Warner Music Group CEO Edgar Bronfman, Jr., is considering one of the boldest plans to combat illegal downloading and peer to peer file sharing networks.  The idea?  To charge everyone using the internet. 

Consumers would pay a monthly fee, bundled into an internet-service bill in exchange for unlimited access to a database of all known music. 

Read the entire article here and decide if this is an innovative idea or another desperate attempt to “fix” a broken business model.

If not, why not?  Radio will need to embrace aggressive podcasting and video strategies to compete for the attention of future listeners.  The age of P1 demo of many country radio stations is rising because they are losing younger generations of consumers.  These tech savvy “self broadcasting” demos are getting what they want when they want it.  They aren’t waiting around through ad spots and countless other songs to hear their new favorite.

Creative and innovative use of podcasts, video, web sites, and mobile based activity will not only enable radio to stay in the game, but be active in the lives of listeners.  This could also answer the concerns of being local and developing engaging personalities, but radio companies need to make a commitment in making it happen.  Will they?

These new media outlets will not only expand the brand of the station, but also be more easily monitored and accurately measured for advertising purposes. For example, YouTube users can now better analyze the viewing patterns of videos far more easily according to this story from Media Week.

The bottom line is creating entertaining content value and connecting to the listener and consumer.  The more ways radio can do that the better chance they have to compete and win in a quickly changing landscape.

KFTX GM/morning show host, radio legend and Country Music DJ Hall of Fame member Dr. Bruce Stratton is now a movie star.  He is making a special appearance in the soon to be released western film Palo Pinto Gold.

Shot in Texas, the movie stars Roy Clark, Mel Tillis, Trent Willmon, and Anthony Henslee.  Special guest appearances, besides Corpus Christi’s own Dr. Bruce, by Kinky Friedman, Jay Novacek, Kevin Fowler and Robert Earl Keen.

Dr. Bruce is the bartender, seen at 1:10 into the trailer which can be viewed below.  Notice how well he delivers his lines!  

For a synopsis of the film and more information you go to www.palopintogold.com.

From www.ft.com by Andrew Edgecliffe-Johnson

Apple is in discussions with the big music companies about a radical new business model that would give customers free access to its entire iTunes music library in exchange for paying a premium for its iPod and iPhone devices.

 RADIO IN 3D

by Daniel Anstandig

Radio cannot grow if its operators insist on constricting the delivery of their brands to the sense of sound.  Sure, there is no way around the fact that “speakers to ears” is our primary delivery method. Still, listeners and advertisers are now challenging radio stations to “think outside the speakers” into the interactive world. They want three-dimensional radio.

Many advertisers are now convinced that an audio ad is no longer enough to reach their customers. New Media has opened up new options to reach consumers—outside of television and radio, and local direct advertisers are buying campaigns that are “diversified” in nature. Radio/advertising companies that offer a multi-dimensional solution to advertisers (including audio, online showcasing, online lead generation, etc.) are more likely to win the lion-share of the business.  Many of the radio companies we consult on building their digital marketing/sales strategies have reported that the street-level enthusiasm for radio buys with an interactive bend is at an all-time high.

McVay New Media’s 2008 Interactive Revenue forecast is calling for a 9% increase in this year’s spending on local banner ads alone. Across the United States in 2008, we will see approximately $10 Billion spent on local internet advertising by local direct buyers. Last year, radio is estimated to have pulled a whopping 1% share of that revenue.

These numbers concur with a study done by Borrell and Associates, which estimates that only 1.1% of last year’s $8.5 Billion spent in local online advertising (banners, audio/video streaming, and paid search engine placement combined) went to a radio station. Approximately $1.2 Billion dollars in streaming audio/video advertising alone will be placed online by local advertisers in 2008 (up 317% from 2007). It is estimated that $6.3 Billion will be spent by local advertisers on banner ads alone.

Broadcasters now stand at a cross-roads on whether to further include interactive media into their advertising-product-portfolio or not. The operators that effectively include interactive media in their strategies for audience and revenue growth will see returns this year. The operators without a vision for including interactive in their plans will leave money on the table—and sacrifice dollars to local internet portals.

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I attended several tech panels today, which I am glad to see on the schedule.  One in particular was a panel that had Sean Ross from Edison Research, Dean Ernst from Play MPE and Jim Kerr from Pollack Media Group.

They each debated and rated the hottest tech trends as “Boom” or “Bust”.  Here’s a quick rundown on how they voted:

• HD Radio:  Majority BUST
• iPhone:  Majority BOOM  (shows you how fast technology moves because this has been an obvious boom for a while now)
• Internet Radio:  Majority BOOM (although they said it would take a while to get up to speed)
• Podcasting:  Majority BOOM
• 360 Label Deals:  Mostly BUST  (in my opinion this is relative to which artists and managers)
• User Generated Content:  Majority BOOM
• Mobile Content Distribution Channel:  Majority BOOM
• DRM-Free Music: Majority BOOM

A forward thinking article on an application of the Long Tail for individual artists.  Find 1,000 true fans, cultivate them and and make a nice living giving them what they want.  Brilliant!

Or consider what recording artist Jill Sobule is doing:

Typically recording artists get an advance from the label to produce a new album, but Jill is taking a different approach.  She is in search of $75,000 to create her next project and going directly to her fans with incentives for help.  At this point they have responded in a big way with over 60K being donated.  I think it is an incredible idea, especially for those artists who have a strong and passionate fan base.  The time for innovation is now.

Check out the donation levels for fans:

• $10 - Unpolished Rock (but with potential) Level: A free digital download of the album, when it’s released.
• $25 - Polished Rock Level: An advance copy of the CD. Weeks before the masses.
• $50 - Pewter Level: An advance copy and a “Thank You” on the CD.
• $100 - Copper Level: All the above, plus a T-shirt saying you’re a junior executive producer on the album.
• $200 - Bronze Level: Free admission to my shows for 2008.
• $250 - Silver Level: All the above, plus a membership to the “Secret Society Producer’s Club,” which means you’ll get a secret password to a website where I’ll post some rough tracks, or… something worthwhile.
• $500 - Gold Level:This is where it gets good! At the end of my CD, I’ll do a fun instrumental track where I’ll mention your name and maybe rhyme with it. And if you don’t want your name used, you can give me a loved one’s instead. What a great gift!
• $750 - Gold Doubloons Level: Exactly like the gold level, but you give me more money.
• $1,000 - Platinum Level: How would you like to have a theme song written for you? I’ll have a song you can put on your answering machine and show off. Again, this could be a gift.
• $2,500 - Emerald Level:Mentioned as an executive producer of the album — whoop-di-doo!
• $5,000 — Diamond Level: I will come and do a house concert for you. Invite your friends, serve some drinks, bring me out and I sing. Actually, this level is a smart choice economically. I’ve played many house concerts where the host has charged his guests and made his money back. I’d go for this if I were you.
• $10,000 - Weapons-Grade Plutonium Level: You get to come and sing on my CD. Don’t worry if you can’t sing - we can fix that on our end. Also, you can always play the cowbell.

Jerry Del Colliano from Inside Music Media lists the 5 new rules for radio PD’s (addressed to consolidators or other serial abusers), so look out:

1. One PD per station. It used to be that a successful program director lived, breathed and experienced his or her one radio station 24 hours a day 7 days a week. This was an acknowledgment that the program director of a successful radio station is a specialist not a generalist. Consolidators anxious to get the most bang for the buck have spread otherwise qualified PDs beyond their core competency. If you want great radio stations that can program to the available market (which does not include the next generation), then suck it up and pay for one quarterback per station. Stop with the shortcuts and you’ll see a better return on your investment. And don’t tell me about the handful of PDs who are programming more than one station for you — imagine what they could do with one?

2. No airshift. (Does anyone know CPR for our consolidator friends?). The PD is responsible for talent, commercials, promotions, music or content, audience and community relations. Need I go on. If yours is a small market, an exception is allowed. Bigger markets — no exceptions. You don’t need your brain surgeons cleaning up the operating room at the end of the day. I know you don’t like this one but look at the results you are not getting by repurposing your PD. If you accept the suggestions so far, read on.

3. Outline goals and expectations on one page. How do you expect your content quarterback to do that which you ask him or her to do if you don’t articulate your goals and expectations on a piece of paper? I know. I know. Legal told you not to so when you fire an otherwise good PD who has achieved their goals you won’t have to lose the ensuing lawsuit. But really, put the items on a list. Make the program director sign off. Then, proceed to step four.

4. Give full authority to the PD to do his/her job. No meddling. No backseat programming. Leave your PD to either do what they promise or risk being replaced at the end of the year. Oh, no changing the rules in mid-stream. No using “corporate is making us cutback” as an excuse to stay involved. Warren Buffett, the billionaire who knows a little bit more than the Mays family about making money gives the people who run the companies he acquires full autonomy to do their jobs. Unlike the geniuses in radio, the Oracle from Omaha butts out. In fact, legend has it he only meets in person once a year for about two hours for an accounting of goals.

5. Fully fund the programming budget. Too many PDs have no real budget or the budget they have looks like Swiss cheese. If you suspect that corporate is going to ask for further givebacks during the year, under budget programming by the percentage of cutback you anticipate. You can’t expect a PD to do their job without knowing how much money they have to spend. In fact, put the amount on the goal sheet(#3 above) and make him or her sign off on it. Channel your inner Warren Buffett.

Check out the entire article here.

Chris Anderson & economist Jacques Attali speaking at the 2007 Midemnet Forum about the future of the music business. The revolution is happening……

This years Academy Awards were the lowest rated on record.  I watched most of the show and it was possibly one of the most boring Oscar’s I have ever seen.  I was, however, very glad to see Daniel Day Lewis and Diablo Cody win.

Lewis is a tremendous actor.  Seeing him accept the award last night, Amy and I were amazed that the character he portrayed in “There Will Be Blood” came out of his normal personality and voice.  When actors speak on stage, the majority of them are not far removed from their acting presence.  They also act similarly in many films.  Not Daniel Day Lewis.  The man is in a very small group of exceptionally gifted character actors that are on an entirely different level.  An entire different planet of acting.

Although I appreciated all of the movies up for Best Film in different ways, Juno was my personal favorite.  It surprised me how good it was and I found it refreshing in a year of very dark films.

Awards aside, my top favorite of all of last year was the independent film BELLA.  A beautiful and meaningful movie I would recommend for anyone.  Go rent and purchase it when it arrives on DVD! 

Inside Music Media is the blog of Jerry Del Colliano, founder of Inside Radio and current professor of Music Industry at USC.  I could not decide which article to link to because they are all extremely relevant and well done, so I will just encourage you to check them all out.

Thanks to Chris Huff at KSCS/Dallas for the heads up. 

For 20 years Bob Lefsetz has published the Lefsetz Letter.  Bob has had stints as an entertainment business attorney, head of Sanctuary Music’s American division and consultancies to major labels.

In a recent post on his blog, he laments the future of labels and radio.  Agree or not, Bob raises a lot of interesting questions on subjects we should be thinking about and discussing as an industry………

Last week I spoke at something called CIC, which stands for “Concert Industry Consortium”, Pollstar’s annual gathering of the concert geeks. And what a gathering it is, this ain’t no usual conference, EVERYBODY in the touring industry shows up.

And hanging in the lobby after I was done, I was bullshitting with Lewi, Strasburg and the assembled multitude, and Jim suddenly looked at his watch and said there was a panel he wanted to attend, about money. I’ll follow Lewi anywhere, so I followed him through the hotel, to hear what I figured was a discussion about getting paid at the gig. Boy was I wrong. This panel, entitled “Money Talks”, although chaired by Adam Friedman of Nederlander, was made up of VC’s, “venture capitalists” for the uninitiated. They were talking about the business BEHIND the business.

One had invested in HOB (House of Blues for those not up to speed on acronyms). There were issues of scale. Which they tried to address by purchasing Universal Concerts. But this didn’t do the trick and they ultimately sold out to Live Nation. Why did they make money? Because of the great real estate deals they’d made. Developers had cut them a break on rent because of the foot traffic the clubs generated. I’m sitting there listening to these guys thinking that I need an MBA, they’re talking about stuff I don’t know about. Oh sure, I’m aware of ROI (return on investment), but it went deeper than that. They talked about going public in just a few years, to get their money back, that was the PLAN! Then one said…in five years he expected there to be no music on terrestrial radio.

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Boston Business Journal published a new report by Forrester Research Inc. that shows that half of all music sold in the U.S. will be digital in 2011 and sales of digitally downloaded music will surpass physical CD sales in 2012.

The report also claims that digital music sales will grow at a compound annual growth rate of 23 percent over the next five years, reaching $4.8 billion in revenue by 2012. In contrast, by 2012, CD sales will be reduced to $3.8 billion.

“This is the end of the music industry as we know it,” said James McQuivey, vice president and principal analyst at Forrester Research, in a statement. “Media executives eager to stay afloat in this receding tide must clear the path of discovery and purchase, but only hardware and software providers can ultimately make listening to music as easy as turning on the radio.”

McQuivey, a former professor at Boston University, tells record executives to cheer up because there are ways to rise from the ashes. He says first, the industry should quit fooling around with music subscriptions and ad-supported models. People want to own their music and downloads have won. Only 7 percent of adults on the Web say they have ever tried a subscription service, according to the report.

In a final note, McQuivey suggests that music artists, who have historically looked down their noses at advertising, had better change. He says the industry should rip a page out of NASCAR’s playbook.

“Artists who used to pretend that their platinum album success was really about their “art” will no longer have that luxurious pretense because labels won’t sign them unless they agree to a barrage of sponsorship opportunities,” McQuivey wrote. “There will eventually come a day when Chips Ahoy will contend with the Keebler Elves over who can be the official cookie of the Taylor Swift world tour.”

Here is an interesting follow up to yesterday’s post regarding Jim Cramer’s predictions.  It is from Media Week and about the need for radio to get back to live and local personalities to compete for the future.  

Personality Crisis: Will Cost Cutting Save Radio?

Paul Heine and Katy Bachman FEBRUARY 11, 2008 - “shut up and rock!” screams a message on the Web site of WEBN-FM in Cincinnati. The shut-up part of that order at the iconic Rock station is being taken quite literally.Late last year, Clear Channel canned 12-year WEBN midday host Ken “Mr. K” Glidewell and replaced him with a personality who doubles as one of several co-hosts on the station’s morning show. The dismissal was part of a massive wave of layoffs in at least 20 markets that gave a wholly different meaning to the company’s Less Is More mantra.While the numbers varied from market to market, the results were alarmingly similar: on-air jobs eliminated, positions consolidated, air shifts radically extended, personality teams split up and more dayparts yielding to voice-tracking and syndication.

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