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I was at the gym this morning getting a workout on the bicycle. I plugged in my headphones to listen to one of the five television channels available to those in the facility. My choices were a Wall Street news show, the Golf Channel, the Today Show, a country music video channel, and an investment program. What? No ESPN?! Unbelievable! I was too busy peddling to ask the staff to change one of the channels, plus I figured I needed to catch up on my music videos. The decision was made.
While on the stationary bike I saw five videos amongst promos and advertising. All currents and all on the charts at the moment (one may be considered a recurrent). As a fan of music and a radio listener I was incredibly disappointed. Besides each video bringing an element of over dramatization, the songs were below average radio fodder. Each single was from a major label, around mid-tempo, had unoriginal lyrics, overdone themes, and predictable melody. They also had a nice hooks in the chorus and that’s all that really matters because they probably are testing well for radio stations. The lowest common denominator typically wins and real music lovers lose because Nashville will continue to release the songs that they think will test well for radio stations across the board. And then the time will come when radio will say, “Why isn’t Nashville sending us anything extraordinary?” The industry cycle feeds itself.
What happened to edgy? What’s wrong with passion and polarizing? When did going with your gut become so passe’? Taking a chance…..what’s that? Seems like there is less and less of that going on every day for a number of reasons.
Don’t get me wrong, there is still amazing music being released from an array of strong artists by labels. We are also fortunate to have the star power of Taylor Swift, Carrie Underwood, George Strait, Keith Urban, Darius Rucker, and Kenny Chesney among others. Still, a substantial amount of singles are background music designed to do exactly what radio needs them to do. Be unstylish, non-offending wallpaper. Don’t turn that dial! TSL! PPM! Familiarity! It’s okay if they all sound the same.
Take the new single from Radney Foster for example. Think it’s too out of center? Maybe, but that is exactly where our format gets its energy and relevancy from. Or what about the songs and artists that are “too country”? The heck you say! Perhaps out of center the other direction, but they are the foundation and lifeblood of our format. So thanks to Lee Ann Womack and those like her.
It’s always frustrating to know that the majority of listeners will never hear ground-breaking, original, and beautiful music that is being written, performed, and recorded by immensely talented artists. Unless of course they go to one of the numerous online options that offer discovery and personal playlists. There are, thankfully, exceptions in the radio world who push the musical envelope and you stations know who you are.
I realize this is a battle that has been going on for a long time and will continue to be fought and discussed. Like the exercise bike I ride that doesn’t go anywhere. It does grow tiring to be sure and everyone has an entitled opinion, but at the end of this day I’ll take exceptional music over mass mediocrity any day.
From Seth Godin:
The risk/reward confusion
It’s easy to to adopt the policy of avoiding risk at all costs, that whenever possible, the products you launch or the engagements you have should be flawless and without downside.
Here’s the problem: in most endeavors, a small increase in risk can double the reward. It’s the second doubling of reward that brings serious risk with it. But the first leap is relatively painless.
In the chart above, notice that going from point A to point B brings almost no incremental risk. It might feel scary, but rationally, it’s not. Doubling reward again from B to C, though, brings significant incremental risk. It’s this second doubling that gets you through the Dip, that leads to a breakthrough, that makes you remarkable.
But I’m not even talking about that. I’m just hoping you’ll warm up by making the tiny leap of avoiding all risk. Riskless is hardly worth your effort.
From Vintage Vinyl News:
The National Association of Recording Merchandisers (NARM) has released a report in association with Nielsen SoundScan on the current state of the recording industry.
Highlights from the report:
Digital music is now 40% of the total music purchases compared to just 8% in 2005. It is projected that it will hit 50% by the end of 2010.- Purchases are being made less at mass and chain/electronic stores and more at value oriented outlets (dollar, mass merchandisers, clubs) and on-line. Between 2001 and 2009, chains like Best Buy’s share of the market has gone from 54% to 32%, independent music stores from 14% to 7%, mass merchandisers like Wal-Mart from 28% to 33% and non-traditional sources such as iTunes, Amazon and Starbucks from 3% to 29%.
- In 2008, the biggest percentage jump in sales was for vinyl albums, which were up 89% over 2007. The biggest drop was in current CD albums (compared to catalog) which was down 23%.
- Since 2004, CD sales are down 45% while digital sales are up 490% and video game sales up 115%.
- Between 2006 and 2008, rap music had the biggest drop in album sales, dropping 44% with country down 36% and R&B down 34%. On the other end of the scale, rock and hard rock are only down 18%.
- Digital music buying was done most by fans of rock music, with 41% of all purchases coming from an on-line source. That’s compared to only 6% of sales for country albums.
- New physical formats are not doing well. Slot Music sales are averaging 1,500 albums per week while digital album cards are only moving 590 albums. Both formats are seriously declining.
- Through the first five months of this year, rock and alternative vinyl album sales have led the way, growing between 60% and 70% from last year. The real genre gains, percentage wise, has been in country and gospel where sales are up 200% from a year ago.
There is a ton more of interesting statistics over in the NARM presentation including the impact of TV on music sales and statistics on big sellers.
The following article from Business Week is a very telling sign. Is there any reason not to believe that artist management is now in the drivers seat for the music industry? A place where 360 deals are a natural part of the entertainment landscape and where the business of touring and sponsorships can thrive. All that will be left for some of them to add is in house promotion/marketing/new media. Then once the current artist deals are fulfilled at labels, look out.
Posted by: Jon Fine
TicketMaster Entertainment CEO Irving Azoff, appearing at News Corp’s annual All Things Digital conference in Carlsbad, California, proved an interesting and free-speaking interviewee. Although, churlish as it may be, he was much more interesting and free-speaking about the macroeconomics of the music industry than on the specifics of his company—and its proposed merger with LiveNation Inc.—and the criticisms lobbed at it. (I’ve hit one such lob myself.)
“Recorded music is more a marketing tool than a revenue source” for acts now, said Azoff, who also still manages the likes of The Eagles, Neil Diamond, and Christina Aguilera. His storied career, and well-earned reputation as one of the fiercest and savviest managers in the business, took flight with the Eagles, back in the Seventies when both Azoff and his artists were significantly more mustachioed and bushy-haired than they are today.
They also had a much easier time making a dollar back then. Today,“recorded music is down to less than 6%” of major musical acts’ revenues, he divulged. To put this in its proper perspective, consider that such income once was such acts’ “biggest revenue source,” he added.
Much of what Azoff said pointed to a view of music revolving around the live music experience. This, obviously, plays into his wheelhouse as one overseeing business interests so dependent on concerts. Still, his logic is convincing, and the examples he cited concerning what he called the “demonetization” of the music business were striking.
Artists walk in to his office, Azoff said, “who used to make $300,000 to $500,000 a year in royalties [from selling recordings]. And now that’s diminished to less than $50,000” a year. This means, unsurprisingly, “the creative side” of the music business is “very anxious” about the changes that have swept this landscape.
His answer, as cringe-inducing is it may be to artistic types uncomfortable with the ways of business, is understanding the branding and promotional value of music. He cited new deals like his client Aguilera working with Procter and Gamble to launch a line of fragrances.
A glimmer of hope for his old-school artists: While Azoff said CD sales have been declining alarmingly, and especially back-catalog CD sales, that business “appears to be bottoming out.” And, he added, “I don’t think the CD will go away totally.”
Compare all this candor to the following exchange regarding TicketMaster and its proposed merger with LiveNation:
Interviewer Kara Swisher: How do you answer criticisms that [the merger] creates this behemoth.
Azoff: We think everything we do revolves around what’s good fir the artist and what’s good for the fan.As Swisher pointed out, songwriter-cum-secular-saint Bruce Springsteen, among others, strongly objects to this view. But Azoff said that Springsteen was “uninformed” about what his company did.
Artist Shaun Groves posted this piece on his web site blog. It’s some good stuff that every artist needs to read and understand. I appreciate him allowing me to re-post.
The management company that represented icons Michael W. Smith and Amy Grant for ages just folded.
The Gospel Music Association is letting people go.
Their Gospel Music Week was a ghost town this April, with major artists no longer taking a break from touring to participate in it.
Speaking of tours – they’re losing money – big money – which means production companies are going down too.
Some say technology will save the day. Lots of artists are going on-line to blogs, twitter, facebook, etc because of this optimism. But this new technology is not the magic bullet some claim it to be. The bullet that works best hasn’t changed – it’s just changed hands.
The music business is about relationship. And now it’s the artist’s turn to have one.
Success in the music business once hinged on only a handful of relationships: a publicist and a magazine, a salesman and a bookstore, a radio promoter and a radio station, a booking guy and a promoter, an artist and a manager, a writer and a publisher. If all these relationships were working, if all parties’ interests were respected and pursued, if no personalities collided to the point of impeding progress, then the project or artist they were tied to would succeed (from a business standpoint.)
Relationship is still king.
Starting a blog, hopping on Twitter, launching a Facebook fan page – these are not cure-alls because they aren’t a relationship any more than buying a basketball is spending quality time with my son.
These technologies can foster relationships. But not without a lot of personal investment and intentionality from an artist.
This is a big shift in thinking for artists, especially at the top levels of this industry. Artists aren’t accustomed to being so accessible, accountable and out of control. Artists are accustomed to being in front of audiences that care about what they do, audiences they know are fans and they keep in the seats for a couple hours by charging a ticket price. But on-line, where spending time with an artist is free, anybody can wander into the crowd, boo, change the subject, or walk out. And they will.
Also, artists are used to hiring people to handle their relationships for them. That’s at least 90% of what a manager does. Labels congratulate and critique through a manager, for instance, who adds his own diplomatic spin to every word so the artist’s feelings aren’t hurt and the relationship is preserved. Not so on-line. Someone can be hired to hit the “publish” button on a blog post that gets e-mailed over, invite people to a Facebook event and even write to people for an artist and signed their name (it happens), but no one can convincingly be the artist every day in post after post or interact with commenters regularly. Artists can’t hire anyone to be them 24/7 and the internet demands those kind of hours.
Lastly, labels are used to creating and maintaining the image of an artist: focussing and filtering, controlling who can and can’t have access, and how much, when and where. There’s one official bio and one fact sheet carefully crafted in a record company office and then parroted by every media outlet. That’s not possible on-line. And that’s distressing, fatal even, if an artist has nothing to say or, worse, has lots to say about things that don’t matter to anyone but them. Hair products, high priced jeans and guitar pedals aren’t all that interesting to folks with real jobs. The public is now discovering through an artist’s blog what publicists have known for quite some time and expertly covered up: This guy’s just a singer. And that’s no basis for a relationship.
If the music industry dies it won’t be because everything changed. It will be because artists didn’t. Artists today have to – no, we get to – do what the rest of the industry and human race has been doing for eons: We get to be real human beings spending time with other real human beings. There’s no shortcut for that.
The Man was afraid to tell us artists this before: It was never about our music. And it’s not about new technology now. It’s always been about people. All that matters is.
Rascal Flatts new album “Unstoppable” sold 351,000 in its initial week. It debuts at #1 in the Billboard Top 200 and is the trio’s fifth consecutive studio album to debut in the top five. The most interesting number and the one we should be dissecting is the 58,000 copies that were sold digitally, making it the week’s #1 Digital Album. That is about 16% of total sales.
While retail and big box sales are critical today, the more important future strategy should be working on growing the 16% to catch up with the ever increasing numbers in total digital sales occurring within the industry.
Another interesting note is the rare occurrence that Country artists have debuted at #1 for two consecutive weeks (Keith Urban last week). Jason Aldean also gets kudos for first week sales of his sophomore album at #4 in the Top 200 with 109,000 units sold.
So all news is not bad news, but the ACM’s, Swift, Urban, and Flatts have certainly help prop things up.
A recent article from The Tennessean:
Sarah Sidwell, a 19-year-old freshman at Belmont University, loves listening to music but doesn’t buy it that often. Instead, she listens to top artists on Pandora, a free online radio station that she customizes to play her favorite songs.
It’s a phenomenon adding to the overall decline in music buying and even the legal and illegal downloading of tunes, according to New York-based NPD Group, a research firm. Instead of buying music, many consumers stream it online without ever opening their wallets to pay artists or record labels for their work.
With tens of millions of dollars in revenue at risk, music labels and musicians in Nashville have been scrambling to find new ways to make money at a time when sales are shrinking and digital downloads haven’t managed to fill the gap.
Adding to the challenge is the fact that more music is becoming available for free.
“Just as music piracy and the advent of digital music ended the primacy of the CD, we are beginning to see new forms of listening challenge the practice of paying for music,” said Russ Crupnick, NPD’s vice president and senior industry analyst.
Teen and young adult consumers increasingly stream their favorite artists on MySpace pages, listen to music over online radio while doing homework or preview an artist’s CD via an online music service before the album’s release date — all without paying a penny.
“The need to buy has diminished because (music) is so accessible,” said Heather McBee, vice president of digital business at Sony Music Nashville.
Web offers samples
Virtually all record companies and artists are trying to target music fans more aggressively on the Web.
For example, country music star Keith Urban is marketing his album Defying Gravity, which hits stores Tuesday, using iLike, an online service that lets users tell friends what music they like and track concert dates.
Since March 17, Urban has exclusively revealed a song off his album each day, along with a video explaining the song. Consumers can click on a link directing them to iTunes to purchase the song for 99 cents.
“We’re specialized for music,” said Ali Partovi, CEO of Seattle-based iLike, adding that his Web site is designed to drive sales. Partovi said even though his company is not yet profitable, about 60 percent to 70 percent of revenue comes from national brand advertising. He declined to provide annual revenues.
Urban has promoted past albums and tours on iLike. One benefit of using the Web site is it provides statistics for artists showing how many people streamed the album or checked out Urban’s profile, said Genevieve Jewell of Borman Entertainment, which works with Urban’s management.
ILike has a universal dashboard that pushes content out to other channels such as Facebook, Orkut or Ask.com, allowing Urban to reach more fans than the average social networking site can reach on its own, Jewell said in an e-mail.
“It’s hard to exactly pinpoint how successful this campaign will end up being, but I think the percentage of sales that end up being digital will be a good way to measure the success,” Jewell said.
The 40th Country Radio Seminar started off in encouraging style with Seth Godin giving an intelligent and rousing keynote. He knows his stuff when it comes to the music and radio industries and he certainly knows how to engage in discussion about the future. Mr. Godin also has a keen skill of inciting vision in those who wish to move from the broken model and into the new world. A brilliant move by the CRS agenda committee to bring him in.
I was hopeful that spirit would continue on into the panels, but unfortunately what I witnessed only took us down familiar traveled roads and led us to a big “You are here” arrow. During the three days of CRS I heard very little discussion and insight about preparing for the changes in the years to come. Part of the problem is no one really knows what is ahead, but at least we should be having conversations about the opportunities within new creative business models. Instead I sensed just a reactionary tone.
For instance, in listening to one particular panel where the guests were talking about how 85% of country retail sales come from the big boxes like Wal-Mart, Best Buy, etc. and how labels and distributors are handling the ever shrinking floor and stock space at these retailers. Yes, these giants have been critical to our past success and are obviously important to our current victories, but what about five years from now? We are still living in a Wal-Mart dominated world, but what happens if Wal-Mart continues to shrink the new music space and only increase catalog? What if Wal-Mart decides they will only carry the Top 20 or 30 selling acts? What if they ultimately conclude that selling CD’s is not part of their plan any longer because they just aren’t that profitable for the space they take up?
What I really wanted to hear was a plan that does not involve CD’s, does not include Wal-Mart or Best Buy, and embraces new technology and innovative marketing. A redefinition of our industry. The same strategic thinking that Mr. Godin touched on in his keynote. Though there were good panels, I wasn’t hearing anything remotely inspiring for the future.
Some within the music industry have made strides in getting up to speed with changes and technology, but we are still only making adjustments to what is happening to us at the moment. We are not leading the way in engaging where the consumer is going and what they will want down the road. That’s what got us in trouble to begin with.
Overall I love Country Radio Seminar. Walking around seeing old friends and making new ones. Having discussions with remarkable individuals who I can learn a great deal from. Talking with people about the partnership opportunities with Compassion International and finding them excited about the possibilities. Checking out amazing artists and songwriters. It’s a great time. I simply expected more focus and vision for the future than what I encountered.
I’m hopeful things will move in the right direction with CRS, but currently the best place to engage the new world is at the Leadership Music Digital Summit being held in Nashville at the end of March. There’s no Bridge Bar, no fans clamoring in the lobby, no free shows, no dinners at The Palm, and no labels dividing up the troops. Yes, not as much fun, but a whole lot more relevant and affordable.
I would like to be relevant in the years ahead, how about you?
CRB recently announced that Seth Godin will keynote Country Radio Seminar 2009. In my opinion they could not have booked a better individual to kick off the seminar. Seth is not only a marketing and idea guru, he also is very familiar with radio and the record industry. He knows how the dots are connected as well as any of us, but more importantly, knows how the dots are dis-connected better than most of us.
Seth’s blog is a must read and many other blogs, including this one, refer to it often. If you’re not familiar yet with Mr. Godin, start with Mark Ramsey’s interview on his media industry blog Hear 2.0. Mark is the President of Mercury Media Research and he talks to him about radio’s future. Then go bookmark Seth’s blog site.
I would expect Seth Godin to be enlightening and challenging to our industry at a time when we need it. I’m just glad the keynote slot was not given to another celebrity interview that does little or nothing to inspire and provoke serious thought for the future of our format.
I hope it will be a sign of good things to come from CRS 2009.
I was recently thinking about legendary Country artists that have little significance in today’s Country music world or in the pop culture at large. They certainly have respect and have been influences on culture, but they have either been shut out of today’s world or have purposefully decided not to participate. It happens.
Then there are others who still have weight and significance in what is happening today. How does that happen and who decides? Some of it is hard work on the road, a great marketing, publishing or publicity team, and a new vision of how they can fit themselves into what’s going on now. Sometimes it is random fortune too.
That leads me to The Bellamy Brothers. They currently have a big hit in the U.K., but not from a new song, but rather “Let Your Love Flow” which they originally released in 1976. It is one of the best “feel good” songs ever recorded and someone took advantage of that fact and licensed the track for a television ad in the United Kingdom. The single is rising up the UK charts 30 years after it was a hit and they have a new found fame. A whole new generation is discovering the Bellamy’s.
The ad is for a credit card company. I don’t feel good about credit card companies. I actually hate credit card companies for a multitude of reasons. They are evil. But I do like this advert.
From Dan Miller:
There seems to be a subtle shift that takes place in the history of most businesses. Let’s say Barney was a cave man who made great wagons. But there are only 20 people who live in his known world so as soon as he makes 20 wagons he’s out of business. If he can’t imagine using his skills for anything but wagon-making we might then see him sneaking around at night burning the wagons to rekindle demand. Or the town witch doctor knows he would not be needed if everyone were healthy. So he “creates” illness to keep his patients coming back rather than help them attempt to find ultimate health.
Now fast forward to 2008 in America – same deal. We have auto manufacturers who can’t risk making a car that really lasts – they need 5-year obsolescence. Parts that wear out and systems that malfunction are a necessary component of keeping the machine of making cars in place. It would be self-defeating to make a car that semi-permanently met the customer’s needs. You have to hope the customer doesn’t stay happy with their purchase for too long.
Do you really think we aren’t smart enough to make a lightbulb that would last essentially forever? But what would that do to the sales of lightbulbs?
What if a counselor or chiropractor really helped every client they saw? Got them to a point of healthy functioning on their own? How would he/she pay the mortgage the next month? Keeping people dependent on their services may become more important than seeing them get better.
If you realize your “work” is more dependent on keeping a system in place than on meeting the real needs of your customers, you are indeed vulnerable. Real estate developers, publishing houses, record labels, auto manufacturing and “investment” firms are all suffering in their attempts to keep systems in place rather than responding to the changes in demand of the marketplace.
What we need are new ways to engage our creative skills; not government support to allow us to keep doing what no longer works.
I happen to be a car enthusiast, but I think it’s a joke that someone “decided” we needed new models every calendar year? My primary car is a 1991 Mercedes 500SL – it’s 18 years old! It looks great, has great styling and is fun to drive. I’d love to see a 5-year car – where nothing changed for at least 5 years, or even 10. Can you imagine the streamlining of parts and service, and the reduced waste from excessive manufacturing?
Now – what are you doing in your work or business to make sure you are serving your customer’s needs, even if those needs change?
More indication that artists and labels need to have a marketing strategy that assumes Wal-Mart is not in the equation.
From Home Media Magazine:
Wal-Mart Stores is rapidly downsizing shelf space for music CDs while increasing availability of Blu-ray and consumer electronics in select locations, according to a new report.
The Bentonville, Ark.-based retail behemoth, citing a 23% drop in CD sales during the first four weeks of the fourth quarter, continues to scale back inventories of music packaged media; supplanting it with electronics and movies.
“We believe Wal-Mart is increasing its exposure to consumer electronics, video games and Blu-ray, and reducing floor space devoted to CDs and standard DVDs,” said Richard Greenfield, analyst with Pali Capital, in a note.
Greenfield said the chain’s floor space devoted to DVD, including Blu- ray, ranged from up modestly to down slightly.
Pali reported that an accelerated rate of sales decline for CDs combined with the slowing of digital unit sales had resulted in Q4 total unit sales declining 11.6%, compared to a 11.3% decline during the previous year period.
Total music sales fell 5% to 7% in the first three quarters of 2008.
In an analyst meeting last week, John Fleming, chief marketing officer with Wal-Mart, said electronics would be getting space expansion in stores due to the decline in physical packaged media.
“In electronics, where all the digital products are getting space expansions, and some of the physical packaged media, CDs, movies, are coming down dramatically so that we can space the growth categories,” Fleming said.
Greenfield said Wal-Mart’s continued exposure to music would be limited to exclusive CD releases such as AC/DC’s Black Ice & No Bull, which included a Web site and sales opportunities for related content such as DVDs, video games and gear.
“As packaged media continues to fade, Wal-Mart is focused on acquiring exclusive rights to music content, which enables it to sell multiple products to a consumer at one time; not just an $11.99 CD,” Greenfield wrote.
He said Wal-Mart’s scaled-back interest in music coupled with the potential bankruptcy of Circuit City Stores, a top music CD retailer, portends a bleak 2008 holiday season for the music industry.
Edward Woo, analyst with Wedbush Morgan Securities in Los Angeles, concurred and said consumer demand for physical CDs would continue spiraling downward.
“The demise of specialty music stores gives you a good idea that the market is shrinking fast,” Woo said.
This is a short video clip from American Express hosted openforum.com in which Seth Godin answers the titled question: Do social networks matter to your business?”
Also check out another clip entitled “No One Cares About You” here.
Seth Godin gives some interesting and relevant insights and makes a good case for getting back to personalized authenticity…….
Organizations will work tirelessly to de-personalize every communication medium they encounter.
Radio ads used to be live, personal and spoken by an individual.
TV ads used to feature actual people, demonstrating something, usually live.
Phone calls involved a live speaker, talking, with permission, to another person.
Email used to be honest interactions between consenting adults.
Facebook pages (and Wikipedia, too) were built by people, not staffs.
Twits came from real people, and so did instant messages.
One by one, the mass marketers have insisted on robocalling, spamming, jingling and lying their way into our lives. The pronoun morphs from “you” to “me” to “us” to “the corporation” …
The public works tirelessly to flee to actual interactions between real people, and our organizations work even more diligently (and with more leverage) to corporatize and anonymize the interactions.
The irony, of course, is that an organization with guts can go in the opposite direction and win.
Yes, that’s right my friends. Since I am no longer with the affiliated record label, no one can accuse me of self serving bias. This is one great band no matter where I am.
The members of Whiskey Falls are all individually successful and extremely talented. They can play, sing, and perform with the best of them, and they “get it”. They understand how the industry works and, most of all, how it doesn’t. They are savvy about the future of our industry and are light years ahead of a majority of acts when it comes to connecting the dots.
Whiskey Falls has a harmony and a sound that should be all over the radio, which interestingly enough is the only media passenger that hasn’t yet completely boarded this train. Plus, they are the nicest guys you will ever meet. The band was a pleasure to work for and I expect great things for the guys in the future.
The Music Advisory suggests you do yourself a favor and get to know the band HERE and become their friend. You won’t regret it. I haven’t.
Finally someone is doing something that makes sense in this town. Will it work? Based on the demo segment who purchase music from Taylor Swift I think it will. The price points may be a little high for the basic CD and digital download pre-sale and they probably should have given an incentive along with it. Although, Taylor does have a passionate fan base, so they may need no bonus enticement.
If it falls short, then it was a good move in forward thinking. It is only the beginning of what can be accomplished with innovation, incentive, and creative marketing. I noticed the “Pink Ticket” gimmick is taken right from the Chocolate Factory. Willy Wonka would be proud.
We have to be of the thinking that Wal-Mart and Target do not sell music any longer. It’s not very far fetched. How do we engage our consumer, give them a real reason to purchase music online (or the incentive w/ free music), and make them long term partners in a career?
Nashville typically lags behind the curve and likes to make excuses for it which only perpetuates the lag. Yes, times are tough and present many challenges for the future, but within those challenges are huge opportunities. We do indeed have to be Fearless.
A hypothetical situation here……
A particular segment of business has certain rules and regulations that companies are to abide by. Some are set in stone and others are unspoken rules. It essentially becomes the accepted framework of conducting fair business. Of course everyone is looking for an edge to win, but they all start from a level playing field.
One day, a particular company finds a loophole in the system and knowingly exploits it. The result is to the advantage of this company, but it clearly goes beyond the framework and fair business practices. They say it is “working the system” or being “creative” while the rest of the competing companies say that they are essentially cheating.
So the question is, did they do what any company would have done to get ahead and to beat the competition or were they caught cheating as they looked to win “at all costs”?
I believe we should aspire to win, but not at “all costs”. There is desperation in selling your ethical soul and a considerable risk of losing integrity and respect within the business community.
I have an idea of how to do business. How about we give all that we can, do the best that we can, be innovative, creative, passionate, and savvy in the process; but do it with integrity and respect for others. Call me crazy.
There is a sign I often see on the back of dump trucks lumbering down the interstate full of gravel, dirt and rocks. Some of the trucks have top covers and others don’t. The sign is always something like ”Not responsible for vehicle damage” or “Not responsible for damage from debris”. Oh REALLY!? It might as well be a sign that reads, “Not responsible for our trucks inability to contain waste properly”.
Is that all it takes? A sign to make it legally binding? I can think of some much needed signs I need to post on my car, in my office, and on the mailbox if that’s the case.
I also recently saw “No Soliciting” signs on the front door of Bank of America and Sprint. You have got to be kidding, right? They are allowed to solicit me all day if they choose, but I can’t return the favor?
From eMarketer.com:
The music industry is learning a hard lesson: The mobile platform works better as a marketing and customer relationship tool than it does as a retail sales channel.
“Bands and artists are increasingly using mobile to form direct relationships with their fans that are then monetized through other means, such as tickets to live shows, merchandise and fan clubs,” says John du Pre Gauntt, senior analyst at eMarketer and author of the new report, Mobile Music: Ads to the Rescue. “In addition, given consumers’ reluctance to pay for music on their phones, marketers are finding new opportunities to partner directly with carriers, labels and even music artists themselves.”
It’s not that there won’t be mobile music sales, they just won’t be as large as many in the industry hoped for.
Check out the rest of this article with facts and figures HERE.
U.S. album sales continued a steep decline at the mid-year point with an 11% fall to 204.6 million units, according to Nielsen SoundScan. Country sales are off considerably more than that. The music business sales experts are saying that this dip is due to gas prices hard economic times. Of course they would say that. They are doctors of spin.
The sales drop is not a big surprise with the way things have been going. Retailers are carrying less and less CD product, labels are just crawling out from under the CD rock into a digital world, business models are in flux, and there is a wide array of experimentation going on to find quick results. The problem is that there are no quick fixes to this. It requires innovation and creative planning for the years ahead.
It’s like being dug in the fox hole and hoping not to get taken out. At some point you have to plan the attack and move forward or your losses become so heavy you can’t advance. Game over.
Suddenly I have a vision of Band of Brothers in my head. Did you ever see that masterpiece television series? It is my all time favorite.
In one scene the U.S. troops were dug in at the Battle of the Bulge near Bastogne. They were taking a fierce beating trying to hold the line. It was a critical point. They either hold the line and allow for an advance or they retreat or surrender and the entire war takes a turn for the worse. Fortunately for us all the troops endured and had the resolve to hold their position in Bastogne and move forward and attack all along the Western front.
I’m not equating WWII with the current battles the music business faces. That would be monumentally stupid. I’m only comparing the strategies and boldness necessary to be successful.
The industry is taking a beating and we must get out of the fox holes. We can’t look back. Even though things look bad, there is opportunity through innovation, strategy, and resolve. And keeping the music first and foremost.
But is anyone leading?
The recent news that Wal-Mart is demanding a CD price cut from record labels sent ripples throughout the music industry. Wal-Mart is the nation’s largest music retailer, and they are threatening to pull out entirely from selling CD’s to make room for more profitable product lines (such as iPods, video games, DVD’s). The chain’s recent success selling the Eagles CD exclusively (bypassing traditional labels and music distribution) gives them even more leverage in a rapidly changing music retailing landscape.
Other music retailers watching from the sidelines will await the outcome of this latest skirmish and will also demand concessions of their own to remain competitive. With the costs of doing business at the labels (including finding, launching and developing new artists) on the increase the pressures mount on several fronts. Labels and artists are being pressured to perform like never before.
If Wal-Mart decides to stop selling CD’s it will not have a significant impact on their sales, as they maintain music only accounts for about 1% of their sales volume. Unfortunately the labels (especially certain genres like country) rely on Wal-Mart to the tune of about 40% or more of their sales base on every release. Imagine the quantum shift Wal-Mart’s exodus would create for the music industry. Labels are struggling as-is to not only break new artists but maintain sales bases for their established acts at retail.
Digital sales, while on the upswing do not offset the losses on the physical side at retail. Another trend is the consumer’s desire to pick and choose only the hits, or the songs they like and not the entire album. The next generation of music consumers will not be tied to the prior generation’s album-mentality when it comes to their buying habits. Labels and artists have to develop new sales models to maintain revenue streams and incentivize consumers to step up for their product. Many are experimenting with product exclusives, such as bonus tracks and video content. Some are attempting to drive customers to their web sites for bonus material or opportunities for fans to obtain early access to concert tickets.
The emergence of Live Nation (who recently inked several high-profile deals with the likes of Madonna and U2) as a powerhouse in the music industry indicates the savvy artist is taking more control over key aspects of their careers. The labels are seeking new models and partnerships with retail and radio, along with Internet vehicles to expose artists to consumers. The competition for the entertainment dollar is fierce in the marketplace, as today’s buyer has many more choices than their predecessors.
MySpace, Facebook and other web-based environments are finding their foothold as launching pads for new artists to grow and cultivate fan bases. The marketing gurus in this new arena are seeking and finding alternatives to traditional radio and TV outlets to expose their art. Consumer-driven and designed content is the new conduit. The music and entertainment customer wants to make their choices and have their individual stamp on the finished product, whether it’s picking their own songs to burn to CD or designing their blog pages.
Another challenge this creates for the labels is the artist development process. How long can a company stick with a new artist until they see payoff? What costs should be shared by the artist in this plan? Look at the development of classic artists like Bruce Springsteen, Billy Joel, et al (neither of which had early commercial or radio success) and wonder if they would have stood a chance in today’s environment. Where is the next generation, and who is passing the baton? The future of the industry will evolve at its own pace, but hopefully the “gatekeepers” will make the right decisions and there will continue to be viable artists.
Meantime, the retail landscape will continue to be a challenge for the labels and the artists, regardless of who is in charge or picking up the checks…
David Sanders is Nashville Label Manager for Koch Entertainment Distribution
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.
Many of tomorrow’s popular artists are going to need more than a single and a CD to explode. To find entry into new media, exposure to potential fans and to sell their music it will be necessary to market and brand themselves with innovative means. Multi-level partnerships, sponsorships, new media, special events, sports and mobile based marketing are just a few important ways to reach the targets. Whiskey Falls is already making it happen. Other radio formats are recognizing the opportunities available to them with acts that are offering value not only in spins, but beyond them. When will the Country format do the same?
Here is an article from the current issue of Billboard by Ken Tucker:
Whiskey Falls is not just a band—it’s a four-man marketing machine. Made up of Seven Williams, Wally Brandt, Damon Johnson and Buck Johnson (no relation), the quartet has a history of building support for its career through the unlikeliest of partners. Even before the group released its first single, “Last Train Running,” last year on Nashville-based independent Midas Records, it had already built a network of sponsors. AAMCO, the American Tailgater’s Assn., the Laborers’ International Union of North America, the National Hod Rod Assn. and even NBC soap opera “Days of Our Lives” are all in the band’s corner.
That’s not by chance—it’s by design, lead singer Williams says.“We realized the more we could do for ourselves, the more that we could help our record label, the more we could help our relationship with radio, the more we could give back to our fans,” Williams told Billboard last year.
Country WSSL Greenville, S.C., OM/PD Steve Geoffries says the band “really understands the new avenues of marketing.” The station recruited Whiskey Falls to document life on the road for a Web site feature dubbed “Road to Fame.” “We post the video online and let our audience follow their long day from start to finish,” Geoffries says. The band also checks in with the station’s morning show each week to update listeners.“They’ve been in the market a couple of times for performances and they have developed a following here,” Country WGH Norfolk, Va., PD John Shomby says. “They really have learned what it takes to get known and they are doing it.”
The band’s appearance at No. 1 on Billboard’s Top Mountain Region Heatseekers chart can likely be attributed to a busy week of performances leading up to the Super Bowl in Scottsdale, Ariz., including a gig for thousands of tailgaters outside the University of Phoenix Stadium, where the big game was held.
Geoffries says the band’s new single, “Falling Into You”—No. 46 on Hot Country Songs—is “contagious.” WSSL played the song 16 times during the week ending Feb. 17, according to Nielsen BDS.
Tell Me a Story
By: Daniel Anstandig
Music legend Ray Charles once said that he “was born with music inside” himself. It could be said that the best loved songs in history are the ones that resonate and harmonize with the music inside of us.
Country music is best known for producing these songs that reach into the souls of their listeners. The stories told by many Country songs can make your heart race, put a lump in your throat, and send tears down your face. They’re the songs and stories that have turned country radio stations into empires.
The world’s most powerful and best loved radio stations aren’t without persuasive stories themselves. Case in point: KLBJ in Austin… not just another radio station. It’s the radio station that was rescued from bankruptcy in 1942 by young entrepreneur, Lady Bird Johnson. KLBJ does a terrific job of summarizing their rich history at www.590klbj.com/History. WMMS is known in Cleveland (and beyond) as a way of life for Clevelanders more than a music service. Its logo (the Buzzard) and the many bands it made famous have kept it alive in Cleveland pop culture for years. WSM in Nashville catapulted its way into music history with the Grand Ol’ Opry. Read the rest of this entry »
……without reading about the dilemmas of the music industry. On two separate flights (American & Northwest), in two different flight magazines. The first is an American Way article on the problematic future of the music business. The second is from NEA World Travler on how former artists are taking their personal experience into the ever changing music business world. Both good reads. Without the peanuts though.
Seth Godin has written many excellent books and offers cutting edge insights on marketing, business and change for the future. Take his recent blog post on “Tribe Management”. All of us in the music and radio business should be thinking this way. Check it out.
Emerson Drive has been nominated for #1 Digitally Active Duo/Group on the CMT Video Music Awards. The nominees and ultimate winner are determined by calculating the number of digital streams the act had over the last year.
The numbers: 3.8 million total streams and over 2.3 million total profile views on Myspace!
E Drive is also up for a prestigious Grammy Award for Best Country Performance By A Group or Duo with Vocals for their 1 hit “Moments”.
10 Questions with … Mike Severson
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NAME:Mike Severson
POSITION:Director of Promotion
LABEL:Rounder
BORN:Cedar Rapids, Iowa
RAISED:Inola, Oklahoma
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Brief Career Synopsis:
KNGX – Claremore, OK 1984 – 1986
KWPR – Claremore, OK 1985 – 1986
KWEN (K95FM) – Tulsa, OK 1989 – 1992
KCKI (KICK 99) – Tulsa, OK 1992 – 1993
MCA Records – Director of Promotion 1994 – 2002
All Access Music Group – Christian Format Editor 2003
Rounder Records – Director of Promotion 2004 – present
Photographer 2002 – present www.seversonphotography.com
KWPR – Claremore, OK 1985 – 1986
KWEN (K95FM) – Tulsa, OK 1989 – 1992
KCKI (KICK 99) – Tulsa, OK 1992 – 1993
MCA Records – Director of Promotion 1994 – 2002
All Access Music Group – Christian Format Editor 2003
Rounder Records – Director of Promotion 2004 – present
Photographer 2002 – present www.seversonphotography.com
1. Go back in time. With the state of the industry today and knowing what you know now, would you still have chosen your same career path in the Music Industry? And, would you recommend a younger sibling to make a career in the Music Industry?
Being involved in the music industry and with creative people was the goal I had since graduating high school. I have always believed that you must do what you love and are passionate about. I was geared toward radio and music. Working in radio fed that desire even more, which is why I left that end of the business to move to Nashville. I don’t think there is much I’d do over again, except that I would definitely be more intentional in discerning and developing other passions and outlets earlier than I have….. because you never know how long your ride will last. And it’s just nice to have a diversion from the noise. As such, my advice to a sibling, or to anyone for that matter, is to live out of your heart and do what you love, but don’t be deceived by your career or let it define who you are as a person. And find other interests as well that will help you grow and enjoy life.
2. In our highly competitive music field, where it seems more and more that every artist needs something special to get paid attention too, how do you position your self, and your label, to get YOUR artists the shot they need?
With more limited resources as an independent label, you really have to have the product at hand and that’s what I love about Rounder. They have a well deserved reputation of being about the music and I can’t think of a better way to position myself and the label. It’s foundational. Personally, I need to be more than just a promotion rep by also taking on more of an artist development role through marketing, retail and touring.
3. You are the remaining survivor on a remote tropical island with no chance for rescue. You have a CD/DVD player with endless power. What five CD’s are a “must” to have with you? What five movies?
I can’t have my iPod?? Oh, alright then…..currently I’d say: CD’s: Sixpence None The Richer “Best Of”, Sons of the Desert “Change”, Mute Math “Reset”, Dean Martin “The Capitol Years” and Evanescence “Fallen”MOVIES: The Matrix, Braveheart, Lord of the Rings (set), Cinderella Man & Band of Brothers (set)
4. Do you think that showcases, artist visits and conference room concerts are all viable in getting new acts introduced to radio?
It’s all relative to the artist. Are they vibrant in those situations? Do they have the right personality match for conference rooms? Are they shy or introverted? Can they effectively impact a typical showcase crowd? The promotion of an artist should be best utilized where that particular artist shines the brightest and where their strengths lie.
5. In your opinion, how has the slowness of the chart hurt the format, and what would you like to see done to speed it up, if in fact that’s something that should happen?
Where it has hurt most is obviously with new and developing artists. One of the problems is the songs that sludge along and make little or no impact in the marketplace. Some songs do take time and are worth every week they make their trek up the chart. Others are just taking up space and that’s the point when labels should make the decision to bail and go with the next single. The chart has seemed to speed up a bit over the last few years, but I’d like to see it move and rotate quicker because there are so many great artists and songs in this town that deserve to be heard. A faster chart makes the format more appealing.
6. Has the consolidation of radio made the job of promotion harder or easier? Explain why?
More difficult. In comparing it to years past, I find that personal relationships don’t have as much bearing on business as they once did. As radio became more corporate, local programmers had either less to do with adding songs due to outside sources or their list of legitimate currents dropped significantly.
7. How do you handle it when a programmer tells you that your single is too country or too pop?
Well, in my current experience with Rounder, I have yet to get the “too pop” excuse! That seems a little more reasonable than “too country” or “too bluegrass” which is often times used because of a particular instrument in the mix accused of making it “too”. I cite examples of the very same instrument in 10 other current songs on the chart and on their radio stations. Our format is a wonderful mix of variety, that when programmed correctly, will blend and balance enormously well. Many times we fight the programming in the middle concept which does no one any good if we want the country format to grow and succeed.
8. In your opinion, does the use of callout research help to determine “real” records?
It’s all determined by who is at the other end of that testing. Are you testing just your hard core? Or are you testing your part-time and potential listeners? And is your testing subject to strong analysis? If used for the growth of listening audience and the format, then it’s reasonable. Otherwise it’s just a way to horde what you already have. And another thing…..what is our definition of a “real” record? Is it a Top 10 song that tests well, sells nothing, sounds like everything else and is safe…..or is it the song that sells extremely strong, ignites passion in listeners and stands out on the air? That’s where research can kill us.
9. How do you handle stations that have to get a “Green Light” from an outside source before adding or converting a record? (i.e. Consultant, Brand Manger, Format Capitan or Group Programmer)
You definitely attempt to shore up local programmers to become a fan of your record. The more allies you have from individual stations, the more bearing it should have on those outside sources who are paying attention.
10. If you had the opportunity to work any act/artist from the past, present or future who would it be?
I’ve been blessed to work with amazing artists & great people who I would still include on that list – George Strait, Reba, Olivia Newton John and currently Alison Krauss & Union Station……can it get any better than that?! But it would have been amazing to work the Beatles and be a part of their explosion all over the world….also the early years of Heart which was my favorite band growing up in the 70s and early 80s…..and Amy Grant who is one of the nicest and most genuine recording artists I’ve ever encountered.
Bonus Questions
What is the first artist you ever worked to radio?
I believe it was The Mavericks, Vince Gill, Trisha Yearwood, George Strait, Reba, and David Lee Murphy. Marty Stuart and Mark Chesnutt may have been in that initial mix as well.
What are your favorite books?
John Eldredge “Wild At Heart” & “Waking The Dead”, Peter Jenkins “Walk Across America” and just about anything from C.S. Lewis.
Best road story?
So many! I have some good stories with the Mavericks, but another that is at the top is when the George Strait tour was kicking off in St. Louis. I arrived in town the night before to hang with the band, but I just missed them. George and Erv walked into the lobby of the hotel on their way out and ask if I want to go gambling for a while. I thought it was a trick question at first, but they were serious. It was something like 6 hours later and George was having a very good night at the blackjack table. I was done, but he gave me chips to play at the high limit table with him, which in all probability he regretted! We finally got off the “boat” and took a cab back to the hotel, but not before we made a stop at the White Castle drive through where George bought Erv & I dinner….um……I mean breakfast!
