Appetite For Disruption

Nashville & Marketers - Changing Misperceptions

A few months ago I came to a decision to start my own firm after years of working for large labels.  It's kind of scary setting off on your own with nothing but your own faith in yourself and the encouragement of the colleagues and clients that know you well.

That being said I took a look at the music landscape to see where KOHAN MUSIC GROUP could find its niche.  In the special markets world in the record industry you have to know how brands intersect with music in their marketing efforts.  You also have to know how to squeeze every drop out of a catalog of music.  Masters and copyrights don't just act as annuities for labels, artists, songwriters, and publishers.  They have to be actively worked and pitched to realize their own, individual "long tails" of exploitation revenue and profits. 

So, as you can probably see just from checking out my MySpace friends, I'm making a heavy bet on Country music.  This may seem an odd choice for a guy from New Jersey who got his start working in jazz, but I'm a firm believer in having broad horizons and big ears... that, and some of Country's biggest stars are from Australia or Canada, so geography shouldn't be part of the initiation rites.

Some of what I see happening down in Nashville with the labels and publishers I've been speaking to is creative and exciting, while I see other parts of the business lagging due to inattention and, mostly, a nagging perception of what Country music is and is not in the eyes of the people I normally call my customers.

Country music is a pervasive radio format (even as radio's importance lessens in our cultire) and CMT and GAC, unlike VH-1 and MTV, actually play music videos and develop programming promoting artists.  So corporate brands support these media channels through advertising and marketing programs on a consistent basis.  But it is all too rare to hear a TV or radio commercial spot featuring a major country artist, much less the artists beneath that rarefied strata. 

I did some informal polling with some friends of mine at ad agencies and music placement firms.  There is definitely an uphill battle for Country music as it stands vis a vis other types of music favored by creatives and agency clients, especially those in urban centers.

People in marketing, in general, don't see Country artists as individuals as much as they see them as "COUNTRY."  We all know there are big artistic, personality, and image differences between Brad Paisley and Toby Keith, or between Trisha Yearwood and Shania Twain, etc...  There's pop Country, twang Country, big hat Country, Southern rock Country, gospel/inspirational Country, Texas Country, tiki bar Country, singer-songwriter Country, R&B Country, etc..., but it usually all gets painted with the same broad brush by some agency creative choosing some piece of high energy techno rock for their :60 regional car dealer TV spot, and that brush carries a negative connotation, or at the very least a connotation of being a "less sophisticated" genre of music.  Bullshit - complete and utter bullshit.  And remember, these are the guys charged with being "creative."

KOHAN MUSIC GROUP is hoping to be part of the driving force behind changing these misperceptions.  The collaborative, competitive, and powerful creative forces in Nashville should be getting more than their fair share of opportunities in the advertising, special markets, and film & TV markets.

NOW... I want to hear some comments from you all.  What have your experiences been in working with the advertising/marketing community related to Country music?  Do you get proper support in your business if NY and LA are the main offices dealing with these communities?  I realize it's hard for some people here to make a public comment because it would be visible to all here on the blog, so if you feel more comfortable responding to this post in private please send me an e-mail message with your thoughts (click on the ABOUT section in left-hand column for my e-mail address).  DON'T HOLD BACK!  I want to hear from my readers!  Thanks.

HAPPY BIRTHDAY...

... TO THE COMPACT DISC!!!

25 YEARS AND GOING (KINDA) STRONG!!!

Outsourcing the major label way

I read an interesting piece in the New York Post - yes, that is still possible - on how a major label is now relying on an indepdendent label to work its urban records at radio.  On the one hand, it shows how a major label such as Epic can't even cover basic functions like radio promotion with its own staff.  But, on the other hand, it shows how indie labels or consulatants can truly provide value in a market of niches.  Now, radio promotion is a core function for a record company.  Major labels have employed independent promoters for decades to help get their records played.

But I get the sense that the major labels will be doing more and more outsourcing of key services to outside companies: licensing, special markets (let me raise my hand and volunteer my services right now!), catalog management, copyright administration, etc...  Why?  Because these areas, using the faulty logic of Wall Street, are probably deemed as being too head count heavy, even though these are crucial elements to any major label's operations.  That's how Wall Street works.  That's how private equity works.  They see numbers on a page and think "cut overhead" as a knee-jerk reaction to boost share price.  Do these labels really need to outsource the functions I mentioned above?  Probably not, but if there are further staff cuts, then those labels won't be able to service certain customers with as much attention as they deserve.

Welcome to the music industry in the 21st Century.

Premature Autopsies Revisited

I had the chance to speak with a client I worked with a few years ago.  He's in the promotional products business.  He and a musician partner have, over the past few years, developed their own CD compilations for branded CD premiums, and in a market many see as dire, has sold over 2 million CDs to his various corporate clients.

And while I'm not slighting the quality of the music he has produced, this is not name-brand music per se.  There are no stars fueling this activity, though this guy has certainly done some cover versions of some hit tracks for his projects when need be.

So, as I've said before, even in the special markets field, the future is not entirely wrapped up in digital download or mobile.  Physical product still has a crucial role to play, especially when you consider that CD premiums are still an appreciated gift.  Just because people own iPods doesn't mean they aren't uploading music onto iTunes from CDs.  If iTunes sales reflected the amount of music actually placed on iTunes software and iPod devices by consumers, then we'd see there is still an incredibly strong demand for music.  It's just that we as consumers alreaady own a lot of the music we desire, just in CD form.

Thank You Nashville Friends!

I just returned from a great three-day trip down to Nashville.  This was my first time visiting Music City, even with all my experience dealing with country music on behalf of clients during my tenures at Universal Music Special Markets and Sony BMG Custom Marketing Group.

Everyone I met was very generous, both with their time and with their open ears.  Sometimes you hit upon an idea for a business and it ends up that you're the only guy in the room who feels it's a marketable concept.  However, I go nothing but positivity and goodwill from all I met with.

I am looking forward to sharing some more details about my dealings down there in the near future.  Stay tuned!