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March 19, 2008

What is "Selling Out?"

NOTE: Sorry - I started this post last week and just had the time to get it out today.

A discussion I've heard far too often, both among music industry personnel and those in the media and in the corporate marketing world, is that of trying to define what "selling out" is in terms of a musical act's relationship with a corporate brand.  On the one hand, it is an accepted fact that many acts need some kind of corporate involvement at certain times during their careers to help them financially or with major exposure boosts.  On the other hand, the artists themselves are rightfully wary of aligning themselves with brands in ways which leave them open to criticism from fans and press alike.  An article by Charles Moran in this week's Advertising Age explores this topic again.  Charles also co-writes the great Songs for Soap blog for AdAge.com with Mike Tunnicliffe, which explores the many different brand/artist interactions taking place these days.

One thing rarely discussed is this: artists - ALL artists - need to "sell out" to corporate interests at some stage in their career, and often this involves the corporations they align with the closest and with the highest stakes for their longevity - namely their own record labels and the radio stations/video outlets (and the conglomerates which own them).  Even in this digital, DIY age the large majority of artists seek to be signed by a record label so the label can provide marketing, PR, radio promotion, and distribution of their recordings.  Once the act has music to be released, then they need to go out and promote their single across the radio stations and video channels/outlets which they depend upon to drive their music up the charts, thereby driving album sales and the revenue they might receive based on that airplay.  Yet the major labels (and those indies which are divisions of major corporations) and the big radio conglomerates use music to their own ends just as any corporate brand seeking to license the content from those acts. 

How many artists feel their careers were mismanaged by their labels, both when they were current artists, and with their catalogs after leaving a particular label?  Too many to count.  Those corporations keep cutting staff and roster acts as the industry's physical sales woes increase.  They also have lousy reputations for being dishonest in their accounting to the artists they rely on to develop the content the companies are based on.  But those labels are still the key engines for allowing artists to create and distribute their art as efficiently as possible across a wide range of media.  Even the band Birdmonster, once touted as a completely DIY outfit in Chris Anderson's classic business book "The Long Tail," has signed to a label.

How many artists decry how radio airplay decisions have been centralized by corporate behemoths, leaving virtually no local station autonomy and relying almost solely on audience research to make programming decisions?  How many fans hate when radio conglomerates change station formats in their local markets, thereby leaving music fans deprived of easy access to certain kinds of music?  Radio conglomerates especially just use music to sell advertising time and advertising programs to marketers.  So, in essence, while artists use radio to air their songs, the stations use the music to draw in audiences attractive to advertisers, and the artists have ZERO SAY in what advertising those stations play around their music.

Even the venue owners, ticket sellers, and concert promoters are large corporate entities which must be dealt with: Live Nation, AEG, Ticketmaster, etc...  and these companies all have divisions which deal with artist fan clubs, merchandising, and other key parts of the artist's live performance and ancillary revenue streams.

Many artists who would refuse any proactive alignment with a particular brand nevertheless do not complain when particular retailers, hotels, restaurants, banks, health clubs, etc... have in-store music systems which include playlists featuring their own music.

So, let me use a rather crude analogy.  Much as Mademoiselle Rimbaud, the busty French girl pleading to Mel Brooks's King Louis in "History of the World, Part I" pleads she simply does not "do it," I reply to those artists who think they aren't already neck deep in corporate involvement with the King's blunt response: "Come on.  You know you do it.  We all do it.  We love to do it."  There is always a price to pay for releasing one's art and striving to have it make an impact on as mass a scale as possible.  There is always a beast which needs to be fed.  And if you want to achieve mass success, then there is always a game to be played to fire up the engine of that success and keep it running smoothly... which doesn't mean there aren't conscious choices artists shouldn't exercise, just that any claims of artistic purity are proven false on prima facie evidence alone.

Noted music supervisor Josh Rabinowitz of The Grey Group writes a bi-weekly column for Billboard magazine entitled "With the Brand."  In last week's column (no link available through all my search efforts) he espoused the virtues of artists "selling in" to the world of music licensing and doing music promotions with brands.  Why?  The answers are obvious.  In an interconnected world where one is more likely to hear about a video via YouTube than MTV, or hear a new band or song on MySpace or "Grey's Anatomy" than on commercial radio, then the choice to be anything but completely channel agnostic is short-sighted thinking.  Yael Naim and her song "New Soul" are part of the cultural zeitgeist due to an Apple TV ad.  And both the artist and the brand can measure their success together.  Since her song was featured in the ad her download sales have been significant, and Apple can actually, in some fashion, track how much consumers are paying attention to its advertising by watching that immediate reaction.  Similarly, the company can also check out how many YouTube views of its commercial have been seen by consumers, and, as Yael Naim's record is released, how many albums she sells and her success in the digital and mobile arenas - in great part to her association with the brand.

Haven't those been the great questions marketers consistently seek to answer: "How can I quantify the effectiveness of the advertising my company and/or marketing agencies is producing?  How can I tell, in this TIVO/DVR world, if people are just skipping through my company's ads and ignoring them?"  The measurements above are imperfect to be sure, but they are still measurements one can gauge effectiveness by.  Was there any shot "New Soul" would have received any consumer attention in today's oversaturated media marketplace without a major ad or television licensing opportunity such as the Apple ad?  Did she stand any chance at garnering radio airplay of any significance?  No way.

The quotient may be different for some older tracks or artists whose music is used in such a way, but not by much.  90s dance star Haddaway had his once-ubiquitous hit "What is Love?" licensed for a diet Pepsi Max ad aired on this year's Super Bowl.  He had a tremendous increase in download sales after the ad was aired.  Was it an increase the Diet Pepsi Max brand manager thought was significant given his multi-million dollar media buy for the Super Bowl?  Who knows?  But it at least gave him some quantifiable evidence to suggest the ad was the sole reason for that sales increase.

Production music companies are more than happy to be to taking corporations' easy money and leaving the moralizing to the artists with egos who find these opportunities to be analogous to selling one's soul.  There is a market to be served and they are glad to serve it as efficiently and cheaply as possible.

So every artist needs to take a step back and truly ask themselves this: if they are willing to give up their masters to one company - the record label, or if they are willing to go and provide programming to radio conglomerates who don't have any vested interest in music per se, then why are other types of brand partnerships taboo?  They shouldn't be, and if you don't think fans realize this, then you're selling yourself... short.

December 14, 2007

Indies Account for 38% of Country Music Top 100 Airplay Tracks for 2007

Taylor Swift.  Toby Keith.  Rascal Flatts.  Rodney Atkins.  Tracy Lawrence.  Tim McGraw.  Garth Brooks.  Trisha Yearwood.  Emerson Drive.  Jason Aldean.  Little Big Town.  Jack Ingram.

These are just a few of the artists who dominated Country radio in 2007.  Nielsen's year-end BDS chart for Country music airplay are out, and, by my count, independent labels (which does not mean these some of labels don't have distribution via major labels) account for 38% of the Top 100 Songs of the year.  That's got to be some kind of high-water mark in this era of major label consolidation.  Here's the label breakdown.  Here's the top artist breakdown.

I don't know if this is a tipping point for the rise to prominence of the indie label scene in Nashville, because a label's individual financial health and future is based on much more than radio airplay.  But it ought to be a signal that the major labels are not the only place to find talented, charismatic artists creating commercial art.

I don't have the countdown breakdown by music publisher, but so many indie publishers involved with country music are having incredible successes as well.

So are we in an era of de-consolidation?  Do artists, songwriters, and publishers feel encouraged?  Challenged?  Emboldened?  Insecure?  Please let me know your thoughts.

Take care.

July 11, 2007

The Tween Market

Pursuant to my previous post, here's another mention of the high-flying tween music market.  But I have to say that the other major labels have yet to even come close to Disney Music Group's success because of the multi-channel synergy they employ.

The article mentions Sony BMG's act Paula DeAnda, who records for the Arista label.  I worked the Limited Too and Justice accounts for the company when her record came out, and I can tell you her record was NOT targeted at tweens.  There were at least 3-4 tracks with guest raps from Hip-Hop artists, and Hip-Hop is not appropriate for tweens..  While that is a statement I agree with it's not me setting those rules.  It's the retail gatekeepers for the tween market - Limited Too, Justice, and Club Libby Lu - that are setting the rules.

Top 40 radio may have played "Walk Away" by Paula DeAnda, but unless that artist, or any other artist looking to break into these key three accounts, has a whole album full of squeaky clean tracks, then that label can kiss their chances of success goodbye.  Because parents trust these brands.  They'll pay full price on CDs at these chains' stores because of that trust factor.  All three of the chains cater to tween girls, girls who are already exposed to too many oversexualized and profane images in the media through other channels.  These chains are an effective filter for parents.  The music may be somewhat disposable, but at least the songs are tunes parents can feel okay about their kids singing along to without further contributing to their pre-pubescent maturation.

I believe in the tween market as a market to be targeted by the record labels, but they will be sorely disappointed if they think just "talking the talk" about the tween market will win them converts at tween retail.  Case in point: I happened to be in a mall yesterday and walked into the Limited Too store - only one non-Disney title was stocked by the store!

Personally, I think the real big win would be to find a tween country artist.  Why?  Because country is an already healthy genre, it's a genre of songwriters (who can easily shape songs to this market), and it's not dependent on Radio Disney per se.  Country radio dwarfs Radio Disney in terms of influence and size. 

July 09, 2007

The Buzz Word Done Right... and the Channels to Feed It

So many diversified media companies often talk the talk of synergy, but don't walk the walk.  Getting different divisions to coordinate timing, priorities, budgets, meeting schedules, etc... is very difficult, even when the overall goal is the same - optimizing shareholder value.  And even when it does happen, there's no guarantee that type of concerted effort can maintain itself over the long haul.

But right now, Walt Disney Co. has several divisions clicking on all cylinders, so much so that the combined fuel of these divisions is providing above-sized returns for the company's Disney Music Group in a very down market for the record industry.  Disney has learned how to leverage the following divisions of their company:

  • The Disney Channel
  • Disney Home Video
  • Disney Music Group
  • Walt Disney Consumer Products
  • Radio Disney
  • Go.com Internet properties

Epitomizing the success that these divisions have created are two dominant properties: "High School Musical" and "Hannah Montana."  These aren't the only properties gaining market share, but they are great case studies.

"High School Musical" was a TV movie on The Disney Channel which spawned the CD soundtrack and download business - it was the best-selling album of 2006, going quadruple platinum.  The tracks from the album were plastered all over the Radio Disney network.  The home video business then raked it in on the DVD.  The consumer products business made hay with all other ancillary products (including the company's book publishing division - oops, forgot that one).  Next month the mania will begin again with "High School Musical 2," which includes the same cast as the original movie.  Will the magic repeat itself in 2007?  I wouldn't bet against it.

"Hannah Montana" is Disney Channel's #1 series, starring young Miley Cyrus, and the popularity of the show and the show's soundtracks (all performed by Ms. Cyrus in character) have launched Ms. Cyrus as a solo music star in and of herself.  This is a formula Disney first used with Hilary Duff when she starred in the "Lizzie McGuire" series, and Disney appears to only have upped its game as time has gone on.  The new Hannah Montana/Miley Cyrus 2-CD set just debuted at #1 on the Billboard albums chart - quite the feat considering the title was going up against the new release from Kelly Clarkson, whose last album is one of the few titles in recent memory that actually tallied more sales than the original "High School Musical" soundtrack.

Strategically, Disney efforts like these and "The Cheetah Girls" have focused squarely on the tween girl market.  But would that focus have been rewarded if there was not a burgeoning retail channel that also caters to this demographic? Three chains: Limited Too, Justice, and Club Libby Lu, represent 800+ mall-based stores that have been fertile ground for Disney's efforts on all of these key properties.  Limited Too and Justice are both owned by Tween Brands.

I had the opportunity to work as the rep for the Tween Brands accounts during my tenure at Sony BMG Custom Marketing Group.  Here is how powerful these chains were to these Disney Music Group properties - on each of the titles mentioned above Tween Brands was at least a TOP THREE(!!!) account.  One always thinks that big-selling records have to cater to a large amount of retail chains which carry (at the minimum) a fairly wide selection of other CD releases.  Disney's success has proven this theory to be turned on its head.  Sure, Wal-Mart was a huge seller on these titles.  But Limited Too, Justice, and Club Libby Lu carry only a limited selection of titles, carefully chosen by the accounts' buyers.  There is no profanity in the lyrics to protect the impressionable young audience the stores cater to (and provide a safe environment to parental gatekeepers).  And, to my amazement, they sell CDs at full price!!! 

Two years down the road... no other label group has developed an artist with a CD title, much less a multi-channel juggernaut, that has really caught fire at these key accounts.  As to why that hasn't happened - you'd have to ask the geniuses signing all the pop-punk and emo bands.  These Disney projects certainly don't represent any significant musical movement per se, but they do represent how the record industry can find some channels which represent rays of hope for its future... if they only developed releases that fit in these highly targetes retail channels!  How about Sony BMG and the partnership with Nickelodeon!  Nope. D'OH!

The irony of all this tween-targeted good news is that many of the marketers that used to heavily target kids: packaged foods, QSRs, etc..., have had to greatly curtail their own marketing towards kids due to regulatory pressure.  If marketers could get past that conundrum to partner with these key Disney properties, then they'd hit upon a goldmine.