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Weekly Dispatch April 6th, 2015

Carlos Diaz April 6, 2015 Weekly Dispatch No Comments
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Weekly Dispatch – April 6th, 2015

This is a weekly digest of the top news at the intersection of the music industry, brand marketing and commerce compiled by Carlos Diaz & Music Audience Exchange.

 

FEATURED

Authenticity is Key in Brand-Artist Partnerships – The correct fit and alignment of artist and brand needs to be the foundation of any credible marketing effort leveraging musical artists (and their content) to reach millennial consumers; millennials sniff out inauthentic commercialism no matter how convincing the spokesperson. By John Maxwell: Link

 

BRAND MARKETING & MUSIC

EDM Fans Like Nike, Corona – Since the start of 2015, there have been over 6 million conversations related to Electronic Dance Music (EDM) in the U.S., including 3 million on Twitter, 1.5 million on Instagram, and 500,000 on Facebook via public profiles, according to music marketing agency My Love Affair and social media tracker Linkfluence. In comparison, only hip-hop has generated more social media attention at 11 million conversations, while pop music has received 2 million social media mentions, rock music at 1 million, heavy metal 700,000 and indie music 500,000. As for what these fans are talking about, Nike and Corona (AB InBev) led brand discussions, with each receiving 15,000 mentions in discussions relating to EDM. By Media Post: Link

Reebok Wants You To Be More Human — This is a big idea, and their new campaign to “Be More Human” brings it to life. The campaign combines paid, owned and earned media in a seamless way to educate, inspire and engage fitness enthusiasts around the world. It is a clear attempt to make Reebok a lifestyle brand and experience. The best brands — Starbucks, Apple, JetBlue, BMW — have become lifestyle experiences just as much as the products they sell. Providing an experience builds long-term loyalty and provides the stickiness that marketer’s dream of accomplishing. By Media Post: Link

Ellie Goulding Wouldn’t Do Deal With Coke, Says Agent — Cassandra Gracey, artist manager and creative director at Turn First Management, talked about her work with Goulding, who has a brand tie-up with Nike, and with Rita Ora, who is designing a range of clothing with Adidas. She said: “There has to be an authenticity in a deal. Ellie wouldn’t do a deal with Coca-Cola, because she doesn’t drink it.” Conversely, Gracey pointed out, Ora has just helped Coke celebrate 100 years of its contour bottle. By Marketing Magazine UK: Link

Brands Have to Add to the Experience for My Viewers’ — Discussing the value brands can derive from partnering with hot British talent, SB.TV’s Jamal Edwards, who was at Buckingham Palace to accept an MBE said: “Up and coming artists don’t have the same ROI for brand partnerships as an artist like Ellie Golding. However a big campaign showcasing 12 fresh artists over a few weeks is a lot more of a building process. When I did the Puma thing it was viewed as a success. I know what’s right and wrong for me personally.” Also speaking on the panel was Bob Workman, VP of Brand Partnerships at Warner Music. He touched on how brand partnerships increasingly provide an invaluable revenue stream for the music industry, which has been severely affected by digital disruption in recent years. By The Drum: Link

Infographic: a Glimpse Into the Millennial Mind – A study of millennial digital preferences by Trendera found that while this demo wants a relationship with their favorite brands and are willing to engage, it’s become imperative for brands to create good content and interact directly with their fans. “Brands need to be able to engage and respond in a matter of minutes, not hours,” notes the study. Pinpoint also found that since this generation knows the power of their dollars, they use it to pressure brands to advance social causes. Forty-three percent of that study’s respondents said they had petitioned brands to stop advertising or sponsoring a person, show or event. “Twenty-somethings understand their power as consumers, as workers and as future leaders,” Pinpoint said. By Ad Week: Link

Millennial Branding- Are Millennials elusive consumers for established brands? While some long-standing brands do well with Millennials, others struggle. According to a study by the Moosylvania agency, almost all of Millennials’ top 50 favorite brands are large companies, the top three being Nike, Apple, and Samsung. Yet, there are other brands struggling to reach this target, at risk of losing relevance. Budweiser, for example, has found that 44% of U.S. 21 to 27 year olds have never tried a Budweiser. Procter & Gamble, needing to establish relevance of its Gillette brand among young men when they start shaving, has initiated a point-of-market-entry sampling strategy to acquire customers at this relevant entry point. Yet, winning with Millennials goes beyond simply building brand awareness and driving trial. Relevancy is critical, and Millennials are deemed to be a demanding bunch. By Media Post: Link

 

FOR ARTISTS

First Vine, Now Periscope: Shawn Mendes Makes Music on Twitter Apps – In just the first week since Periscope debuted, Mendes and several musicians have already experimented with using it to interact with their fans. During his live stream with Paul Costabile (watch the highlights, above), Mendes took off his shoe to reveal his size and created a song based on viewers’ suggestions. Katy Perry, Twitter’s most-followed user, was the first major musician to participate in a Periscope session — on the day the app came out. She told Mashable that artists need to embrace letting fans use Periscope and Meerkat to broadcast their concerts for free or else be left behind. By Mashable: Link

Miami’s Thriving Music Scene Is Reaching Beyond House Music – Last week, hundreds of thousands of electronic music fans flocked to Miami to experience EDM’s version of Mardi Gras. Spurred by the historic Winter Music Conference and Ultra Music Festival, now jointly referred to as Miami Music Week, nearly every block of the city’s streets was transformed into a pop-up club with roaring sub-woofers, squared-off DJ stages and fans eager to dance until sunrise. By Billboard: Link

 

MUSIC INDUSTRY

Would You Pay $240 a Year for Streaming Music? – Tidal’s key assets are the world’s biggest pop stars, including Jay Z, Beyonce, Madonna, Rihanna and Kanye West, and a set of principles that suggest artists should always receive proper compensation. But does the newly relaunched music-streaming service have anything else to compete with Spotify or Apple’s upcoming Beats Music? By Rolling Stone: Link

The Lowly CD Still A Big Part Of The Music Business – All of the music industry news for the last year or so has been directed at oncoming music streaming steamroller and the downfall of the music download, but what’s interesting is that our good old physical CD still remains a huge part of the music business. The latest report from the Recording Industry Association of America (RIAA), the music industry’s trade group, shows the 2014 sales of the bright and shiny disc at $1.85 billion, or about 27% of the total U.S. recorded music revenue. There’s no denying that CDs are on the way out, with unit sales falling another 16% in 2014 from the previous year. By Forbes: Link

Rithm Music Messenger Transitions Into A Legit Streaming Service – Nearly two years ago, MavenSay pivoted focus away from its main personal recommendations app to something a bit more musical in the form of Rithm. Rithm is a standalone app that lets users send each other music-based messages, with clips from searchable songs, pics, text, and even animated dancing emojis. Today, Rithm is getting an update that transforms it into a lightweight music streaming service as well as a music messenger, adding the ability to listen to full songs for the first time. The company has spent the past few months striking deals with major record labels such as Sony, Universal and Warner so that users could graduate from sending each other 30-second music clips to sending full songs. By Tech Crunch: Link

The Real Story Behind The Success Of Beats By Dr.Dre – The marketing campaign for Beats by Dr Dre has been the core force behind its huge success within a span of seven years. By Tech News Today: Link

Spotify And Taylor Swift Label Universal Music Group Are Fighting Over The Future Of Free Music – The two companies are busy negotiating a new contract to keep Universal’s catalog on the service, part of a string of renewals Spotify will have to negotiate over the next 18 months as its current label deals expire. Those initial deals — which allowed the Swedish-based Spotify to launch in the U.S. in 2011 — were somewhat experimental and anchored to large cash payments and equity. This time, however, they’re going for the cash, and that means curbing Spotify’s free ad-supported tier and maximizing revenue per user. By International Business Times: Link

Competition Commission Probing Music-Streaming Services – The European Union’s Competition Commission has launched a probe of Apple and other premium music-streaming services to see if they are working with music labels to unfairly squash no-fee streaming services, The Post has learned. While the precise aim of the probe could not be learned, one source said the EU has concerns the premium streaming services, which charge $10 a month, are working with music labels to limit or end their licenses with the no-fee, or freemium, services. By The New York Post: Link

 

MUSIC TECHNOLOGY

Spotify-Powered PlayStation Music Goes Live on Sony’s PS3 and PS4 Consoles — Just over two months ago Sony gave up on Music Unlimited, the company’s homegrown music streaming service, in favor of a deal to bring Spotify to PlayStation 4 and PlayStation 3 consoles. The new service, dubbed PlayStation Music, is available to both premium and ad-supported Spotify users. By Tech Hive: Link

Apple’s Streaming Music Secret Weapon — Apple may have an ace in its pocket, and I don’t mean the dedicated base of iPhone and iPad users. Apple’s got its sights on the one place where many people listen to music the most: the car. The company’s CarPlay app for connected cars is just starting to roll out now and will feature prominently at the New York International Auto Show this week. It works with connected iPhone 5 handsets or later models, with a limited number of apps running on the dashboard. With dozens of car makers promising to support the service, CarPlay is the perfect instrument to reach dedicated radio listeners and a way to close out the competition. By Fox News: Link

Windows 10’s New Music and Video Apps Finally Drop the Xbox Naming — Microsoft appears to be moving away from its Xbox Music and Xbox Video branding. Two new Music and Video apps for Windows 10 have debuted, and they both drop the Xbox brand in favor of simplified names. Microsoft’s Xbox Music naming has undoubtedly been confusing, with some consumers questioning whether the music service only works on the company’s gaming console. This new naming in Windows 10 means users won’t have to search around for an Xbox-branded app that’s on their PCs; it’s just Music and Video like it is on most modern operating systems. By The Verge: Link

Hotel Giants Target Tech-Savvy Millennial Travelers – At the latest breed of hotel, rooms are up to one-third smaller than traditional quarters, with furniture that looks fresh from an Ikea showroom. The work desk is downsized and might double as a nightstand. The Internet speed is super fast. The Wi-Fi is free. Power outlets and USB ports dot the walls, especially near the bed to accommodate binge watching. The target is the millennial traveler, ages 18 to 34, who likes to stay connected online, eat on the run and commune with other millennials. Hotel giants, including Marriott International and Hilton Worldwide, are launching brands with names such as Moxy, AC, Edition, CitizenM and Canopy. Even billionaire Sir Richard Branson has a new millennial-oriented chain, dubbed Virgin Hotels. By The Los Angeles Times: Link

 

Carlos Diaz

Carlos Diaz

Carlos is Chief Revenue Officer at Music Audience Exchange. Previously, Carlos built and operated large sales organizations for marketing and technology companies including ReachLocal, Neustar and Hibu.
Carlos Diaz

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