Music Marketing Money

Weekly Dispatch February 9th, 2015

Carlos Diaz February 9, 2015 Weekly Dispatch No Comments

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

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The Music Business’ Only Hope is Transparency- The traditional record business is an example of an industry with massive transaction costs. At virtually every turn – from signing to a label, to gaining exposure (whether in print, online, or via radio) to marketing & distribution, to accounting – there has been little-to-no transparency, & thus no ethical fiber (trust), which has led us to precisely where we are: an inefficient & costly system that reduces transactions & profit.” By George Howard: Link


Brand Marketing & Music

Pepsi plans on launching a new music platform at this year’s Grammy’s- Pepsi will debut a new music driven program called “Out of the Blue” during the February 8th broadcast. Daily from Feb 8th to May 18th Pepsi will be giving away trips to SXSW & the 2016 Grammy’s to winners & their guests. Fans can earn chances to win by posting a photo of any Pepsi beverage product. Entering to win also enable fans to access exclusive behind-the-scenes videos from artists & events. By MediaPost: Link

Converse launches free online sample library- “Converse is launching the Converse Rubber Tracks Sample Library, which will include a collection of high-quality audio samples for musicians to use free-of-charge. The project is a joint partnership with Indaba Music, a music technology platform & online musician community. There are currently 10,000 high quality sounds available, all created at the Converse Rubber Tracks studio in Brooklyn & other pop-up studios around the world.” By MusicWeek: Link

Virgin debuts their first hotel in Chicago- Branson’s Virgin Hotel Group will debut in Chicago & offer business travelers an alternative by heavily catering to their guests. Virgin Hotels will offer great service, interesting food, & a nightly social hour with free alcohol. By USA Today: Link

Independent musicians share instruments & make cash- Often musicians need access to an instrument for a short period of time. In the past the only option was buying it which can be difficult on a limited income. Sparkplug is an online community marketplace for musicians & artists. Members can rent tools like instruments, gear or practice space from each other. The New York based start-up functions much like Airbnb. Users create listings for items such as guitars, or practice space & set prices based on hourly to monthly rates. By PSFK: Link

Lifestyle brands are acquiring their way to becoming tech companies- Now more than ever lifestyle brands like Under Armour are paying attention to the digital space & learning how hard it is to build new technologies. MyFitnessPal’s nutrition-logging was one of the major reasons Under Armour was interested in acquiring them. By Quartz:Link

Fox’s marketing helped Empire become one of the hot new shows this season- Fox launched a comprehensive marketing plan that included: marketing the show to everyone in completely different ways, focusing on the right art & music, tie-ins, video on demand, social media, new music, & cross promotion. By Adweek: Link

Millennials spend more time on their smartphones & less with TV- Today 77% of millennials use a smartphone daily which far exceeds Gen Xers. As opposed to multitasking millennials appear to be spending significantly less time with their TV & computers. Daily 77% of millennials watch TV, as opposed to, 86% of Gen Xers, & 91% of Baby Boomers. By MediaPost: Link

Millennials will pass Gen Xers as the housing market’s largest buyers- “Millennials under the age of 35 are poised to surpass Gen Xers as the biggest home buying group by the end of 2015, according to Stan Humphries, chief economist at Zillow on December 2nd, 2014. He said almost 42% of millennials want to purchase a home within one to five years – a higher percentage compared to Generation Xers.” By Virtual-Strategy: Link

Celebrity lifestyle brands- An in-depth analysis & ranking of some of the heavy-hitters in the celebrity lifestyle category & their brands. By The Frisky: Link

Sensis releases hispanic millennial study on banks- “Integrated cross-cultural advertising agency Sensis announced the release of the third wave of its comprehensive Hispanic Millennial Project conducted in conjunction with leading market research firm ThinkNow Research. This third wave examines Hispanics’ perceptions of money, savings, banking & financial wellbeing.” By PR Newswire: Link


Music Industry    

Music, our memory, & marketing- Studies show that music links to memories because it activates many areas across the brain including the emotional ones. Memories are triggered & a perception is formed. People remember the brand message. In addition, music can take us back in time to emotions we felt is the past as depicted in the Apple ad. “Music comes the closest to expressing the inexpressible.” By Entrepreneur: Link

Never before seen footage of Bob Marley- To celebrate the reggae legend’s 70th birthday the Marley estate will be releasing previously unseen & unheard material. By The Telegraph: Link

TEN acquires a snowboarding festival- The Enthusiast Network added to its event portfolio with the acquisition of the Denver, Colorado based Snowboard on the Block festival. TEN’s event assets are primarily focused on music & experiential. TEN’s Sports & Entertainment Group will ensure the festival is integrated & includes events like the Snowboarder Superpark & the TransWorld Snowboarding Trans Am Series. Held annually the events had 8,000 attendees in 2014. By Folio: Link

Nominations released for the Musexpo International Music Industry Awards- Presented in partnership with Pepsi the awards will take place in April in Los Angeles. By MusicWeek: Link

Pre-Grammy party In Los Angeles- Label Presents will co-sponsor the 9th Annual Primary Wave Pre-Grammy Party in West Hollywood, California on the eve of the 57th Annual Grammy Awards. The exclusive party is by invitation only & will include appearances from Primary Wave’s A-list clients, as well as, top music & entertainment industry executives. By PR Newswire: Link


Music Technology

Mobile music streaming hits $12.8 billion- Based on subscriptions & ad funds, the estimated global worth of mobile music streaming will reach $21.3 billion within the next five years, according to research from Strategy Analytics. Fast growth is expected in both the demand for & supply of music streaming services like Spotify & Deezer all over the world. Acceptance has been particularly high in North America & Europe. High adoption is also starting to take place in emerging markets like India & China. A recent study from Edison Research & Triton Digital stated, “An average music fan will spend 13 hours & 19 minutes listening to music per week, more than double the 6 hours & 31 minutes in 2009.” By PerformanceIn: Link

Jay Z attempts to acquire Swedish streaming service Aspiro- Jay Z, the rap star & entrepreneur, has made a $56 million offer for the Swedish company Aspiro putting him in competition with major players like Spotify. Jay Z’s interest in Aspiro may suggest an appeal in the niche market of high-fidelity audio. By NY Times: Link

Spotify: Missy Elliott saw a 676% increase in streams after the Super Bowl- “While Katy Perry headlined the Super Bowl XLIX halftime show, it seems like more people were interested in going back & revisiting some of Missy Elliott’s greatest hits. According to Spotify, streams of Missy Elliott songs increased 676% after her performance. Katy Perry’s streams increased by 85% & Lenny Kravitz 103%.” By Adweek: Link

Nova exits music streaming & Rdio expands in Australia- Nova Entertainment has exited the music streaming business while Rdio prepares to increase its promotion & marketing in Australia. By Sydney Morning Herald: 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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