Music Marketing Money

Weekly Dispatch March 2, 2015

Carlos Diaz March 2, 2015 Weekly Dispatch No Comments
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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.

See more or subscribe at musicmarketingmoney.com.

 

FEATURED
From Selling Out to Breaking Out: The Evolution of Artist/Brand Partnerships“From Advertising Age’s excellent series of articles to Gawker’s view that “…the current young generation is being sold wholesale the idea that music & advertising go hand in hand,” to a recent report at Next Big Sound, the consensus is that today’s artists are thinking like grown-up marketers & ditching the concept of “selling out.” Artists have figured out that their music’s marriage to a brand can be a happy one because they now realize they need brands. Put simply, yesterday’s sell-out can be today’s break out.” By John Maxwell: Link

BRAND MARKETING & MUSIC

Coca-Cola’s celebrates a century of its iconic bottleCoke is lining up a global marketing push of content to celebrate the anniversary. The content will include pop culture icons, movie stars, mobile marketing & music to invoke fond memories among fans. By The Drum: Link

Manchester Pale Ale launches new music marketing campaign- Manchester Pale Ale is launching “Refreshing Sounds” a new multi-platform marketing campaign in an effort to find the UK’s best new music. By Bdaily: Link

Starbucks’s retreats from selling physical music- The coffee chain once represented the last hope for buying music as a physical experience however Starbuck’s has announced it will stop selling CD’s. A Starbucks rep would only say that the firm is “evolving in its music offerings”. Starbucks will stay in the music business digitally but some see its retreat on physical sales as the final death blow to CD’s in general. “Once you’ve lost Starbucks, you’ve lost the game,” writes Ari Herstand at Digital Music News. By The Atlantic: Link

Millennial spending habits are being driven by technology & altruism, not ads- When Briana Ford was looking to buy a new case for her iPhone, she did what she normally does by asking a tech blogger advice & going online to read reviews. “I rely heavily on online reviews & friend recommendations,” said the 24-year old Los Angeles resident. “I like to hear the pros & cons, why someone likes a particular product or business, & what personal experiences they have. It just gives me a better idea as a consumer what company deserves my money, rather than wasting time on one I’d be disappointed with,” states Ford. Millennials are less & less impacted by traditional advertising & more affected by readily available internet reviews & connections. New research from Gen-Y site Elite Daily & consulting firm Millennial Branding shows that millennials are almost entirely immune to advertising from traditional media sources like TV news, magazines, & books. Fewer than 3% of millennials said traditional media sources influence their purchases & only 1% said a compelling advertisement would make them trust a brand more. Before making a purchase 36% look for opinions from friends & 37% look for opinions from parents. By MainSt: Link

Study reveals what it means to be a millennial mom- 83% of new babies in the U.S. are born to moms aged 18 to 32 years old. There is no question that millennial moms are leading the way when it comes to redefining motherhood. BabyCenter partnered with the Interactive Advertising Bureau to interview thousands of these moms to look at what makes them tick. Example- millennial moms are definitely plugged in. While watching TV, grocery shopping & even during the middle of the night nursery visits, these moms tend to have their smart phones in hand. Their sites of choice are Pinterest, Instagram & online parenting communities. By Babycenter: Link

Six key values that matter most too millennial customers - A business that wants to win the hearts of today’s consumer’s must stand for something & mean it. ”Meaning it” is key. Millennials are always on the lookout for corporate hypocrisy. One test for gauging an organization’s trustworthiness is whether it engages in greenwashing, the practice of paying lip service to environmental issues. Another test includes the more general phenomenon “causewashing,” where companies put up a façade of sympathy towards labor practices, community involvement, ethical dealings with vendors, humane treatment of animals & more. Businesses will benefit from knowing their values. By Forbes: Link

Millennials & content marketing- Media Post looks at what millennials like & dislike when it comes to content by surveying 500 people. Some of our findings include- celebrity endorsements are not everything, dumbing it down does not work, & what the brand says about itself is important. By MediaPost: Link

45% of marketers will invest in events in 2015- According to a recent report from ALF Business Development more of marketing budgets will be spent on experiential marketing & events this year. By BizReport: Link

FOR ARTISTS

The music, the lights & the total experience- “The success we’ve had is very gratifying, not least because we’ve done it on our own terms,” McGuinness said. “We have had ‘airplay,’ but not airplay hits. We’re really using our roots to market & communicate with our fan base. We talk to our fans online, & the radio show is sort of a physical reminder – like politely tapping people on the shoulder & saying, ‘We’re still here.’ “By The Daily Press: Link

Effective marketing by artists- So why would an established musician like Drake who’s already sold millions of albums release a mixtape? It’s because Drake is marketing from the inside out. One of the best ways to build hype around an album is to electrify your base of listeners. Marketers need to build brand affinity by connecting with consumers, sharing their ethos, & drawing like-minded people to their brand. By Direct Marketing News: Link

How musicians can get the best out of their gigs- Many emerging artist are touring & trying make a name for themselves. How can you get the best out of your gigs? What is going to give you the best results? How are you going to give yourself the best opportunity to be successful? By Music Think Tank: Link

MUSIC INDUSTRY

Sales bump fueled by the Grammys- We can see the effect of the music industry’s biggest award show on the charts. Beck was not only the big winner at the ceremony but he has also benefitted the most. His Album of the Year- Morning Phase rocketed up the charts, going from 39th to 8th. That jump is thanks to 71,000 units moved (mixing sales and collective streams), an incredible 483% increase. That’s not too far from the 87,000 it sold on its opening week. If for no other reason, the Grammys certainly matters when it comes to sales. By Forbes: Link

Garth Brooks plays a secret show at Marathon Music Works- Wednesday night’s secret concert at Marathon Music Works in Nashville only had a limited amount of tickets. They couldn’t be bought & instead had to be won from local radio station. The superstar gave a few hundred Nashville fans a glimpse of his world tour that won’t be coming back to town for a few years. By The Tennessean: Link

Music industry sets Friday as the new global release day- Friday will be the new Tuesday beginning this summer when the worldwide music industry begins putting out new releases. The (IFPI), the British-based organization that acts as a music business United Nations, announced the new plan will go into effect this summer. The organization hopes that the move will benefit the industry by reducing piracy & allow artists to focus their social-media to, “re-ignite excitement and a sense of occasion around the release of new music.” By Rolling Stone: Link

MUSIC LAW & LEGISLATION

Craft beer battles in Congress for tax breaks- Independent craft brewers are growing in both size & popularity in the US & lobbying Congress to change the Small Brew Act.  Brewers see this as a burdensome tax on craft beer companies that need the funds to invest in production facilities & workers. The federal tax which was first levied on brewers during the 19th century as a way to pay for the Civil War is one of the “hidden” levies directly collected from producers & importers. While this applies to all brewers, the craft beer industry wants it cut specifically for them. By Fox News: Link

MUSIC TECHNOLOGY

Snapchat sees music as a ‘really interesting opportunity’- “Snapchat chief executive Evan Spiegel has hinted at plans to do more with music in his company’s popular messaging app, describing it as, “a really interesting opportunity. Music is really appealing to us right now because it has some of the same attributes that communication had when we were working on Snapchat in the beginning,” said Spiegel during an on-stage interview at USC, reported by Daily Trojan. Emails leaked as part of the Sony Pictures hack in December suggested that Snapchat & Spiegel have been thinking about music for some time. “He thinks every music service in the market is shit & he wants to be a curator. He doesn’t want to build a music service but he would like to have a record label so he could focus on the artists that he wants to use the platform to promote.” Snapchat also held talks with music video service Vevo about it becoming a launch partner in Snapchat Discover, but they broke down after the two companies couldn’t agree on how to split advertising revenues from the deal.” By The Guardian: Link

Can Pandora compete with YouTube & Spotify? – “The service’s latest foray into artist marketing is surprising given that it markets itself as an online radio service. In an age of fragmented platforms & reduced revenues, having a medium with the reach & power of radio is a benefit in & of itself. But, Phillips told me that the company does not have plans to monetize the service. “We primarily monetize based on selling advertising,” he said. In doing so, the service will have to compete with multiple platforms, such as iTunes Radio, YouTube, & Spotify. Together, these platforms offer a comprehensive digital ecosystem for artists to market themselves. For example, pop sensation Beyoncé used a combination of Twitter, iTunes, & YouTube to release and market her previous album. Pandora’s entry into this ecosystem has been instigated by two factors. The first one is a clamor for revenues from Wall Street investors. The second reason is related to the first. The company has filed a court case that seeks to reduce its statutory rates (money paid by the company to artist’s per-play) by almost 20%.” By Wall Street CheatSheet: Link

Google’s latest, fascinating bet on the future of music- Kobalt Music, a London-based music publisher & platform provider, has announced $60/m in investment from several firms including Google Ventures. Kobalt currently manages $3.5 billion in publishing assets for artists like Paul McCartney, Beck, Dave Grohl, Sam Smith, & 8,000 other songwriters. Music publisher’s sign up songwriters, collect & distribute the royalties generated when songs by those writers are played on broadcast radio, television, streaming services, or when they are featured in advertisements or movies. “The music industry is going through dynamic changes all around the world & Kobalt will be instrumental in shaping its future,” Google Ventures partner Bill Maris stated in a press release. By Quartz: Link

Spotify changes desktop experience & adds a dashboard for social- Spotify announced that it will phase out its app finder & all third-party apps on its desktop version. A new “Lyrics” button has been introduced in the music player & will allow users to call up lyrics. The platform will also introduce new features to strengthen social by providing real-time information on music that user’s friends are consuming. The platform will also create a daily report of the most shared music.  New music & daily performance of popular tracks will be highlighted. By Marketing Initiative: Link

Apple’s & its tastemaker look to win in streaming – Apple believes that curation is the solution for streaming music’s problem on what to play. Services like Spotify & Beats provide access to tens of millions of songs but listeners consistently run into the issue of figuring out what they want to hear next. Apple’s plan is to create recommendations, radio stations & playlists of music that fan might like. By Hypebot: Link

Beatport’s free dance music streaming service- Beatport is where the world’s DJs buy their music but in the past they could only listen to two minute samples. Now Beatport hopes that by giving away free unlimited streaming it can increase sales. Beatport’s provides high-fidelity downloads of electronic music tracks for DJs to play during sets. Its web interface is focused around browsing & discovering music rather than searching & playing what you already know. By Tech Crunch: Link

Streaming music company’s battle for international ears- On demand music streaming services such as Spotify, Deezer & Rdio are expanding their territories throughout the world. Deezer is in 180 & Spotify is in more than 50 countries. To be successful the streaming services have to work with record labels, publishers & other local rights holders, as well as, make deals with Internet & cellphone providers. By Rolling Stone: Link

Apple grabs another music company- After the acquisition of Semetric last month, rumors hint that Apple has made another major move in the digital music space. Per a report from MacRumors Apple has acquired the UK-based digital audio effects creator, Camel Audio. By Zacks: Link

Musikki opens up real-time music database to app developers- Musikki is the music world’s answer to IMDb. They provide a comprehensive database of information on musicians including their background, concert dates & news. Musikki allows users to buy music through their app. By The Next Web: Link

Google Play music now stores 50K songs for free- Google users who use the free Play Music service (available for both the iPhone & iPad) can now store up to 50,000 songs for free to stream or download. Songs must first be uploaded from a computer before they can be accessed from a device. Apple’s iTunes Match costs $24.99 per year, has limited matching, & has an upload limit of 25,000 songs. By Appleinsider: 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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