SONG CONTEST BLOG

Audiolife, an innovator in direct-to-fan eCommerce, has entered into an exclusive licensing agreement with LA-based Hopeless Records, renowned for acts such as All Time Low, Avenged Sevenfold, and Thrice.  Audiolife’s comprehensive “on demand” digital and physical eCommerce solution will provide Hopeless Records with a robust merchant facility for its artists’ music and merchandise sales as well as all-encompassing and real-time analytics and sales trends.

From a press release published on the 1st Oct 2009:

“Working with Audiolife was an easy choice. Our fans are interested in digital content and sharing that content with their friends,” remarked Ian Harrison, Director of Marketing, Hopeless Records. “The Audiolife technology makes this possible very quickly. Within a day, we can post an artist’s branded store on their website, blog, and all social networks, and can deliver all of their merchandise, digital albums, and ringtones directly to the fans. We are looking forward to the many amazing opportunities that Audiolife has created with their eCommerce solutions, and are excited about the future.”

Added Brandon Hance, Founder & CEO of Audiolife: “Hopeless Records is the first among many indie labels who will integrate our technology into their artist marketing and promotions initiatives. We are confident that their leadership in the Direct-to-Fan space will give others the proof needed to launch their own eCommerce solutions for the thousands upon thousands of indie artists looking for alternative ways to monetize their careers.”

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Labels aren’t doing very well at the moment.  In fact, they’re darn right horizontal on their deathbeds.

People don’t want to pay for music anymore.

Children are being sued for copyright infringement.

Every digital music startup in the last three years has flopped.

It’s grim.

Yet there’s never been a better time to start a label.

Go ahead, sign a few acts – no one else will.

Nobody expects an advance or a fat tour bus.  It’s budget airlines all the way.

Invest in talent while it’s cheap and ubiquitous.

Don’t know how to do it?  Plenty of executives out of the job.  Go talk to one.

Four tips to get you started:

1. Quit your day job. Nobody will take you seriously if you’re doing something else 9 to 5.

2. Stick with what you know. If you lack people skills, avoid public relations.  Focus on your strengths and, when you can, develop or outsource your weaknesses.

3. You’re in business. Act that way.  Get organized.  Lots of stupid people own hugely successful businesses.  You too can create a successful business.

4. Pick great acts. Treat them well.  Work hard for them and they will show you returns.

Music is a safe bet.  There will always be money in it.

Now go make some!

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Music Week published interesting findings on music consumption from a study conducted by The Leading Question/Music Ally, arguing that digital access to music is not a substitute to ownership but rather a gateway to it.  It appears that users of digital subscription services such as Napster and Spotify spend approximately 30% more on CDs and MP3s than the average music consumer. Furthermore, according to the report, 73% of music buyers prefer CDs and 23% of the filesharers surveyed burned CDRs.  Perhaps there’s still hope for music-as-a-product?

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Following Radiohead’s example, Alice in Chains are giving away the first single, “A Looking In View”, from their latest album, “Black Gives Way To Blue”.  The much anticipated release was preceded by a number of videos of the group fooling around in the studio.  Get the single here.

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ReverbNation has officially launched the much-anticipated Sponsored Songs Program previously covered on this blog and, with that, revealed the sponsor behind the initiative: Microsoft Windows.  1000 handpicked ReverbNation artists are being featured on www.MySpace.com/Windows from June 24 through September 24, 2009 and their songs will be available for download for free.  Participating artists will be compensated by Microsoft for every free download to the tune of $0.50 in exchange for a Windows advertisement embedded on the digital artwork.  The three-way partnership is a potentially break-through digital distribution model, providing corporate brands with the means to tap into new, music-centric audiences and creating a fund for independent artists to finance their marketing and distribution activities.  If ReverbNation can find a way to scale this idea (i.e. bring on board more sponsors) and roll out consistent promotions, I am confident that indie artists from every musical sphere will be lining up to get on board.  While I’ve come across some cynics since the launch, I fail to see the downside.  Here is Microsoft’s point of view.

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Peter Kafka of All Things Digital, part of The Wall Street Journal Digital Network, confirms that one of my favourite music sites and Webware 100 Winner, Grooveshark, is being sued by EMI.  Here is Grooveshark’s statement sourced from Peter’s post:

“For the past year, Grooveshark has been in talks with EMI Records and other copyright holders to negotiate licensing agreements for the use of their content. We are pleased to announce that over the past few months Grooveshark successfully concluded mutually bene?cial agreements with many artists, labels, and publishers that we hope to be a template for other such agreements with additional copyright holders.

Recently, EMI Records chose to abandon the template we’ve built with the help of other major copyright holders and opted for their traditional intimidation tactic of ?ling a lawsuit as a negotiating tool. We ?nd the use of this negotiating strategy counterproductive, as Grooveshark has been willing to conclude an agreement with EMI Records that is economically sustainable for both EMI Records and a start-up company the size of Grooveshark.

Grooveshark is run by a group of young and passionate musicians. We love music, we make music, and we believe that the use of all music should be paid for. We adopted this core philosophy at our inception and to date have concluded agreements with hundreds of record labels, major US performance rights organizations, and thousands of independent artists who support Grooveshark’s business model. (See: Grooveshark Artists)

As musicians, we support the rights of copyright holders and strive to sign sustainable agreements with all content owners, ensuring that all artists get paid– or we agree to remove content from our system in accordance with our DMCA Takedown Policy. We hope that EMI Records eventually follows the lead of the many forward-thinking labels we are already working with, who would rather get their artists exposure and a fair share of our revenue than block content access and force customers to illegal networks.

We understand that the economy of the digital music business is in a state of ?ux, and we hope to help ease this transition by providing the required new tools and services that lead to the next generation of the music industry. We respect the ownership rights of the major labels and publishers, and our core mission has always been to compete with piracy by offering a service that is genuinely better than what illegal networks offer, while also ensuring fair payment to copyright holders. Our next important step on our road to success is to conclude a mutually bene?cial agreement with EMI Records that is sustainable for both EMI and Grooveshark.”

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Billboard and Music Week recently released their 1st Quarter publishers rankings and share report.  Bug Music ranks at #6 on Billboard’s Top 10 Publisher Airplay chart, holding 2.82% of the U.S. radio airplay chart share, a whopping increase of 70% over 4th Quarter figures last year.  During the same period, Bug Music was responsible for 10% of the songs on the Billboard Country 100 and ranked #5 on Billboard’s Top 10 Rock Publishers.   In the UK, a matching chart dominance and upward curve can be traced.  CEO, John Rudolph, attributes revenue growth to the persistent drive of old skool music publishing activities in conjunction with new business model speculation.

“Bug Music is a music company made of amazing writers, artists, and songs.  We recognized the need a few years ago to not only be aggressive in developing our traditional music publishing business, but to be more inventive in utilizing our partners and their songs by diversifying the role of an independent music company,” said Rudolph. “We believe the turmoil of the economic climate today has afforded us great opportunities to create new models for the future ranging from releasing records to developing brands around songs.”

For those in the know, Bug Music is a music publishing leviathan, most notably for its 2007 acquisition of Windswept Music and Trio/Quartet catalogs, adding 250,000 copyrights to its name including “The Real Slim Shady”, “Fever”, “What a Wonderful World”, “Stormy Weather”, “I Walk the Line”, “Summer in the City”, “Under the Boardwalk”, “Lust for Life” and many other mega-hits.  Recent deals include a joint venture with Nashville-natives, Kings of Leon, and a co-publishing relationship with Kara DioGuardi, the American Idol Judge and one of the highest earning songwriters in the world.

Taking the company’s 34-year tenure and size into consideration, with offices in Los Angeles, New York, Nashville, London and Munich, Bug Music is refreshingly hip and open-minded, pursuing new technologies to cater to their publishing administration and publically detailing their approach to new acquisitions and client engagement.

Now, let’s check out DioGuardi’s bod again for those who missed it live:

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