The ridiculous feud between Gene Simmons and Bob Lefsetz came to a head at Canadian Music Week yesterday and has since been getting a lot of coverage. The entire exchange portrays both parties as ungainly and slapdash, and the issues neither relevant nor compelling. Just silly… but a good laugh. See for yourself if you haven’t already.
Online streaming radio and music tastemaker, Jango, has launched a somewhat controversial artist promotion programme called Jango Airplay. Essentially a pay-to-play scheme [and reminiscent of terrestrial radio “payola” which has been illegal since the fifties], Jango Airplay provides artists and their agents a direct means of plugging their songs to Jango’s listener base of 6 million for a fee. Much like the StumbleUpon advertising initiative, displaying a sponsored web page for every nine unsponsored web-pages, the promotional value of this scheme is not absolute: “If you get 50 positive ratings, your song starts playing for free in general rotation on Jango. If your song continues to get good ratings, it will be played more and more often and in more and more stations.” For $30, Jango Airplay offers 1000 plays, each track linked to its distributor (i.e. Amazon, iTune).
Pay-to-play may be an unpopular paradigm among musicians but this is actually an unprecedented opportunity for artists and labels to reach a new audience and guarantee some rotation. For not much more than pocket change, bootstrapped musicians can gain some insight on who is most likely to listen to them, rate them up, and perhaps even purchase something. Assuming that Jango Airplay plugs sponsored tracks appropriately, this is a truly awesome marketing platform for the music industry.
Over the weekend, I learned that Nimbit, which has been on my radar since Jon Delange of Tinderbox Music introduced me to the company’s CEO, Patrick Faucher, several months ago, has secured venture capital to the tune of $1 million. The company provides eCommerce solutions for artists and music promoters, and bespoke services such as digital distribution, CD/DVD replication and merchandise production, and web design. The company’s turnkey approach incorporates web technology to market and distribute digital music with physical solutions such as download cards and promotional prints. Nimbit appears to be acting in two ways: the first, as a technology company developing digital retail and marketing solutions such as embeddable storefront apps; and, the second, as a broker for commercial print requirements, from CD/DVD replication to custom-branded merchandise which complements its web facet.
Nimbit’s DownloadCards (credit card-sized branded cards with a unique ‘download’ code) can be sold or given away to the fan at the live venue and later redeemed online as digital tracks through a custom Nimbit store. This is an excellent example of digital commerce converging with physical commerce, however, DiscRevolt offers an almost identical solution. Emusu is also competing for a share of this market. In terms of digital music distribution, Nimbit is facing strong competition from TuneCore, ReverbNation, and CD Baby. As for print and duplication, Discmakers dominates the US music market and recently acquired Oasis, another formidable opponent in this space. Although Nimbit’s individual services are not particularly competitive as stand-alone features, the services, as a group offering, and Nimbit’s convenient all-under-one-roof approach, may satisfy artists and promoters with a slight edge.
Slicethepie and Bebo announced a co-venture this week whereby Bebo members will have the opportunity to grab the A&R seat at Slicethepie’s artist career-funding network. Strikingly similar in concept to Sellaband, Slicethepie is tapping into the leading British social network’s community assets while Sellaband remains very much an independent platform. The music “business” role-play idea has been embraced by a number of players in one form or another, including Songness, TheNextBigSound, and Soundout, a Slicethepie imprint, based on the belief that if potential fans are provided with both a true hand in an artist’s fledgling career as well as a financial incentive, consumer loyalty and word-of-mouth shall follow. Perhaps the shape of things to come.
Music search engine, SeeqPod, that has already indexed (but not stored) 12 million songs, has been handed a formal complaint from EMI following a lawsuit from Warner last year. Unlike Pandora and Imeem, the company has not pursued licenses to provide “playable search results” maintaining that they are not responsible for content sources and, therefore, free from any obligation to the copyright holder. Legally questionable, Seeqpod has become very successful and the two major labels are probably going after it to settle on a mutual business model rather than to shut it down. The news prompted me to play with the system a little and I enjoyed learning about their artist-centric advertising progamme that’s highly targeted and cost competitive. Providing 5000 “exposures” (i.e. impressions) a month for $19.95, SeeqPod Echo is a nicely put together search-oriented advertising interface which may very well generate some relevant traffic for artists and music promoters who wish to tap into SeeqPod’s massive music listening community. I’m curious to learn how the conversion rates stack up.
Kyte, the San Francisco based company providing turn-key solutions for online and mobile digital content production, distribution and monetization, has announced the launch of custom iPhone and iPod Touch apps as a new means for music fans to access their favourite artists’ music, videos, news, and exclusive content. In a separate affair, 90’s rock group, Presidents of the United States of America, who made a name for themselves with “Lump” and “Peaches”, have just released their own iPhone app along the same lines. For $2.99, fans can stream the band’s entire catalogue over a Wi-Fi or cellular connection, as well as gain access to exclusive content and previously unreleased music. This is exciting music industry news! iPhone apps are hugely popular and provide an unparalleled platform for artists to access their audience and visa versa. It won’t be long before we see more and more artists, from megstars to indies, harnessing this technology to promote themselves, monetize their catalogue, and upsell associated initiatives and assets such as concert tickets and merchandise.
Audiolife is an LA-based artist services company founded in 2005 by three USC graduates. Their mission is “to create a middle-class in the music industry by giving all artists simple tools to generate revenue so they can spend time on what they love and do best – make music!”. Currently in public beta, the company announced this week that it will be accepting submissions for its “Artist Advancement Scholarship”, an initiative geared toward college level music school students, artists and otherwise, in pursuit of a professional career in the music industry. Don’t let the inclusion of the word “scholarship” fool you though; this is a writing exercise where $500 cash is on the table for one winner, not a scholarship application to potentially finance your future academic studies. I imagine that Audiolife is seeking to achieve two things with this campaign, the first is to establish the company’s perceived value and, the second, to draw more users to learn about their offering by writing competitively about it. Personally, I would prefer to reward the best ten applications with $50 each and use their essays as original content on the site to raise Audiolife’s natural search ranking…
Applications must be received no later than 11:59 p.m. PST on April 1, 2009, in the form of an essay addressing the question, “How do you see Audiolife affecting the music industry in the next two or three years?”, in 1000 words or less. Students in any accredited academic university or music institution enrolled at least part-time during the 2009 academic school year are eligible. A winner will be selected by Audiolife’s management team and announced by April 20th, 2009. Essays should be emailed to Travis Dean at travis[at]audiolife.com
Gighit is another entry into the already crowded gig listing and search space. With all the promise of its competitors, including Gigulate, which I covered last week, LiveKick, Songkick, and ItsLiveMusic, and others, I fail to see the differentiation. That’s not to say that Gighit is any better or worse than the others but rather aiming at the very same target with no unique positioning in sight. That goes for the others, of course. Is the gig listing and search niche just a battle of who launches and unrolls more search functionality?
Gighit, developed by Caffeinehit Ltd., a London-based design company, claims to have been around since 2000 under various guises with the ambition to provide gig listings and artist promotion services on the web, prior to the onset of web2.0 and social networking. Looking at Caffeinehit’s website, the team behind it is clearly talented (in terms of design, at least) but I question how they’re going to leverage this concept in a currently very noisy and cluttered live music environment.
The partnership between Groove Armada and Bacardi was a hot topic at Midem this year and yet another example of a major music act dumping its label (Sony, in this case) and looking for music-friendly partnerships outside of the traditional music industry ring. The agreement is intended to help Bacardi become a stronger music-centric brand in the minds of new prospects and tap into Armada (and alike) fans. Armada will be enjoying some well-funded creative and business license, including greater control over several facets of their business, namely a new digital distribution model slated for launch this year.
Matt Morissroe, A&R Director of Bacardi’s music division, B-Live Records, spoke in length about the deal’s schedule and the two parties’ plans to “share” new Armada music and release it independently, share being the operative word, not just in terms of this deal but also as the thematic underscore to Midem this year, the largest and most influential music industry summit.
Gigulate is a new dotcom out of England that provides performing artist gig schedules and tour details by analyzing music industry news, blog posts and published gig listings across the web. Much like SongKick, LiveKick and ItsLiveMusic, to name just a few competing gig listing search engines, Gigulate’s business model is fashioned on live music ticketing, a music industry sector on the up&up. The idea is to provide music fans with a free and swift method of searching for and subscribing to specific live music events, and up-selling ticket purchases via third-party online ticket sellers such as WeGotTickets or See, two UK leaders. Although the site, currently in private beta, does not yet provide a direct means for ticket purchases, the company will probably pursue a merger or acquisition by a leading player in the field to deploy the ticketing end; Ticketmaster would be an ideal candidate.