SONG CONTEST BLOG

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.

Trent Reznor, a music pioneer on more than one level, has paved the way for a new music business attitude through forward-thinking marketing concepts to communicate with fans directly and provide them with a reason to consume his music and come to his shows.  In 2007, Reznor under the famed band alias, Nine Inch Nails, prior to the release of the album, “Year Zero”, launched an online reality-themed scavenger hunt, intended to engage fans and deliver a unique user experience.  In conjunction with this gaming initiative, Reznor dropped USB keys loaded with NIN music at his concert venue’s toilets for fans to pick-up and enjoy for free – and share.  At the time, it was not clear whether the music was leaked by fans or by Reznor himself which spurred the RIAA to put up takedown notices, fueling the campaign even further.  To make the album’s physical CD release distinctive, Reznor printed CDs that changed colour – a gimmick CD copies would not benefit from – to encourage fans to buy the originals to supplement whatever free digital content they may or may not have already had access to.  After this episode, Reznor left his label and went on his own, beginning with the independent release of “Ghosts I – IV”.  In this case, the 36-track album was offered to fans in a variety of attractive models, all under a Creative Commons license: first 9 tracks for free, $5 for all tracks plus a 40-page pdf booklet; $10 for 2 CD set plus a 16 page booklet; $75 Deluxe Edition Package (i.e. box set); $300 Ultra Deluxe Limited Edition Package, capped at 2500 units all signed by Reznor himself, which sold out in 30 hours.  Collectively, Reznor grossed $1.6 million in the first week from this independent initiative.  The album later became a number one seller on Amazon in spite of its attribution license which made the digital sharing of it legal.  Reznor’s following album, “The Slip”, was offered entirely for free two months later along with sample tracks from NIN’s opening acts.  All you needed to do is punch in your email address.  Again, Reznor provided a unique fan experience, along with a visual depiction of the volume of downloads by location on Google Maps and a full tour venue listing and ticketing options.  The tour was a huge success.

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.

Stephen Budd, a council member of the Music Manager’s Forum and founder of Stephen Budd Management, the producer management agency which looks after one of We Are Listening’s esteemed panelists, producer KK (Bjork, Dido, Nelly Furtado), commented on the devaluation of professional music producers at a summit of music producer managers in London this week.

Budd, and his peers, are calling for change in producer agreements due to unreasonable expectations and progressive devaluation of producers’ work, often subject to “on spec” agreements where the financial risk rests on the producers’ shoulders and their agents, no less.

The summit represented a concerted industry effort to brainstorm new business models to ensure the futures of professional producers through a restructuring of royalty shares in a number of areas where producers are professionally and creatively involved.

In a post called “Don’t Confuse Technology with Marketing” published today on The Music Snob, I found the opening statement intriguing: “The use of music marketing technology is not in and of itself an act of music marketing.”  The post develops into an insightful, artist’s perspective on the plethora of web-based music marketing and networking solutions aimed at independent artists and promoters, and questions their claim – each service with its unique proposition – as “an act of marketing” by mere subscription to and execution of their service. The Music Snob highlights that the majority of these services provide a means for fans to find the artist and not visa versa.  For instance, if the artist is distributing his music to iTunes, he is certainly making his music available for purchase… but that’s not marketing, that’s plain old supply.  So how do you create demand?  By marketing.

One of the successful attributes of social networks is the balance of push and pull marketing.  In push marketing, you look for and find friends.  In pull marketing, friends look for and find you.  Popular folks enjoy more of the pull while the less socially apt have to push.  This is a tried and tested socio-ecosystem, online and off.  However, musicians and music listeners are, by definition, unequal.  There may be a cross over – musicians may also listen to and purchase music and music listeners may also write songs and play in band – but one is supplying and the other is consuming.  In a world where music is ubiquitous and available in limitless varieties, the marketplace is not in favour of the musician and, therefore,  he must actively market (push and push hard) to find music listeners to consume his music.  The advent of taste making music technology such as Pandora, iLike and Last.fm has made it easier for musicians to develop their presence online but that, I hope The Snob will agree, is far too passive to constitute a true marketing effort through technology which, first and foremost, caters to the consumer’s appetite for music (and not necessarily your music).

From my understanding, what this post suggests, at least in part, is that few artists manage to market themselves successfully, even with an array of revolutionary “marketing” tools, and, resultantly, the music industry’s bottom line pretty much remains the same: a handful of artists sell while the vast majority don’t, even if all of them have a presence on MySpace, Facebook, ReverbNation, Sellaband, OurStage, Music Nation, Sonicbids etc. etc.

Starting at approximately $1000, emusu provides a turn-key solution for managing and selling your digital assets from your own domain, as opposed to distributing to third-party ecommerce websites or via social network applications.  The system is entirely web-based and the company is sinking its teeth into the music industry.  Ouch. 

The service allows its customers to create custom web pages from a series of handy templates and enable fans to buy directly from the source or incorporate its technology into an existing site geared for music retail.

The fact is that most artists simply don’t sell.  In fact, most labels don’t sell a volume of any note.  As such, even if the service was free, managing your own music sales is not too far up your priority list unless you’re shifting so many units that iTunes’ commission significantly diminishes your bottom line.  Furthermore, if MySpace, boasting approximately three million *active* musician users can’t make Snocap work on exclusive terms, how is emusu going to convince prospective clients that they can sell – and sell more – on their own?

At a time where the industry is shifting away from record sales and toward ticketing, merchandising, bundling, licensing, sponsorship, and advertising, emusu is a surprising entry into the space.  Selling recorded music is no longer the end game but rather the marketing collateral to sell something else.  The infamous 360 deal is a tribute to this strategy and Live Nation is a testament to its success.  Starbucks too.

However, if emusu can leverage its platform to forward thinking megastars such as Radiohead or Nine Inch Nails, both of which ’sold’ direct-to-the-fan, they may have a lucrative client.  Or two.

Ethan Diamond, the brain behind OddPost, the web mail service acquired by Yahoo! and, more recently, founder of Bandcamp, dispatched a newsletter today announcing the band portal’s new feature-set and recent upgrades.  The free publishing platform boasts nifty and relevant tools for artists and band promoters to optimize their online presence and provide an uber-cool experience for fans and new comers.  Armed with features such as domain redirection to a unique domain name within the site, fan email capturing on transactions, and IP licensing control (courtesy of Creative Commons) associated with the variety of ways to transmit music files, Bandcamp is set to become a popular choice for the brand conscious and online promotion savvy music community.  In addition to Bandcamp’s visual bells and whistles and you-control-your-music ethos, the company focuses on pertinent music file meta-tagging and artist profile-specific search engine optimization for its individual members.  Did I mention that it’s free?  Bandcamp is really quite simple, down to earth, and rather wonderful.

Google’s VP of Content Partnership, David Eun, said that YouTube “is not screwing the labels, and, if anything, needs to partner more closely with them”, in response to Warner Music Group’s demand that YouTube remove every video from WMG’s catalogue.

Google acquired YouTube in 2006 for $1.65 billion in an all-stock transaction.  It has since been working closely with record labels and independent rights owners on a number of mechanical royalty models for balanced and mutual content monetization, at which point, it struck a ‘blanket license’ deal with Warner.   However, Warner has not been able to re-negoatiate terms with Google who, resultantly, had to remove videos under WMG’s authorship or which contain copyright associated with WMG’s publishing.  As this amounts to a great many clips which are now ‘unplayable’, YouTube, the world’s largest video portal, can no longer claim to provide “infinite choice”, at least under the music category which will no longer include Madonna, REM and Eric Clapton, to name a few.  Quite a blow. 

The feud has snowballed and YouTube users are documenting their frustration on the video portal.  Here’s one version I enjoyed watching:

And from the victim’s perspective: