SONG CONTEST BLOG

Brian Hazard of the Music Think Tank published a comprehensive post addressing the pay-for-play model that online streaming playlist service, Jango, adopted as part of its monetization strategy, dispelling the analogy to terrestrial radio payola and drawing references to mainstream advertising mediums.  In March, I promoted Jango Airplay and touched on the controversial issues Brian addresses in his piece but his first-hand experience and engaging write-up of the music dotcom serves the topic more justice: Is Jango Payola?

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“When we launched our free digital distribution service, we knew we would be able to provide our users with new possibilities to help them expand their own marketing. With Jango Airplay, our users can freely invest into getting radio promotions and establish unique social interactions with new fans to help drive music sales. We are very excited to be working with Jango to provide an effective marketing avenue to our users.” said Kevin Rivers, Founder and CEO of WaTunes.

“We designed Jango Airplay to give emerging artists an affordable and effective way to get their music proactively played to real listeners who like similar music. Thanks to WaTunes and affordable technology it is cheaper than ever to produce and sell music – but getting your music heard is the first step. We are very excited to bring WaTunes users in front of our 6 Million listeners. ” said Mattias Stanghed, Co-Founder and Chief Product Officer of Jango.

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Presumably in response to EMI’s recent formal complaint and Warner’s lawsuit last year, SeeqPod filed for Chapter 11  with the U.S. Bankruptcy Court of the Northern District of California two days ago.  The music search engine which rolled out an attractive pay-for-play advertising programme for artists is liquidating its assets by selling its source code to developers for $5000, perhaps encouraging many services just like SeeqPod to emerge in the future.  Yet another sorry day for the music industry…

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P2P streaming music service, Grooveshark, has launched an artist promotion initiative – much like the track placement scheme Jango conceived of – as a means for artists and music promoters to purchase plays on its platform, a direct advertising approach that makes sense.  The Gainesville, Florida, company of approximately 40 young entrepreneurs has created a music service that rivals that of Last.fm and Pandora, the two major players in legal music discovery and ‘free’ music streaming.

Grooveshark claims to have deployed a legal music discovery and consumption model, providing its users with a financial incentive to share music, compensating artist/labels for their respective share of ‘broadcasts’, and maximizing illegal file sharing by financing its original sources.  Whether this service is actually legal or not is questionable and it appears that the company has created an expensive model to sustain on ad revenues alone.  However, they’re coming through on some very interesting marketing features for small budget music marketing campaigns.  At its core, Grooveshark Artists offers pay-for-play audio realestate matched to its existing track recommendations and provides analytics tools for track placement optimization. 

In addition, it has partnered up with some of the most talked about music tech startups for music retail, licensing, funding, and more, including Bandcamp, Sellaband and TheNextBigSound, all under the Grooveshark banner which already includes a number of subsidiary services including Tinysong, a track link generating tool for viral distribution, and  Twisten.fm, a Twitter crawler that finds music-related tweets and links them to playable tracks.  All of this put together amounts to a powerful enterprise of do-it-yourself marketing and a 360 indie approach akin to ReverbNation.

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.

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