Posts Tagged ‘Major Labels’

RECORDED MUSIC/HOLLYWOOD BOWL/KENNY & TIM

November 16, 2011

River of Nickels– Yes this quote comes from a brokerage firm’s description of a concert company, but in this case it is recorded music we’re talking about. 

While sending an email to someone at a “major” who’s responsible for the company’s massive catalog, the quote “river of nickels” hit me.  I could actually picture a river of nickels in front of me.  It was long, wide, roaring…and emptied into an ocean of nickels.  These oceans will become the major labels

Selling discs is over and the labels know it.  I suspect the reasons they haven’t stopped making CD’s yet has something to do with stockholders, revenue streams, and the fact that music companies don’t make money from selling music players (not even Sony).  The future for rights holders include paid downloads (especially unreleased material), subscription services, licensing and special markets, broadcast, mobile, live, and a host of other areas, some of which haven’t been invented yet. This is an exciting time and those nickels will add-up (they already do)! 

The keys to success lie in making those nickel rivers long, wide, and fast with new tributaries being added all the time.  Keeping the cost of entry into the water at a nickel (or something low) will fill the oceans as hit records did till the end of the millennium.  Just don’t get greedy and start building new dams.

Another One Bites The Dust – As many of you know, the Hollywood Bowl (promoting concerts…the LA Phil does the other), along with the promoting team of Andy Hewitt, Bill Silva and Eric Herz have been added to Live Nation’s arsenal.  The company’s announcement stated that Andy and Bill will be overseeing booking for all of Southern California and Las Vegas.

Anyway you look at this it is a win for Live Nation as they gain an historic venue and a competitor with history.

Kenny & Tim Ride AgainKenny Chesney and Tim McGraw announced they will be touring stadiums together next summer starting in June.  This is the second time the two have joined forces…the first ended with an arrest for stealing the horse of a police officer. 

Sorry Aggies Fans – In the last newsletter, while trying to write something nice about “Mother Hubbard”, I actually tipped the apple cart by saying she was from University of New Mexico instead of New Mexico State.  So to Aggies fans everywhere…and of course Mother Hubbard, I’m sorry!

Advertisements

GOING ON DEFENSE

November 30, 2009

Just as the labels took-on fans in the music business, it started with a lawsuit in telecom as well.  AT&T sued Verizon for “false claims” believing it was Verizon’s advertising and not AT&T’s service that was hurting the company.  But as a very long time AT&T customer (yes they’ve gone through several name changes in the process) I can tell you that Verizon found a real weakness in their competitor and exploited it.  Verizon’s coverage, service, whatever you want to call it is better than AT&T from my experience.  AT&T needed to go on the defensive with their marketing…a long time ago.  It took till mid-November to get something from them.

Verizon was eating AT&T’s lunch for them.  Check out this for creativity http://www.youtube.com/watch?v=4JgrBtn8XdU&feature=player_embedded.  So AT&T hired Luke Wilson as their spokesperson and finally went on the defensive while at the same time highlighting their network’s strengths.  If you watch NFL football, chances are you have seen these commercials.   

In Live Entertainment, we could go on defense too.  What if we were to create similar ads where stars compare and contrast other forms of entertainment to live?  For example, would you rather play a video game alone in your room, even if you are playing with other gamers over the internet, or would you rather go and sing, scream, dance, eat, drink, and have fun with your friends at a concert?  Bono said something at the Rock and Roll Hall of Fame induction concert on HBO (I wasn’t at the concert) that really said it all…”Rock-n-Roll is Liberation”.  What gamer could put that kind of cherry on top?

Have you seen the ads for California tourism http://www.youtube.com/watch?v=Md69zCJKD1c?  How about the creative radio spots for Vegas?  The fact that our business isn’t investing in itself is a testimony to why we have an attrition problem.  We are competing with entertainment with huge marketing budgets.  We can’t do that.  Yet it’s Live Entertainment that has the amazing communal experiences… and cool stars that have a direct pipeline to fans. 

Let’s start now! It doesn’t have to cost a lot.  It could just be a web/Twitter/blog thing.  Watch how many tickets fly out the door!

Speak with you soon…

Jim