Professional Documents
Culture Documents
on Tribes
Outlining the music industry’s missing link
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04 | Radar
Detecting the presence, direction, speed and
wider implications of the ever evolving music
business through technology, music, gaming,
Brand finder
Amazon 34
Editorial Every story has a beginning. This is ours. Welcome to FRUKT
brands, retail and innovations. Baidu 20-23
Bebo 30-31 Music Intelligence, the first chapter in our guide to helping you
Blackberry 10-11 navigate the ever evolving, multi-collaborative world of music.
Carling 18-19 It’s a new page and music fans are rewriting the future. FRUKT
10 | Campaigns China Mobile
Coca-Cola
20-23
3, 10-11, 20-23, 30-31
Music Intelligence showcases that future in order to help you
resonate with a newly empowered generation of music lovers.
Lyndon Lawrence (Reebok) and Jack Horner Columbia Records 14-17
(FRUKT) pick apart a select crop of brand and Converse 20-23 Music has never before been more ‘in demand’ or available ‘on-demand’. This is arguably music’s golden
marketing campaigns to sort the ones with real Diesel 18-19 age. Now is the time to stand up and have a musical opinion, whether you are a digital retailer, a household
sticking power from the ones that, quite frankly, Durex 9 brand or just a musician on Twitter. Providing music is only half the package, music fans are looking to
need a sticking plaster. Echo Nest 3 be part of something, to make connections, to uncover rare gems, to find something of value. In the new
EMI 28-29 world where ‘cost’ is a dirty word it’s time to offer up something priceless.
Facebook 34 Music consumers are looking for something more, something deeper and more meaningful. They
Gillette 30-31 have turned away from the traditional gatekeepers in their droves looking instead to one another, to other
Google 10-11 fans in their tribe, their cell group, their digital enclaves for information. Why? Well, because they are
Guitar Hero 4 still looking for those trusted voices - someone to lead their nomadic tribes, someone to make sense
Harmonix 5 of the clutter.
iTunes 14-17 In this issue of FRUKT Music Intelligence Seth Godin signals the need for leadership as he outlines how
14 | Tribes Kraft Foods
Last.fm
30-31
34
the music industry had ‘Tribes’ of music fans in the palm of their hands yet failed to connect with them.
Likewise in China, that beacon of economic hope for the music industry, music consumers are finding
Marketing guru Seth Godin outlines the overriding Levis 9 their niches but are suffering from a lack of leaders and investors in new music. Disruptive technology has
importance of connecting with, and leading, Live Nation 35 ushered in a content revolution and changed the musical landscape, however the next revolution will be
‘Tribes’ as music consumers place increasingly MSN 18-19 one of ‘choice’, based on music’s emotive value, rather than ‘price’.
greater value on the connections they have with MTV 14-17, 30-31 Giles Fitzgerald, Editor, giles@fruktmusic.com
each other. MySpace 10-11, 34
O2 18-19
Contributors
One2One Network 3
Pandora 34
18 | Youth Trends Pepsi 10-11
28 | The Suffranets
Design & Art Direction:
as people think. Paul Greeno, paul@fruktmusic.com
www.fruktmusic.com/design
2 FRUKT Music Intelligence | April 2009 | Issue 001 FRUKT Music Intelligence | April 2009 | Issue 001 3
Nomad
The Radar Soul Redux
Gaming
With Guitar Hero and Rock Band seeming to have
hit saturation point and last year’s glut of titles
The Radar is devoted to the pulse of the industry. (Mirrors Edge, GTA IV, Dead Space) failing to
Going beyond music news, It’s an ongoing capture consumers imagination, just where does
Siftables
the evolution of gaming go next?
conversation on technology, music, gaming, Omikron: The Nomad Soul, which is ten
brands, innovation and the wider implications year’s old this year, was notable because of its
high profile endorsement with David Bowie –
of the emerging music model. It's a two-way who, alongside his collaborator Reeves Gabrels,
street, send your views and comments to: composed a number of songs used throughout
the game, and appeared as a character in-game.
radar@fruktmusic.com Although plagued by some usability bugs the game
was arguably 10 years ahead of its time – both
in conceptual game play and in its endorsement
TECHNOLOGY
stance. It had the beginnings of music purchase How much music data could a single block hold, comparably
options in game (gamers could buy music as they
resembling scrabble tiles caught our to say a USB stick or MP3 device?
Tilt shift photography, which plays title and a first person about Siftables is the physical, multi-object interaction that
with depth perception to turn both shooter. ‘siftables’ project and how they could they enable. I believe their greatest potential is as an expressive
Artist-based gestural interface, not as a storage medium.
still and video footage of crowds
gaming at present
inspire new interaction with music.
into a Lilliputian wonderland, keeps consists of titles like What can Siftables bring to the music discovery experience?
cropping up and making us wonder 50 Cent’s 40 track Could you briefly explain what Siftables are, how they function I think that making them the “knobs” on a multi-parametric
why no one, artist or brand, is strong Middle Eastern and what led you to create them? search interface to a large music database would be a fabulously
jumping on this niche. Ok, we know carnage ‘Blood on the Siftables are interactive computers the size of a cookie that interesting use for Siftables. Or, they could make a physical,
Sand’ or the perpetually can be physically manipulated as a group to interact with digital visual, directly-adjustable equalizer. Those are the first couple
Thom Yorke
in production ‘Brutal information and media. Imagine a pile of Lego on the table in of ideas that come to mind, and there are lots of possibilities.
mucked about Legend’, the heavy front of you, and think about how you would inspect, then sift and
with it a few metal beat-em up sort the pieces in search of particular ones or to categorise them With the current interest in music-based gaming, what could
years ago in his staring Jack Black. into groups. We skillfully manipulate collections of objects all the Siftables potentially offer in this area?
‘Harrowdown Hill’ “It is time for our time and the vision for Siftables was that they would replicate I really admire what Harmonix has done over the past 10 years
industry to grow up this type of interaction but for digital content. to bring this genre to the forefront, yet I think there are a lot
video, but each
and explore new possibilities instead of redoing of possibilities still out there waiting to be explored. It was the
time we see the same games with the same old concepts over Siftables appear to offer a tangible bridge between the digital combination of a more accessible, physical interface and the
a new group of and over again,” said Quantic Dream CEO David and physical worlds, how crucial do you believe this is to the right cultural context that made Guitar Hero so popular. I imagine
these short films Cage recently. Plans for the franchise remain future of digital media? Siftables enabling similarly fast-paced, spatial gameplay, with
set to music unconfirmed; a sequel has found itself constantly It’s absolutely critical. We are three-dimensional, physical greater puzzle-solving and improvisation possibilities.
in development limbo despite rumours of a late creatures, and that fact isn’t going to change. For a long time we
on Flickr they
2009 release date. Whether it will retread its artist have been using interfaces that are ok, but not great. When was While the development of innovative music platforms are
still astound us. endorsement route remains to be seen, but clearly the last time you felt true delight when you used your computer? continuing at breakneck speed online, there is still some
If you haven’t with Resident Evil 5 outselling every item in the At some point haven’t you wanted to reach right into the screen considerable way to go in creating a tangible access point
caught them UK Singles Chart on its release, eclipsing the total and move the items around with your hands? beyond the LCD screen. Guitar Hero is indicative of music fans’
already check sales of U2’s new album in only one weekend, desire to get hands-on, to leverage a physical attachment
gaming innovation and music innovation need How do you envisage the Siftable concept working for music? with music – something that has sustained the continual
out ‘Metal Heart’
to get hands on. The music sequencer example that I showed in my talk at the growth of the live arena. The Apple app store offers a pathway
and ‘Mardi Gras’ TED conference is one example, in which individual siftables here obviously, but a bolder, more tactile ‘everyman’ device,
and enter the Key moments in artist based gaming act as measures, samples, and effects. The player can create transcending age barriers, and at an affordable yet scalable price
micro world of a musical sequence, re-arrange it on-the-fly, and tweak effects point, is what will be the real catalyst in bringing music to life.
Keith Loutit on 1994 – Peter Gabriel offers gaming via Xplora. It gesturally by tilting the given siftables.
becomes the world’s best selling music CD-ROM The TED conference brings together the world’s most
Vimeo.
Could Siftables potentially offer up a new interactive physical challenging minds, innovators and pioneers. Its twin conference
1998 – Virtual band Gorillaz create an interactive product to replace elements of the mostly defunct CD market? TEDGlobal is coming to Oxford in the UK in July.
www.vimeo.com/keithloutit online gaming in-studio environment That’s certainly a possibility, since it seems like CDs are now truly For full details visit www.ted.com
on the way out. I suppose they could show music videos, then
2005 – Guitar Hero is released. Aerosmith are the provide an interface to remix the songs that a consumer has There have been numerous attempts to define tangible music
first act to release a stand alone title in 2008 already bought. control systems, to find out more see: www.fmilinks.com
4 FRUKT Music Intelligence | April 2009 | Issue 001 FRUKT Music Intelligence | April 2009 | Issue 001 5
Roberta Maley
Premium Services Director, Spotify
Faux
Show
RETAIL
SAYS
DIGITAL MUSIC
6 FRUKT Music Intelligence | April 2009 | Issue 001 FRUKT Music Intelligence | April 2009 | Issue 001 7
www.flickr.com/photos/notsogoodphotography/
SAYS
and finally
A brand
perspective
97% of brands see the from SXSW
value of music
Sex
BRANDS
As the sun was shining on a glorious
afternoon I was holed up in an air-
BRANDS
A new study from Stockholm-based brand communication considered assessment in order to structure a defining and conditioned room moderating a panel full
Vs Music
agency Heartbeats International, entitled ‘Sounds Like Branding’, long lasting music commitment. Get it right and your audience of the great and the good from the world
outlined the views of brand directors from 70 major brands will love you, get it wrong and they won’t forget in a hurry. The of brands and music world. During the
and found that a massive 97% of them believe that music can secret is in understanding your audience’s passion points. Music session two things kept on popping up:
strengthen their brand. Around 76% are actively using music is hugely versatile. It’s the ultimate connector, offering a touch
in their marketing with a further 74% understanding that music point across multiple channels, cultures and ages. But, just as no • A change in perspective is needed from the A recent poll unveiled a gem of a fact with regards
is to become all the more important in the future. two pieces of music are alike, no two music strategies are alike. traditional industry towards seeing brands to the popularity of music: 70% of 16-19 year olds
With more music being consumed by more people than as business partners rather than just bags of said that they would rather go without sex than
ever before in history, and with the traditional restraints of the Here we outline a small selection of the possible routes money. In a fragmented media environment music for a week. Bearing in mind the estimated
recording industry broken, brands now have the ability to stake to market: artists need new ways to reach consumers value of unlicensed music traded over P2P
a true claim on the hearts and minds of music fans. Not only Artist endorsement/ Event creation/ Sales and brands can offer powerful distribution networks in 2007 was in the region of $69B we
that but another recent survey suggests that 69% of passionate promotion/ Competition mechanic/ Preloaded and promotion; access to consumers that the thought we’d delve a little deeper.
music fans have already bought into the idea that brands will be on a device/ Demo of a connected service or ‘traditional’ budgets would simply not allow. We cross-referenced the weekly sexual
the music industry’s new revenue stream. Artists are in need of device/ Supporting discovery of music/ Investing habits and the torrent activity of 26 countries to
new channels and new revenue now that their retail options have in young people and the arts/ Social responsibility • Easier access to content for brands. The live see if any sort of pattern emerged. Looking at the
music market is a busy and cluttered space
been severely restricted; as a result they are now flexible and & charitable action/ Event sponsorship/ Festival percentage of the population having sex weekly
and brands need to find a way to cut through,
willing to get involved with the right brand on the right project. activation/ In-store activity/ Loyalty reward (via Durex’s Sexual Wellbeing Global Survey
and more importantly build relationships with
Naturally brands are eager to get in on the action, however incentives/ Bespoke online content/ Artist 07/08) against the extrapolated weekly activity
consumers before and after activity. Content
the avenues of possibility are numerous and require careful, development/ Limited releases/ Launch events data on the infamous torrent tracker The Pirate
is key to this happening, however licensing
Bay, a worrying pattern emerged. It appears the
suffers from too many cooks and often-
only moaning in the midnight hours emanating
unreasonable demands for cash. Content
from the households in the West is coming from
owners need to make the process less
A band
BANDS
overloaded hard-drives.
painful for brands – the industry as a whole
needs new investment, however brands Greece, Brazil and Russia see the most weekly
perspective need to build platforms that resonate bedroom action at 87%, 82% and 80% respectively;
while their download consumption rate remains
with consumers.
from SXSW Brands were out in force at the event, and
fairly low at under 1M unique users a week. However
at the other end of the spectrum, nearing the
only a few of them were getting it right. lowest and with exceptionally high download rates,
With over 1400 bands playing The Cheek - 5 energetic youngster Janelle Monae – one of the craziest My favourite was Levi's association with are the UK, US and Canada. Canada sees weekly
across 4 days there’s definitely no from East Anglia; think the MC5 performers I’ve ever seen, part of the Fader magazine through the Fader Fort, sexual activity of only 59%, the UK a miniscule
shortage of good music to see. The meets Blur with some Strokes ‘Afro Punk’ scene and bound who created a festival within the festival. 55% and the poor US a frankly embarrassing 53% -
likes of Metallica, Dinosaur Jr and thrown in for good measure. to become a massive star. The best things about this activity were that almost half the population. When reflected against
other big names definitely drew the the branding was ubiquitous but at the same torrent activity of 4M unique users in Canada, 5M
crowds, however SXSW is all about K’nann – A Somalian/ Canadian time subtle, the event looked beautiful and in the UK, and a whopping 11M in the US, you start
discovering new music. Here are MC and signer who’s just finished the production was impeccable meaning to see where people’s real passion lies.
a few of the acts, old and new that recording his new album at Bob that fans enjoyed themselves and will Illegal downloading seems to be the love
we stumbled upon. Marley’s studio in Jamaica. undoubtedly tell others. Fader also used of people’s lives and the main reason people are
their relationship with artists to overcome staying up all night. Unless of course you’re living
MySpace and weblinks available Nosaj Thing – LA producer who the potential headaches of content in China where they seem to be able to maximise
at www.fmilinks.com mixes electronic glitchy sounds with clearances. They filmed performances and both of their consuming passions at 78% and 23M
Wild Beasts - Yorkshire based off-kilter hip-hop beats. interviews, which were streamed live online unique users respectively. More on China’s music
atmospheric indie band, a new and archived for fans around the world to consumers – not so much on sex, unfortunately –
signing to the legendary The Low Anthem – some lovely consume and share in the days and months can be found on p20-23.
Domino label. delicate folky stuff, perfect to finish after SXSW ended. More of this please.
off a night.
dom@fruktmusic.com
8 FRUKT Music Intelligence | April 2009 | Issue 001 FRUKT Music Intelligence | April 2009 | Issue 001 9
Marketing:
Campaigns
Lyndon
Lawrence Pepsi: VV Brown: Jack
Horner Frankmusik: Virgin Mobile:
Digital Brand Manager,
Reebok International
Refresh Band in a Banner Creative Director/
Co-founder, FRUKT
Live and lost Right Music Wrongs
No one likes content. Legendary singer/songwriter Bob Dylan has teamed up with A new campaign, to promote VV Brown, sees the singer Jack founded FRUKT with Singer and serial remixer Frankmusik (Vincent Frank) has been Virgin Mobile has launched a new platform aiming to right
Everyone loves creativity. a vision to help consumer
Nobody forgets originality. Black Eyed Peas frontman will.i.am on a new commercial for performing from within interactive web banners. VV Brown brands and the traditional dumped in a field by his label with only £20 in his pocket, and music wrongs. The website outlines a manifesto saying “it’s
Still very much on a mission Pepsi. The ‘refresh anthem’ commercial sees the two singers squeezes into her own web banner ad, crouches down and music industry ‘play nice’ he has to perform 5 gigs in 10 days and make his way back to time to make a stand, it’s time to remember that great music
to perfect his craft, Lyndon together. Anyone can play
has been working and juxtaposing the differences and similarities between their proceeds to sing acoustic versions of the songs ‘LEAVE!’ and in the new music economy London. Once his £20 is spent the only people that can help isn’t how it’s packaged it’s how it sounds”. The site invites users
living through the worlds of generations over a backdrop of montage video footage from ‘Crying Blood’ from within the banner alongside her band. so it’s time for consumer him with travel, food and accommodation are his fans. His to vote on crimes against music. First up Is Vanilla Ice who
marketing, advertising and brands to cut through the
the two time periods. A specially recorded version of the Bob “As VV Brown is such a striking artist with a stunning vocal progress can be tracked on MySpace and a Google map on an features on the website’s homepage in the ‘Vanilla Ice Says
technology since he was 14. clutter, by defining a clear
Now, 34, and scarily 20 years Dylan track ‘Forever Young’, sung by both parties, soundtracks talent, we wanted to move away from the standard advertising role and perspective in music accompanying website, and the whole thing is being filmed for Sorry’ video offering up an apology for his career and his music.
later, he’s still very much a the promotion. The commercial finishes with the tag line “Every formats and introduce her “in person” and singing live on and asking themselves a Channel 4 documentary. Kyte TV will also stream footage Visitors can vote on whether he’s guilty or innocent, leave
passionate kind of guy that’s how they can add value
dedicated towards delivering generation refreshes the world”. your desktop” said Pru Harris, Island Records Marketing. The to their audience. He also filmed on his travels live via his mobile phone. comments and add to a chart of other music wrongs. The site
something cool, something campaign echoes the video for the track ‘Leave’ which sees manages a band and likes also promotes the V festival as righting ‘festival wrongs’.
useful and something you old synthesizers.
won’t forget for the adidas LL: "Every generation refreshes the world” That’s what we’re VV Brown singing from within a cardboard box. LL: Awesome. That’s where we have to begin. I mean, come on,
Group. Having won several supposed to walk away understanding. On first glance, I did jack@fruktmusic.com let’s face it, something real or real enough is what people are LL: Cooler than ice. This is subzero when we’re talking pure
awards for Originals, he now
not get that impression. With an impressive contribution by LL: Fantastic. A very nice concept, well executed. It would have looking for today. It is where they are at. The concept is just cool. coolness. What a superb hook to bring this classic ‘Music Wrong’
works to do the same
for Reebok. a legendary artist, representing the past and will.i.am, perhaps been nice to see the lead singer, VV Brown, step up and out It’s fun and interesting. You listen to the music, you want to get – straight back in to the ‘Right’ and right now. Starting of with
a legend in the making for the future, leaves a middle filled with of the box of the frame of the banner and sing on the webpage. involved. Yes, this has been done before, but has not everything Vanilla Ice, the consumer is brought back in time to a place
strange visual imagery of inter alia, war and surfing. This is Really, that would grab a lot of attention and be worth reloading, else too? Thing is, this guy has talent. Listen to his music. So it where doing it wrong, was doing it right. Until someone caught
a pure brand message, and leaves little for the consumer of because the music really is that good. What also might have seems that sometimes you have to plant the seeds to get the you out. A really nice, compelling idea, very well executed. My
today; they’re interactive, they relate in different ways. 1,697,984 been nice to tack on is a send to a friend after the banner loaded grass in order to get grassroots and then blossom out of this. congratulations to both the client and agency. They have guts
views on YouTube might seem good, however what was the ROI? or the ability to embed it on a blog or social media platform. Frankmusik is engaging; touching and feeling where people are. and a sense of humour. Transport this in to the social media
Nevertheless, a great idea, nicely made and a fantastic track This is the coolness. Thumbs up. world and they’re off to a flying winning start.
JH: Pepsi’s refresh ad goes head to head with Coke’s new ‘Open in “Leave”.
Happiness’ track written and performed by a ‘superband’. Coke JH: Every brand targeting the yoot is desperate to create some JH: A simple idea but brilliantly executed – both online and
continue to drive their positive message very literally with some JH: This is cute. A tiny band in an otherwise almost universally authentic branded entertainment to push out through those big live with the vignettes of Vanilla Ice visiting Oz for their V fest
straight up jangly middle of the road pop. ignored and disliked little digital sales rectangle. The simplicity old social network channels, and many fail with concepts clearly recently. While browsing the shocking chart, and wincing to some
Pepsi take a more thoughtful direction, with an ad provoking is key, the band just play and because it’s not all sales messages, cooked up by people far removed from the audience. However, offensive pop trash, you realise what an inspired choice to trial
a sense of wistful nostalgia, and the creative idea comes through it makes you smile. And because you smile you feel all warm this is great. Good work Blackberry on taking a risk on a relatively Mr Ice was. The guy can laugh at himself, and is fine talking about
clearly. It’s slightly baffling me who this is aimed at. It’s only inside. And you forget that it’s a website, it’s a mini private unknown artist and allowing swearing and what appears to be being a product of other people's management – he gets stuck
really a 30 something audience who relate, and we’re all downing performance just for you. The only shame is that you can’t share genuine spontaneity to go out with your brand on. The challenge into the whole campaign, and ends up a free man as a result.
herbal tea and low fat smoothies aren’t we? So while Coke’s it – all that effort to shoot this so effectively, and they rely on the with a lot of brands is their need to use words like ‘own’ when it There’s plenty of chatter going on community areas of the site,
jingle-made-single lacks the depth of narrative that “refresh” media buy to deliver the right audience, when it’s perfect to be comes to content and music, Blackberry have been braver than further proof that the subject matter for a discussion provoking
has, it far more effectively communicates a consistent message shared by friends and embedded on social networks. that and let something real unfold. The only slight critique is that campaign was an effective one.
to a clearly defined audience. some episodes felt a little on the long side of ‘snacky’.
10 FRUKT Music Intelligence | April 2009 | Issue 001 FRUKT Music Intelligence | April 2009 | Issue 001 11
The Index
Looking outside the traditional top 20 charts highlights Highest
just how disparate and diversified music consumption
is. The retail charts only paint half the picture, music trading
consumption is now defined by what people want and
not by what they are offered. As a result popularity niches
Most secondary Most
have formed and a certain amount of lateral thinking is
now required to assess consumer demand.
requested tickets UK Blipped
Ad-funded (Viagogo)
MOST music
music 1
2
Michael Jackson
Madonna
REQUESTED
(Blip.fm)
(We7) 3 Girls Aloud 1 Radiohead
POPULARITY EVENTS
2 N-Dubz 6 Beyoncé 4 The Cure
3 Akon 7 Tina Turner 5 Coldplay
4 Kings Of Leon 8 Metallica plus Machine Head 6 Led Zeppelin
SCORES 5
6
7
Taylor Swift
T.I.
Flo Rida
9
10
& The Sword
Hard Rock Calling
Snow Patrol
(Songkick) 7
8
9
Pink Floyd
The Killers
Bob Dylan
(Big Champagne) 8 Beyoncé 11 Kings of Leon 1 Taylor Swift 10 The Rolling Stones
BLOGGED
2 Akon 97.4 11 Alesha Dixon 14 AC/DC 4 3oh3 13 Pearl Jam
3 Chris Brown 86.8 12 Kelly Clarkson 15 V Festival 5 Bring Me The Horizon 14 Kings of Leon
4 Beyonce Knowles 85.0 13 Katy Perry 16 Depeche Mode 6 Muse 15 Depeche Mode
5
6
7
T.I.
Eminem
Lil Wayne
83.3
68.8
59.7
ARTISTS 14
15
16
The Pussycat Dolls
Shontelle
Michael Jackson
17
18
19
Ne-Yo
Britney Spears
Oasis plus Kasabian & The Enemy
7
8
9
Lady GaGa
Lil Wayne
Miley Cyrus
16
17
18
Muse
Beck
Metallica
8 Usher 57.4 (Hypemachine) 17 Britney Spears 20 Morrissey 10 Faith No More 19 The Smiths
9 Ludacris 53.3 18 James Morrison 11 Girl Talk 20 Red Hot Chili Peppers
10 Ne-Yo 53.1 1 Royksopp 19 Miley Cyrus 1st January – 20th March 12 Ne-yo
11 Michael Jackson 47.7 2 Animal Collective 20 The Killers 13 Katy Perry 20th January - 20th March
12 FRUKT Music Intelligence | April 2009 | Issue 001 FRUKT Music Intelligence | April 2009 | Issue 001 13
Seth Godin
Interview:
on Tribes
Seth Godin is the author of the In Tribes you start by saying: “You can’t have a tribe without Chris Anderson suggested in a recent interview with us that
If you
a leader, and you can’t be a leader without a tribe”. Who is leading whom music was moving from a product to a service. Would you agree
world’s most successful marketing in the music business? and how will this change how music is ultimately delivered?
Age” and Forbes heralded him as the stuff that goes around it that people are willing to pay for: experiences,
souvenirs, connections.
and as a result instead of suing people who spread your music
you should be bribing them to spread your music. Because if a group base. They just ignored it for 30 years. Multiply that
by ten thousand artists and you see the problem.
a “demigod on the Web”. His latest
book ‘Tribes’ argues that lasting
You also talk about “heretics” as the new leaders. Who or what do you see
everyone knows your song you will make money.
of In the past musical tribes have predominately
profit
person we’re following is doing something new or different or earth shattering. could invest $1M and in return get a song listened to by everyone hard to teach teenagers that they should only
of people connected to each other. So when Bob Dylan got booed off the stage at Newport he was acting as a in the country would that make money for her or lose money for listen to hip hop and never listen to Jazz and that
We caught up with Seth early one
all day
heretic. If he hadn’t been willing to do that, if he had just wanted to be another her? My argument is that it makes money for her. That anybody they should only listen to Jazz and never listen to
Dave Van Ronk or Pete Seger there is no way Bob would have ended up leading who has a hit record, where I define hit by a lot of people listening urban music. They’ve tried very hard to pigeon-
morning in New York to discuss
long
as many people as he lead. He was willing to be a heretic first. So when we talk to it, ends up figuring out a way to make money. hole people by genre but in fact that’s not the way
how his Tribes concept about music, as opposed to the music industry, we see someone every year
or two changing what it means to play music, whether its David Byrne or Bob Do you believe the music industry is still too focused on
people listen to music. Programme directors felt
forced to do it because they can only play one song
applies to the rapidly Marley or Cat Power. These are people standing up and playing music that embracing a factory mentality as opposed to building tribes? at a time and so they wanted the radio station to
critics originally don’t like because it’s not the status quo. When we talk about How do you see this evolving? stand for something. But when you look at what
evolving music business. the music industry what we see is over and over again is that it’s an outsider, Well the music industry is filed with people who want the status teenagers actually listen to it’s extremely eclectic
it’s a Steve Jobs or a Shawn Fanning, that changes the way music is delivered, quo to remain because that’s what they signed up for. They and it’s only the programme directors that have
that gets people’s attention. signed up for expensive studio time, and limos, and contracts forced them to do something otherwise. So now
with advances, they signed up for Tower Records and a system of when you look at someone’s playlist on their iPod, or we look
timing and releases and everything else that matches what they at the trail they leave behind on Pandora, it’s not that they’re
are used to. This is what Van Morrison wants to continue, and the only listening to one kind of music. They want to listen to what
Rolling Stones wants to continue, and the people at Sony want to their friends are listening to and that can change daily.
continue. But it’s not going to continue, it’s haemorrhaging, it’s
over. So what is taking its place? I think what’s taking its place is
if you can lead and connect with a group of people who want to
follow a musician you can profit all day long. The example I gave
14 FRUKT Music Intelligence | April 2009 | Issue 001 FRUKT Music Intelligence | April 2009 | Issue 001 15
Interview:
if you
I think iTunes is really missing out by not building an asset where a unique voice. They got very corporate on us. I think among tribe mentality? about them. So you’re better off
they get to pick what’s going to be hot tomorrow. That’s a huge the people who listen and spend the most money on music, There are plenty of people who listen to music who don’t want being Johnny Cash or Willie Nelson
mistake on their part. I think The Long Tail is extremely powerful. teenagers, they’re dying for individuals to step up and say this to connect with other people who listen to the same music. Nor than being some anonymous person
The long tail shows us that things way out on the edge, if you
aggregate enough of them, add up to be as big as the hits and
is what I believe we should all be listening to. They are missing
a central place and they want one.
do they want to connect with the artist. I’m thinking of the guy
who sits down the street, who sits there and listens to his opera can be the who just happens to sing nice.
middle
I think that’s a legitimate analysis. But music is very much about records every day by himself. He’s not in a tribe. He just likes How about the Hannah Montana
community and about hits, they’re not giant hits, they might be How important is authenticity when marketing music? How listening to music. Nothing wrong with that. However music is phenomenon, which started
small hits, but the job of people who programme music, the job have the parameters of the old notion of ‘selling out’ changed? inherently social and so a large majority of music fans are quite as a character based show and
of people who create music is to figure out how to tap into the
gestalt of the moment, to the zeitgeist, so they have the song
I think authenticity means doing what you say you’re going
to do. It doesn’t necessarily mean letting it all hang out and
happy to talk about their music, listen to music with their peers
and engage with the people who make the music. man who’s had a different association with
its audience?
deciding
that tribe needs to listen to right now. being who you “really are”. When teenagers find out that you I think that’s good work if you can
manipulated them and were doing one thing and saying another Do you think the term music piracy is an outdated concept in get it, but for every hundred people
You also mentioned that “people don’t listen to companies, that backfires. But it’s totally fine for Quincy Jones to repeatedly a music ecosystem that is increasingly based around sharing? who try it only one of them is going
they listen to people”. Is it time for the faceless music
industry to become a more personal entity? If so how could
produce great pop albums even though he doesn’t listen
to it at home.
Do I think the idea of demonising and criminalising the fans
is an outdated concept? Yeah, I do. I think that what happens what’s to pull it off.
next,
this be achieved? is the cost of making this problem go away is now greater than I read somewhere that you have
The industry has tried very hard to be faceless and when it stops, anyone can afford. It used to be seen as a problem they could bought one or two CDs every week
like with Dick Clark, it was huge. I mean Dick Clark made millions There appear to be two main tribes in the emerging music solve with money, now it’s clear to them that it’s not. So they for the last twenty years. What
of dollars for forty years by being the face of the music industry
and we need more Dick Clarks. We need people who are willing
economy, one based on free content and one prepared to pay
for high-end premium content? What happens to the casual
may try to solve it the way they have just tried in New Zealand
by criminalising the behavior, but I think they’re going to give up you have tribes do you feel you belong to
and what made you buy in?
power
to stand up and say “take it from me, this is what you should consumer in the middle ground? soon on that too and come to the conclusion that this is actually It’s actually not that interesting. I’m
listen to”. I’m not sure there’s a tribe based on high-end premium content. a good thing for their future and not a bad thing and start trying sort of eclectic but not as eclectic as
I don’t think tribes are aligning based on how much it costs. to influence it as opposed to criminalise it. your cousin who has a pierced face.
In the Grateful Dead tribe there is a subset that will pay money The important thing is I’m not the
to fly somewhere to see a concert, there’s a subset that will pay Live music appears to be the only constant throughout the only one. That this is a basic human
for a box set, and then there’s the rest of the people who are only evolution of the music industry. How can the music industry need and the record industry was
listening when it’s for free. They’re all part of the same tribe. Just build upon its one remaining trump card? lucky because for forty years the
because you can draw a graph doesn’t mean people are going Well, I think the way they are doing it is completely wrong. That record industry was perfect and
to want to line up on a graph. There’s probably a chasm there, if you try to pay for it on the back of mega tours by mega acts everything about it lined up just right.
there’s probably a gap in the middle. Once someone is willing and paying Bruce Springsteen nine figures it doesn’t work. You But its naïve to think it will stay that
to pay five dollars they’re probably willing to pay ten but it’s not can’t do that. It’s a Long Tail business. You need a thousand way and it’s not going to.
clear there’s this linear progression all the way down to free artists, touring a thousand cities, for a thousand nights and then
you can make money. It’s about how do you profit when three
hundred people show up to hear a jam band one night in one
city? And then multiple that times lots of cities and lots of bands.
Does this spell the end of the road for megastar artists?
Well, I think it’s about rent. The rent that a van Morrison or
a Bruce Springsteen can charge is so high because they are the
last of their breed, and the only people making money is them.
16 FRUKT Music Intelligence | April 2009 | Issue 001 FRUKT Music Intelligence | April 2009 | Issue 001 17
UK teenagers online consumption
Vital Stats
Social networking 3hr47 Incentives to join a brand group or fan page
Youth trends
96%
Homework/research 3hr10 Access to promotions 64%
Youth perception of Credit Crunch
Chatrooms 2hr05 Viewing/downloading music or videos 41%
70%
Attitudes towards music consumption Shopping 1hr49
62%
Millennials seem as happy to befriend
Downloading music 1hr40 brands online as they do people.
Research from Netpop suggests
Soft porn 1hr40 that a typical social network user
of Millennials admitted they’ve will spend $101 online per month.
Dieting/weight loss 1hr35 of European youth are aware of the financial downturn visited a brand or fan page Despite the fact 19% of Gen Y’s may
find the ads irrelevant a sizeable 84%
Family planning/pregnancy 1hr32 notice them, with 74% in this survey
61% 75
Auction sites 1hr28 now and again. The top three drivers
43 54%
to brand pages highlight the traction
NHS Direct/Health 1hr22 of music based promotions and
average amount
% have listened to music
Dating 1hr15
feel their personal finances have
been affected
are cautious about money they
spend on themselves
of Millennials have joined
a brand or fan page
product updates.
Source: The Participatory Marketing Network
75% 66%
owned previous week
Samaritans 1hr01
67%
believe they shouldn’t have to pay for music
US Youth: Music brand association
62% 63%
66% think it is “morally acceptable” to download worlds. Activating music within a social setting aren’t prepared to give up amid the Credit Crunch, alongside going out with considerably). The Diesel clothing brand also pulled in 25% of the poll due to
free music, the rise of free music is driving far is evidently the way to reach the youth audience. friends. The 25-34 year-old age group cites travel as their number one priority. its strong ties with music, in fact fashion scored the most unique brands
greater consumption across multiple mediums. Music isn’t about simply offering up a product, However, overall 65% seem to view staying in as the main way to claw back overall, with online and electronics among the lowest. Source: Psfk/Ruby Psuedo
Turning the tables for a moment the group was it’s about engaging in an ongoing conversation, excess expenditure. German youth rank music as particularly high on their
asked what they would want most if they were listen to music on their value friend’s one that transcends music and creates a long- spending agenda, they are also least likely to cut back on clubs & gigs. “Instead Brand sector Number recalled in 6 mins
a big artist, ‘creative freedom’ at 42% outstripped mobile phone recommendations as term artist presence in-between releases. Artists of being oblivious to the changing economic circumstances around them,
‘lots of money” at 20%. Ironically the Internet has a driver to new music embracing platforms such as Twitter – which is like young people are actually very aware and focused on issues affecting their Fashion 40
offered up greater creative freedom for those receiving text messages from your favourite act – lives,” states Jules Robinson, SVP of VBSI. Source: Viacom VBSI
45% 38%
artists ready to embrace the new free music understand the importance of having a hands on Music Hardware 14
economy. This is the playground of the inventive connection with music fans.
artist, with revenue to be generated around music Source: CyberSentinel survey/OnePoll Food/drink 12
as opposed to from direct sales.
Source: Marrakesh Records/Human Capital have played a music- use YouTube to check Music promotion (TV/print/vendors/online) 11
based video game out new artists
Misc 8
81% £3.91
have used an MP3
player in the
average price they
are willing to pay for
Music Devices
Electronics
Online
5
2
previous week a download album
18 FRUKT Music Intelligence | April 2009 | Issue 001 FRUKT Music Intelligence | April 2009 | Issue 001 19
International focus:
The
Music as leverage
Speaking at SXSW, Chris Anderson highlighted the way China is embracing 107M Regularly visit blogs
piracy in a way the West has yet to accept: “‘Cantopop’ stars are learning to
use piracy because it creates celebrity. Instead of music sales, they make Users accessing
their money through personal appearances, store openings, corporate gigs, 298M the Internet
company meetings, advertising and product endorsement”. In other words
piracy isn’t just endemic, it’s essential in the well seeded 360º marketplace. Users downloading
The current economic crisis is putting even greater emphasis on China 71% music online
Great
to consume, rather than produce, as demand for product in the West slows
down. Suddenly the emphasis is on selling inland. The rise of the middle- Users on
classes in China, which rocketed between 1990 and 2005 from 15% to 62%, 98% BBS online forums
echoes other emerging nations where a new found middle class suddenly has
cash to spend. However this cash clearly isn’t been leveraged via music, but Members of the Qzone
increasingly through consumer brands that align with music. “Music is just 200M social network
a tool to sell things,” said the singer of Mika Bomb, a band that have previously
been sponsored in the country. In China this is probably the most accurate Estimated percent of
Wall
description of the current climate. 99% illegal music downloads
of
in the re-organisation of the global economy,” suggests Tom Wallace,
President of Label Networks, which is about to release its 4th Annual China Number of mobile
Youth Culture Study 2009. “Young people want exciting advertising, the 117.6M Internet users
opportunity to adopt global fashion brands and lifestyles, and they are
without the cynicism seen in other youth markets.” This ‘Phoenix Generation’ China Mobile full-track
embraces Western brands and technology, which offers up deep traction for 76M music downloads in ’08
consumer product. However without tastemakers, without a guiding hand
to new music outside of the ‘all-consuming pop machine’, China as a music
sound
Sources: CINIC /Music 2.0 Digital Music Survey/
market beyond the ‘hit factory’ is still waiting to emerge. If music’s sponsors IFPI/Tencent Ringback tones 62%
can truly get behind the small but burgeoning independent scenes then this Master ringtones 13%
is a market with the eventual potential to reap rewards for all parties involved. Streams 13%
The Great Wall of China, like the Chinese pop market is vast, yet small Online single tracks 4%
sections of it are breaking away and lie crumbling. It’s these parts that are Subscriptions 3%
often pillaged for stones to build local homes. The Great Wall of China’s music Mobile single tracks 3%
industry is also equally being deconstructed, a small piece at a time, but Music video 2%
eventually it should create something more personalised for China’s music
consumers. For now, a true Chinese music democracy is still
just out of reach.
Free for all
A few years ago China was China’s music industry is so heavily steeped in piracy that the term itself is
rendered almost meaningless – piracy is simply the norm. In China it is legal
heralded as the world’s key music music that is sailing a lonely ship on the fringes of consumer purchasing.
33% Yes
statistics emerging from such a potentially lucrative market. However, the
consumers appeared to offer a pot numbers speak for themselves, with an estimated 99% of downloads acquired
illegally. Music is perceived as a free commodity, and arguably has been since
of potential gold at the end of the the day the Internet took root, which means that music has to find another way
67% No
around the problem.
digital rainbow. However, with piracy It would be wrong to suggest there isn’t money to be made. The search
engine Baidu, the scourge of the Chinese Internet – referred to as “ the largest
endemic and with the consumer and most incorrigible distributor of pirated music in China” by the director
general of the Music Copyright Society of China – has reported earnings of
perception of music seemingly (RMB)330M. Plus A8 Digital Music, which digitally distributes music via mobiles,
has reported record revenues for 2008 highlighting a 147% increase to
at odds with the West’s adoption (RMB)706.1M. Don’t even ask about the dominance of China Mobile, suffice to Cannot find free version 31%
say they virtually own music sales. China Mobile shifted 76M mobile downloads Support favourite artists 27%
of music discovery models, has it in 2008. However, the prevalence of ringtones and the mass market leave little High quality MP3 23%
room to leverage both Western artists and regional independent acts. This Legal 14%
all merely been Chinese whispers? is essentially a ‘one genre’ nation. Taking your artist into China to compete Other 5%
against the likes of Jay Chou, Jolin Tsai and Jane Zhang is akin to setting up
a lemonade stand in the centre of Bejing hoping you can steal a slice of Coca-
Cola’s market share. The likelihood is you’ll just go unnoticed.
20 FRUKT Music Intelligence | April 2009 | Issue 001 FRUKT Music Intelligence | April 2009 | Issue 001 21
culture
clash
Ed Peto,
Managing Director,
Outdustry
Ed Peto left London after a number of years as a label manager, artist music to people, all they’ll do is list the top 100 ringtones and these charts are How critical is brand sponsorship and are the niche acts missing out on brand I thought you might say that. 360º deals seem to be endemic, is music just
manager, promoter and sync consultant, to set up a Beijing based music what people will browse through to see what songs they haven’t got on their backing in a pop based culture? a small part of a bigger ‘celebrity’ package?
industry consultancy. He has written extensively on the workings of the phone. They’ll do it by charts and not by recommendations by people, so you This also comes back to the pop echo chamber thing, where brands tend It happens in a number of different ways, you come along as a musician,
Chinese music industry and consults for a variety of clients on music related have to get into those charts if you want your songs to become successful. to look around those people who feature in those top 100/top 200 charts. you end up as a film star. You come along as a film star and you end up
projects. As a man very much on the inside we quizzed him on music’s You have to make the lowest common denominator pop music possible which If there’s a good looking young star whose got a song at the top of the as a musician. Once you go into the spotlight you really turn your hand to
traction in the Middle Kingdom and why expectations of this emerging results in this kind of pop echo chamber. ringtone charts and has the right look then the brands will go and support everything. So actually what happens is a number of the big Chinese labels’
market need to be managed against the harsher realities. that because the exposure is there. The overriding rule here is that people resources are largely taken up by talent schools first and foremost. So, for
Are there any would prefer to spend top dollars on the top artist as opposed to the example, in Korea there is JY Park, who’s the big pop mogul in Korea. He
What is the key difference in your mind between a Western and a Chinese underground scenes cleverly spent money on niche artists. So the idea for example of a brand developed the artist Rain over there, who’s this huge Korean pop artist, and
music consumer?
There are fundamental differences really. In the West music is used as
that are developing?
There’s a lot of rather understanding that it’s cool to be involved with a tiny niche scene in which
there is 50 people in a club doing something quirky and interesting, and that
Rain was in training for six years before he actually released his first piece
of music - that’s dance, vocals, the whole lot, right across the board. We’re
than
a differentiator, you would identify with bands who say something about attention at the the spin-offs of that is that these people are tastemakers and spread out working with a label here who do exactly the same, they’ve got the No.2
yourself. It would become a way of making you stand out from the crowd, moment being paid to into the mainstream, that’s kind of understood in the West now - in China it’s biggest pop star in China and half of their office is dance studios, music
to make you more interesting to your friends. It’s something that you use to the Bejing indie scene absolutely not. So if you’re doing something small and niche here sponsorship lessons, etiquette lessons, and they just spend years doing this. What you end
engage with people and tell them something about who you are. Whereas in
China rather than being a differentiator, music is a way of trying to fit. So rather
which is exciting to
the West. You don’t being a is incredibly difficult to find. up with is someone who can turn his or her hand to anything. That’s the artist
development there, it’s not let’s sign a band let’s put out a record and develop
differen-
than looking for the latest hits that no-one has heard before and you can get come here expecting Which brands are using music in an interesting way? the artists through touring. The artist development here is to make them into
before anyone else, what they tend to look for in China is the song everyone to see a buzzing liberal There’s been one example really, where Converse sort of buddied up with the a 360º star. The music is tacked on to them at the end of it and used as a
else has so they can also have the same song. It’s an interesting market; the club scene. There are indie scene in Bejing to do a documentary, they did a tour, they did a branded vehicle to develop that star further.
idea of music discovery is of fairly marginal concern here. What you have is
monster hits that everyone has and if you don’t have it you’re left out and
a few bars here that
play that music and tiator, bus that went round a few cities with a couple of bands and played around
China. This is the first time this has ever been done really; it was kind of an Is brand involvement with music the primary way forward in China?
music is
that’s not cool. the bands are getting experiment. I’m not sure how successful it was, I don’t know what metrics If you look at the landscape brands are the only significant area of revenue
much, much better. It’s they’re measuring it on. I think in China the idea of associating yourself with that we can see in the future. It’s tough if you’re trying to make music here and
Who are the tastemakers? Who decides who listens to what? kind of exciting from the indie hip scene as a brand is not a proven way of winning eyeballs in the then trying to cut yourself into ad share deals with video sites or music portals,
It’s almost always the technologists who are the tastemakers, the people who
have set up these enormous portals and SPs (Sohu, Baidu, etc). These kind of
a Westerners point
of view but in reality a way of mainstream sense. the returns are so low that you simply cannot survive. Brand partnerships are
the only feasible way of going forward, which is a difficult call actually. It’s a
trying
companies, which are not set up by music fans but by ‘tech heads’, find music in China it’s of such What form do the main brand campaigns take? If they’re not taking the difficult place to do it in China. Part of the reason the niches are so niche here
is a key driver for their portals and platforms, so they start trying to become marginal interest to grassroots approach does that reflect on how they use artists? are because there is so little money in it. There is no real history of making
music tastemakers as an afterthought. Beyond that the issue is the media the population here to It’s the biggest banner sense possible in terms of literally just having the money out of music here. From day one pop has been the only way to go. Even
here is either government owned or heavily monitored by the government.
Which means to get any significant media exposure you have to be releasing
fairly anodyne music. So even in that respect the media can’t really become
be almost negligible.
The Internet here is
obviously huge so there
to fit popstars hold your product and then putting it on billboards around China.
Concerts always have a brand involved. What you tend to have is brands tend
to pay people to be their ambassadors which is fairly common, and each
if you’re here as one of the international majors and you’re sitting on top of the
catalogue that has Linkin Park and some of the other bigger artists here like
the Black Eyed Peas, these kind of artists here do have some kind of interest
tastemakers, they literally have to play whatever they can play as censor- is plenty of coverage, artist will be an ambassador for multiple brands. This is big money these from a Chinese audience but there’s really no way to monetise that interest.
approved music. What you’re left with is a 90%+ pop environment. but of those 300M guys are talking about. Linkin Park did play live here and they made some money out of that, but the
When all the music is free in China it means that the only way you can people who use the Chinese Internet a fraction of a percentage of that will ever promoters lost money. So no one's actually trying to push these artists really
actually make money out of music is by having an absolute monster hit. So have heard of them. It’s there and it’s starting but it’s very niche, to the point How do Chinese consumers view artist’s taking endorsements from hard because no one can see where the money might come from on the back
most people who are investing in trying to make music invest in making out where they get very little access to the big portals and rarely get any media multiple brands? end. The marketing budgets aren’t there. So all these international artists and
and out pop hits. What it means is there is no real investment in music further exposure. There’s no real crossover hit from the indie scene ‘Selling out’ is not really a word over here. [laughs] the niche domestic artists have almost zero in the way of marketing budgets,
down the line in the niches. The big websites, rather than try and recommend is the short way of putting it. so it sort of compounds itself as a problem.
22 FRUKT Music Intelligence | April 2009 | Issue 001 FRUKT Music Intelligence | April 2009 | Issue 001 23
Analysis:
Music’s dark
The future, to paraphrase Too much of a good thing Viva la revolution! The land of make believe Something lurking in dark
Laurie Anderson, is “Somewhere around 2020, all the world’s content Marie Antoinette had everything – married off In 1783, Marie Antoinette, sought refuge from which on the surface would offer up the ability The Darknet is on the verge of going mainstream
“exactly like where you will fit inside an iPod, and all the world’s music will at the tender age of fifteen she was thrust into the overload of being able to command virtually to create a bespoke music experience. However, and may by among the first pointers to the 2nd
sit in your palm as early as 2015,” said Sukhinder a lifestyle of frivolous extravagance. Queen of anything at will. So what did the girl who had choosing what to eat for lunch isn’t easy when musical revolution. Which is bad news for rights-
are right now, only much, Singh Cassidy, the vice president of Google’s Asia France by the age of twenty she had an unlimited everything do when consumption fatigue set in? staring into an infinite fridge of food. Services holders hoping to monitor public P2P networks,
much better”. However as Pacific and Latin America Operations, back in 2007.
Around 10 years ago that would have been an
abundance of wealth affording her a lifestyle built
almost purely on the gratification of indulging
She constructed a new beginning, a niche within
her own world, which she could control, and
suggesting a nice piece of X because ‘we already
know you like Y’, as some music models do, also
as it opens up yet another black hole for the music
business. Darknets are P2P services without a
technological advancement exciting and groundbreaking prediction, a glimpse in excess. She was the It girl of her day, over- shape to her own will. She commissioned a small doesn’t offer up a particularly eclectic platter public entry point to the network, whereby users
of an exciting future when owning all the music spending, gambling, and partying to excess, ersatz rural farm, her Hameau de la Reine (Little
and music innovation you’d ever wanted might be realised. However in she was castigated by the nation for lavishly Hamlet of the Queen), to be built on the outskirts
offer up vast new levels of 2009 it is considerably less exciting. Why? Well,
because consumers already have iPods rammed
spending as France faced bankruptcy. However
having everything soon wore thin and, as
of the royal palace of Versailles. An imitation
small holding where she could live out a rural
Music’s ultimate future has more in
consumption, will the sheer to the hilt with music. They’re torrented up to the the realities of her position became more fantasy among a select group of invited peers and common with our immediate past than
saturation of music force proverbial eyeballs. Music is now, to all intents and
purposes, perceived as a free commodity - not
unsatisfactory, she withdrew, creating her
own micro-world with her world.
handpicked servants, where she honed the true
desires of her heart outside her everyday life of
we are willing to admit to in an age of
fans to rise against the just in terms of cost but in the ability to be ‘freely’
acquired. The issue now is not about acquiring
Music consumers have everything – with the
excess, where she staged her own personalised
theatre productions, and developed a bespoke
progressive innovation
digital content Tsunami and music, it’s about knowing what to do with once you old music industry cast aside like yesterday’s environment. It was to be her retreat from the
go underground? Piracy have it. Previously consumers selected what they newspaper they have been thrust into a lifestyle world, a stripped back version of the reality that either. Where are the tastemakers says the world? create a sharing network between themselves
would purchase based upon careful considerations of conspicuous music consumption. Kings of surrounded her. We don’t know what’s cool anymore! TV won’t tell and their friends. What you end up with in effect
is seen as the consumer around a perceived set of limitations based their digital domain they have been presented Music consumers are on the verge of a similar us. Radio can’t tell us. The Internet models are is a far more personalised version of illegal file
‘reign of terror’ against the fundamentally on price. Now with pricing no longer
an issue consumption is frivolous. When that
with an abundance of both paid and free
music, amassing vast swathes of content and
withdrawal from the open ‘all-you-can-eat’ buffet
of the emerging music model. Having everything
asking us to make all the decisions. Help. We need
another revolution.
trading, whereby a user becomes the taste-maker
of a particular peer group. The idea itself is not
music industry, however happens the attachment to songs tends to also leading to a musical over indulgence. They are offered up on a plate is wonderful at first, but after new, and various services have attempted this
becomes less important. the modern day highwaymen, castigated for the gluttonous feast something in the pit of your route before, however a newly released version of
another revolution is their lavish consumption of free music as the stomach tells you, perhaps you should have been Limewire has brought the ability to create these
brewing. recording industry faces bankruptcy. However more selective. The focus after the first wave of sharing portals to a much wider audience. It’s now
with everything on offer, and no guiding hand to ‘open content’ was to offer up music discovery, not about the easy to spot big ships of piracy any
navigate the musical onslaught, their position more, users now have the ability to create their
is becoming ever more unsatisfactory causing own personalised P2P submarines which will travel
them to seek out their own musical enclaves. directly under the radar of the music industry.
If you can’t find them, you can’t sue them. Fail.
If you can’t find them you can’t market through
them. Epic fail.
24 FRUKT Music Intelligence | April 2009 | Issue 001 FRUKT Music Intelligence | April 2009 | Issue 001 25
Analysis:
&OKPZUIFNVTJDBOENPNFOUTPGZPVSMJGF
Sharing and navigating the digital So what does music’s future look
clutter is key in today music culture, like? Well imagine a future where Whereby the recording industry took music
and closed cell groups are bound to tracks are selected by an overriding from the live arena and packaged it up for mass
form. However, even in a closed group tastemaker who compresses the production. This ultimately put them in a position
someone has to stick their head massed knowledge of all music whereby they dictated the pricing, format and
above the parapet every now and content into a palatable and tastes for consumers.
again to see what’s new in the world. accessible format. The selected
Consumers have usurped the music playlist would be both authentic –
industry throne, however the palace as it would come from a trusted
has many rooms and navigating all source – and accessible as it would
of them is time consuming, especially strip away other music, highlighting 2/ Take
when you’re not sure what you are only what the listener ultimately
looking for. It’s enough to make wanted to hear. Now imagine it has
you lose your head. As consumers a tangible life beyond the digital The arrival of the Internet moves the business
create their own walled gardens realm, that it is packaged up for ease model from push to pull as consumers become
they too – like the former Queen of of use and has a tactile unique and empowered online. Napster sets a precedent,
France – will still need someone to personalised quality to it. Sound birthing ‘Generation Free’ which in turn gives rise
tend to that garden. The members familiar? Maybe the CD wasn’t such to conspicuous music consumption as consumers
of a Darknet still need a source, a a bad idea after all. Perhaps it’s the ingest music en masse at no cost.
point of reference, someone to plant ultimate niche. Perhaps our ultimate
the seeds in their personal utopia. future has more in common with our
However, as Marie Antoinette found immediate past than we are willing
out (with her difficult time producing to admit to in an age of progressive 3/ Receive
a male heir), having seeds to plant determination and innovation.
is one thing – growing something The old model was too narrow;
of value is the tricky part. The tables the current model is too wide. The parallel rise of social networks and P2P
have turned - it’s now about the The music business is moving against a mounting rejection of ‘ownership’
music industry being invited into the from compact discs to compact amongst music consumers puts greater emphasis
Here come
the girls
SAYS
With women spending Rise of the Suffranets Taking her cue from fashion, a They don’t want to merely shop, they want to 88% of which were female. Sales were minimal,
“If you want my future forget my past,” sang out new musical freedom, and conspicu- interact, to share, to discuss, examine, road test primarily due to its old media (CD) positioning,
around $5 trillion in the The Spice Girls as they launched themselves on an ous consumption. However the ensuing and review. They are socially secure, independent- however the engagement levels were high, which
Suffranets: a new wave of tech savvy,
brand conscious females who are exercising
US and accounting for unsuspected world in 1996 with the now infamous periods of advertising that followed, particularly minded and yet more than ever willing to listen if speaks volumes about how women shop. their right to vote on your product or service
song ‘Wannabe’. The birth of The Spice Girls and through the 50s, would return women’s concerns they feel they are being heard. “Everyday women
over 80% of all consumer the ‘Girl Power’ tag line that surrounded the group, to more domical duties. The domestic goddess have a powerful economic impact, and it’s time We are your friends
are brands harnessing the the realities of their lives? Their voice is louder and
more dynamic than any other online. Authenticity
products can still sometimes
miss the mark. Christina Aguilera endorsed
between two and seven times more word of mouth
referrals than men do. Women outnumber men on
echoing refrain of that Spice Girls song again. Geri’s
Union Jack dress may have seen better days but
relationships with virtual friends.
true potential of music is everything, and wrong footing them will earn you Skechers shoes a few years ago in a series of print virtually all social networks according to data from some words still ring true; brands need to befriend Hive tastemakers – They are altruistic in nature,
the brand equivalent of a Geri Halliwell style high ads which saw her dressed as a cop in fishnets Rapleaf, with 14-24 year-old females among the their women customers, and music is a social informed decisions makers who crowd source their
to engage with female kick off their social and economic radar. arresting a perpetrator (also herself) straddling most active. The number of women using social glue like no other. It brings people together in views for the better of the group. Eager to build
consumers? With women a car. One female reviewer said: “Seeing Christina networks in the UK rose by a sizeable 53% in 2008, a way that other promotional activity simply can’t. mutually beneficial relationships focused around
Domestic bliss getting down and dirty with herself is a guy’s according to new research by IPC Media. Although With a plethora of social media and social music a series of trusted voices.
watching their breadline, The turn of the century saw women turn from fantasy. Not something a girl wants to see”. the amount of females networking would seem functionality waiting to be tapped into isn’t it about
28 FRUKT Music Intelligence | April 2009 | Issue 001 FRUKT Music Intelligence | April 2009 | Issue 001 29
Here come the girls:
Brand Estelle
The Veronicas
& Yaz birth
Divas
& Crystal Light control
What? Kraft foods built a recent campaign for its
Crystal Light brand of powdered drink mix around What? Twin sisters The Veronicas launched
Grammy Award winning UK artist Estelle. The track
‘Star’ was specially composed for the promotion
and was offered as a unique free download via
Alicia Keys a weekly web series exclusively via their Yahoo!
Music web channel entitled UNTOUCHED in
association with the Yaz birth control pill as part of
the website ‘upumpitup.com’. Roxanne Bernstein,
senior brand manager for Crystal Light, referred
to Estelle as “a very strong woman” and that she
& Dove its Go Beyond Birth Control campaign. The micro-
documentary charted the duo’s journey across
the US as they promoted their album, Hook Me
conveyed an attitude to women to “never give
up, always take risks, never stop pushing yourself,
always try to be better.” The website offered up
Go Fresh Up. The videos – shown over a period of 10 weeks
–highlighted the girls’ rise from their childhood
in Australia to their preparations and rehearsals Duffy
Taylor Swift a bio of Estelles route to success: “Don’t let anyone
tell you that you can’t do something. I never do”
says the singer.
What? Unilever, following on from its bold Dove
Real Beauty campaign, utilised Grammy-winning
artist Alicia Keys in a micro series aimed at
for a high-profile tour with The Jonas Brothers.
The duo’s song ‘Goodbye To You’ also previously
featured in a Yaz commercial earlier in the year. & Diet Coke
& Gillette So what? Singer/actress Mandy Moore also pops
up on the ‘upumpitup.com’ website to further
promoting the launch of the Dove Go Fresh range.
The three-minute episodes – entitled Fresh Takes
–debuted around MTV show The Hills and focused
So what? The Veronicas are one of Australia’s
hottest exports selling 1M singles in the US.
What? Coca–Cola’s latest pan-European Diet
Coke campaign feature Welsh singer Duffy as its
What? Country starlet Taylor Swift, who signed enhance the ‘be-all-you-can-be’ messaging of on the lives of the three girlfriends highlighting how The female duo offer up an updated take on new spokesmodel. The £35M campaign sees the
a publishing deal with Sony/ATV Music aged the campaign with a series of challenges (under “20-something females are suffering from ‘inner empowerment, putting a strong Rock Chick soft drinks brand repositioning Diet Coke towards
merely 14, went on to write and record a Country the themes Connect, Express, Inspire and Explore) critic syndrome’, a pressure to measure up to, voice behind a product that seemingly has little a female audience primarily in their teens and
No.1 at 17 and take the US charts by storm is the So what? Swift is currently hot brand alignment aimed at bringing women together as a community and surpass, the previous generation”. Alicia Keys attachment to music. However, the launch of the twenties. Duffy covers Sammy Davis Jnr’s ‘I Gotta
teen empowerment spokesperson of the moment. property in the US with numerous companies to change who they are. The site also offers quick stated that she hoped the series enabled others to pill in the 60s was synonymous with rock n’ roll Be Me’ in the 60 sec TV commercial, which sees her
She became the Goddess Of Summer as she eager to hitch themselves to her endorsement ‘How To’ advice on how to make playlists that rock, “get a fresh take on the pressures in their lives and and now, nearly fifty years later, the alignment with jumping on a bicycle for a mid performance break.
promoted Gillette’s Venus Embrace shaving range. bandwagon. Prior to becoming the ‘legs’ of Gillette, changing a tire and creating a family storybook. start enjoying the ride”. A poll via MTV saw visitors music still stands the test of time. The campaign Kathryn Sleight, Coca-Cola GB marketing director,
The campaign saw Swift sharing her favorite she was also the ‘face’ of L.e.i Clothing. She has Estelle’s free exclusive content acts as a driver to the site voting for which karaoke duet Keys offers up plenty of background info on the product said that the promotion aimed to show “strong and
summer beauty advice with fans on the Venus also donned the famous Milk Moustache in the to deeper interaction and collaboration between would perform in an upcoming episode. whilst the documentary styled series promotes confident women taking control”. The campaign
Embrace website, encouraging women and young long running ‘Got Milk?’ campaign. Swift has an its target audience by inviting them to actively repeat visits to the site to follow the girl’s progress. includes the strap line “I’m no superwoman”.
girls to be confident and to embrace the fun side all-American appeal which works on two levels participate in activities that draw other uses into So what? This campaign aped the growing interest
of summer. “This has been an amazing year for for brands as her image straddles a line between the site. The site has around 53,000 members for micro-dramas sparked by Bebo’s successful Brand assets: So what? The diet coke guy has been given the
me – and my new ‘Goddess Of Summer’ role is tween and teen, whilst her music has an appeal involved in numerous lifestyle challenges. Kate Modern micro-series. It capitialised on its Mainstream niche - Aligning with artists on the shove and the focus for women is now more on
a fun way for me to connect with my fans,” said across a far broader and older demographic endorsement by 41M album-seller Alicia Keys cusp of breaking in the US leverages the emerging stealing a moment for herself than stealing
Swift at the time. Gillette suggested the campaign of women. The wholesome nature of her music Brand assets: by claiming that all important major music star factor onto an other wise populist act. a quick glance at a six pack. This is emphasised
was a perfect fit for Swift, as it would “honour the and her everywoman appeal give her a grassroots Self replicating – utilises a mechanism whereby gravitas yet also managing to ground her in reality Rebel chic – brings the right level of rebellion and by the commercial’s tag line ‘Hello You’. Diet Coke,
songbird’s confidence, sense of fun, and goddess- quality that offers up both the safe retro roots users can draw others into the brand activity. by given equal billing to two unknown actresses. glamour to a relatively mundane topic. and Duffy’s supermarket bike dash represents
worthy legs”. of the homestead whilst providing a more youthful Network friendly – enables users to interact This bridges a gap visually between the two a ‘me moment’ of micro rebellion, inviting women
and safe rebellious nature. Jack Gross, CEO of collaboratively with each other and the brand. and helping the viewer project herself in direct Social Currency: to step out of their increasingly hectic and
Jones Apparel Group – which is currently selling alignment to the product ambassador. Enabling Gamma range: demanding lifestyle. Diet Coke also embraced the
a Taylor Swift designed clothing range via WalMart Social Currency: the viewers to control the outcome of the final tech savvy female consumer recently by partnering
– referred to her as “someone with a good Gamma Range: music selection also ticks all the crowd-sourced with Gabriella Cilmi as the host of The Silver Room,
reputation and someone who we didn’t have to boxes so important to this demographic. a mobile Internet portal which brought together
be afraid of getting any sort of bad press”. celebrity gossip, fashion, and new music.
Brand assets:
Brand assets: Story telling - utilises a tangible narrative, Brand assets:
Multi market – crossover artist straddling a broad achieving long-term buy in via repeat viewing. Everywoman factor - Evokes a ‘one of the girls’
age demographic: tween, teen and above. One of the girls – creates empathy by bridging the feeling of solidarity between artist and consumer.
Clean cut - wholesome independent youth role often sizable gap between the endorsee and reality. Megastar neighbour – places a massive artist into
model with attainable beauty appeal . the everyday environment the viewer inhabits.
Social Currency:
Social Currency: Gamma Range: Social currency:
Gamma range: Gamma range:
30 FRUKT Music Intelligence | April 2009 | Issue 001 FRUKT Music Intelligence | April 2009 | Issue 001 31
Here come the girls: of these woman are also on Twitter he’s starting to build his
Girl Talk
own little fan club by interacting with the women he met at these
two conferences. He now has a ton of fans and he doesn’t even
have anything out yet. The fact that they are so not saturated
in this general market is exciting. They’re not jaded, they’re not
journalists, they’re not ‘ho-hum another new singer’, it’s exciting.
buying in the
various different groups and demographics. I don’t care whether its the that could be done by suggesting new music, by wooing them number of records that are being
college kids, if it was tweens, if it was focused on a gay and lesbian market - Blogging seems to have empowered a new generation of a little bit. sold. The budgets have to be in line
there were always places you could women to act as brand beta testers. How important is having with that.
household,
go to find people who were working a community voice and how can brands best seed themselves Is it better for brands to align with empathetic or aspirational
on targeting those markets. But into those networks? artists as spokesmodels in the current climate? Is ‘down I caught a comment on your blog
when it came to any projects aimed The importance of the blogging platform is for women it offers to earth’ a bigger draw than star quality? that mentioned ‘The Viral 4-H Club’
so if you’re
at adult women it became very, the ability to put out their thoughts and build community around Music is still the sexy side of everything. It depends on what the in terms of marketing to women,
very difficult to target them. Where a particular topic. What they’ve discovered is that they started brands are. It’s all about being genuine and authentic. Although could you expand on what you
are they? How do you get to them? to build a real community, and for women especially community they still love the celebrities I don’t think it’s relatable to most mean by this?
not getting
How do you get into their everyday is very important. These natural communities they’ve built via of these women. The days of ‘so and so uses it so I’m going to Some people will go “we want to
world? I realised there was a huge blogging and now micro-blogging on Twitter have become a use it’ are gone. Women today, and especially younger women, make it viral”. Oh ok, you want to
opportunity there and basically what very empowering thing for women and moms especially. are very turned off by things that are unattainable, and I think make it viral, so what is interesting
to her you’re
I’ve built is a street team concept. As far as there impact it’s a known fact that 80% of people if you had a brand that could associate with a relatable artist about it? What makes somebody
industry and how brands can market by a similar artist to the one
you are promoting, you might hire
what they should be listening to?
I feel in general that what happens is that for women after their
Because you can take little bits online those are the things you
don’t feel too much in your pocket. Music is still so important
are tons of things on YouTube, but
what rises to the top? It’s the ones
benefit from creating deeper somebody to go pass out flyers at college years, nurturing a career, and once they start having to people, it’s a sense of catharsis and enjoyment, so if they are that evoke an emotion of some kind.
32 FRUKT Music Intelligence | April 2009 | Issue 001 FRUKT Music Intelligence | April 2009 | Issue 001 33
Analysis:
-600,000
$1M £250,000 $71,442.69
spent any time trying to find new music online you’ve probably Soon we will see the emergence of new approaches being developed by
encountered music recommendations like this. The recommendations researchers that will fix some of the problems endemic to wisdom of the
are often either far fetched, obvious or just plain wrong. But as the crowds recommenders.
amount of available music continues to grow, we increasingly rely One new approach is to base music recommendation on what the music
on these broken recommenders to help us find music. We need to fix actually sounds like, instead of basing it upon who is listening to the music.
music recommendation so that, as our music collections grow, we can This is deep science. Researchers combine signal processing techniques,
help guide music listeners to new and interesting music. machine learning, musicology and search technology into a system that
can find music in a billion song catalogue that sounds similar to music that Marketing budget a cover-
Why is Music Recommendation Broken? you already like. This content-based approach addresses the new artist mount on UK newspaper The
Most music recommenders rely on ‘Wisdom of the crowds’ to make problem. All artists are treated equally - a brand new, undiscovered artist Drop in Sirius XM Satellite Radio Kylie Minogue's fee for appear- Independent allegedly saved Estimated cost of purchasing
recommendations. They look at overlapping purchasing and listening patterns is treated identically to The Beatles or Coldplay. Since recommendation sign ups in Q4 (against the same ing briefly in the Bollywood film the Wall of Sound label every app available on the Apple
to make recommendations such as ‘people who purchased Jimi Hendrix also is based upon what the music sounds like and not who is listening to it, period in 2007) (Sirius XM) Blue (Starpulse) (Wall of Sound) App Store (Venturebeat)
purchased Eric Clapton’. This type of recommender is easy to build and gives this approach is immune to the feedback loops that we see in current
good recommendations for popular artists. However, there’s a flip side to ‘the music recommenders. Sometimes the reaction the world has to music
$25M 7 seconds
$1.3M $1.2M
wisdom of the crowds’. For new music or unpopular music there is no crowd is as important as the music itself. To capture this cultural context,
and with no crowd there is no wisdom. A wisdom of the crowds recommender researchers are building systems that will crawl the web for everything
cannot make good recommendations for new artists, it just doesn’t know that is written about music. The resulting data is parsed and analysed
enough about these new artists. The result is that new artists are ignored. for reaction and significance, and is used along with biographical, editorial and
What’s worse, a recommender feedback loop can form. Popular items are relational information to build a better model of how artists and songs relate.
frequently recommended, and because they are frequently recommended This information is used to offer transparent, explainable recommendations.
they become even more popular. This results in the recommender reducing None of the three approaches described here provide the optimum
the overall diversity of the set of recommended items. Instead of helping us solution for recommendation. Each approach has its advantages and
find music by new, unknown artists, recommenders point us right back at the disadvantages. The next generation of music recommendation will combine Sponsorship Ford is to put
popular artists we’ve been listening to all along. the best aspects of all three approaches into a single hybrid recommender. into American Idol despite the Time it took for a one off Paul BitTorrent hub Mininova's Illegal drugs confiscated from
The recommendation “other people who listened to Nine Inch Nails also Music recommendations will be transparent, free from feedback loops that economic issues surrounding the McCartney gig in LA to sell out apparent earnings in 2007 the Phish reunion concert
listened to Johnny Cash” seems like a really bad one. Industrial metal doesn’t lead to limited diversity and extend to all music, no matter how new or rare. auto industry (LA Times) (BBC) (Mininova) (Associated Press)
usually go with country music. However, if the recommender could offer Soon, all recorded music will be online and available for listening
an explanation such as “Johnny Cash offers an honest, haunting, powerful anywhere, anytime and on any device. Tools for helping people wade through
The Expert The Friend The Algorithm The Database Purchase Comparison
SAYS Sammy Hagar, formerly
People in the Sharing of music Analysing component ‘Scrobbler’ analyses ‘People who bought Number of bottles of wine Sting of Van Halen, nets an 80% sale Revenue increase in virtual What Primary Wave has netted
know, sharing their recommendation parts of music, your music collection this , also bought this’. is selling from his vineyard of his Cabo Wabo tequila brand goods sales on Chinese social from its $50M stake in the
experience. between friends, one- ‘sounds-like’. and listening habits. e.g Amazon (NME) (WENN) network Tencent Nirvana catalogue
e.g Pitchfork, blogs to-one, one-to-many. e.g Pandora e.g Last.fm
e.g MySpace, Facebook
34 FRUKT Music Intelligence | April 2009 | Issue 001 FRUKT Music Intelligence | April 2009 | Issue 001 35
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