Music Ally

Consultant Gerd Leonhard can be a divisive figure in music industry circles – he’s been ruffling the industry’s feathers for years at MidemNet with his presentations on how media and music will develop in the future.

We know he has a number of fans as well as haters in the industry though. So, for the latter – and anyone interested in keeping up with Leonhard’s views – he’s just released his official iPhone and Android apps, which are both free.

“As promised, and in-line with my new “Mobile First” mantra, I have been busy (re)-creating and formating exclusive content that you can only get via the iPhone or Android apps, such as various new podcasts and audio-only versions of my presentations, audio/mp3 versions of select chapters of my books, previously unpublished pictures etc,” he explains.

For several years now a new wave of music fans have grown accustomed to remixing tracks. From the early days of companies like UK firm Umyx (now called Gomyx) which launched in 2004; through artists campaigns like Radiohead’s Reckoner stems remixing campaign; to the raft of iPhone apps offering remixable tracks, the idea of fans interacting with music is becoming increasingly mainstream. We asked Albin Serviant, CEO of French firm MXP4, for his view on how this trend is likely to evolve.

The following is taken from a recent issue of the Music Ally Report. For details on how to sign up for a free trial, click here

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At the end of 2009, MXP4 interviewed up-and-coming artrockers Pony Pony Run Run as part of the lead up to their first MXP4 release. Their lead singer made an interesting point when talking about why the band has been engaging more and more with new technology and social media: “the CD is frozen”. (more…)

Shazam, the music recognition company which has found its greatest success via mobile apps, has introduced a new technology designed to help broadcasters and advertisers incorporate mobile into their campaigns. Shazam Audio Recognition Advertising (or SARA for short) encourages members of the public to “Shazam” an advert with their mobile device; the service then recognises the audio and delivers customers some tailored marketing specific to the brand. The big idea is to deliver exclusive promotional content and hidden offers to mobile customers – and of course this being Shazam, any tagged adverts remain in the user’s profile for them to view later or share with friends.

Taken at face value, the new Shazam service is a nice add-on for advertisers who use music as a core part of their TV campaigns, helping them to connect with consumers who have a ‘what’s the track in that ad’ moment. But the real value lies in more sophisticated ad campaigns where extra value music content can be given to any ad viewer who wants to interact with the advert – a bit like an audio QR code or red button. How that message is conveyed to viewers will be the tricky part.

Bad news for labels hoping to rake in buckets of cash from music videogames, as Viacom’s president and CEO Philippe Dauman has told financial analysts that he hopes to find ways of paying the music industry less for the use of tracks in Rock Band. According to Dauman, Viacom is “looking to reduce the cost structure associated with Rock Band, being selective in the music titles that we choose for Rock Band based on their cost. The music industry will assist with this category (more…)

Spotify has been lauded ever since it first launched for the simplicity and slickness of its user interface. Its desktop client is stripped down and easy to use, and even the more complex features like collaborative playlists are idiot-proof. It just works.

Yet in early 2010, questions are being asked about whether it works well enough, which is healthy for music fans, the music industry and for Spotify itself. The company hardly rested on its laurels in 2009, but attention is turning to what it needs to do now to improve and compete with the new breed of ‘post-Spotify’ music services that will spring up this year.

(Sorry for saying ‘post-Spotify’ – it’s a bit pseudy).

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At a MIDEM session this morning, Coca-Cola’s Emmanuel Seuge gave an interesting insight into the process of choosing the music for its upcoming World Cup campaign, saying that it was about as far from the old model of licensing a track from a label as you can get.

“The people we talked to the longest and the most strategic were the artists,” he said. “Choosing the right music was important.”

What happened was this: Coca-Cola figured out what it was looking to achieve from the campaign, as well as the key values it should represent. Then it threw that out to music firms – labels, music agencies, artists, producers and managers – in what was effectively a pitching process.

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Getty Images CEO Jonathan Klein had a blunt message for the music industry in his on-stage interview at MidemNet yesterday: don’t try to fight technological progress.

“Don’t stand in the way of technology, and in the way of what the customer wants,” he said, claiming that when Getty Images launched, its industry was facing as frightening advances and business model disruption as the music industry has been.

Klein said Getty chose to embrace them. “We were the first people in the world to sell an image online,” he said, before suggesting that a more hands-off approach to licensing and content ownership might benefit labels.

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Is the advertising industry ready to get behind ad-supported music downloads? You might think so, with news that FreeAllMusic is striking deals with major labels, while Guvera is raising a $20 million funding round.

However, David Jones is CEO of Havas Worldwide and Euro RSCG Worldwide – one of the most powerful advertising industry bosses in the world – and he’s decidedly unconvinced, judging by his comments at MidemNet on Sunday.

“I don’t believe the interruption models will work. The models about ‘if you watch our commercial, we’ll give you music for free’ will fail. That’s the model from thirty years ago… Today you’re in an engagement model.”

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Harvey Goldsmith took to the stage at MidemNet this afternoon to plead for the live music business to be given “a seat at the table” when it comes to the future monetisation of music.

He pointed to the rise in live revenues, compared to the decline in recorded revenues. “The industry doesn’t talk to each other on a senior level. Normally all the conversations centre around recorded music, and live is left out.”

Goldsmith wants to see recorded product linked with live music. “Greed on all fronts is going to stifle the goodwill and great business we’re in,” he said, warning that overpricing risks alienating the music fans upon whom the industry depends.

“Good strong management is imperative,” he said, saying he sees good subscription services as a crucial element in persuading people to pay for music.

He also said the industry needs new people. “In technology, I actually believe the future is gonna be in near-field communication using RFID chips, just like the Oyster card we have in London,” he said, referring to the British Music Experience exhibition, which uses the technology.

He also talked about the Live Nation / Ticketmaster deal. “I believe that the Live Nation / Ticketmaster deal will make everybody else sharpen the pencil and start to become more creative. There are tons of new solutions around to deal with the issues that everyone’s concerned about with that deal.”

Mobile music luminary Ralph Simon took the stage at MidemNet this afternoon to talk about his ideas on what works for music monetisation. Unsurprisingly, it focused on mobile.

He started by hailing the current generation of smartphones, with their many and varied features, before kicking into his main ideas. “One of the things that really has to change is A&R,” he said.

“We should coin a new term here today… AA&R, which is really about access – access to the social networks, and to the communities that build, drive and really sell music and the music experience around the world.”

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