Sunday, February 25, 2007

Whenever I Hear Pimp Juice, I think I have a phone call.

I'm not kidding, I have a friend who's cell phone ringer is Nelly's Pimp Juice. He hears the sweet sound of the thumping bass and familiar hook, and he knows he's got a call. Another one of my friend's ringtones is Rock the Casbah. Another one's is a Hilary Duff song. Apparently, a customized ringtone says something about who you are as a person - whether you have a Hip-hop song versus a Pop song versus an actual (gasp) ring as your ringtone. I'm not one to judge, but I am one to be annoyed. By the 2nd time I hear someone's customized pop song ring tone, I would like to throw it out the window.

I believe the customized ringtone is a fad, not a stable trend. However, record labels do not agree. Rather than focusing on digital distribution, digital rights management, or an alternative format to radio, they believe the future of the industry for them lies within royalties from cellphone ringtones.

Actual songs as ringtones have been coined "realtones" and when looking for them on the internet one can literally choose from hundreds of websites selling them for a dollar or less, a dollar or more, or offering all sorts of subscriptions for one, six or up to twelve months. Unlimited realtone downloading for up to a year - who can resist that?

In all seriousness, though, the ringtone industry is clearly booming. Over $2.6 billion dollars were spent on the ringtone industry last year and, according to British marketing firm Ovum, $6.5 billion dollars is expected to be spent in 2008. The internet is a plethora of ringtone sites and my friends are always excited about their newest ringtone (which means another $2+ purchase for the record companies).

According to this Time Magazine article, people spend money to buy a 20-30 second song not to listen to the song itself or because the quality is good, but because it makes a statement about who you are. Everytime one's phone rings, he or she is telling everyone around them that this song represents them. And this is exactly how the industry got started. Vesku Panaanen, chief technical operator of a Finnish media group, was sick of hearing the same simple ring everytime he received a call. He wanted a song that he liked and thought represented him and he fought for it. Thus, the industry was born.

By charging between $2 and $6 for a song one can buy in its entirety from iTunes for a fraction of that, record labels, mobile operators and music publishers have created a fierce competition for who gets the biggest slice of the pie. They are all basically extorting consumers, presumably to make up for illegal downloading. And, not surprisingly, record labels feel this is where they can make the most money.

This ringtone industry has exploded with the advent of new technology. Thinking to the future, it seems logical that once cellphone popularity fades in the wake of a new form of technology, so will the ringtone industry. While Thomas Hesse of Sony BMG wholeheartedly believes that "this is not a fad", it seems to scream fad to me. Once again, it seems that record labels are scrambling to catch up to a train that has already left the station. Rather than thinking ahead and taking risks, they find the fastest growing trend, put their weight behind it, and pretend that they created its success. This is certainly not a long-term fix and will leave the labels struggling even more than they already are in a few years.

Thursday, February 22, 2007

Television killed the Radio Star?

I realize in the last couple of posts I've been mulling over what the new radio will be. Will it be ad-supported Ruckus? Customized indie pop betterPropaganda? Will it be new Reggaeton/R&B formatting? Yet again, I will explore another vein of media that could be the new radio: Television.

Watching Grey's Anatomy last year, I was struck by the amount of really great new music showcased during some of the most dramatic, emotional moments of an episode. This is such an interesting, innovative way to trick your average teenager into liking a song. Take an addictive, soap-operatic TV show aimed at the high school, collegiate audience; then pick a great song by an unknown, unsigned indie band and pay virtually pennies for it; synch it up to picture during one of the most emotional scenes; create a smash hit single. Chasing Cars, anyone? And, while you're at it, make a compilation CD of all said songs, conveniently place the advertisement after the credits before the "next episode preview," sell it everywhere, make a fortune.

An article in the Chicagoist from January, 2007 echoes this same sentiment. With physical CD sales declining and digital downloads rising exponentially, it seems logical there would be radical changeover in the way music is marketed. Indie bands have found a virtual gold mine in Grey's Anatomy, The OC, Six Degrees, Ugly Betty, Scrubs and many others.

So then, perhaps unintentionally, doesn't television become the next radio of sorts? By strategically placing songs in a show like Grey's Anatomy, it requires the viewer to listen to the song in its entirety. Additionally, it doesn't hurt that the viewer will continue to associate the song with how they felt during a certain scene in the show - most likely, the song will endear itself to the viewer before the 3 minutes is up and Grey's Anatomy will have helped a previously unknown band sell thousands of copies of its single. Alexandra Patsavas, the music supervisor for the show (and also The OC), is highly esteemed by the producers of the show for her ability to subtly underscore the dramatic elements of the episode.

This is better than radio, because the viewer doesn't just listen to the song, but instead listens to the song while watching the show, which is an entirely different experience. It becomes even cooler to like the song than it would if one simply heard it on the radio.

Bands like Snow Patrol and the Fray have received global recognition from Grey's Anatomy exposure. Even the RIAA agrees in their December newsletter. When I googled the compilation soundtrack of Grey's Anatomy, I received webpages advertising the bands and the soundtrack from all over the world. Snow Patrol's Chasing Cars and the Fray's How to Save a Life both went on to achieve smash success digitally and on the radio -- with the Grey's Anatomy soundtrack selling an unprecedented 46,000 in the first week and How to Save a Life going platinum. With the state of CD sales, it's remarkable that a television show could help sell that many copies of a soundtrack or album.

Other up and coming artists such as Kate Havnevik, Mat Kearney, and KT Tunstall have been showcased on Grey's Anatomy, as well. Bands such as The Shins and Frou Frou, not to mention artists like Cary Brothers, Joshua Radin, Nick Drake and Colin Hay have been showcased on Scrubs. New, trendy television shows also showcase new, trendy music. So long as the show has viewers (which Grey's Anatomy certainly does), the new band has a huge potential audience.

In comparison with terrestrial radio, advertisers are still profiting from television and online streaming of episodes. As a result of the huge popularity of these new shows and their subsequent soundtracks and singles, advertisers have added incentive to support the format.

It remains to be seen if these shows will achieve longevity, but in the meantime... indie bands should be clamoring to be heard on the TV.

Sunday, February 18, 2007

Reggaeton, R&B and Radio

As I climbed into my boyfriend's car, I heard the familiar rhythmic pounding of a Reggaeton radio station eminating from his speakers. Born and raised in the Midwest, he had little contact with Latino culture prior to moving to Los Angeles for school. However with spending hours on the road commuting to school in a car that lacks a CD player, he has come to find new radio stations to entertain him while on the road. A white, middle-class, suburban, USC graduate and future doctor - he seems one of the least likely candidates to be a fan of the Puerto Rican and Cuban movement.

As I thought about it this week, I realized the same was true of my Biology major roommate from Ventura County, California. She swears by her Hip-Hop, whose lyrics talk about life on the street that she has never known. If Hip-Hop has become this popular on the radio among 20-somethings of all backgrounds and social classes, is Reggaeton the next movement? New directions in the industry have been vague, but if my boyfriend is any indication, Reggaeton could have a huge new potential audience.

A 2005 Newsweek article echoes this exact sentiment. It states that Reggaeton is no longer for the 20-something Puerto Rican; instead, it has exploded onto the music and club scene in America, particularly with the popularity of Shakira, Juanes, and Ricky Martin - the scene is primed for such artists as Daddy Yankee to hit the radio. Like Hip-Hop, Reggaeton has a driving rhythmic beat; however, it is one based on the Merengue and Salsa beat, causing hip swaying as opposed to mere head bopping.

Further, though, the article proclaims that internet, peer-to-peer filesharing, and satellite radio are allowing niche markets to go global. With the mass marketing opportunities that small genres such as Puerto Rican Reggaeton, Indian Bhangra, or Portuguese Fado have, they can gain a global audience for a minimal cost.

Unfortunately, it does not come at a minimal cost to the music industry. While the article does admit that Latin music sales have increased at a significant rate, piracy has caused several Latino major music labels to fold. Which, in turn, can also mean less clearly defined, prominent artists. The balance is delicate, and it is ironic that a bigger audience can mean bankrupt a music company.

Interestingly, a Los Angeles Business Journal Article claims that Reggaeton broke at the wrong time. There was a great deal of momentum behind the movement when Daddy Yankee first broke on the scene with his hit, Gasolina, in 2005; however, there were too few good artists to promote at the time to keep the genre afloat. In 2005 when Clear Channel first decided to include Reggaeton in its markets, their Los Angeles-based affiliate was ranked 2nd. By the end of the year however, ratings had severely declined and dropped to 13th.

It seems that a clear new direction in popular music is Reggaeton. With its thriving dance beats, it incorporates dance music into more mainstream pop music with lyrics that cover similar topics as Hip-Hop lyrics. By incorporating more Reggaeton on a Hip-Hop station, it seems that terrestrial radio could reach a much more widespread audience - particularly in the cities about the nearly 42 million Spanish speakers in America. 20-something Puerto Ricans, Chicagoans and Southern Californians alike could be potential listeners for a Reggaeton/Hip-hop fused radio station.

Tuesday, February 13, 2007

Viral video

Lately in my Music Industry Broadcast forum, we've been discussing this concept of viral video. Music and video have been passed person to person over the internet with the aid of social networks like Myspace and Youtube. It has become easier than ever for the young, tech savvy generation to post music and videos they make, as well as show their avid support for other musicians and amateur film-makers. Such sites give ordinary kids around the country the ability to market and publicize themselves in a global way - something previous generations could never have dreamed of doing.

My little brother has always been influenced by my older brother and me. He's a Caps fanatic because my older brother played travel hockey when he was young and always used to take my little brother to pro games on the weekends. He's always seeking out new music - classical and popular - to share with me because he knows I have dedicated my life to becoming a better musician. For me, it's been a really, really great thing that he is. He is of this up and coming generation that is so affected by "viral" video and music. Other than Myspace, one such site he has shared with me is betterPropaganda.com. While not all his recommendations are compelling (for example, the "Shoes" or "Muffins" videos on Youtube), betterPropaganda is quite noteworthy.

The site was founded in San Francisco by Kenneth Manning, of Radiant Interactive, Inc.. He advertises the site as the premiere music discovery site for over 400,000 fans and prominently claims that it is "dedicated to providing independent labels and artists an opportunity to be heard." Also quite interesting is that immediately following this is a note to labels and artists that unsolicited email attachment submissions will be ignored -- rather, these potential clients must email the site a link to their Myspace page. betterPropaganda solely uses this social network to discover and select their clients.

It offers readers numerous ways to discover new bands (albeit electronica, hip-hop and rock... basically indie pop music). The homepage lists new releases, top recent downloads, podcasts of recent interviews, as well as written transcriptions of site bloggers' interviews with various bands. It's a veritable haven for indie bands and consumers sick of mainstream radio. Because most of the bands on the site are unsigned and virtually undiscovered, fans can download mp3 recordings for free without threat of an RIAA lawsuit. Additionally, the site lists recommendations from its staff -- band name, genre, description and pictures included. If that's not enough, one can also receive daily emails about new bands or stream live from the website to sample what they want. All one has to do to begin is create an account. From there they can download tracks and create personalized playlists.

Across the board, betterPropaganda has been receiving rave reviews. It boasts fans in NPR, BBC, PC World and Earthlink and is able to provide one of the largest online music catalogs of new, fresh music. Additionally, it has license agreements with 450 major and indie labels. Therefore, in comparison with Lastfm or Pandora, listeners can actually download their music and keep it, as opposed to only being able to stream live or rent their music.

For my little brother, it has been one of his most prized discoveries. He heard about betterPropaganda from his friend who learned about it from her friend who learned about it from her friend... It seems that word of mouth is the latest forum for learning about new music, not mainstream radio. He and his friends are constantly downloading new tracks to share with each other and trying to one-up the other with a more obscure, kick-ass band. So far, I'm a fan. No longer sneakily ripping the tracks off of his new betterPropaganda CDs, I'm a betterPropaganda addict. And pretty excited about it.

Tuesday, February 6, 2007

Coffee and a newspaper and a new CD?

After Christmas, expendable cash and coffee in hand, I was lured to a stop by the numerous racks of new release CDs cluttering the aisles at Starbucks. As if there wasn't already enough stuff lining the minimal crowd space, it seems as though Starbucks has the habit of strategically placing racks of CDs along - or, rather, in - the walking routes. Customers almost have to stop and look as they wait to maneuver around and get in or out of the store. This was my case as I stopped and picked up the new Damien Rice CD. A sucker for interesting cover designs and a desire for an impressive collection of music on my bookshelf - I bought the CD.

When we spoke in my Music Industry class earlier in the semester about Hear Music and the various Starbucks initiatives to market records, it struck me as a great idea. A person who is likely to spend $3+ on a cup of coffee everyday is also likely to spend $12+ dollars on a CD they want. They're already in the mindset of treating themselves to something personal. What is more personal than a personalized CD? Or a great CD of melodies and lyrics one can identify with?

This is precisely the tactic the corporation aimed to take in 1999 when it acquired San Francisco-based Hear Music. A 2005 Wall Street Journal article quoted Starbucks' Chairman Howard Schultz as recognizing the Starbucks in the music industry. With Hear Music, people could choose their music the way they choose their coffee.

Similarly, a Business Week article from 2004 recognized that Starbucks was never been about the coffee and the undeniable success of several artists' new releases could be contributed in part to their distribution at Starbucks - particularly artists of the "Baby Boomer" generation, such as Ray Charles (whose 2004 release, Genius Loves Company, sold nearly 1/3 of its copies at a Starbucks retailer). At that time, Starbucks aimed to open Hear Music media and coffee bars in multiple cities around the country. These bars would display kiosks where the younger, 18-24 generation could select individual tracks and upload immediately to their iPod or mp3 device.

Not a year and a half later, most have been shut down. While on their website info., Hear Music still boasts kiosk stations in several cities around the country, it was published months ago that Starbucks closed every location but Santa Monica and would not install in any new stores. Corporate executives may be tight-lipped about precise numbers earned off of CD and music sales, but it is clear that the younger generation is still not interested in buying music the way Starbucks presented it.

It seems as though there could be little more convenient way to purchase music. Almost daily I walk into a Starbucks completely packed with iPod-toting USC students on the corner of Jefferson and Hoover. It's my distinct impression that music and coffee are integral components of many college students' daily ritual. Perhaps if Starbucks cut the price of individual tracks downloaded from kiosks they could make themselves competitive with iTunes; or they could establish some sort of rewards program whereby for 'x' number of drinks one buys they can download 'x' number of songs for free; or they could another sort of incentives program, offering specific new music only available at Starbucks retailers.

The demographic that frequents Starbucks is similar to the demographic that has money to purchase iPods and download from iTunes. It has the potential, if they can market sufficiently to their target young adult audience, to become a Best Buy or Walmart of sorts.. the customer goes in the store to buy one thing and comes out with multiple purchases.

Good food, good drink and good music: little things that can make life much sweeter. It seems logical that they would go hand in hand. All it takes is a good marketing strategy.

Monday, February 5, 2007

What's the Ruckus?

I've been an active member of Ruckus for almost a year and I've come to find it irreplaceable. After a broken, dilapidated Toshiba laptop eating all of my iTunes files, I came to rely only on my spotty iPod mini to listen to all the tracks I had previously purchased. As I sadly came to find, when my PC did recognize my iPod, it refused to allow me to transfer the tracks I'd bought from iTunes back from my iPod to my laptop. This boggled my mind somewhat because my computer was still registered with iTunes and my iPod had only been used with this particular computer. Needless to say, when I learned I needed to pay money to reload my purchased music to the same computer I first bought it with... I was ready to download Limewire and steal as much music as I could.

I restrained, however, and it was around this same time, though, that I saw an ad in the Daily Trojan (USC's daily newspaper) for the Ruckus Network and figured I'd give it a shot. It's since become one of my best friends.

Based out of Herndon, VA (a small suburban district of Fairfax County and, oddly, where I spent my childhood) Ruckus is one of the latest inventions in peer-to-peer music networks. A combination of iTunes and file sharing networks like Kazaa or Napster, it allows students with a college email address to register, download the player, and upload/download/share music with their peers. For free. One can download individual tracks or complete albums for at optimal speed. The site also offers a somewhat limited collection of TV shows and feature films; however, they boast 2.5 million free music tracks and growing. CEO Michael Bebel, former president and chief operating officer of Napster, boasts millions of label licensed tracks in a community with features similar to other social networks like Facebook.com and Myspace.com. It's user-friendly and...free. Have I mentioned how handy this is for a starving college student?

For some reason many of my friends, music industry majors and science majors alike, don't use Ruckus and most hadn't even heard of it when I became so enthused. That's when I realized that there's a catch. Oh...the catch(es).

First and most annoyingly, the music is only available for download to a PC. The player is essentially not Mac compatible (except in new, fast models) and one can't transfer any music from computer to computer to mp3 player to CD and most definitely not to an Apple iPod. Not surprisingly, this is not popular among a young, collegiate audience that "wants what they want when they want it" - isn't that the phrase uttered so often in class?

I put up with this mainly because I refuse to buy another iPod or download very much music from iTunes simply out of spite. I realize that I became caught up in a trend that ultimately played me as a fool and left me heartbroken (melodramatic...yes, untrue...no) - but, embarrassing or not, I would rather buy the CD and sport my Discman or pull up Ruckus on my computer for my music needs. Plus, if the Discman dies or I lose all of my files, I can always pop my CD into another device or redownload my beloved music at no cost. Is this true for other students my age? Why hasn't Ruckus caught on more? Is it just USC?

The service was first launched by David Galper and Vincent Han in late 2004 at Northern Illinois University and has spread to 82 college campuses across the country including UPenn, Rutgets, University of Minnesota, Baylor, University of Denver and right here at the University of Southern California. In early 2006, the site transitioned to an ad-supported network from a subscription based service and by January, 2007, offered the service to all college students - not just those at licensed universities.

The site is revolutionary in the sense that it is one of the first free music networks supported entirely by ad revenue (companies such as AT&T, JPMorgan Chase's, Chase Bank and Barnes & Noble can be named supporters). Phil Leigh, president of Inside Digital Media research company, feels that internet is on its way to replacing radio - particularly with this type of ad-supported format.

It is also one of the first legal free music networks frequented by college students. This is significant because as of early 2007, the RIAA reported that nearly half of all college students were illegally digitally acquiring music. Research firm NPD Group's study found that for every 9 tracks downloaded illegally, 1 track is purchased. Up to 45% of music is acquired illegally through various online means and a mere 5% is acquired through legit download services. Ruckus is a viable legal alternative for a generation that is unwilling to pay for music.

Not surprisingly (and as I noted earlier in this entry), several universities have seen a lack of success with the program. In late 2005, American University reported that only half of their students took an interest in trying the program. According to Yankee Group, a media analysis firm, students clearly want to own their music, not just rent it, and because of Digital Rights Management legislation Ruckus is unable to make this an available option.

It is clear that Ruckus has had success, but results are varied across the country. Some students absolutely love being able to download music without the threat of an RIAA lawsuit hanging over their heads; other students refuse to go near Ruckus unless they can keep the music they download and use it wherever, whenever they choose. The idea that Ruckus is cutting edge is undeniable, though, and is one of the first music services to appeal widely to the 18-25 generation. It remains to be seen if the network can achieve longevity, but one thing is for sure - it definitely has a fan in me. And not just because it's based out of Virginia... Where I grew up and now lovingly associate with Ruckus.