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Where The Teens Are (As If We Didn't Know)
March 11, 2011
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"Everywhere I look, there's a dependence on synthetic forms of communication. Whatever happened to good old-fashioned face-to-face insincerity?"
-- Dennis MillerI don't think it comes as a surprise to anybody but this from Media Post this week: "In the digital world, this may be a no-brainer: Now, virtually all U.S. teens are using the Internet, far outpacing the total U.S. population. More importantly, many are counting on social media to influence their purchasing decisions -- a key factor in future advertising budgets and campaigns.
By the end of 2011, eMarketer says 96% of American teens ages 12 to 17 will use the Web at least monthly, much higher than the 74% penetration for the total U.S. population. Teens will inch up to 97% in the coming years through 2015, then remain at that level. Overall Internet usage among all population groups will climb more rapidly, rising to a 79% penetration by 2015. Social networks are a major factor in growth. More than four in five teens -- 80% -- will use social networks this year. That compares to 64% of all Internet users." (Read more here: http://tiny.cc/9sk0g )
If you have teenage children, of course you know all this because the minute they come home, most of them are running into their bedrooms, shutting their doors, and firing up their computers before you can even ask them, "How was school today?" And then when you do open the door their doors to ask them, they can't hear you anyway because they've already got their digital headphones plugged into their ears as they listen to music or watch videos online.
The question for everyone in the music and media business that must be asked now is how do they generate new revenue streams from that 96%?
One thing is certain: Old habits die hard, and that 96% isn't likely to change their habits as they get older. Sure, their lifestyles will change as they age, but the Internet will forever be their media vehicle of choice and they are likely to spend a good amount of time on it. At home and work.
Though Facebook has now become THE social network of choice globally, other than celebrities garnering their "Like" numbers and keeping fans well-informed, how well has the music industry utilized it to their advantage?
I don't have the answer to that question, but there is absolutely no reason why the industry can't create excitement online with its own social network type site(s). VEVO is already a premiere music destination online and this week they announced they will live-stream the 2011 Bonnaroo Music and Arts Festival. (See the info below)
I believe there has to be a way for the music industry to capture tens of millions of teens without having them "friend" people they really aren't friends with, and without having them post inane comments that are largely ignored moments after they are posted anyway. A great Samuel Goldwyn-ism: "Pictures are for entertainment, messages should be delivered by Western Union."
Nothing attracts people better than great entertainment ... and the music business, of course, a big part of the entertainment business.
If the industry can do that online, the future will provide a myriad of new opportunities for every label, artist, producer, writer, musician, and more.
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THE 'A-SIDE' - TRACK 2
WARNER BROS. WILL START MAKING ITS MOVIES AVAILABLE ONLINE AT FACEBOOK
Warners said Monday that it is the first Hollywood studio to offer movies directly on Facebook. Friends of Christopher Nolan's "Black Knight," the second of his two Batman movies, can rent the film by going to its official Facebook page and clicking a "rent" icon to apply Facebook Credits. The cost per rental is 30 Facebook Credits, or $3. (Read about it here: http://tiny.cc/vpqrt )
Shares of streaming market leader Netflix dropped more than 5% after Warner announced the deal. (Also: Netflix shares drop as Amazon unveiled its streaming service)
As Hollywood scrambles to replace falling revenues from declining DVD sales, look for more studios to create new revenue streams from their content libraries.
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THE 'A-SIDE' - TRACK 3
SPIDERMAN ON BROADWAY: THE PROBLEMS GO ON AND ON, $65 MILLION SPENT AND STILL COUNTING
After nine years of work, the director of the Broadway production of "Spiderman: Turn Off The Dark," Julie Taymor is stepping aside as director of the most expensive and technically ambitious musical ever on Broadway. The new director is Philip William McKinley, former director of the Ringling Bros. and Barnum and Bailey circus (?) who also directed Hugh Jackman on Broadway in "The Boy From Oz."
"Spider-Man," which recently broke the record for most preview performances in Broadway history, will push back its official opening for the sixth time to "an evening in early summer, 2011," according to the statement.
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THE 'A-SIDE' - TRACK 4
VEVO MAKES GREAT MOVE, WILL LIVE STREAM BONNAROO WITH STRATEGIC PARTNERS
VEVO has announced it will bring the summer's biggest music event to fans via an exclusive live stream of the 2011 Bonnaroo Music and Arts Festival. This is yet another great move for VEVO and one that is sure to further the VEVO brand.
Through a new strategic partnership (something I have talked about for years in the newsletter that can help all in the industry), VEVO will webcast select live and on-demand performances and interviews from the landmark music and camping festival (June 9-12, Manchester, TN). The live and on-demand experience will be presented by sponsors including Ford and thanks to sponsors like Ford, Bonnaroo on VEVO, like all programming, is free to fans.
The four-day live stream is an unprecedented event for VEVO and fans can watch their favorite artists perform at Bonnaroo on the VEVO platform of their choice. It will live stream on VEVO.com and VEVO Mobile (iPhone, iPod touch, iPad, Android) with on-demand programming also available across VEVO connected devices (Google TV, Boxee) and VEVO's syndication partners (YouTube, AOL, BET, CBS Interactive Music Group including Last.fm and Univision). Specific performances will be announced shortly with all VEVO coverage of Bonnaroo to begin June 9th.
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THE 'A-SIDE' - TRACK 5
ANDROID SOARS, WINDOWS PHONE 7 DOESN'T YET
Coverage of the latest comScore mobile data released yesterday naturally focused on Android surging past BlackBerry to become the most popular smartphone platform in the U.S., with 31.2% market share as of January.
But the research also showed Microsoft continues to lose ground in the smartphone market despite the launch of Windows Phone 7 in October. For the three months through January, the Windows Phone share fell 1.7 percentage points, from 9.7% to 8%. That's also down slightly from its 8.4% share in December.
And Now For Some News ...
Apple, Labels Mulling Unlimited Downloads of Purchased Songs
THE NEW YORK TIMESApple is negotiating with music companies, including Vivendi SA (VIV)'s Universal Music Group, Sony Music Entertainment, Warner Music Group Corp. (WMG) and EMI Group Ltd., said the people, who asked for anonymity because the talks are private. An agreement may be announced by midyear, two of the people said.
The arrangement would give users more flexibility in how they access purchased music. Apple and the record labels are eager to maintain demand for digital downloading amid rising popularity for Internet services such as Pandora Media Inc., which don't sell tracks and instead let users stream songs from the Web, whatever the device.
Read more about it by clicking here.
Digital Music To Hit $20 Billion By 2015
TELEGRAPHThe good news: Subscription music services are set to be a key driver of the boost to digital revenues, according to Ovum, an independent telecoms analyst.
The bad news: However, the music industry is not believed to maximizing digital music revenues because of the amount of free music available online, including free Internet radio services such as Pandora in the US.
Read more about it by clicking here.
Android Now Leads the Smartphone Pack
MEDIA POSTThe latest data from Nielsen shows Android edging ahead in the three-way battle for smartphone platform supremacy, with 29% share of the U.S. market in January compared to 27% each for Apple's iOS and BlackBerry. The new figures reflect the continued pattern of Android's ascendance, iOS holding roughly steady and BlackBerry losing ground.
Read more about it by clicking here.
Rock and Roll Created From Business Research On Piracy
THE GLOBE AND MAILTerrific article: Lost love, fast cars and easy living are all well-known themes for rock bands. But French experimental rock group Chevreuil are adopting a different tack. They have used the research of strategy professor Rodolphe Durand as the basis for their latest release.
Their musical oeuvre, The Pirate Organization, is being funded from royalties from Prof Durand and co-author Jean-Philippe Vergne's book on piracy - The Pirate Organisation: An essay on the Evolution of Capitalism. The jagged drums and guitar riffs have been uploaded on to the Internet where all-comers can download the track and make it their own. The inspiration for their open-innovation approach to music comes from Prof Durand's research into pirate online communities and the music industry in an attempt to make sense of the contemporary relationship between piracy and capitalism.
Read more about it by clicking here.
Qtrax: Back And Legal
CNETQtrax, a music company that once sought to create a legal file-sharing music service (as did a few others), has finally struck several music licensing agreements and will launch next week, the company said today.
Read more about it by clicking here.
Coca Cola Gets Serious About Music
AD AGEBy 2020, one-third of the world's population, or 2.5 billion people, will be younger than 18. And in the next 10 years, teens in the U.S. will number 31 million.
To that end, Coca-Cola is readying its largest teen-focused campaign to date, Coca-Cola Music. Given the rapid growth of the teen market globally, Coca-Cola plans to take the campaign to more than 100 markets.
Read more about it by clicking here.
New Technology: Personalized iPad Magazine Can Learn Your Reading Habits
FAST COMPANYHave you ever created a Genius playlist on iTunes or set up a station on Pandora? Just plug in one song, and you instantly hear music that matches your tastes. Think of Zite, the free personalized iPad magazine that launched today, as the Genius playlist or Pandora of news discovery--but with one noticeable advantage: Zite is smarter, at least for now.
Read more about it by clicking here.
CNET Reviews the iPad 2
CNET got its hands on an iPad2 already and tells you what to expect. More of the same made even better.
Read more about it by clicking here.
PANDORA ON YOUR TOYOTA DASHBOARD:
As part of Toyota's just-unveiled, multi-year "Legends & Icons" advertising campaign, Internet radio's Pandora will brand stations and artists with various models of the automobile manufacturer.
LIMEWIRE SETTLES WITH PUBLISHERS, BUT THEY AIN'T DONE:
Former file-sharing site LimeWire this week settled a copyright lawsuit brought against it by several music publishers. Still open is a separate suit filed in December against Lime Wire by 23 different record companies, including Arista, Atlantic, Capitol Records, Motown, Sony BMG, Virgin, and Warner Brothers. That suit is set to go court on May 2nd.
HERE COMES IE9:
Microsoft will launch its Internet Explorer 9 browser update on Monday at the South by Southwest Interactive festival in Austin, Texas, the company said in a blog post.
BLACKBERRY PUTS MUSIC IN:
BlackBerry maker Research in Motion (RIM) announced on Wednesday that its forthcoming BlackBerry PlayBook tablet will come with digital music store 7digital pre-installed.
GET 'EM WHILE THEY'RE HOT:
Apple said on Thursday that its new iPad 2 tablet computer will be available beginning Friday at 5p local time at its 236 retail stores in the U.S., as well as through the company's website beginning at 1:00 a.m.
ON THE ROAD AGAIN:
Neil Young has announced a 10-city American theater tour kicking off April 15th in Durham, NC.
HERE COMES GWYNETH:
After her performances in "Country Strong" and TV's "Glee," Gwyneth Paltrow is in advanced talks to sign a recording deal with Atlantic Records.
JOURNEY BACK:
Journey will follow up their 2008 Platinum album Revelation with yet another Walmart exclusive release, Eclipse, hitting May 24th.
GIVING BACK:
Usher is the latest artist to donate to charity the money he made from performing for the family of Libyan dictator Muammar Qaddafi. He has pledged to donate his earnings from the show to human rights organizations such as Amnesty International.
THE TRAIN WRECK WILL CONTINUE TO BROADCAST:
For all those who think Charlie Sheen was just auditioning for his own reality show, latest news is that "cameras are already rolling" for a Sheen show on Mark Cuban's HDNet.
SLOWHAND AUCTION:
Eric Clapton has sold more than 70 of his instruments and amplifiers, along with other ephemera such as the Gianni Versace suit that he wore at a 1990 concert at the Royal Albert Hall, at a charity auction in New York. Overall, Clapton raised more than $2.15 million for the Crossroads Center, a drug and alcohol rehab facility in Antigua that he co-founded in 1998.
SPOTIFY UP:
Spotify now has a million paid subscribers, up from 750k in December, Daniel Ek announced in a company blog post on Tuesday. That means Spotify now has the biggest subscription base for any digital music service.
GAGA NIXES TARGET:
Lady Gaga has reportedly dissolved a deal with Target over the retail chain's political donations to MN Forward, a political action group that supported the anti-gay candidate Tom Emmer in a failed run for governor in Minnesota last year.
MONKEES AGAIN:
The Monkees have announced a 45th anniversary world tour. "It was the estimation of certain professional people that this could work," Peter Tork tells Rolling Stone. "They asked if the three of us were interested in doing it. After some discussion we all said, "yeah." That's just about the bottom line of it."
YIKES SKYPE:
No wonder Skype is getting into advertising. The company's updated IPO registration filed last Friday shows it still has only 8.8 million paying customers out of a total of 663 million users for its for its Web calling and video chat service. That's just over 1% -- well below the roughly 10% of paying users considered a standard level for the freemium model Skype's business is based on.
EPITONIC BACK:
Indie music website Epitonic.com plans to re-launch as a playlist sharing site
PASSING:
Mike Starr, the original bassist in Alice In Chains who recently appeared on VH1's Celebrity Rehab, died March 8th in Salt Lake City of unknown causes. He was 44.
PASSING:
Eric "Rick' Michael Coonce, the original drummer for the Grass Roots, passed away at Nanaimo General Hospital in British Columbia on Feb. 25. He was 64.
The Music Industry Past, Present & Future, And The Internet I answer questions on EconTalk
I did an interview about the industry and the Internet at EconTalk with host Russ Roberts. Russ is also a professor of economics at George Mason University, blogs at Cafe Hayek, and has written three novels that teach economics. He's also the co-creator of the Keynes-Hayek rap video. (And if your understanding of the economic meltdown that occurred needs to be enlightened, this video will do it)
In the interview we talk about the evolution of the music industry, the impact of the digital revolution, and I give my reasons for believing in the virtues and potential of the Internet in enhancing the music industry. I point out, as I have many times here in the newsletter, that the internet allows numerous artists to make money from their music and it can enhance revenues from live performances by expanding an artist's base. We also discuss the challenges facing record companies and I suggest that the full potential of the Internet as a distribution channel has yet to be fully exploited. There's a lot of ground covered, but based on the comments already posted of those who have tuned in, they've enjoyed it.
Read more about it by clicking here.
Quotes of the week
"I'm sorry that it was all so successful. I honestly didn't mean it to happen like that. It's hardly surprising that people grew to hate me."
-- Phil Collins, apolgizing for his success and announcing he's quit the music business."Out of myself, Britney and Christina - didn't everyone think I was gonna' be the troublemaker? LOOK MA!!! NO CUFFS!"
-- Pink, touting her shockingly squeaky clean image after fellow pop star Christina Aguilera's arrest, on Twitter."It's just like prison, with cameras."
-- Nicole "Snooki" Polizzi, on the 24/7 filming of 'Jersey Shore' without "cell phones, TV, radio or Internet," to Rolling Stone. Poor little Ms. Snooki. Wait until she realizes that her role in life after 'Jersey Shore' will be that of an unhappy fat wife who drinks too much.
The B-Side - 'Blips'
THE ONION (www.theonion.com) STORY OF THE WEEK:
Responsible, Thoughtful Nation Decides To Ignore Charlie Sheen Situation
OS ANGELES-Calling the situation "none of our business" and "not worth a second of our time, quite frankly," a responsible and thoughtful U.S. populace uniformly decided this week to ignore Charlie Sheen's recent outbursts, saying they had far more important things to focus on than a sitcom actor's personal troubles.
Read the rest here and laugh: Click Here.
The Blogs
Check out Jerry Del Colliano's (the founder of INSIDE RADIO) daily blog, by clicking here: http://www.insidemusicmedia.blogspot.comWebsite
Check out attorney Ray Beckerman's website at: http://recordingindustryvspeople.blogspot.com where he prints news about the RIAA's ongoing activities
Smart Marketing Consulting Services
Smart Marketing Consulting Services has been in business sixteen years, and consults clients in the music, entertainment, attraction, media, and technology industry on branding, marketing, online exploitation, maximizing new media, and more.
"And the beat goes on, the beat goes on ... drums keep poundin' rhythm to the brain."
"Work is life, you know, and without it, there's nothing but fear and insecurity." -- John Lennon
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