-
The New Rules Of Engagement
February 17, 2006
Have an opinion? Add your comment below. -
"You only get consumer engagement by earning it. If I can create something that is compelling enough, you are going to stay with me. If I can't, you're gone." -- Andrew Robertson - CEO of BBDO, one of the nation's leading advertising agencies - as quoted in the 'Financial Times'
In the January 13 issue of the newsletter I wrote an article about 'The Untapped Potential of Utilizing RCE' (Relevance, Engagement, Creativity) strategies in the music industry.
I was quite surprised to read the article 'Most Major Labels Back Off DualDisc' (Click Here) in the news last week...so much so I included it in last week's newsletter in the news items. Several readers e-mailed me with "Huh?What?" and more. One reader wrote: "Steve - I can't believe you didn't comment on this! The DualDisc is one of the BEST things that the labels have created in years! And look at the success!"
Another reader wrote: "There they (the labels) go again. Shooting themselves in the foot...Unfathomable decision."
Engaging the consumer is something talked about regularly at all ad/media agencies, but 'engagement' with the consumer is becoming more and more important in today's marketplace where prerecorded music competes with best-selling DVD titles, video games, and the ever-changing new electronic toys.
So, why is it then that most major labels would back off from a product that consumers have reacted to in such a positive manner? (According to the article SONYBMG is the only major label still committed to releasing a quantity of DualDiscs in 2006. They have 100 titles scheduled for release from such artists as Pink, Dixie Chicks, Barry Manilow, Teddy Geiger, Miranda Lambert, Clay Aiken, Weird Al Yankovic, the Fray, and lots more) The major fly in the proverbial ointment is the cost of DualDiscs. According to the article, " The price of manufacturing a DualDisc is double the average CD -- about $1.20, versus 50 cents-60 cents for the traditional CD with jewel box and booklet, distribution sources say."
If that's the reason, it's certainly not a good one and obviously the SONYBMG people are thinking a whole lot smarter than the competition. Last May, after DualDisc titles from Bruce Springsteen and Rob Thomas scored #1 debuts on the BILLBOARD album charts I wrote: " The DualDisc is not the sole remedy to a lot of the problems out there at retail in the music industry. However, It has provided hard evidence at the cash register that people will BUY music in good quantities when it's priced right and when they get "more bang for the buck." With online sales of songs increasing dramatically, iTunes and iPods soaring, anything that gets people into the habit of buying music at retail is indeed encouraging."
The DualDisc did exactly what it was supposed to do…it ENGAGED the customer. It gave people more value for their money and it provided more than just an audio experience. It brought the consumers closer to the artist(s) and in doing so, it means they spent more time listening and/or watching their DualDiscs and away from competitive media. (Internet radio, P2P sites, iPods, etc.) As yet another reader wrote me after purchasing Springsteen's 'Devils and Dust' DualDisc: "This is the first time in so long that I can remember spending so much time with one album...and after watching the videos, it made me want to listen to the songs more and more." Bingo. An engaged customer. The DVD added more meaning to the CD content. Spending time with the music and probably looking forward to doing the same with his next DualDisc purchase.
The DualDisc is something the entire industry should re-evaluate. It's one of the best ideas the industry's had in a long time and despite the increase in costs, it's doing a whole lot more to capture the buying audience than almost anything else. If the labels want to slow down the erosion of CD sales at retail, they need look no further than the success of DualDiscs.
THE SALES PICTURE
Sales this past week were down 7.4% (almost a million units) compared to same week last year. YTD sales to are down 2.2% from same period last year. The Top 10 albums collectively generated just over 1,100,000 units in sales this past week and as expected, many artists saw huge increases in sales from the Grammy broadcast.
New York Focuses Antitrust Probe Of Record Labels
New York State Attorney General Eliot Spitzer has sent record labels a new round of subpoenas in his investigation of online-music pricing, music industry sources said Tuesday.
The second inquiry, following an initial round of subpoenas issued in late December, is more tightly focused on the issue of the labels' digital download activities, sources said. Labels had previously expressed concern to Spitzer's office that the original subpoenas were too broad, sources said.
Read more about it by clicking here.
Sony Ericsson Announces New Walkman Phone
Mobile phone maker Sony Ericsson said Tuesday that it had sold more than 3 million of its Walkman phone models since the first one came on the market six months ago. The company also unveiled a new Walkman phone model.
"Bringing the Walkman brand to Sony Ericsson phones was one of our achievements in 2005 and we have now sold more than 3 million Walkman phones," Sony Ericsson President Miles Flint said in a statement.
Read more about it by clicking here.
Bill Graham's Rock Archives Stream Online
Some of rock's most intriguing content is now in cyberspace via the Wolfgang's Vault Web site. The memorabilia seller offers treasures from the stash of promoter Bill Graham, programmer of San Francisco's legendary Fillmore, who died in 1991.
A 75-song playlist culled from 7,000 to 8,000 vintage audio and video concert recordings made between 1966 and 1999 began streaming on the Wolfgang's Vault Web site Feb. 8, at no cost to consumers. The owner of the Graham archive is optimistic that some of the seminal performances will make it to retailers' shelves as CDs and DVDs by year's end.
Read more about it by clicking here.
Is the HD format war over before the first bullet is fired?
Is it possible that the looming, consumer-unfriendly HD disc format war is over before the first bullet is fired? Possibly. The lines were drawn in the sand months ago and depending on which reports you read the HD-DVD group consists of mainly of: Toshiba, Sanyo, NEC and Warner. The Blu-ray group has deeper ties to more diverse markets including Sony, Samsung, Pioneer, Philips, Panasonic, LG, Dell, Disney, Fox, Lion's Gate and more. Clearly there is more studio, hardware and computer industry support for Blu-ray over HD-DVD despite the fact HD-DVD will get to market a few months sooner.
Read more about it by clicking here.
STONES PLAY FREE TO A REALLY, REALLY, REALLY BIG AUDIENCE
The Rolling Stones playing a free show on Copacabana Beach in Rio de Janeiro, Brazil Saturday for a projected audience of more than 2 million people.
'IDOL' HALFTIME
Carrie Underwood scheduled to perform during halftime at the NBA All-Star Game in Houston on Sunday.
'IDOL' BEATS OLYMPICS
American Idol crushing NBC's Olympic coverage with 27 million viewers Tuesday night compared to 16.1 million viewers, per Nielsen Media Research.
IT MUST'VE BEEN A HELLUVA WEDDING NIGHT
Former Creed frontman Scott Stapp and his fiancée, Miss New York 2004 Jaclyn Nesheiwat, tied the knot last Friday in Miami at an estate on the waterfront of Biscayne Bay. A day after his wedding, Stapp was arrested for allegedly being so drunk at Los Angeles International Airport that airline personnel would not permit him to board his plane. According to a blood-alcohol test administered by police, he registered .18, more than twice the legal limit.
MTV TRL NEWS
MTV's fourth annual TRL Awards airing Feb. 25 at noon. Madonna to receive the Lifetime Achievement Award and Bono to receive the Most Inspired Artist Award.
ON THE REBOUND
Jessica Simpson's soon-to-be ex hubby Nick Lachey, shelling out $5.5 million to acquire Seal and Heidi Klum's Bel-Air mansion, Us Weekly reports.
JOHN&JOHN TOGETHER
John Legend performing with Elton John at John's annual Oscar party on March 5.
MANILOW VIDEO NEWS
Hot on the heels of barry manilow's scoring his first #1 debut on the Billboard Album Charts, Rhino Entertainment announced it is getting the songs that make the whole world sing. The DVD supplier has cut a deal with Barry Manilow and Stiletto New Media to distribute 10 Manilow performances on DVD over the next four years. The first title under the deal, "Manilow: Music and Passion," (his Las Vegas stage show) will hit stores March 28.
SUPERSTARS LINE-UP FOR NEW ORLEANS JAZZ FEST
Bob Dylan, Paul Simon, the Dave Matthews Band, Jimmy Buffet, Allen Toussaint with Elvis Costello, Lionel Richie, Keith Urban, Ani DiFranco, the Meters, Fats Domino are among the first superstars confirmed to appear at the New Orleans Jazz and Heritage Festival on April 28th.
#4 FOR LISA MARIE
Lisa Marie Presley marrying guitarist and music producer Michael Lockwood in a ceremony in Kyoto, Japan, her publicist said Thursday. It's the fourth marriage for Elvis' little girl.
IF YOU SAW HER ON THE GRAMMY SHOW AND SAID 'HOW'D SHE DO THAT?', NOW YOU KNOW
Madonna recuperating after undergoing hernia surgery following her performance at the Grammy Awards and doing "absolutely fine," according to her spokeswoman.
COMING SOON!
- Kid Rock, When I'm Dead ... Kid Rock Live (2/14)
- Sergio Mendes, Timeless (2/14)
- Arctic Monkeys, Whatever People Say I Am, That's What I Am Not (2/21)
- Nick Cave, The Proposition Soundtrack (2/21)
- Rhett Miller, The Believer (2/28)
2006 Industry Conferences
Date Name Location Music 2.0 February 23-24, 2006 Los Angeles, CA Digital Music Forum & Mobile Music Leadership Summit February 28th-March 1st, 2006 New York, NY South by Southwest (SXSW) March 10-19, 2006 Austin, TX CEA Entertainment Technology Policy Summit March 14-17, 2006 Washington, DC Digital Hollywood Spring March 28-30, 2006 Santa Monica, CA MusExpo 2006 April 30-May 3, 2006 Los Angeles, CA Streaming Media East 2006 May 23-24, 2006 New York, NY Home Entertainment 2006 June 1-4, 2006 Los Angeles, CA
Quotes of the week
"If you're going to litter yourself with tattoos, my dear, why not tattoo the menu on your forehead. Then I can look at you and order lunch at the same time."
-- Simon Cowell in the National Enquirer, addressing the waitress at an L.A. sandwich shop. But this time, the American Idol judge had a good excuse for his rudeness. Seems the server refused to give him the sandwich he'd ordered until he insulted her."Happy Valentine's Day everybody, or as Dick Cheney calls it, 'Guns n' Roses.'"
-- Jay Leno.
NARIP Information
NARIP (The National Association of Record Industry Professionals) promotes career advancement, education and good will among record executives. To find out more about this great organization, how you can join or attend their events, just go to: www.narip.com.
The B-Side - 'Blips'
BOBBY BROWN'S KIDS TAKE AFTER DAD: BOSTON -- Chances are Bobbi Kristina wasn't able to get out of this one by singing a couple of verses of "My Prerogative." The Boston Herald reported that she and two other of Bobby Brown's kids have a pretty healthy social life -- at least based on what their online blogs say. The paper said bloggers turned up profiles on 12-year-old Bobbi Kristina, who lives with her dad and mom Whitney Houston in Atlanta. Her posting on MySpace.com used a pretty grown-up screen name: "nimpho baby" and referred to her hobbies as "swimmin' with hot guys," "makingout" and "BOYS, BOYS, BOYS!!!!!!" Brown has two other kids from his pre-Whitney days, from his relationship with Kim Ward. They too have MySpace profiles. His 16-year-old daughter LaPrincia cops to drinking Smirnoff raspberry vodka, streaking, kissing a girl and skinny-dipping. Her brother Bobby Jr. brags that he can read but chooses not to. Bobbi Kristina's profile was deleted after her identity was made public.
MORE GREAT POLICE WORK: KELSO, Wash. -- The note inside the house made it clear to Cowlitz County sheriff's deputies that they had the right place: "Do not open door & let anyone in! Stolen Stuff visable." Within a day, investigators confirmed that antiques, furniture, jewelry, credit cards and at least 19 guns found in the home of Gerald Levertt Mack had been stolen from at least 12 people, deputy Charles J. Rosenzweig said. "Nothing like helping us figure out what's going on," Rosenzweig said. Mack, 40, was arrested early Sunday after a standoff that began the previous evening, when a witness said Mack had entered his home. Deputies returned later Sunday with a search warrant. Mack was jailed for investigation of first-degree burglary and residential burglary. Bail was set at $30,000.
-
-