As I talked about in my post in September, Myspace is ready to relaunch. They plan to come back and dominate all of online music. If I were them I would too!
Interactive Media Holdings along with Justin Timberlake bought MySpace for 35 million. They have been slowly but surely revealing new ideas and concepts for the newly designed MySpace. First, a video of the layout and the shocking announcement that all old users and pages would be deleted once the site was revamped.
According to a leaked investment presentation Myspace is seeking to raise an extra $50 million in order for the relaunch to be seen as a direct competitor in the digital music streaming industry. This would be pitting it head to head with popular streaming leaders like Spotify. Who actually received a $100 million boost from investors at Coca Cola.
MySpace has many advantages over its competitors. Its been stated that Myspace has the largest single library of songs, at 42 million, while Spotify’s library has around 18 million songs. MySpace also has access to over 5 million users (artist).
One big difference in MySpace is royalties. Which is a big deal, as we see in the recent dispute with Pandora. The type of royalties Spotify pays is On Demand to record labels. And pay close to 7c for viewing . While MySpace has millions of songs of unsigned artist. They will nearly have to pay 1c a hour viewing.
“Myspace believes that it has a significant cost advantage with respect to the music streaming costs compared to Spotify and Pandora because of their proprietary 27 million song library from unsigned artists, which accounts for around 50% of songs plays on Myspace and has a zero cost basis.”
Although MySpace will no longer have the older format they plan to revamp and really be friendly to all artist… Musicians, painters, etc. They will have a main focus on music to stay true to their original beliefs and values.
Does this look promising?
I believe that A&R is such an important department in a label and also just in an artist career. They help make or break the artist. There use to be great A&R’s for example Berry Gordy at Motown Records. Motown was very successful in making hit songs and superstars. In today’s music world, A&R’s have changed tremendously.
Sony will be getting a new VP of A&R soon. Songwriter, Salaam Remi will be heading to Sony to take this position.
Salaam Remi has worked with many artist from The Fugees to Amy Winehouse, Miguel and Alicia Keys. His most recent credits is Alicia Keys new title single “Girl On Fire”. He even has film credits with the recent remake of Sparkle featuring Whitney Houston.
With discovering artist and keeping them on the charts being very difficult can A&R’s make new superstars that will actually be relevant and go down in history as artist. Remi has lots of new appoints with NeYo being in A&R at Motown and the Dream at Def Jam.
Will they make stars… or single hits?
Mathew Knowles is very well known as a great manager for many artist, but especially for the female group Destiny’s Child and his superstar daughter, Beyonce! For a while now, his label/management company Music World Entertainment has managed careers of many artist such as Amber Bullock, From Above, etc. His label also includes work from Earth Wind and Fire, The O’Jays and Chaka Khan just to name a few.
Although he no longer manages his daughter Beyonce he still continues to oversee Destiny’s Child. They are no longer active but released a compilation last month and will have a DVD to follow in 2013. In a recent interview he talked about his company and the evolving marker.
He noted that sync licensing was a brand-building tool but now has become much more important. He described it as a great way to gain exposure.
LICENSING VS RADIO
He stated that radio was still important but in the new market fans discovers music through syncing. “Audience=Sales” . “fan’s attention spans are short” So it’s important to cover all avenues of media to make them available to their audience.
They have a great catalog and some of his most significant revenue is from having a relationship with music supervisors. They have been able to have over 45 commercials with Samsung, Pepsi. And also branched off into film. He stated that the best deal that a Music World artist received was when Beyonce made the deal with Samsung with B’Phone.
Music World strategy have seem to be working with focusing on marketing and promotions. With those aspects being the hardest in grabbing fans attention. He also noted that Gospel Music isn’t getting the play that it should.
I agree that Music World does have some of the best upcoming gospel artist who have great commercial work . But because of “prejudices some people have against using any music termed gospel, it’s hart to get music supervisors to connect”. I personally think this is where is company falls the worst.
He suggested that technology make something that could connect people looking to buy licenses with the music that is right, cost effective and based on criteria alone. Mood, BPM (Beats per minute) , usage being things to look upon. This could create many opportunities not just for Music World but all the other management companies out there.
On Tuesday the social network, Facebook announced their triumph in records of their platform for music apps. Facebook released their timeline format in September 201. Timeline arranges and coordinates post and activity form recent to years before. They have now be able to integrate apps alongside of the timeline. These include Songza, BandPage, 8Tracks, KKBOX, Saavn and SoundTracking.
Since releasing the new format around 62.6 million songs have been played 22 billion times through timeline apps. What a remarkable number! Facebook has to convince developers that they can bring in people even with competition thriving.
A statement from Facebook’s engineer stated “Users of 8tracks, a social Internet radio service, have generated 4 million Facebook shares a week, “with Facebook now ranking as one of 8tracks’ major sources of referral traffic,”
BandPage, which lets artists manage their online profiles, “has grown by 3x in the last few months,” he said. And Songza, which streams curated playlists based on their users’ mood or activity, saw “in a recent 30-day period, 1 million referrals from Facebook, up from 650,000 the month before, with Facebook connected users listening about 20% longer than other users.”
How will Facebook continue to bring in new developers? Where is the revenue going? These are questions that I ask. Facebook clearly have a message that music app developers need them as much as Facebook needs them.
Read more at http://www.billboard.biz/bbbiz/industry/digital-and-mobile/facebook-to-music-app-developers-you-need-1008003402.story#AArmJLJFPGRzlLUp.99
With record sales going down due to technology, we find one artist is actually doing pretty well. From getting interrupted when receiving an award to selling 1.2 Million in the 1st week, Taylor Swift is doing well. Her new record “Red” ranked the highest first week sales in over a decade with over 1.2 million copies sold in the first week (Billboard Report). It has the strongest sales since Eminem’s CD in 2002. With “Eminem Show” selling 1.3 copies
This album makes Swift the only woman to have two million-selling weeks since SoundScan began keeping track of album sales in 1991. Her first album sold 1 million copies in the first week. So clearly, country singer-songwriter has gained new fans and has hooked them without any perks. Just peer musicality and a great marketing team.
This album also holds the 18th record to sell 1 million copies in the first week since 1991. Britney Spears holds the number one rank with her “Oops.. I Did It Again” at 1.319 million copies sold. Red had three main models of selling with number 1 in ITune sales, 2 with Target sales, and 3 with Papa Johns Pizza. Papa Johns made a deal to sell her album with pizza. What a better way? Reports haven’t shown physical cd sale numbers. But still she’s on the role. She beat out a lot of other artist who have good reps such as R&B Diva Brandy selling only 65,000 copies in the first week.
This shows that people are still buying music. I don’t quite know exactly what it takes to sell, but clearly Taylor has the answers. Who will be next to make records like this…. We can only wait and see.
With the CD sales declining and piracy issues everyone has the question “are people still buying music?” and if so
“who’s doing it”. Its been very hard for artist to make revenue from new albums are songs.
In recent studies by the American Assembly at Columbia University, they are aiming to highlight generational divides in attitudes towards sharing music. Studies show that the average person in 18-29 year old age group had 813 files that we downloaded for free and copied from friends or family. The Nielsen Music 260 report released in August that 36% of teens have bought a CD in the last year. 51% of teens have bought a music download in the last year.
This shows that kids are still buying music. Even though they have been “written off to piracy”. They still get music through file-sharing services just as other age groups.
A large portion of an average young person music collection is being captured by copying and downloading. Companies like Spotify and YouTube are trying to turn these illegal acts into money for right holders. YouTube has been said the main source of music discovery.
A lot of people are starting to stream now. You pay for subscriptions and get to stream as much music as you would like. The study suggests a large number of young people are getting their music from legal streaming sources now and a lot of them are paying for it!
How will effect the artist and labels…Are you buying music?
For more info:
“Artist Arena”, an online based service for artist owned by Warner has recently found their selves in trouble with FTC. They settled with the Federal Trade Commission for $1 million dealing with charges that violated the Children’s Online Privacy Protection Act. This related to websites they operate for Justin Bieber, Rihanna, Demi Lovato and Selena Gomez.
Artist arena provides many services such as managing fan clubs, ticketing, and merchandise just to name a few. The FTC fined them based off the violation of the COPPA rule. The COPPA requires that website operators notify parents and obtain their consent before collecting and using any & all information gathered from children under 13.
Minors will always keep you in trouble! (Lol)
Artist Arena will pay $1 million for its civil penalty. They are also required to delete all info gathered by children under 13 .
Just a few days ago, a sneak preview of the layout of the new MySpace was released. Musician and actor, Justin Timberlake has his hand in the new MySpace as an investor. Now tell me… Is this really possible to make a come-back with all the other social networks at its peak? For instance, Facebook, Twitter, Instagram, Tumblr.
Even though many companies have made attempts at making a thrilling and entertaining social network, MySpace has been a platform for musicians. And even as other networks have come along and taken a lot of it’s attention, it has still been used as a platform for many musicians to reach out to their fans. (That’s where Justin Timberlake come’s along)
“In a single sentence, it’s a social network for the creative community to connect to their fans,” Myspace owner Tim Vanderhook told the Hollywood Reporter. The new layout looks familiar to some social network users eyes actually. I think its a mashup of Facebook, Twitter, Instagram and Tumblr all in one. But, its main focus is on music. I personally think that it could make a wonderful comeback and be a helpful platform for thriving musicians all over the world.
Release date has not been announced.
Can MySpace really make a comeback?
LETS WAIT AND SEE!