The Owners of the Music Industry

To further my discussion of my previous article on the revenue artist make within streaming, I wanted to look at the whole picture. Where is most of the revenue going if in 2014 global recorded music totaled in the US at $6.9 billion?  To break down the consumption of music in the US by genre, although possibly in broad terms, according to a study released by Nielson Music, rock music was twice as popular in 2014 as pop musicaccounting for 29% of the industry’s music consumption across album, track purchases, and music streaming.

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Forbes magazine also provides us with the top three paid musicians of 2014:

With Dr. Dre’s (Aftermath Entertainment) most recent sale of Beats, the company he cofounded, to Apple for $3 billion, he is listed at number one going home with $620 million this year before taxes. Coming in far second is Beyoncé (Columbia & Sony Music) with $115 million as her most successful year yet.  And finally, The Eagles (Asylum) with their longevity in the industry at $100 million.

The Wall Street Journal is reporting that after securing $400 million in fresh funding, Spotify is now worth more than the entire US recorded music industry at $8.4 billion.

Screen Shot 2015-10-30 at 12.26.47 AM 
Sony leads the record label trio at $4.9 billion but if we look at Live Nation it will not be long when it takes a step ahead of all three. With Live Nation’s monopoly in live music, being that most revenue is from cold hard ticket sales, it would not be surprising that Live Nation takes the lead within a year.

Countdown Top 9 Hip Hop Entrepreneurs of 2012 MY FINAL THOUGHTS/WRAP-UP

Countdown Top 9 Hip Hop Entrepreneurs of 2012 MY FINAL THOUGHTS/WRAP-UP

Just to refresh our minds, here is the quick rundown of our top hip hop entrepreneurs of 2012 according to Forbes “Cash Kings of 2012”:

  1. Dr. Dre – $110 Million
  2. P. Diddy – $45 Million
  3. Jay-Z – $38 Million
  4. Kanye West – $35 Million
  5. Lil Wayne – $27 Million
  6. Drake – $20.5 Million
  7. Birdman – $20 Million
  8. Nicki Minaj – $15.5 Million
  9. Eminem – $15 Million

Source: http://www.forbes.com/special-report/2012/0905_hip-hop-cash-kings.html

The reason why I chose this topic for my blog: As a future entrepreneur in the music/entertainment industry and also a big fan of hip hop music, I thought this (blogging for our artist management class) was the perfect opportunity to research about hip hop entrepreneurs and their different entrepreneurial business ventures.

My favorite entrepreneur on the list: No disrespect to Dr. Dre and his ridiculously successful business venture with his Beats by Dre headphones, but I thought overall Jay-Z had the most diverse and long-term growth potential portfolio. His partnerships with the Brooklyn Nets, New York Yankees, Live Nation and Duracell (just to name a few) are unparalleled and I can only imagine where his next investments will be. I honestly think Jay-Z will be able to top both Diddy and Dre in the next couple years.

And speaking of Jay-Z, I wanted to share a quick little video of a cute grandma not recognizing who the $475 million man is on the subway next to her: .

Who I see making top 9 next year that is not on the list: Although Forbes has him listed at number 15 this year with $7.5 Million, I honestly think Curtis Jackson, also known as 50 Cent or Fiddy, is never out of the equation. He actually lead the entrepreneur list back in 2008 (http://www.aceshowbiz.com/news/view/00017719.html) with $150 Million, so knowing him, he is bound to make some big moves this coming year. Also, one of the main reasons why I chose 50 Cent is because word on the street says he traveled to Dubai this year to sell his new SMS wireless headphone product that is nearly indestructible. Of course, that is not the only reason why I chose Fiddy, but I see (expect) great things ahead for this former G-Unit member. Here is the link to his newest business venture:

Last words: Once again, thank you taking this 10-blog journey with me. I hope you found my blogs somewhat entertaining, interesting and/or resourceful to you.

And if you’re new to my blog, please check out my previous detailed blogs on each of the top 9 hip hop entrepreneurs of 2012.

*Please remember to like, comment and share my blogs with others!

Thank you.

By: Aaron (Duke)

Open your world

Let’s move to Europe! Today I will be writing about Heineken.

I am so excited to discuss how the Dutch brewing company has integrated music into its marketing strategy. In my opinion, Heineken always chooses pretty good songs for its campaigns; catchy melodies and attractive people are a good combination for beer ads.

How does Heineken sound? Is the brand sponsoring artists and music events? Are there other activities promoted by the firm?

Music and Advertising:

Some examples of Heineken’s recent ads, the first one “The Entrance” was launched in March 2011, and had more than 4 million views in YouTube. Due to its success, the company launched “The perfect date” in May 2011, using a similar style.

 

 

Sponsorship:

Heineken sponsors a big amount of music events and Festivals around the world.

Heineken Open’er Festival in the Polish coast, the Oxegen and Ballyheigue Summerfest in Ireland, Heineken Red Star Access in USA or FIB in Spain are some examples of Live Events promoted by the brand.

Festival Internacional de Benicàssim (FIB) takes place in Spain every summer since 1995. Although the festival has been very popular amongst worldwide music maniacs, it has received lots of critics during the lasts years. Some people argue that the Festival is too much focused on British music tastes and has lost few fans. Additionally, its identity has substantially changed and it is not positioned as an indie festival anymore. Mainstream artists such as David Guetta are also part of its line-up.

Furthermore, rumors about a possible suspension began to circulate in September, due to the financial problems of Music Festivals PLC. Maraworld, its Spanish subsidiary has confirmed that problems have been solved and a new edition of FIB will take place from 18th to 21st of July 2013.

The Dutch company is also organizing the Heineken Live Project, a new series of gigs taking place in Cork, Dublin and Galway that tries to promote live music in Ireland. Heineken Live Project’s site offers more information and interviews with its performing artists.

Venues:

In addition to advertisements and music sponsorship, Heineken is also investing in music venues.

Since 2001 the Dutch company together with Live Nation owns the Heineken Music Hall, a concert hall located in Amsterdam. The venue has a big hall of 3,000 m² with capacity for 5,500 spectators and a smaller one with capacity for 700 in which after parties are hosted.

It is the only venue designed especially for amplified music and has been nominated multiple times for the Pollstar Awards as “Best International Music Venue”.

Very important artist visit such venue, Rufus Wainwright and Florence + The Machine were performing there last weekend and Marilyn Manson + Rob Zombie, Deep Purple and a Red Bull SoundClash event will take place in December. This last show is a unique live musical experience promoted by the energy drink brand that puts together two bands with difference styles and sounds under the same roof. Red Bull SoundClash website: http://www.redbull.com/cs/Satellite/en_INT/Red-Bull-Soundclash/001242879501415

The acquisition of venues seems to be a smart strategy, rather than only sponsoring music events the firm is also trying to be a referent as a concert promoter. Its partnership with Live Nation is a guarantee of success.

Additional info:

For more information about Heineken’s promos and events

Heineken Red Star Access 2012 (USA) http://www.prnewswire.com/news-releases/heineken-usa-announces-launch-of-2012-heineken-red-star-access-tour-166242586.html

http://www.followredstar.com

FIB http://www.deltaworld.org/music/The-FIB-ensures-that-there-will-be-festival-in-2013-despite-the-economic-problems-of-its-parent-signature/

Heineken Live Project http://music-ie.heineken.com/#/

Heineken Music Hall http://www.heineken-music-hall.nl

Monica Manubens

Whassup?

Do you remember this TV commercial?

 

And this one?

 

Budweiser, one of the highest selling beers in the US has also incorporated music as a marketing tool, in order to create its own brand image.

Budweiser beer is produced by Anheuser-Busch InBev., introduced in 1876 by its founder Adolphus Busch, and currently available in 80 markets worldwide. The firm is acknowledged by their humorous and foolish campaigns.

In the early 1990s, Anheuser-Busch brewery commissioned a popular song: “Under the Anheuser Bush”. The song was undoubtedly written to promote Budweiser’s consumption. Listen to it and pay attention to its chorus!.

 

Come, come, come and make eyes with me

Under the Anheuser bush

Come, come drink some “Budweis” with me

Under the Anheuser bush

Hear the old German band

Just let me hold your hand – ja-a!

Do, do come and have a stein or two

Under the Anheuser bush

The company has mainly promoted and sponsored several Music Festivals across US, Argentinian Atlantic Coast and also some local ones in Spain, but has not developed any digital platform for music streaming nor music contests as the ones launched by Corona.

Therefore, we can state that while Corona has strengthened its brand image based on different music programs, Budweiser has still lot to do.

In spite of that, the North American company has focused its music strategy on Live Performances obtaining numerous recognitions. One example is the Budweiser Made in America Fest that was held in Philadelphia last 1st and 2nd of September 2012, with Jay Z and Pearl Jam as main lure.

The event was a result of Budweiser, Live Nation and Jay-Z collaboration and will probably have future editions.

Budweiser was chosen as a partner from the beginning because, according to Steve Stoute, CEO of ad agency Translation:

“They own the trademark for Made In America, and the narrative of the Festival was everything Made In America stands for

The synergy allowed the event to be much more than just music and partying. Actually, art students around the country were invited to design their own version of the American flag!

If you want to experience Budweiser’s Live Fest while being in Spain you should attend the Benidorm Low Cost Festival, which will take place from 26 to 28 of July, 2013. Who is in?

Additional info:

Have a look at the following links for more information about Budweiser Music Tours, Budweiser on the Road Argentina and Made in America Fest 2012 editions

http://www.prnewswire.com/news-releases/budweiser-superfest-presents-jill-scotts-summer-block-party-125108344.html

http://www.mundocerveza.com/20120102/comienza-la-gira-budweiser-music-on-the-road-2012/

http://www.billboard.biz/bbbiz/industry/branding/jay-z-on-the-budweiser-made-in-america-fest-1007050552.story

http://www.billboard.biz/bbbiz/industry/branding/steve-stoute-on-uniting-budweiser-jay-z-1007916952.story

http://articles.latimes.com/2012/sep/04/business/la-fi-bud-young-drinkers-20120904

http://www.madeinamericafest.com

http://www.budweiserlive.es/low-cost

http://www.budweiserlive.es/ciclos

Monica Manubens

 

LIVE MUSIC INDUSTRY IN TROUBLE!!

The impact of the recent hurricane Sandy in New York has provided a big debate regarding to the amount of losses who has been encountered in the live entertainment industry. Companies as Live Nation, AEG, are suffering in a significant way and the reschedule of the concerts is not a comfortable and convenient thing.

President of AEG, Randy Philips, says that this happening is serious because of involving one of the most significant entertainment industries and the amount of expenses encountered by stakeholders will be hardly recouped. That’s because at the moment it’s difficult to predict what will happen again.

This blog reflects the relationship between artist and promoter who don’t have to pay a guarantee provided that this is a case of force majeure clause application. On the other hand, there have been significant losses related to marketing and promotion costs provided by the cancellment of big concerts, apart from damages that not every venue covers in terms of insurance due weather conditions.

http://www.billboard.biz/bbbiz/industry/touring/hurricane-sandy-to-cost-live-entertainment-1007993472.story