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

Google Plus as a Marketing Tools for artist management

Mayday official on Google Plus had announced a very exciting news for their fans (included me!!!) that they are having a live performance at Google main office at California, USA and an activity ” Mayday takes you to Google”been organised for only Google Plus user will have the chance to win the flight ticket to USA through posting the creative photo. In the description of youtube, there is a good introduction for my favorite rock band- Mayday and the reason why they are famous!!!

After seeing the success of facebook platform, Google intend to create their own social network. After the failure of launching Open Social, they had launched Google Plus at 28th June 2011 and seems like they operated it pretty well by using the strong marketing strategy – collaborated with artist in different region that have huge fan base to become the spokesman of google plus by targeting their fan as potential google plus user and artist can get more benefit from managing the personal official website by interacting more potential fan from Google Plus user and increase reputation through worldwide, which creates a win-win strategy!!

For instance, in Taiwan, Mayday is the main spokesman who have an enormous fan database around the world and i am one of them that been attracted to join Google Plus. For fans, is not only about getting the latest information of the band but also the sense of achievement that we could do something for our favourite band. For instance,the official Google Plus of Mayday had announced that when the followers of Mayday Official Google Plus website had exceed 120,000, google will selected a fans and sponsor them to go USA with Mayday for their live performance in Google main office which is the activities i mentioned above; exceed 200,000 then Mayday will invited 9 fans from Google Plus and having a video chat gathering with them through Google Plus function- hangouts. This again created a win-win strategies by leads user familiar to the google plus function and also artist is building relationship with their fans.

As Vic Gundotra, the Senior Vice President of Engineering for Google, had announced a new milestone for Google+: 400 million registered users and 100 million monthly active users at 17th September 2012. Google Plus might have the potential to become the next Facebook or beyond it through their multi function and artist will do the tutorial for those function that create buzz!!! The amount of user may still increased and as the success story of artist get benefit from Google Plus such as Mayday, many artist can build their fan database might follow this marketing strategy path by building their own Google Plus Artist page. There are two website that provide good explanation that why google plus is a good marketing tools for artist and how to build the Google Plus artist page:

http://zero2illo.com/tips-on-google-for-illustrators-and-artists/

http://zero2illo.com/tips-on-google-for-illustrators-and-artists/

 

If anyone interested in Mayday, i have lots of information to provide!

Reference:

http://thenextweb.com/google/2012/09/17/as-predicted-google-passes-400m-registered-users-now-100m-monthly-active-users/

http://techorange.com/2012/04/19/google-power-up-plus-mayday-help-to-get-eyeball/

THE BARGAINING POWER OF DIGITAL PLATFORMS

It’s a matter of fact that nowadays listening habits are changing, provided that a big percentage of U.S teenagers, accounting for at about 64, are getting used to listen music on YouTube, rather than watching MTV. Well the thing is that the former uses the videos provided by the latter with a result much more appealing in terms of listenings and watchings, earning huge advertising revenues. Let’s think how some popular videos as Gangnam Style have increased massively the popularity of K-Pop, having been clicked milions of times. These figures clearly benefit the image of those acts in terms of marketing and brand value. However, in terms of songwriters/cowriters shares, the result is not great.

Infact, the income generated by streaming,  has been considerated moderated by artists and record labels, while on the other hand there has been a significant growth in terms of revenues for the owners of the recordings. Spotify, as revealed from an independent Swedish label called Hibrys, doesn’t recognize any revenues for musicians and also publishers/songwriters get a low share. However this tool advantages the labels, providing that it has become so popular within them.

In addition, Pandora has reducing his royalties commtiments, on a basis that the satellite radio pay less than 10% of their revenues in royalty payments. Well this is unfaire, also taking in consideration that in Usa artists don’t get paid for air play.

So let’save the songwriters, let’s think about a new business model that could reduce the bargaining power of labels and digital platforms !!

guardian.co.uk

http://www.guardian.co.uk/media/2012/oct/10/music-streaming-songwriters-youtube-pandora