A few years back, I was having a conversation with a top digital marketing consultant about the music industry. We were discussing what a challenge it was becoming for musicians to make a living from their craft -- particularly for emerging artists struggling for ear-share among the Idols and ex-Mouseketeers. At the time, the RIAA was cracking down on music sharing sites (and their users) left and right. Albums were leaking online -- and not on purpose. And music labels, struggling to stay afloat, were starting to offer less "filthy lucre" and more controlling contracts. Somehow, in the new Age of the iPod, music seemed to be the only segment where digital wasn't opening up golden opportunities for content owners and creators.
At the time, my solution was that brands, particularly the biggies like Pepsi, Red Bull, Doritos, and Vans, should start "signing" artists themselves, rather than dealing with the hefty fees and legal red tape involved in working with the labels -- not to mention the difficulties in finding a band that is interested in becoming part of the corporate machine and risking the loss of street cred.
Ideally, a direct deal with musicians could give brands exclusive access to part of an artist's body of work (say on a single-by-single basis), which they would distribute throughout their marketing campaign components (sponsored tours, TV and online commercials, website features, etc.). And the band would get some much needed cash for demos, equipment, promotion, etc., as well as recognition for being "The Pepsi" band or having their name up front and center in that catchy car ad -- vital exposure, particularly for an off-beat artist or one with a very niche audience that isn't a natural fit for homogenized radio. While a brand-supported band wouldn't necessarily get the big money, tour support and established PR services that the labels traditionally provide, they also wouldn't be subjected to long-term binding contracts or have to sell outlandish numbers of units before seeing a profit.
I pondered my little fantasy business model for quite some time after that conversation. For every benefit I came up with, I hit a snag as well -- for example, the selling out issue still seemed to matter at the time. And how would a brand manager, who has quite a full plate of responsibilities already, undertake the tremendous task of identifying and negotiating terms with the thousands of unsigned artists on the scene.Yes, a few brands were trying to make in-roads (Starbucks comes to mind) toward breaking new music. But there wasn't much benefit for the coffee co., nor much synergy among its marketing components, and I suspect few consumers hit their morning java production line with the ulterior motive of discovering a new World Music band.
But since then, a lot has changed. Bands are now more open to aligning themselves with a corporate sponsor, and are more involved than ever with brands. Hell, the Apple iPod practically broke bands like Jet and The Gorillaz, and Phoenix has inescapably invaded my brain, thanks to the incessant Cadillac commercials that feature its song "1901". The legendarily licensing-shy Beatles and last punk rockers standing, Green Day, both have their very own "Rock Band" games. And when it comes to distribution and exposure, who needs a label when you can record your music in your home, burn it to DVDs or transfer it to MP3, upload it to any number of music services, create a Facebook page, post your cell phone camera-filmed video to your YouTube channel, and let your fans and friends multiply through "Like" features and word of mouth?
Well, brand-band partnerships are now poised to move beyond song licensing and product placement, and in a direction very similar to the model I had in mind. An AdAge article this week highlights the new trend of big brands that are investing in unsigned talent. For example, McDonald's is the launch sponsor for Artists & Brands -- a music agency that aligns up-and-coming artists with brands that share their vibe. And Green Label Sound, a platform for indie artists, has quietly been promoting Mountain Dew as an example of how brands will shape the music industry, according to PepsiCo Americas Beverages' chief consumer engagement officer, Frank Cooper.
I'm eager to see more of these partnerships flourish, as they may be the biggest opportunities for raw talent to make money with music without making iron-clad deals on their souls.
Cool post, Jodi!