BE A DATA REFINER: To kick things off I’d like to share an interview I saw over the weekend featuring Publicis Chief Strategy Officer Rishad Tobaccowala. This is an example of thought leadership 101 on the impact smart phones are having on our industry. Mr. Tobaccowala puts forth two provocative points in the interview. First, we’re only at the dawn of the Age of Empowerment – with consumers feeling the full impact of mobile technology over just the last 1,000 days. And second, that data unto itself isn’t valuable – those who refine the data are the key to making it meaningful to marketers. The way he compares data refining to the oil industry is spot on. Good stuff to warm up the brain cells for the work week! http://www.adweek.com/news/technology/publicis-chief-strategist-outsize-impact-mobile-phones-have-had-advertising-173518
MORE LICENSING PRESSURE: It looks like all of Pandora’s label deals from the past week have relit the fire under Spotify to get their licensing house in order. The following Bloomberg article accurately lays out the mousetrap they’re in. Spotify says it needs to give listeners free trials in order to drive new subscription growth. But labels hate the freemium model, and want to charge more in royalties per song than Spotify is willing or able to pay. While this standoff ensues Spotify burns through cash and is unable to mounts a successful IPO. It’ll be interesting to see who blinks first. http://www.bloomberg.com/news/articles/2016-09-15/spotify-is-said-to-seek-reset-in-negotiations-with-record-labels
STREAMING GOES MAINSTREAM: And finally, Nielsen is out with their annual Music 360 report, which includes stats on what percent of time Americans spend with the different music platforms. This report is slightly different from Edison’s Share of Ear study, since it also includes Music Video consumption. One interesting stat from Nielsen is that 80% of music listeners engage in streaming over the course of the year – ladies and gentlemen, we’ve officially hit critical mass! The other cool tidbit is how relatively close the combination of Streaming Programmed Audio (aka Pandora) at 11%, and Streaming On-Demand Audio (aka Spotify/Apple) at 12%, are to Radio’s 27%. So music consumption from the pureplays is at 23% compared to 27% from broadcast radio? Thank you for the sales ammo Nielsen! http://rainnews.com/nielsen-80-of-americans-stream-audio/
Have a great Monday guys!
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