BILLBOARD BOWS TO STREAMING, REWEIGHTS CHARTS: Currently Billboard treats the chart weighting of all “streaming” plays the same, no matter if its subscription-based audio, free ad-supported audio or free ad-supported video. The problem with this cookie cutter approach is that listeners consume music differently across the tiers which can skew the charts. The most glaring example of this is how younger listeners rip through just the beginnings of songs on YouTube (which count as a play every time), and/or play the same song over and over. Because of this behavior YouTube ends up with a disproportionately higher effect on the Billboard charts than it should. To solve this problem Billboard has announced a change in the chart weighting formula which they’ll begin using in 2018. The formula changes, which differ on the Billboard 200 and Hot 100 charts, are a little complicated – read the article if you really want to geek out. Regardless of the math behind the formulas, rest assured that as Billboard throws more weight behind the streamers so too will the artists who’ll look to Pandora, Spotify, Apple, etc. to help break their next hit.
AUTONOMOUS DRIVING’S IMPACT ON AUTO INSURANCE BEGINS: There’s an uncomfortable truth about the future of the auto insurance industry. Once autonomous (self-driving) cars become the norm there will be significantly fewer crashes, thereby driving the cost to insure a car way down and shrinking the entire category. Industry experts estimate the US auto insurance market could decrease by 40% within the next 25 years. And the first sign of change is already here. According to the attached Business Insider link, Liberty Mutual is the first insurer to offer a lower cost insurance plan for Tesla owners whose cars are equipped with Autopilot technology. The program is simply called InsureMyTesla, and it features rates which are 20-30% lower than regular automobile insurance. Down the road (sorry) you could even see insurers offer single price packages for vehicle insurance and maintenance combined. Feels like some major disruption is on the way.
A LOOK INTO AUDIO’S CRYSTAL BALL: Finally today, there’s been so much buzz over the last few months about the impact voice-enabled technology is having on marketing I thought it would be helpful to highlight the attached overview article from GeoMarketing.com. It’s an interview-style piece with Pandora SVPs Susan Panico and Steven Kritzman covering a wide array of future-of-audio topics. In it they discuss; 1) how connected home devices are driving a new surge in audio consumption, 2) how Voice is supplanting Touch as the next gen way we’re interacting with the tech around us, 3) how AM/FM’s monopoly of in-car listening is being frayed by new connected car streaming delivery, and 4) how this trend is already aging up into the primary buying demos most brands covet. If you work in or around the audio space and believe it’s important to “skate to where the puck is going”, this is important stuff to understand.
Have a great Monday guys!
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