Tidal Exclusives Bring Back Piracy

Just when you thought music piracy was dead and buried it comes roaring back as alive as ever. The reason? Exclusives by Kanye West, Beyonce and Prince on Tidal.

These exclusives have been great for Tidal, as they have helped it to jump more than 100 places on the App Store most downloaded app chart, where it now sits at #3 on the iOS list.

As a result, Tidal is now the most popular music app in the US, even above Pandora and Spotify (Apple Music doesn't chart since it's a native app).

That's the good part of the story. The bad part is that some people just don't want to pay a monthly fee to stream a single album, they're not fond of Tidal, or they already subscribe to another service, so they resort to piracy instead. As a result, it's been estimated that West's The Life Of Pablo was torrented over 500,000 times in just its first day of release!

It looks like the same thing all over again in the initial hours after the release of Beyonce's Lemonade, as it's already on top of the the charts of both Kick Ass Torrents and The Pirate Bay.

And while Lemonade may be getting all the credit for Tidal's sudden ascendancy, the fact of the matter is that it's the only place online (other than YouTube, of course) where you can stream Prince's entire catalog. After his passing last week, there's been a tremendous appetite for his music, again helping Tidal tremendously.

So it looks like the only one making out on these exclusive's is Jay-Z and his Tidal service. The artists lose sales and streaming royalties to piracy, and the entire industry loses a chance to further the streaming cause. It's a missed opportunity.

The real smart move here would have been to make the exclusive's available only on the paid premium tiers of every service to give consumers a reason to sign up or upgrade. It could have happened with Adele's 25, it could have happened with The Life Of Pablo, and it could have happened with Lemonade.

Instead they've resurrected a scourge to the music industry where no one benefits except the pirates.

(This post was first posted on Forbes)

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2014 First Year Ever Without A Platinum Album

With all the albums that have come out this year it's pretty amazing that exactly zero have been certified platinum by the RIAA. Yes, you read that right - there have been no million selling albums this year yet!

What's worse, it doesn't look like there will be any by the end of the year either. The two closest are Beyonce's self-titled album and Lorde's Pure Heroine, but both aren't even reached the 800,000 mark yet and their sales have slowed in recent months.

Actually, there has been one million seller - the soundtrack to Frozen has sold over 3 million, but that's a soundtrack and not a popular artist.

Back when the business was at its peak, there might have been 20 to 30 million sellers by this time just about every year (both recent releases and catalog), but those days are long gone.

On the other hand, there have been 60 platinum songs so far this year, but even that's down about 20% from last year, as the music consumer moves to streaming instead of purchase.

Yes, we're definitely in a singles era where the song is vastly more important than the album, but we're also in a very important YouTube era where a song can get 100 million views yet sell less than 10,000 copies. And today, that's considered a bit hit.

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iTunes Wants Exclusives

Faced with a downturn in download sales, Apple is now seeking exclusives and additional content from artists in order for iTunes to retain its edge on various competitors. Using the Beyonce exclusive from her fifth album that was released in December as an example, Apple hopes to convince other artists that providing iTunes with a window of exclusivity can be an advantage for all concerned.

Although Beyonce's album became a big hit and was the fastest selling album in iTunes history, she suffered a backlash as a result of the exclusive when retail giants Target and Amazon.com refused to carry it. Few artists are able to sustain a retail boycott of any kind, which makes providing Apple with an exclusive all the more dubious. Plus, is this really serving the artist's fans in the long run? You really don't want your fans to jump through hoops to get your latest release.

Streaming is clearly picking up steam and iTunes, which has around 80% of the download market in the US, wants to maintain sales for as long as possible. That said, using Beyonce as an example is a little like saying you get a good ride in a Rolls Royce, when few of us ever get to experience it.

There seems to be little incentive in giving iTunes an exclusive, and a lot to lose if you do. Maybe it would be better if Apple concentrated more on iTunes Radio instead.

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Spotify Streams Soar After The Grammys

It used to be that an appearance on the Grammy's was a sure way to sell big loads of vinyl or CDs the following week. That's no longer the case, since large amounts of streams have taken the place of sales. Spotify provided some early numbers for those who appeared on the show on Sunday night.

• Daft Punk's "Get Lucky" up 205% (estimated at over 300,000 streams)
• Chicago's "Does Anyone Really Know What Time It Is" up 150%
• Metallica's "One" up more than 125%
• Beyonce's "Drunk Love" up 52%

But in many cases, an artist's entire catalog actually got a boost from the Grammy exposure.

• Paul McCartney's catalog up 126%
• Kendrick Lamar catalog up 100%
• Macklemore & Ryan Lewis up 65%
• Taylor Swift catalog up 65%
• Lorde's up 46%

But perhaps the biggest winner of the evening is one of our greatest musical icons. Stevie Wonder's "Another Star" was up a whopping 635% as of Tuesday.

I'd say these numbers prove that streaming is here to stay (like we needed any proof already).

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Beyonce Fights Back Against The Amazon/Target Boycott

If you’ve been following the marketing strategy used by team Beyonce on her latest self-titled album, you know that it’s been quite clever so far. To recap, the Beyonce album was released on the unsuspecting public without any advance marketing fanfare whatsoever, which caused a bit of a commotion as that fact was trumpeted far and wide by bloggers and news organizations (including me, I should add).

Of course there’s always more to the story and so it is here. The album was released as a digital-only product, with a one week exclusive going to iTunes. This didn’t sit well with retail giant Target, who refused to sell the CD when it was released as a result. A few days later, Amazon joined the boycott on the CD as well (although it still sells the download). 

Even though Beyonce set an iTunes record with over 600,000 digital album downloads, having the number 2 and 3 retailers boycotting your physical product could put a crimp in your long term sales. So what did Beyonce do? She went on a shopping trip to a Tewsbury, Massachusetts Walmart on Friday night, announced to everyone over the store’s loudspeaker system that she was there to buy her album, then gave out approximately 37 grand worth of $50 Walmart gift cards to everyone she saw in the store.

Most of the press covered the move as Beyonce being nice to a bunch of people she didn’t know, but there was actually a grand design behind the shopping appearance. One was a subtle reminder to her fan base that even if you couldn’t find her CD at Target or Amazon, it was readily available at Walmart. She also sent an unmistakable message to Target that said, “If you cross me, I’ll give all of my attention to your competitor instead.” Read more on Forbes.

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Beyonce Attempts To Bring Back The Album

We live in a new music world. While some will tell you it’s entirely different from the past, it’s really a throwback to the 50s and beginning of the 60s when singles dominated. As artists and bands of the 60s became more successful, more attention was placed on the album, which while more expensive to make, also carried a higher profit margin as well, which pushed the industry to financial heights not previously dreamed of. This sales paradigm carried on until 2003 when the introduction of iTunes made monetization of digital music a viable part of the industry, and since then, the single song sale has dominated while album sales have steadily decreased to the point where many question whether the album is even needed in music today.

But Beyonce seems to have temporarily turned that concept on its head with the stealth release of her fifth album, entitled simply Beyonce, last week. The album had no promo run up to its release, no single released for sale before or with the album, and had 17 videos dropped simultaneously, but you can only view them if you bought the digital album first. Clearly, Beyonce’s album is meant to stand on its own (at least for a short time until the singles are released), defying the logic of how the new music business is run.

Just to review, the current strategy is for singles to be released frequently (even as quickly as every month or six weeks), making each one a separate event that can be individually promoted. Having a single available allows current and potential fans to live with the song for a while, giving it a greater chance to catch on. After a number of singles are released, they can be compiled into an EP or album, which is now another new event to be promoted. At least, that’s how it’s supposed to work in this new music paradigm we live in.

That construct doesn’t necessarily apply to a superstar like Beyonce though, who can and does defy the rules by virtue of her gigantic celebrity. Most other artists dropping an album without any advance promotion would find their sales suffering. In fact, may stars and superstars have an album sales problem even with a lot of promotion these days, but Beyonce immediately went to number 1 on iTunes, although it helps that the service has a one week exclusive before the physical product and the singles drop. This might be the smartest decision that Team Beyonce could have made, as it immediately put the album on the front page of every entertainment blog as the word of mouth spread. Read more on Forbes.

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Follow me on Forbes for some insights on the new music business.

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Music Celebs Extend Their Brands

It used to be that a celebrity musician was loath to do anything commercial for fear of "selling out."

If you were successful with your music, you risked all of your credibility with your fans if your music appeared in a commercial, or your image was found on a consumer item.

Those days a long gone, as music celebs everywhere do whatever they can to extend their brands. It's a money grab that's now condoned, accepted and even expected by management and fans alike. And all without any stigma whatsoever.

I've posted about musician's private brands and even custom items like toothbrushes and clothing (even Jimi Hendrix!),  but once again we have multiple examples of music celebs reaching way beyond the music that made them famous.

Take for instance, Beyonce and Taylor Swift becoming the new faces of Pepsi and Diet Coke respectively. Depending upon which study you use, these are mostly unhealthy products endorsed by women who exude health.

Then we have Sean "Diddy" Combs and Mark Wahlberg investing in the premium water AQUAhydrate for fit, active party people. At least it's healthy.

Hip hop girl group OMG Girlz are the new spokespeople for Wat-AAH, another premium water product.

Pop-Water, a new flavored low-calorie product (I thought water is supposed to have zero calories) is backed by Lady Gaga manager Troy Carter. Then there's Golnside, a tea product, courtesy of manager Kevin Liles (Nelly, Big Sean, Trey Songz and a dozen others).

The fact of the matter is that success in music is merely a departure point to consumer product success for most artists these days. But can you really blame them?

In the days when "selling out" was considered taboo, artists weren't used to making or spending the kind of money available to them today. And those that did actually make that kind of money in music could have it sustain over long periods of time because the business was healthy, selling more product than ever, and even growing at the time.

Today, with the industry roughly half the size that it was before, success is much more fleeting, and the money that's here today probably won't be there tomorrow, which makes artist's desired to catch whatever financial wave they can more understandable. Plus, management is smarter than ever at exploiting every opportunity and even creating new ones for their artists.

That doesn't mean that some self-aware artists understand that expanding their commerciality beyond their music isn't inherently good for their brand. That still happens, and those artists should be applauded, but even those they will look for products that best fit with their brands, even it they won't be found on a convenience store shelf.

So to all you old school people longing for the "days of artist integrity," get over it. It's a new world. You may not like it, but it's not going back to the way it was any time soon.

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Audio As The New QR Code

I always thought that the QR code was a rather inelegant clunky idea. The concept behind it was fine, but the execution leaves much to be desired. After all, who wants this ugly black and white splotch on your fine artwork. It takes up a lot of space and adds nothing unless someone happens to go through the motions of decoding it and following the link.

But the idea of an analog link to the digital world is sound, and more and more companies are looking at doing something similar in a different way.

Now comes word that Shazam, the fourth most popular iOS app of all time, plans to let views tag the audio coming from their TVs during the February 3rd Super Bowl broadcast this year. This will let users enjoy somewhat of a "second screen" experience as they watch the game with their smartphones and tablets. In fact, brands plan on giving away plan on giving away over a million items to people who tag the audio during the game.

Among the companies that are participating are Interscope (label home of half-time artist Beyonce), Toyota, Best Buy, Cars.com, Pepsi, Teleflora, Bud Light, Bridgestone, GE, Disney and game company Relativity. Plus, second-screeners will be able to keep up with game stats and polls as the game progresses.

With this type of buy-in for the biggest broadcast of the year, it looks like audio tagging (sometimes called "fingerprinting") is here to stay.

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