MIDEM Preview www.midem.com
T H E
O F F I C I A L
M I D E M
M A G A Z I N E
France is country of honour 4French music, and the French music business, make their mark on the world
© Benjamin Lemaire
4Top French duo AaRON joins
DaviD Guetta Superproducer gives MidemNet keynote
the French Vibes lineup 10
MiDeMNet Lab Meet the 30 top start-ups set to spark a digital revolution
nn INSIDE nnnnnnnnn MIDEM Sync • International Publishing, Indie and Manager Summits • MIDEM
Talent • Classical Day…
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Dominique Leguern MIDEM director
Welcome to the MIDEM Preview which introduces the 45th edition of the world’s music market. With digital and mobile technology playing an increasingly important role within the music industry, MidemNet and MidemNet Lab will take a long, hard look at how the music community can best succeed in the multi-platform environment. To help you navigate your way through that environment, MidemNet will welcome three outstanding keynote speakers. Opening proceedings on January 22 will be Vivendi CEO, Jean-Bernard Levy, who will discuss multi-platform strategies for content providers. From the investment community, we’ll be welcoming venture capitalist Saul Klein, to discuss what new developments in the music industry are exciting international investors. And to examine how artists can forge new partnerships in the digital and mobile space and get ever closer to their fan base, we will turn to internationally-renowned French DJ and producer David Guetta. Synchronisation is a rapidly growing revenue stream both for labels and publishers and in 2011 the inaugural MIDEM Sync will offer a day of discussions on the business of synchronisation and new pitching sessions. Selected MIDEM participants will pitch their tunes to music supervisors from the advertising world (Ogilvy and Grey Worldwide), the television industry (MTV) and the video-games publishing sector (Activision/Blizzard). We have also lined-up PJ Bloom, music supervisor on the hit TV musical comedy series Glee, to share his approach to the creative and commercial aspects of the synchronisation business in a keynote address. After a successful introduction in 2010, the Managers’ Village returns to MIDEM, providing international managers with a dedicated space to network and discuss how their business is evolving. As part of the Managers’ Summit, Colin Lester, CEO, Twenty-First Artists/Universal Management, will speak on how to become a major player in music management today. MIDEM wouldn’t be MIDEM without its programme of concerts and this year French Vibes will feature a selection of up-and-coming French groups. Mix in the British at MIDEM, the MIDEM Classical Day, the Pschent Party, MIDEM Talent and an expanded Fringe, and I hope we have provided a live programme to meet all musical tastes. Finally, as some of you may be aware, I will step down as director of MIDEM after the 2011 edition. For the past 13 years I have had the privilege and pleasure to work at the heart of the ever-changing international music industry that gathers at MIDEM. I’ve met some extraordinary people, listened to some truly outstanding musical talent and made a good number of exceptional friends. To all of you I want to say ‘merci’. The MIDEM adventure will continue and I wish everyone connected to this unique event the very best of luck and business. Best regards,
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The French turn the volume all the way up 22 to 26 January 2011 www.midem.com/french-vibes
CONCERTS JAN 23
AT HOTEL MARTINEZ FROM 8 P.M.
AaRON BB BRUNES THE BEWITCHED HANDS CASCADEUR THE CHASE MEDI REVOLVER SYD MATTERS
FRENCH VIBES MATCHMAKINGS SESSIONS FROM JAN 24 TO JAN 25
Matchmaking sessions between professionals from the French music industry and international executives from priority export countries.
¼ Jan 24 // 11 a.m. - 12:30 p.m. ¼ Jan 24 // 4 p.m. - 5:30 p.m. // ¼ Jan 25 // 11 a.m. - 12:30 p.m. ¼ Jan 25 // 4 p.m. - 5:30 p.m. //
// Germany Japan // USA United Kingdom
COUNTRY OF HONOUR: FRANCE 8
Playing the music of France to the rest of the world
MIDEMNET Towards Music Ubiquity ... MidemNet Lab; MidemNet Academy; keynote speakers; streamed music; mobile music; investors; digital marketing strategies
MIDEM Preview magazine
Music Pitch sessions; MIDEM Sync conference speakers
Director of publications: Paul Zilk
Publishing Summit; Music & Brands Management Summit; Indie Summit
Editor in chief: Julian Newby • Deputy editor: Debbie Lincoln • Contributors: Juliana Koranteng, Gary Smith • Technical
editor in chief: Herve Traisnel • Deputy technical editor in chief: Frederic
The business of contracts; monetising classical music; promoting classical music online
Beauseigneur • Computer graphic designer: Carole Peres • Editorial management: Boutique Editions Ltd.
MIDEM Talent; The Fringe; The British At MIDEM; Taiwan Night
Content director: Jean-Marc Andre •
Publications production and development
MIDEM TO MIDEM
manager: Martin Screpel • Publishing coordinators: Amrane Lamiri, Bruno Piauger •
Music companies on the year since MIDEM 2010
Production assistants: Emilie Lambert, David Le Chapelain, Veronica Pirim • Production assistant, Cannes Office: Eric Laurent Management, Marketing & Sales Team Director of the Entertainment Division: Anne de Kerckhove • MIDEM Director: Dominique Leguern • Marketing Director: Stephane Gambetta • MIDEM Sales Director: Anne-Manuèle Hebert • International Sales Managers: Christophe Chiappa, Guillaume Crisafulli • UK
THE NEW MUSIC ENTREPRENEURS
Music companies on new approaches to the business of music
PJ Bloom Amos Biegun Hartwig Masuch Haji Taniguchi
Sales Director: Javier Lopez • USA/LATIN Sales & Business Development: JP Bommel • GERMANY/AUSTRIA/CENTRAL & EASTERN EUROPE + CLASSICAL/JAZZ: Senior Representative: Cornelia Much • JAPAN: Representative: Lily Ono • AUSTRALIA/NEW ZEALAND: Representative: Catherine Atthow Published by Reed MIDEM BP 572 • 11, rue du Colonel Pierre Avia 75726 Paris Cedex 15 Contents © 2011, Reed MIDEM Market Publications • Publication Registered: 1rst quarter 2011.
THE MIDEM Q & A
Managing Director: Peter Rhodes OBE • AMERICA & CARIBBEAN: Vice-President,
NRJ MUSIC AWARDS 2011 THE 12th edition of the NRJ Music Awards takes place in Cannes January 22 and will host a variety of international stars, with nominees including Black Eyed Peas and Justin Bieber. The ceremony is broadcast live, simultaneously on NRJ Radio and on French national TV channel TF1. Competition is tough again this year, as the people’s votes choose the stars of the world’s music community for 2011. Cannes and NRJ promise a glamorous, starstudded evening with live performances from some of the most popular artists in the world today.
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NEWS: FRENCH VIBES
The French Vibes lineup at MIDEM BB BRUNES are one of many modern French groups who understand why singing in English can get you noticed. Following the Platinum success of their second French-language LP Nico Teen Love (Warner Music France), the group has just released a new eight-track EP entirely in English, called En Anglais.
THE CHASE is inspired by UK acts like The Stone Roses, and the Manchester scene of the 80s. “We started this group to make people dance,” said front man Cyril Douay.
MUSIQUE SANS FRONTIERES
Playing the music of France to the rest of the world THE FRENCH music industry is under the spotlight at the 45th edition of MIDEM with a series of concerts, matchmaking sessions and conferences aimed at showing the very best of a French music industry currently experiencing a wave of upcoming talent. French Vibes is organised in partnership with the French Ministry of Culture, and French music industry bodies SACEM, SCPP, FCM and SPPF, in association with the Bureau Export de la Musique Francaise. The two-day event will help French artists, their labels and publishers to develop international business in areas including digital partnerships, licensing, publishing, distribution, brands, tours and synchronisation. French Vibes runs from January 23-24, and includes concerts featuring French acts all headed for international careers. There will also be a case study on a band that has enjoyed success outside of France, a networking dinner and matchmaking sessions between professionals from the French mu-
AaRON is a pop rock duo who sing in English and who are performing in the MIDEM 2011 French Vibes lineup. Listen out for tracks from new LP Birds In The Storm.
sic industry and executives from priority export countries such as the USA, UK, Germany and Japan. “Ten years ago French music was enjoying a golden era on the international stage, mainly through the electronic scene,” Dominique Leguern, director of MIDEM, said. “Today, a new generation of French artists is emerging.
Brought up on a culture of music without frontiers, thanks to the rise of the internet, these groups are in the process of becoming the worthy successors to artists like Daft Punk and Phoenix. The French Vibes line-up at MIDEM 2011 reflects this wealth of French talent and its potential for international development.”
CASCADEUR (Universal Music France) may look like a member of Daft Punk but his music is much more Robert Wyatt than Kraftwerk. His live show combines striking visuals with a powerful voice.
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Miyet hails new generation of artists BERNARD Miyet, CEO and chairman of the management board of SACEM, shares the sense of optimism currently running through the French music industry. “SACEM was very keen to be involved with French Vibes,” he said. “Putting this latest and very promising generation under the spotlight offers the international music industry the chance to hear and see their music.” With continued falls in physical
sales in France, there are signs that digital is making inroads, with download sales having increased by 56% as a percentage of total sales year-on-year. In the first nine months of 2010 physical sales were down by 2.2% in terms of net value, compared with the same period in 2009, according to the latest figures from industry body SNEP. SACEM’S Bernard Miyet: “Keen to be involved with French Vibes”
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NEWS: FRENCH VIBES
More live Vibes ...
Bureau Export has the secrets of French music’s success FRENCH Vibes is produced in association with the Bureau Export de la Musique, a promotional body which has played a role in
Multi-instrumentalist Medi (Atmospheriques) will perform during the French Vibes two-day event
RECENTLY released figures for the French market in the first nine months of 2010 are, according to SCPP managing director Marc Guez, fairly positive: “A light dip consitutes a reasonable result, and there are indications that the market is stabilising,” he said. “On top of that we have the Carte Musique which is now valid across all major platforms, and we even have some platforms offering additional bonuses in the form of price reductions.”
choosing the live acts that will perform at MIDEM during the two-day showcase. “We made a pre-selection of artists for MIDEM based on our knowledge of groups with an international profile or international potential. We are also collaborating on the organisation of the Case Study conference which features an internationally-famous French act, along with the French and international professionals who have helped them to get where they are,” Aude Tillette, project manager at the Bureau Export, said. “The idea behind the conference is to really show how a success story happened. We will also be holding Matchmaking Sessions with professionals from Ger-
THE BEWITCHED HANDS’ sound is dominated by guitars, voices, and inventive melodies. The band’s first LP Birds & Drums (Sony Music France) was released in France in October.
MIND YOUR LANGUAGE
French pop-rock enjoys ‘boom period’
The year 2011 will, he believes, be an important year in France: “We have a lot of talent coming through, some very important album releases lined up and the HADOPI anti-online piracy detection system will be fully operational, so we are expecting to see significant consolidation in the market.”
SPPF’s Jerome Roger: “Boom period”
many, Japan, the UK and the US, plus we will be holding a VIP dinner where invitees will be able to meet the professionals working with the groups performing at French Vibes.” In 2010, the Bureau established a new committee to assist with tours of French artists internationally, in collaboration with the Centre National de la Chanson des varietes et Jazz (CNV). The Export Committee is led by the CNV and has received a budget of €380,000 for the first year. The Bureau also established a committee in 2010 to assist with the tours of European artists in Europe. The committee is funded through a grant from the European Commission.
REVOLVER (EMI Music France) is a Parisian trio inspired by The Beach Boys and Simon & Garfunkel. A classically trained French band named after a Beatles album, singing ‘chamber pop’ in English!
SPPF managing director Jerome Roger said that French Vibes constitutes a “significant opportunity” to show the rest of the world that French music has evolved enormously. “Pop-rock, more often than not sung in English, is going through a boom period here,” he said. “Singing in English is no longer any sort of a handicap for the local market. And, of course, it
opens up possibilities for the international market, and success internationally makes a big difference when it comes to covering recording and marketing costs.” France’s digital sales are not yet compensating for losses on the physical side, but Roger believes that the market is far from mature. “There are 21 million broadband connections in France so there is still quite some growth potential. And the mobile market is growing too,” he said. “On top of that the Carte Musique (a pre-paid card costing €25 enabling people under 26 to buy €50 of music), was introduced in October, and I hope that it will foster a passion among the youth demographic for buying music legally.”
The Bewitched Hands
SYD MATTERS played a tour of unusual venues including churches, barges and farmyards, this year. The group’s latest LP, Brotherocean (Because Music), is one of the most talked-about releases of last year by a French group.
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MidemNet Academy looks to the future MIDEMNET Academy Experts will give in-depth courses on the music industry’s future. Gerd Leonhard, CEO of Switzerland-based The Futures Agency, will give examples of innovation in other content industries that can be applied to music. Leonhard said: “Despite the numerous people burnt by their experience in the music sector, I believe the new web natives coming in will refresh the whole business.” David Kusek is vice-president for Berklee Media at the US-based Berklee College of Music. The “disenchantment and frustration” of recent years has not discouraged “a new breed of entrepreneurs and investors who believe they can re-engineer the business”, he said. MidemNet Academy is organised in associtaion with ESSEC, the International Business School In Europe, which is involved in four sessions over Sunday, January 23 and Monday January 24, on innovation, strategy and marketing.
Musical mentors MIDEMNET+ matchmaking sessions’ candidates can expect tough advice from mentors. “It’s better to have the right management and the wrong project, than the other way round,” said Gilles Babinet, chairman of sart-ups Eyeka, MXP4, and Awdio. “Once you have that, creating good partnerships, developing the right technology and having appropriate business models will lead to success.” Ventura Barba, chairman of Spainbased Tenzing Media, urges MidemNet+ candidates to learn how copyright works. Barba said you need to ask “how does my business co-exist within the copyright ecosystem? If your business benefits or depends on third-party content subject to copyright, you need to analyse what part of the chain you are going to play”.
TOWARDS MUSIC UBIQUITY
MidemNet shows how industry is moving with the times THE MIDEMNET 2011 participation by Vivendi CEO Jean-Bernard Levy and star DJ/producer David Guetta sums up the event’s Towards Music Ubiquity theme.
Vivendi’s Jean-Bernard Levy
In his keynote, Levy will show how Vivendi’s significant stakes in music, games, movies, TV, and mobile platforms have seen his global company evolve into a multi-platform operation. Guetta will use his keynote to explain how he’s adopted digital media, and partnered with his label EMI for global franchises linked to his Ibiza live-music activities. PricewaterhouseCoopers predicts that digital revenues will jump 16% to $17bn in 2014 from 2009. That means the industry must stop theorising and get practical, according to Ted Cohen, TAG Strategic’s managing partner and
EMI’s David Guetta
MidemNet presenter. “Everything the industry has talked about on the subject of digital during the last 10 years is coming to pass and is pretty much mainstream. We’re turning around the corner and MidemNet is pretty much providing some of the guidance,” Cohen said.
MidemNet Lab examines digital business models ORIGINALITY, integration, and portability are key requirements from innovative music-digital companies pitching their businesses at the 2011 MidemNet Lab. Now in its second year, MidemNet Lab offers 30 finalists, selected by Musically, opportunities to ap-
LD&A’s Francois Mazoudier
We7’s Steve Purdham
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proach financiers and promote their ventures at MIDEM. For the mobile apps category, Francois Mazoudier, partner at UK investment firm LD&A, said candidates should think of mobile as “the glue that leverages the best of previous digital initiatives (eg, streaming and downloads) and fills all the gaps each one had”. Paris-based Stephane Distinguin, CEO and founder of innovation agency faberNovel, said that aspiring entrepreneurs learn from integrated B2B services like NextBigSound, Believe Digital, Topspin, and MXP4. And there’s more work to be done: “The market lacks solutions to help bands organise tours. And there’s room for improvement in direct-to-fan tools, especially in analytics.” Mass-market consumer digital-music services need the right pricing models, said Steve Purdham, CEO and founder investor of UK streamed-music platform We7.
“The complexity (of pricing) is definitely not allowing the scale of the internet to work for the industry.”
MIDEMNET Lab judge Nicole Yershon is director, innovative solutions at global ad agency Ogilvy Group.
She insists that the music industry can acquire lessons from digital innovations within the advertising sector and urges the music sector to be more forward-looking in its quest for solutions. “Rather than constantly moaning about how piracy is hurting, the music industry should move itself away from traditional ways of thinking. It takes a certain type of entrepreneurial brain to do this, and there are many coming up through the ranks.
“Music companies should open themselves up to collaborations with new partners. You never know whether anything will come of it, but it usually does.”
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THERE’S MONEY IN LIVE
Live music ‘set for more growth’ says venture capitalist Klein SAUL Klein, partner at London/Geneva-based investment group Index Ventures and MidemNet 2011 keynoter, is a big supporter of the live music scene. Despite backing successful digitalmusic start-ups, from Listen.com (which became Rhapsody), Last.fm (acquired by CBS) to doubleTwist, he never doubted the potential of online live-music services, like Songkick and Viagogo. “We invested in Songkick and Viagogo because live music was growing substantially, and we believe it’s set for more growth,” he said. “Songkick (which helps fans
find gigs) has relations with labels and artists and venues. The challenge is not to depend on a single source for content.” Last.fm, a pioneering music-recommendation platform, has since added an events service to help fans find where their favourite acts are performing. Miles Lewis, senior vice-president of CBSi Music Group/Last.fm, said that surviving in the overcrowded digital world requires a USP: “Music rights are the most expensive commodity on the web, so we focused on what’s unique by making sense of fans’ listening chaos.”
Index Ventures’ Saul Klein
REACHING THE PEOPLE
Technology takes music direct to fans
Foursquare’s Naveen Selvadurai
DIGITAL technology’s ability to help artists and labels establish direct links with fans will be the talk of MidemNet 2011. Direct-to-fans relationships, via the internet and social media, is key to Sony Music Entertainment’s ambitions, said Thomas Hesse,
president, global digital business, US sales and corporate strategy. “And Sony Music’s direct-to-consumer group has built and launched 125 stores offering fans the unique ability to purchase physical and digital products in one transaction,” he added. Location-based social-media platform Foursquare is collaborating with labels and concert promoters to reach fans directly. “Wherever there’s a need to exchange information, there’s a fit for Foursquare,” said co-founder Naveen Selvadurai. Foursquare gives concert organisers “the ability to access a dashboard of analytics with valuable information about their attendees”. ReverbNation, the pioneering direct-to-fans service provider, enables “artists to be where their fans are” and “also handle the data collection and optimisation to ensure the artist gets as much value as possible,” said CEO Michael Doernberg.
ALEXANDER LJUNG ALEXANDER Ljung (CEO) and Eric Wahlforss (CTO), co-founded Berlinbased SoundCloud in October 2008.
SoundCloud describes itself as “a platform that puts your sound at the heart of communities, websites, and even apps” . It already boasts two million-plus users, and is supported by 100-plus third-party app developers. CEO Ljung told MIDEM Preview: “When we started, Eric and I felt there were high-quality digital tools available for digital-content consumers, but not creators. We realised there was no slick sound-only platform, so we started small by coding and programming everything ourselves.
“Getting investors involved is never easy because they’re sceptical about the digital-music space, which was having a hard time. Our priority was to get the technology right with a small sub-set of users, who’d then tell other people about it. That passionate approach was attractive to our investors, business partners and service providers.”
Skills are crucial in digital world DIGITAL marketing strategies for online and mobile music can make or break a business, as MidemNet Academy attendees will learn. With Informa Telecoms & Media forecasting global mobile-music revenue alone soaring to $25.3bn by 2014 from $14.4bn in 2010, acquiring the digital marketing skills, especially on fast-growing portable platforms, has become essential to grow sales. “The digital space is always changing, so it’s important to understand the current tools available,” said MidemNet Academy speaker Rynda Laurel, COO of af83inc, the French/US technology-support and design agency. “For artists, managers, and labels, it is imperative to know how to use them to maximise success.” Internet marketing expert Bruno Walther, co-founder of France’s Captain Dash, said that the Academy enables delegates to learn from others’ experience. “In the internet culture, the notion of benchmark-and-ideas sharing is key to taking your business to the next level.”
Investors out in force at MIDEM THE MUSIC industry is becoming hot property once again, as demonstrated by the number of investors clamouring for a stake at MIDEM and MidemNet 2011. Par-Jorgen Parson of Sweden’s Northzone Ventures, is looking at companies destined to make a difference, for example Spotify, SoundCloud, and X5 Music Group. “In a business where you produced, marketed and distributed in physical formats to one where there there are no such boundaries, you can significantly expand the market for rights owners,” he said. Rob Moffat, associate at UK-based Balderton Capital, said services should have “enough fans and bands to be a vibrant community”.
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The revenge of the apps TIM O’BRIEN, a MidemNet Lab judge, is vice-president, business development, of US-based Tapulous, the mobile-app developer acquired by Disney last July. Tapulous’ app games include the music-themed iPhone-delivered Tap Tap Revenge (TTR), which boasts 40 million-plus downloads. O’Brien illustrated how mobile apps influence music sales. “Tap Tap Revenge sales data show a direct correlation between game plays and digital sales through iTunes,” he said. “Tracks featured in TTR can experience up to 500% in sales increases on iTunes. During the acquisition, we made it clear to Disney the importance of maintaining a ‘start-up’ culture, and our business still performs in a very nimble way.”
Smartphones are helping to keep music on the move WE SHOULDN’T write off mobile music, thanks to smartphones’ rapid growth, said Lee Epting, content services director at Vodafone
Vodafone’s Lee Epting
Group, the world’s biggest mobile operator by revenue, with more than 330 million subscribers. The MidemNet keynote speaker said smartphones have helped to turn Vodafone into a leading multi-delivery service — to home computers, more than 1,000 different handsets, and homeconnected listening devices. “Smartphone usage and associated mobile data (including music) is exploding. Currently, 30% of our EU sales mix is on smartphones. Within two years, we expect it to be at 70%.” Ralph Simon, chairman emeritus/founder of MEF (Mobile
Entertainment Forum - Americas), added: “There’s been a minor crisis in mobile entertainment despite a wider circulation of smartphones, but it is still growing.”
MEF’s Ralph Simon
Tap Tap Revenge
MASS MARKET STREAMING
Music fans are looking to the clouds
SPOTIFY, the most high-profile of the fast-growing streamed-music services, might have reported a loss for 2009, but the streamed format is going mass market, MidemNet participants said. “This form of music distribution changes the user-behaviour be cause the music is permanently accessible for music lovers,” said
BOB FRANK, chairman/board member of indie-labels rights-negotiating agency Merlin, believes streamed music will boost rights owners’ revenues globally thanks to licensing deals Merlin has signed with simfy, Spotify, Rdio, MySpace Music and Sky Songs, among others. “These kinds of services are generating an increasing amount of money for rights holders. At some point, downloads will become ancillary (to streamed music). But older consumers will continue to be strong downloaders because, if you were weaned on physical, it takes a long time to swallow the concept of a ubiquitous supply.”
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simfy’s Christoph Lange
Christoph Lange, co-founder and managing director of Germany’s simfy, which has 1.7 million-plus registered listeners. Evan Schwartz, CEO of US-based Thumbplay, said that streamed services are luring consumers away from illegal services. “Cloudbased services (which enable access to music anywhere) are
Thumbplay’s Evan Schwarz
waking up segments of people who had stopped buying music.” Europe’s largest mobile retailer, Carphone Warehouse, is using cloud technology from MidemNet participant Catch Media, to offer a new streamed service Music Anywhere, starting in the UK, said Harry Maloney, Catch Media UK CEO.
Catch Media’s Harry Maloney
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Suppliers must offer quality
Experts come to Cannes to advise on how to mix music with images THE 45th edition of MIDEM sees the launch of MIDEM Sync, a whole day dedicated to synchronisation, taking place on Monday, January 24. Synchronisation is an important and growing revenue stream for labels and publishers, and MIDEM Sync is aimed at helping participants better understand — and capitalise on — this trend. The day will feature a keynote from music supervisor of the hit US TV series Glee, PJ Bloom; a panel discussion bringing together key players in the synchronisation business; and four Music Pitch Sessions. During his keynote, Bloom will describe the creative and commercial aspects of his synchronisation work on Glee and will share his vision for future developments in the field of sync. MIDEM will also offer ten participants the chance to pitch their music to Bloom in person during 10-minute face-to-face meetings. Bloom selected the participants via an open call for entries to labels, publishers and artists.
TM & © 2010-2011 Twentieth Century Fox Film Corporation. All Rights Reserved
AMELIA Hartley, music supervisor at Endemol, advises a focused approach in both pitching and placing music. “Because sync is becoming an increasingly important component in the breaking of an act, the opportunities, although still available in all areas, are becoming harder to secure,” Hartley said. “As budgets are squeezed, people need to use more focus, both in pitching and in placing music. I want my suppliers to focus on quality, to be responsive and to pay real attention to the project in question.”
GET IN SYNC
Tina Cohen-Chang (Jenna Ushkowitz), Brittany Pierce (Heather Morris), Rachel Berry (Lea Michele), Santana Lopez (Naya Rivera), Mercedes Jones (Amber Riley), and Quinn Fabray (Dianna Agron) in episode 206 of Glee, Never Been Kissed
MIDEM Sync will also feature a panel on the development of sync in key sectors that combine music and image. From the world of TV, Amelia Hartley, music supervisor at Endemol, and Alicen Schneider, VP, music creative services for NBC Universal Television, will be taking part. Representing video
Endemol’s Amelia Hartley
Endemol has been involved in several innovative projects recently. “We have been doing an increasing amount of work with the Middle East. I have just finished music-supervising a film about (British soccer team) Manchester City FC, and we also produce all the content for the MCFC website,” she said. “I have also recently finished working on a 26 x 30 mins children's animation based on an Islamic cartoon called The 99. The series is from Kuwait and has secured fantastic worldwide sales. We also produce four premiership football channels for the Abu Dhabi Media Corporation.”
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games is Victor Rodriguez, music director at THQ, and from the advertising world, music producer at Saatchi & Saatchi, Ryan Fitch. The panelists will be in Cannes to share their knowledge and expertise, and will advise on how to place music in TV shows, games and advertising films.
RYAN Fitch, music producer at Saatchi & Saatchi, says cinema has been a growing media for ads this year. “There are also other new screens that ads have been finding their way on to, like kiosks when you're shopping, screens in taxis, even bank cash machines (ATMs). But these are early days for these new areas and they haven't really taken off yet. Even with all the music that exists today it's unbelievable how hard it can be to find the really great songs. I have some trusted sources such as blogs, labels and colleagues that help, but it's always a hard process to find a great piece of music for a commercial. It usually takes a little digging to find something that is truly special and unique.”
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MUSIC AND BUSINESS IN HARMONY
Leading industry players use MIDEM to source new music
MIDEM Sync features a series of Music Pitch Sessions, which offer MIDEM participants the chance to pitch their tunes to music supervisors from leading companies Activision/Blizzard for video-game publishing, MTV for TV, Ogilvy and Grey for advertising. The sessions start at 10.00 with Joe Cuello, MTV's senior vice-president, creative music integration, and Amy Doyle, MTV's executive vice-president, music and talent; followed by Ogilvy UK's creative director, Alasdair Graham at 12.00. At 14.30 Activision/Blizzard's vice-president, music affairs Tim Riley, and Brandon Young, Activision/Blizzard's director, music affairs, will be playing and explaining their choice of tracks submitted. And at 17.00, Grey music director Josh Rabinowitz and Pantene will be looking for a new track to launch a new Pantene product. Cuello said that in his line of work it’s important that he and his colleagues experience music as consumers. “We really are just like fans — we go to shows to see what we like, and we build relationships
MTV’s Joe Cuello
with bands to hear music first. We try to strategise and figure out which artists are about to break," he said. "And sometimes we get the MTV audience involved. For example there was recently an opportunity for people to submit their original songs online to be considered for the theme song of our new series, Skins.” Tim Riley explained how Activision aims for a unique mix of music that adds value to its games. "There are always new opportunities out there for placing music in increasingly different ways,” he said. “For example the DJ Hero 2 soundtrack has Eminem’s Not Afraid mixed with Lil’ Wayne’s Lollipop, Rihanna’s Rude Boy mixed with Iyaz’s Replay, and an exclusive remix of David Guetta’s hit Memories featuring Kid Cudi, as well as new musical content only available in our game,” he said. “Individually these songs create a massive soundtrack in its own right. With the biggest DJs in the world mixing and mashing them exclusively for DJ Hero 2 we’re delivering an all-new spin on this music in
what promises to be the best soundtrack in entertainment.” Ogilvy's Alasdair Graham explained what he hopes to find at the Music Pitch Sessions. “I'm looking for music that does for the audio what the visuals will do: in other words a cocktail mix of fragrances,” he said.
New outlets for new music MEDIA companies are coming up with ingenious ways of marketing new music within the frameworks of games, TV, film and ad spots, according to Victor Rodriguez, music director at THQ, said. “For example, social network projects like Nightclub City and Music Pets feature gameplay designed to get the player to listen to and recommend new bands to friends, in order to progress upward in levels. There are numerous other co-promotional, cross-media and in-media branding opportunities now appearing that allow music companies to use the licensee media company’s marketing muscle to create even more exposure for their artists.” Passion and genre remain key elements in any music supervisor's choices. “As I listen to all the new music that comes across my desk, something occasionally stands out as remarkable work — recent albums from Animals As Leaders or Junip spring to mind,” he said. “When I am that passionate about something, all I need to do is be patient and wait for the project that is the right fit. That said, the main consideration is genre. Around 85% of the music we can use is either celebratory hard rock, hip-hop or rocktronica.”
NBC UNIVERSAL Television’s vicepresident, music creative services, Alicen Schneider, regards the relatively low profile of the internet as the ideal proving ground. “Webisode production is increasing, which will provide unproven composers the opportunity to gain experience in a lower-profile medium, as well as giving artists more avenues for exposure. Given the high volume of music pitched to me, I rely more and more on my creative pitching reps to provide me with what they think I'll love and what will suit my projects. I still have a sincere passion for music though so I wade through as much of it as humanly possible while also leaning on my awesome suppliers.”
THQ’s Victor Rodriguez
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Music and brands
AMONG experts agreeing that music and brands have a rewarding relaKatrina McMullan tionship are Katrina McMullan, of toymaker Mattel, and Natasha Kizzie, global marketNatasha Kizzie ing agency Arnol KLP’s head of entertainment, and a MIDEM Managers’ Village speaker. “Our understanding from labels is that having the ability to brand their music with our intellectual property is very lucrative,” said McMullan, a MIDEM Music & Brands speaker. Mattel’s partnerships include Universal Music distributing Barbie CDs. It has sold almost 14 million units of Fisher-Price branded music CDs, and is releasing albums on its Fisher-Price Music Series, Celebrity Series, starting with US singer-songwriter Jewel. Kizzie, a MIDEM Managers speaker, said: “Artists can benefit from the consumer insight, targeting, reach and engagement campaigns that brands run.”
It’s not just about writing songs says star songwriter Warren
It’s play time VIDEO games continue to yield cash for the music business, say experts. “We saw a decline in the overall music category in 2009 that Tim Riley affected us and our competitors,” said Activision Blizzard’s Tim Riley. “But we believe the market is still a very large category.” “Having iconic bands in music games helps boost sales,” said Charles Hudson, co-founder of Bionic Panda Games and co-author of the book Inside Virtual Goods. Finland-based SongHi Entertainment recently launched with Universal Music and Sony Music deals. CEO Juha Hynynen is optimistic because the “music industry is going to give even more addictive and interactive content to casual gamers”.
DIANE Warren, today’s most prolific pop and rock songwriter, makes her MIDEM debut as a Publishing Summit keynoter. The Grammy-award winning and Oscar-nominated composer will speak about the challenges of songwriting and publishing in the digital age. “You can’t just write songs, you also need to be an artist and a producer to make it work,” said the writer of hits for Cher, Tina Turner, Aerosmith, and other music megastars.
Her songwriting routine is kept simple: “I still use a cassette player instead of complex gadgets, because I want the song itself to stand out.” And by operating her own publishing house, Realsongs, she’s also gained a complete understanding of what makes piracy so damaging. “Because I’m self-contained and motivated, I also had to run my own publishing business. But people have got to pay for the songs. I can’t go into a store and steal shoes because I like them.” Realsongs’ Diane Warren
F L E X I B L E PA RT N E R S
Publishing and recording form alliances THE 2011 MIDEM International Publishing Summit — in association with ICMP — will examine how publishers are developing new models and partnerships for the future. “Over the years, we’ve taken lead roles in litigating against such piracy-enabling sites as Limewire and lyrics websites,” said US-based Mary Megan Peer, Peermusic’s vicepresident, business development.
“That the legal system supported our point of view is encouraging.” But publishers shouldn’t be complacent, she added. Flexibility is vital during business negotiations. “Our London office signed a (first album) deal with Newton Faulkner prior to his major-label deal,” Peer said. “We licensed the masters to Sony. Now, Peermusic’s income comes from both publishing and recorded-music royalties.”
Publishers in emerging markets like South Africa are also helping boost music sales by placing local independent acts with appropriate labels. Gallo Music placed songs by singer/songwriter Jolanta Durno on a local 2010 FIFA World Cup compilation and “the album had reasonable success”, said Arnold Mabunda, music publisher at Gallo Music.
ANDREW Jenkins, executive vice president of international at Universal Music Publishing Group, commented on the challenges facing the publishing-revenue landscape. “While music publishers and some collection societies have been interested in exploring new revenue models with users on a pan-European basis, unfortunately, the inability of some to deliver anything other than a traditional national monopoly solution has made the process more difficult. What we need is a global repertoire database. It makes no sense for rights holders to enter the same information 71 times, for example. This duplication is not for the benefit of rights holders and users — this is bureaucracy for the sake of it.”
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Gallo Music’s Arnold Mabunda
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Managers are getting social but stick to core responsibilities MANAGERS are adopting socialmedia networks to interact more with artists’ followers, but their traditional role as mentor to acts remains the same. “Managers have always helped shape an artist’s image. Social media just offers new tools to do that. What managers are advising their clients to do and what opportunities they are connecting them with have changed,
but their role hasn’t,” Bruce Houghton, president of US-based Skyline Music, and editor of Hypebot.com, said. “If anything, more have added the task of being the artist’s label manager.” Terry McBride, CEO of Canada’s Nettwerk Music Group, added: “Fans have always had this power, the change is that it’s much simpler to mobilise a larger tribe. Managers
Nettwerk Music Group’s Terry McBride
just need to be even more educated, proactive and respectful of what the fans communicate.”
THE SONY CLOUDMAN
Sony offers music from the clouds SONY Network Entertainment will be at MIDEM to introduce Music Unlimited Powered By Qriocity to the international marketplace. Music Unlimited is a new, cloud-based, digital music service that offers access at any time to millions of songs the major labels and a range of independents. The catalogue will initially offer around six million songs and the service will enable consumers to play music any time on a variety of internet-connected
Sony Network Entertainment president Tim Schaaff
Sony devices, including networkenabled Bravia TVs, Blu-ray Disc players, PS3, Vaio, personal computers, and portable devices.
Sony Network Entertainment is sponsor of the VIP MIDEM Speakers’ Dinner at which the company’s president Tim Schaaff will be present. “Digital music is an important category in Sony’s network entertainment offering,” Schaaff said. “With the launch of Sony’s new cloud music service, Music Unlimited, MIDEM is the perfect forum for to exchange views about the future of music, to reconnect with old friends, and to make new ones.”
Lester: zero-tolerance of illegal sharing AS CEO of Universal Musicowned management firm Twenty First Artists, Colin Lester does not believe in making compromises on behalf of his artist clients. “On the business side of thing, managers now have to drive the agenda much more aggressively than they did in the past,” said Lester, who’s also the MIDEM Manager Summit keynoter. “Artists now rely on a variety of revenue streams due to the decline of record sales and managers are required to be much more entrepreneurial.” The no-nonsense approach also
applies to how new distribution technology helps his acts, who include UK singer/songwriter Craig David, and how online piracy hurts them. Understanding the
latest technology “is totally our responsibility”, but also, he added: “I have advocated zero tolerance towards people illegally file-sharing — it is theft.”
JUHA Hynynen, CEO of Finland-based SongHi Entertainment, is optimistic about the future, despite recent reports of the alleged stagnation in music-video games. “I believe the reported decline is more of a sign that the range of recent offerings has not been appealing enough to the intended audience. The music industry has given addictive and interactive content to the casual gamers and, in future, is going to give even more. But people’s interest in participating in the lives of their idols in the gaming environment depends on the music industry’s willingness to open up its intellectual property rights.”
Busy year ahead for independents DESPITE a difficult year in 2010, leading independent labels at the 2011 MIDEM Indie Summit see a very busy year Glen Barros ahead. “Being conscious of the economy, we’ve purposely underplayed most markets,” said Daniel Glass, founder, president and CEO of Glassnote Entertainment Group. Yet, as well as new releases from Secondhand Serenade and studio recordings by The Temper Trap and Phoenix, Glassnote has global plans for Northern Ireland’s Two Door Cinema Club and the Tennessee trio Royal Bangs. Not only did Sweden-based Cosmos Music Group launch three new labels in 2010, more are planned plus a new music-publishing unit, owner Fredrik Ekander said. Glen Barros, president and CEO of US-based Concord Music Group and Indie Summit keynoter, said the company is “selective when deciding what artists and projects to invest in”. Yet, for 2011 releases, he boasted a roll-call of legends including Paul Simon, Paul McCartney, James Taylor and Carole King.
Kitman: caution over 360 deals ARTIST manager Jamie Kitman’s views on what the music industry can offer artists are just as non-conformist as the acts he represents, which include OK Go and They Might Be Giants. “I’m not in favour of the so-called 360 deals, because most major labels’ areas of expertise clock in at 90 degrees, so you’re giving up great income potential for not a lot in return,” said the Hornblow Group president and MIDEM Manager Summit speaker. “I also think blaming the weak overall concert business on ludicrous ticket prices understates the impact of the world’s economic meltdown.”
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❜ Climate and world economy put MANAGEMENT
classical music under pressure
SEAN Gross is a MIDEM first-timer, and vice-president of 21C Media Group, an independent public relations, marketing, and consulting firm specialising in classical music and the performing arts. He will be running a course at the MIDEM Academy, 10.00, January 25, focusing on The Best Platforms To Promote Classical Music online. “I think that the best platforms to promote classical music online really aren’t any different from the best platforms to promote anything else online. What’s important is that you have an understanding of who it is that you are trying to reach, what those peoples’ interests are, exactly where they congregate, how they behave, and how they want to receive this information. It’s just a matter of understanding that and putting yourself in the consumers’ shoes. “As well as the music industry, the media world has also undergone a radical shift in the past decade. Classical music, especially in America, has relied so much on print media for coverage in the past. With the shift to online, with widespread blogs and social media, we are now able to tell our stories to audiences directly, rather than having to rely on the media — which requires a shift in the way we think about things. “We did Ligeti’s Le Grand Macabre in partnership with the New York Philharmonic. It had never been performed in New York and there were concerns that people weren’t going to buy tickets. So we worked with Alan Gilbert, conductor of the New York Philharmonic, and produced three short, spoof viral videos for YouTube called Alan Gilbert And His Friend Death — in the hope that people would pass them on via Facebook, tweet them, etc. I think we released the videos three weeks before the performances, and while the videos didn’t garner hundreds and thousands of hits, they went to the right people and all three operas, over a holiday weekend here in the United States, sold out.”
MIDEM’s classical focus includes a series of conferences on Monday, January 24 and Tuesday January 25 — MIDEM Classical Day. At Monday’s Q&A session, in the MIDEM Managers’ Village at 10.30, International Artists Management Association (IAMA) chief executive Atholl Swainston-Harrison, and IAMA chairman John Willans, address the subject of Contract Issues In Classical Artist Management. “Contracts in classical music have been really tested in the last year, mostly to do with cancellations and force majeure,” SwainstonHarrison said. “Those are the two clauses that have been really hard tested. It’s wording that can be very
loosely defined and when trouble hits, how do you negotiate that?” Why this affects classical music in particular is that concert tours can take two or three years to set up, and in that time economic pressures can cause a major sponsor to pull out. Climate issues — volcanic dust, for example — and strikes can have an effect too. “So one thing we will talk about is how one copes with that sort of thing.” Swainston-Harrison will speak at a second MIDEM Managers’ Village session at 16.30 on Tuesday, How To Manage A Classical Artist Today. He says that managers in classical music are finding it tough now, “but they say: ‘It’s a job that
IAMA CEO Atholl Swainston-Harrison
I know and love, and it’s always been difficult and it’s going to get more so — but I will try harder’.”
M O N E T I S AT I O N
Finding ways to cash-in on classical UNVEILING New Opportunities To Monetise Classical is the title of the afternoon conference (14.30) on MIDEM Classical Day. Speakers include IODA founder Kevin Arnold, author and director of Swiss company Syquali Media, Jens Neubert, Universal Music’s Costa Pilavachi, and James Brown, managing director of the UK’s Hazard Chase. “We’ve always relied on retail as a separate sector and to a great extent we have realised that we have to be a lot more proactive now in reaching our consumers,”
Pilavachi said. “If you look at the concert scene it’s vibrant in most of the world. The artists we record play to sold-out houses around the world, so there’s no reason why the people who are going to spend a lot of money to buy their tickets are not ready to buy their recordings, either in digital form or in physical form.” Arnold says the iTunes Season Pass is an example of a new opportunity to monetise classical. “We are doing the second version of this iTunes Pass with the New York Philharmonic Orchestra,” he
said. “There are 13 concerts from last years’ season that will go online. There are ways in which you can connect more quickly with the audience than has traditionally been the case.” And Neubert is taking opera to the movies. “This is a way of taking opera to a new audience,” he said. The first offering is Carl Maria Von Weber’s Hunter’s Bride, released in Europe at the end of 2010. “We will come with experience of this to MIDEM and then we can speak about how the experiment has worked.”
Syquali Media’s Jens Neubert
Universal’s Costa Pilavachi
IODA’s Kevin Arnold
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Berklee College of Music and MIDEM present the Rethink Music conference. Examining the business and rights challenges facing the music industry in the digital era. Formulating solutions to promote the creation and distribution of new music and other creative works. Donâ&#x20AC;&#x2122;t miss the early-bird registration rate of just $595, available until March 7, 2011. Thatâ&#x20AC;&#x2122;s 40% oďŹ&#x20AC; the walk-in rate. To register and for more information, visit www.rethink-music.com.
I N A S S O C I AT I O N W I T H
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On stage A most eclectic collection of live musical talent assembles in Cannes at the start of 2011 to play a range of themed showcases, including the British Acoustic and British at MIDEM showcases,
CHINA SOUNDS THE CHINA Sounds showcase includes folk and pop singer and teacher Kenneth Ng; Haya, a four-piece that draws on Mongolia's rich musical heritage; and Shanren — which translates as 'mountain people' — a four-piece that fuses Yunnan/Guizhou indigenous music with Rock, Reggae and Ska. China Sounds is at the Majestic Hotel, Monday January 24, starting at 18.10.
Taiwan Night, MIDEM Talent, The Fringe, and Jazz Club Brazil. Here are some of the acts performing live during the MIDEM week
M I D E M TA L E N T Oh No Oh My are a four-piece indie-rock band based in Austin, Texas. An active band since 2005, they have toured nationally and internationally alongside acts that include Mew, Gnarls Barkley, The Flaming Lips, Au Revoir Simone, and The Deadly Syndrome. Known for their upbeat sound and versatile instrumentation, the group is fast gaining recognition as a promising indie-rock act. Also on the MIDEM Talent bill, which runs
from Monday in the Martinez Acajou, through Tuesday in the Martinez Ballroom: the haunting sounds of Irishman James Vincent McMorrow; Belfast’s art-rockers Yes Cadets; the “swirling, symphonic, electronic bliss-disco” of London-based duo Monarchy; Italian singer Malika Ayane; the melodic and intimate pop of French/English/Swedish act Puggy; and writer, poet and performer from the US, Saul Willams.
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THE FRINGE GERMAN trio Brandt Brauer Frick brings together a classical past and a techno present. The band explores the “dirty and percussive” elements of classical instruments to create rhythmic dance tracks. Catch them in the Palais des Festivals as part of The Fringe, Monday January 24. The Fringe runs in the Palais from Sunday, January 23 through Tuesday, January 25. Other Fringe acts include: Mangomad , the solo project of Edinburgh-based producer Kelman Greig (Sunday); rock/blues/folk/funk singer-songwriter and guitarist from San Francisco, Garrick Davis (Sunday); an energetic and emotion-filled live performance from Stratford-upon-Avonborn James Cottriall (Sunday); French singer and songwriter and former child fashion model Marion Corrales (Sunday); Irish songwriter, singer and guitarist Paul Casey (Sunday); and pop duo from Winnipeg, Canada, Imaginary Cities (Monday). The Fringe winds up on Tuesday, January 25, with musician/singer/ composer/producer and bandleader SonnyBoy, whose latest album The Barfly Theory is described as “Rock ‘n’ Soul mixed with some good old funk”.
Paul Casey Brand Brauer Frick
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B R I T I S H A C O U S T I C A N D B R I T I S H AT M I D E M S H O W C A S E S DURING 2009/2010 EMI Publishing writer Dave Gibson split his time between the UK and US working on his debut album with writers and producers including Steve Booker (Duffy), Ryan Tedder (OneRepublic, Beyonce) and The Nexus (Hurts). Gibson performs at the Martinez Ballroom on the British Acoustic bill, 18.00 to 20.00, Monday January 24. The
British Acoustic bill also features the blues harmonies of Kill It Kid; the rich pop of singer and multi-instrumentalist Jonathan Powell; and performer and writer Sam Roman, playing tracks from new album Born To Be King. The British At MIDEM showcase follows at 20.30, and includes Fyfe Dangerfieldâ&#x20AC;&#x2122;s indiepop hitmakers The Guillemots.
Kill It Kid
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TA I WA N N I G H T TAIWAN Night at the Majestic hotel on Monday, January 24, features a range of acts from the Western Pacific island. The band 1976 says early influences were from UK post-punk and new wave music. Their debut album came in 1999 and since they have created a unique sound with a “dazzling and psychedelic atmosphere”. In 2009, 1976 were invited to be part of Oasis’s tour in Taiwan. Also on the Taiwan Night bill, Suming is a young Amis singer-songwriter who is a well-known vocalist for the Taiwan aboriginal bands Totem and Echo G.S. Suming is an all-round Ami artist with credits that include work as a theatrical dancer, an amateur painter, a bamboo craftsman, and an educational worker. Also performing, Deserts & Algae is a lineup fronted by Taiwan singer-songwriter Deserts Chan, who feature together on the 2009 LP Cheng Shi.
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MIDEM TO MIDEM
Manlio Celotti CEO • Membran Group of Companies • Germany
What challenges has the music industry presented to your business in recent times? The majority of the industry has forgotten what we are all doing here. The whole market is wide open and the opportunities are far greater. All of this is an opportunity for us to go back to look at what it’s all about — and that is the music and those creating it because the new technology has deleted a few ‘industry-filters’, so now we need to listen more to what people actually want!
How was the year 2010 for you? How are companies operating in different areas of the music business dealing with the challenges presented by an industry that has been re-shaped by new technology and changing consumer habits? Debbie Lincoln asked music business executives as they prepared for MIDEM 2011
Danny Keene Sales & marketing director • Demon Music Group • UK
How are you adapting to these challenges? Our business has changed in that we are constantly shifting our marketing and distribution efforts online and we are trying to be as ‘unconventional’ as possible with our physical releases to make those more attractive. Although we are obviously still adapting to the market changes, through our various diversification activities and focused restructuring, we have managed to achieve excellent growth expected to be in the two digits area by the end of the year.
How have you dealt with the challenges presented by the music industry in recent years? With the landscape of the High Street changing we have made a conscious effort to try and open up new accounts which is proving suc-
cessful due to our many and varied quality ranges. So we will be continuing to pursue new high street customers. Digital turnover is becoming a larger percentage of our overall business mix and this will continue to increase. So the acquisition of digital rights is key in allowing us to further develop. Physical goods is still the major contributor towards our business model so therefore finding new customers … still gives me a great buzz!
which has thankfully delivered new income streams and our growth within the digital music market has been tremendous. We found five new customers at MIDEM 2010. We signed an agreement with Phoenix Music International to represent their catalogue of rights. We also had discussions with Time SpA for the USURA catalogue and Bearsville for the their catalogue.
How has the year since MIDEM 2010 been for you?
We will look for new distributors for our CDs in territories where currently we have no distribution, to discuss campaign opportunities and present new releases to existing distribution partners.
We have enjoyed an excellent trading year. We have spent a lot of time on developing new business
And your expectations for MIDEM 2011?
How did business develop after MIDEM 2010? At the last MIDEM we signed a European distribution deal with the New York jazz labels Motema and Zoho. We also signed a distribution deal with the Swedish label Ninetone for Germany, Austria and Switzerland as well as several other representation and distribution deals for our products in other territories.
Franco Passaniti Commercial director • Lasgo Chrysalis Wholesaler/distributor • UK
How have you dealt with the challenges presented by the music industry in recent years?
vinyl is further evidence that music as a cultural phenomenon can be channeled through a medium that is perceived as a piece of art.
The internet has contributed to a creative revolution where music is more and more connected to all visual art forms and ideas from all over the planet are immediately accessible to an infinite number of viewers. However, one of the biggest myths about our industry in the digital age is that artists no longer need a record label and that the physical format is now obsolete. It is simply untrue. The investment, partnership and support that help build an artist’s profile have never been more important than they are today. The re-discovery of
How has the year since MIDEM 2010 been for you?
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Throughout 2010 Lasgo Chrysalis has shown the ability to remain competitive in an uncertain environment by focusing on quality above quantity. Both in the online and export customer bases we have built over the year and the campaign product we have sourced for our clients. Classic rock, jazz, and classical in music and world cinema in DVD have been strong growth areas for us.
And your expectations for
MIDEM 2011? MIDEM is the one show where we can sit down with all our global partners and discuss business at the end of the most important sales quarter of the year. It gives us a great chance to listen to and reflect on the needs of our clients and helps drive the business in the following months.
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MIDEM TO MIDEM
Co-ordinator of the Greek Pavilion
CTO • Aupeo! • Germany
How have you dealt with the challenges presented by the music industry in recent years? There has been a decrease in the world record business activity and sales which we don't need of course to analyse here — Everybody Knows, as Leonard Cohen sings. I am a radio guy and I have worked in this business for 30 years. Greece's export situation is very similar to Quebec's in my opnion. More than 50% of its annual production, sales and radio stays within the country — just switch on the radio and listen. Finally I believe that world music also includes film, video and theatre fueled by two important en-
ergy sources — private enterprise and government help. The struggling world economy is unfortunately minimising the chances of small enterprises.
What challenges has the music industry presented to your business in recent times?
What are your expectations for MIDEM 2011? The Hellenic Ministry of Culture and Tourism has decided that Greece is going to participate in the major cultural expos around in the world, and MIDEM is the centre of this effort. Let me explain.If you want to welcome the sun in, open the windows — then you will also have a better chance to be seen from outside. There are many of our artists waiting to be introduced to a bigger audience, and
Music is still alive and well and there will be more power from independent artists and the DIY culture, so that everybody can expect more good music played live and on every device, which is linked to creative people. That s good for the music, the audience, and the artists.
every Greek label, artist, manager, and promoter who wishes to participate is welcome to the Greek Pavilion. Hopefully we are going to meet others too from around Europe in January. That’s the way to maintain important diversity in our continent, and in our world.
How are you adapting to these challenges?
Marcelo Soares New business director • Som Livre • Brazil
What challenges has the music industry presented to your business in recent times? It’s amazing the quality of music that can be produced today with very little resources and technology. And, with that, the whole process of democratisation of the business that al-
lows very creative processes of making, distributing, and promoting music. Production means are no longer in the hands of a few megacompanies, so the record companies must become music companies to remain relevant. The balance has shifted towards new lines of business like live music, digital sales, and licensing. But I would like to add to that our ability to discover new talent and to understand the musical tastes of the Brazilan fans. Without strong talent, there’s no lasting music business, be it traditional or non-conventional.
How are you adapting to these challenges? Som Livre has been able to keep a steady navigation on less than calm
Bjorn Teske Managing director • DEAG Music • Germany
How did business develop after MIDEM 2010? Since MIDEM 2010 we have again been connecting with lots of people. Most interesting is meeting people from outside of Europe. At MIDEM you have the chance to meet people you would never usually meet.
What are your expectations for MIDEM 2011?
waters. Physical sales are strong, new artist development has proven very successful with the outstanding albums by artists like Maria Gadu and Luan Santana, and digital and live music keep opening even newer ways of creating value.
How did business develop after MIDEM 2010? At last year’s MIDEM, we initiated talks with two important publishers that are now administered by Som Livre in Brazil. As a pure Brazilian company, we lack international content for the many opportunities we’ve come to create, so this is a natural and very productive deal for both parts. 2010 has been a great year for all the main business segments of our company.
We have created a lot of new accounts with our business partners especially in the CE market with the connected TV manufacturers. The launch of our new CE-HTML interface for all these device makers brings the personal radio experience to a new and interesting target group. We believe strongly, that you make money out of music services if you integrate it to hardware devices and if you are not focused on the internet as a platform, because users are ready to pay for convenience and cross-platform compatibility. MIDEM is the place where we have the best overview of the music industry, which connects more and more with the service providers and technology companies. Last year we started cooperations with accounts from all of these three business sectors in Cannes.
What are your expectations for MIDEM 2011? At MIDEM we are looking for new and attractive content partnerships, we are thinking about starting new campaigns with testimonials and we are going to present the first ideas of our next-generation product — so we can t wait until MIDEM!
At the last MIDEM we made new publishing and songwriting connections, and this year, due to my new job running a 360-degree label, I will be looking for partners such as labels, and distributors helping me take my products out of GSA, especially to Asia and the US and Canada, but also Europe of course. It’s exciting today to be working with music and all kinds of people in a 360-degree world.
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MIDEM TO MIDEM
Peter J. Wright
Owner/CEO • Virtual Label • US
Executive vice-president • Razor & Tie Entertainment • US
How are you adapting to the new challenges of the music industry?
What challenges has the music industry presented to your business in recent times? Our business is obviously challenging given the changes affecting the music industry. Increasingly we see the need to improve our efficiency and success rate even further, and to even more carefully tailor our business and marketing and sales approaches on particular projects to the audiences we need to reach on those projects … so a hard rock project is handled very differently from a legacy adult artist project and each is handled very differently from kids and family projects. This has always been true but the need to focus more efficiently is increasing and that will continue.
How are you adapting to these challenges? The fact that music is still so important and vital to so many people of so many ages and backgrounds and social strata is still exciting. We’ve had some very successful projects and highlights in our business this year, including the ongoing success of our Kidz Bop business, Razor & Tie’s new All That Remains album (which recently debuted in the top 10 billboard albums). We established some license deals at the last MIDEM, and as always met new business contacts which have the potential to lead to additional business development.
What are your expectations for MIDEM 2011? At MIDEM we are looking to develop relationships, make deals, find opportunities, meet people and establish contacts that will lead to more and better business, and check in with our existing partners.
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We are starting to add in-house marketing and D2F solutions to our offering. As a 360-degree service company we are already fairly diversified but I anticipate expanding our licensing services.
How did business develop after MIDEM 2010?
Sami Haikio Project manager Music Export Finland
How did business develop after MIDEM 2010? Since MIDEM 2010 we have been busy, traveling in Asia and Europe, meeting lots of people from different branches and countries — some were first met at MIDEM. I have been working with companies from the new generation, which have completely new ideas and lots of energy. In my job I’ll be facing much more individual needs, I guess. Most exciting for me is the songwriting business.
What are your expectations for MIDEM 2011? For MIDEM 2011 I want to meet lots of old friends and get many new ones! And have a great dinner at La Pizza with friends and colleagues from all over the world. Companies on the Finland pavilion for 2011 include: GigsWiz, an artist-friendly ticketing service that empowers artists to help promoters sell more tickets online, partnering with artists, offering them a share of the ticket booking fees; Fullsteam, an independent group of companies including a record label, promotion and booking agency, two concert venues, festivals, a distribution company, rehearsal rooms, merchandising, publishing and management); Recordshop X, the largest independent record store chain and web store in Finland; and Toolon Musiikkitukku, the leading independent music distributor in Finland.
Business has been good this year — we are seeing more significant artists looking to build their own businesses outside of the mainstream. We recently signed deals with Sean Lennon's Chimera label and with Alexi Murdoch's Zero Summer label and we have more such deals in the pipeline. 2011 is shaping up as a growth year for us. To paraphrase Bill Clinton: It's all about A & R, stupid!’ At last year’s MIDEM we set up distribution deals with a couple of UK distributors that are starting
to bear fruit and put into place a development relationship which will help us launch our own D2F solution in early 2011.
What are your expectations for MIDEM 2011? At this year’s MIDEM we will continue to look for partners that we can offer a channel into the US to and expand our distribution reach into additional territories — and eat some great seafood.
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Get connected in 3 minutes! Come and meet with a series of potential international business partners in a quick, efﬁcientand friendly way.
HOW DOES IT WORK? > You have one hour time to meet with each country or association. > You have 3 minutes to present yourself and your projects to each country delegate. > Timed by the sound of a gong, the participants will move from one table to another.
THE PROGRAMME SUNDAY, SUND AY, JJANUARY ANUAR RY 23
MONDAY, MOND AY, JJANUARY ANUAR RY 24
TUESD DAY, JJANUARY ANUAR RY 25 TUESDAY,
11.00 > 12.30 MEET LATIN AMERICA
11.00 > 12.00 LEGAL CLINIC In association with IAEL, International Association of Entertainment Lawyers
11.00 > 12.30 FRENCH VIBES MEETS THE USA By invitation only
11.00 > 12.30 MEET JAPAN
(Speed sessions last 15 minutes)
14.00 > 15.00 MEET BARBADOS
11.00 > 12.30 FRENCH VIBES MEETS GERMANY By invitation only
11.00 > 12.30 MEET CLASSICAL MUSIC 14.00 > 15.00 MEET SPAIN
14.00 > 15.00 MEET TAIWAN 14.00 > 15.00 MEET CHINA 16.00 > 17.00 MEET FINLAND
THE LOCATION HALL 01 - AISLE 11 NETWORK VILLAGE
14.00 > 15.30 GERMANY MEETS THE UK By invitation only
14.00 > 15.30 UNITED STATES MEETS GERMANY By invitation only
15.30 > 16.30 MEET AUSTRALIA
16.00 > 17.30 FRENCH VIBES MEETS JAPAN By invitation only
16.00 >17.30 FRENCH VIBES MEETS THE U.K By invitation only
For information and reservations please email us at: firstname.lastname@example.org MIDEM® is a registered trademark of Reed MIDEM. All rights reserved.
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N E W G E N E R AT I O N
Steve Pecile President • Soundminer Canada
The new music entrepreneurs The new-look international music business requires a new approach to business. A number of entrepreneurs with a different outlook on the industry gave their views ahead of MIDEM 2011 …
Massimo Ciociola CEO and founder • musiXmatch • Italy
I'VE always worked in the music industry. I started 10 years ago in the ringtone market through my first company Wireless Solutions, through the 10-year evolution — monophonic to polyphonic, polyphonic to realtones, realtones to MP3, MP3 to streaming. I founded musiXmatch in January this year, with offices in Italy, the UK and New York. MusiXmatch is an official digital lyrics distribution platform. We have built a database of more than five million lyrics, fully localised in 35 territories and totally authorised by music publishers. Every month more than 300 million people search for for lyrics, and most of the sites are illegal. We say that
BY THE age of 17, I was playing live music and from there moved into composing. I then started a studio in Toronto, Canada, and many years on, was a principle in the development of Soundminer for both the post-audio and production music communities. When I first started, the music business was at that pre-digital point. However, the technology was on the horizon, and it does change the way we all do business. Things become faster, better, cheaper, but we always need smart people and good ideas. This aspect of the industry doesn't change. In the future, asset management and delivery of those assets in a purely digital age, I think, is key. It's one thing to have great music, but if you can't manage it among your millions of other assets or deliver it where it needs to go and in the format the client needs with metadata, then your asset's value takes a significant hit. Soundminer makes a suite of software that addresses a number of workflow needs for content creators/publishers in broadcast and film and television. This will be our first time at MIDEM and I hope to meet some new people and enjoy the beautiful surroundings.
What was the last piece of music you bought? Great Canadian talent, Gord Downie and the Country of Miracles, The Grand Bounce … highly recommended.
lyrics is the new music social plugin as people add lyrics, share, correct and translate. The music industry has definitely changed in the distribution of music, it’s pretty clear now people want to stream music and prefer an all-you-can-eat stream for €10 a month to buying CDs. I consider the new music industry as fresh and exciting, although it is sometimes controlled by pre-digital management. I think the industry must re-invent the way of doing business. I expect music labels to open much more their access and catalogue. At MIDEM we expect to close deals with music publishers around the world and pushing the idea that there's finally a global company
monetising music publishing's works online. We have a big interest in Japan and hope to meet many Japanese music publishers.
What was the last piece of music you bought? I'm a electronic music passionate, the last track I bought was Babilonia from Softive.
Rhys Davies, CEO, and Kevin Hankinson, CTO Founders • Ticketsense • UK
WE’VE really approached the music business from the digital space. Kevin was working on a number of mobile marketing projects and I was looking into mobile payments. Mobile ticketing was the intersection between the two, and we felt there was real need to bring a new channel for ticketing through mobile phones. Our aim is to allow music entrepreneurs to engage directly with their customers. The basic structure of the industry is
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well established and remains valid — i.e. young bands coming together, working hard to build their reputations before making it on the larger stage. What has changed is the way that these bands engage with their customers. We've heard a lot about how sales in the industry have shifted from recorded music to live sales, largely as a response to the pressure, frankly, from pirated music. It's easy to copy a digital track, but the live experience can't be passed around digitally. We expect to see a rally in recorded music revenues as new models for digital payment are established. At MIDEM we are looking to meet music entrepreneurs, promoters and commercial partners in the music, mobile and digital arenas looking to
be involved in this area, and to share ideas with other music entrepreneurs around Europe who are operating in the same space.”
What was the last piece of music you bought? Kevin rarely buys individual tracks or albums as he has a premium account with Spotify, which takes care of his day-to-day music needs. Rhys's passion is commerce before music. Unsurprising when you know him.
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N E W G E N E R AT I O N
CEO and co-founder Spreaker • Italy
Chief creative officer SongHi • Finland
STARTING in the music business came in an unexpected way. I was talking on the phone with Daniele, my cofounder, and we wanted to create a platform whose objective was 'to give voice to anyone'. We were new in the music business and didn't have a network to rely on. So we started on our own and after a while — when the buzz spread — we got in touch with people who helped us to enter this business. Spreaker is an online platform which allows anyone to become a radio DJ, by creating and broadcasting a personal radio show online. Shows can be listened to on websites, social media platforms, mobile phones and also internetenabled car stereo systems. We're a media company — though we work with user-generated media — and our business model is mainly advertising. Today’s industry is much more focused around artists and their live performances. One of the problems that we're facing though — as con-
sumers — is the lack of pre-selection; today we're exposed to a lot of new music and it's getting more and more difficult to find quality works. We're already partnering with some players in the industry (recording labels), creating vertical radio stations which work as a promotional tool for the artists and the label itself. We hope we'll be able to create some interesting relationships with other players in the market at MIDEM.
What was the last piece of music you bought? A Beatles album on iTunes!
I STARTED as a musician and a composer in the music industry in 1993. I founded my first company, Tempo Music Design, in 1998. Nowadays Tempo Music is producing original game score music and sounds for the gaming industry, but we started as a music production company which produces major label artists and score music for the film industry. SongHi Entertainment was established in 2007 and is based in Finland and the UK. The business model is based on regular SongHi community members making micro purchases of virtual items in the online game — virtual instruments, clothing for their avatars, interior decoration of their studio and lounge rooms, and other music-related goods and services. In addition SongHi receives revenue from sponsors and from selling advertisements, mostly to consumer brands. The business models in the music industry have moved from passive towards the active way of consuming and interacting with music. People
want to show off in social media and your musical identity is the key issue in the future. In SongHi.com you are able to easily make your song or musical thoughts, and share them with your friends in social media. I believe that you need longer experience in the music industry to make it big, allowing you to understand how to change the value chain and through that you will have success. At MIDEM we want to introduce our great SongHi Music Game to investors and possible co-operation partners.
What was the last piece of music you bought? Love The Way You Lie by Eminem and Rihanna.
MIDEM PREVIEW MAGAZINE 2011 /
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N E W G E N E R AT I O N
Henri Pierre Mousset
Founder and manager • Yotanka www.yotanka.net and Yozik www.yozik.com • France
Co-founder and co-managing director • Roy Music • France
IT ALL began for me in the music business in 1996, as a music manager. Until 1998, the economic model of the music business was stable and well known, essentially based on records sales and radio/TV broadcasting. From that moment on, burning CDs became accessible to a large portion of the public, while the business model remained unchanged and the market decreased. During the late 1990s, the MP3 format grew and announced the end of the previous model. But it is also the beginning of commercial creativity in music. I created Roy Music in 2005 with Olivier Chini and Yvan Taieb in the very core of the crisis and it has been developed as a ‘music toolbox’ including publishing, label, management, booking, etc. This desire and ambition for professional diversity allows us to sign very young and promising artists, offering them 360degree deals and devoting ourselves to an authentic career development. It is also opens the possibility to sign established artists and offer them 50/50 profit sharing deals. In my view, the music crisis has cleaned up part of the mess in the music business — only the best have stayed on their feet. This year Roy Music will celebrate its sixth anniversary at MIDEM and we will throw a big party during which our artists will perform for the invited international professionals. Hopefully, they will love Roy Music’s artists for their own territories.
I WAS first with the Yotanka label (Mei Tei Sho, Zenzile...), which started in 2001. This drove me to online direct sales and fan base administration, until 2007 when I decided to launch Yozik as an internet service for other labels and bands — via digital platforms as an aggregator (downloads and streaming), and by direct sales from their website or social pages. We focus on the artist/fan relationship by providing hassle-free tools to increase and manage their fan base — promo codes, tags management, free downloads, RSS and XML feeds for news, concerts and fan forums. The music business is much harder right now, since income from sales has dramatically shrunk and live per-
formance has been more competitive. On the other hand, the internet brings new solutions for artists to manage their rights and careers, to make money from their relationships with fans, and better opportunities to cross boundaries and get international exposure. Live performance is becoming the first income channel for artists. Publishing income continues to be high for mainstream music that can be synchronised. Digital sales are getting higher too, but are jeopardised by the growing market share of streaming, that pays less than downloads. Direct sales bring opportunities for artists to increase income, and the opportunity for long-term fan relationships. MIDEM is our most important ren-
dezvous this year, with our worldwide release of Because Music shops and Yozik.de launch. We are expecting a strong increase in our international activities.
What was the last piece of music you bought? Mas Bajo's first album Pancho Ilegal, discovered from Putumayo's Latin Party compilation.
Antoine El Iman and Thomas Artiguebieille Co-founders • Noomiz • France
ANTOINE participated in the founding of Universal Music France; Thomas worked for 10 years in information technology blue chip companies … We are experiencing a transitional industry. The next model is not designed yet. That’s why the industry of today is more challenging, more exciting, and needs more creativity. Right from the start, we made three assessments: with the new shift in the record industry, the market for new talent is booming. It has become mandatory to detect the right artists, right from the beginning; new social networks are the perfect place to turn fans into ‘value’ and
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get a better understanding of their tastes, but this requires a new approach; and also in the past, the music industry did not put enough effort into market research — it is now a requirement. Noomiz brings a solution to those three strategic fields: artist scouting, digital promotion/CRM, and consumer understanding/audience analysis. There are more than 5,000 emerging artists on www.noomiz.com. We make discoveries every day by using Noomiz’ Wall of Sound, a tool that recommends the most loved new music online. It’s a fantastic way to discover new acts.
At MIDEM we’re happy to come to assess the market and to share visions with other people and companies. Solutions for the music industry can’t be found alone. People are still listening to music. And hopefully, they won’t stop! That’s one of reason why we are optismistic. There’s no ‘product crisis’.
What was the last piece of music you bought? Antoine — The Suburbs by Arcade Fire. Thomas — Lungs by Florence and the Machine.
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N E W G E N E R AT I O N
Marten Ohlin Chief marketing officer • Echolize • Sweden
WITH A history as a DJ in the 1980s, I always had a huge interest in music and the music industry. As an internet marketeer and entrepreneur, I and my partner, Lars Bylehn, came in contact with Echolize as they were taking their first steps out of their development phase. The business model was absolutely the best we had ever seen in any digital music service. As a consumer, one cannot help but notice the increased exposure of both international and local artists. At the same time the industry — because of a sudden outburst of hysteria over piracy — has evolved towards a more restricted business model slow to implement innovations and business strategies to circumvent their obstacles. Echolize distributes ad-based music stores, competing with piracy to offer a simpler, more reliable and more accessible legal alternative. Through its consumer-based distribution model it will make piracy point-
less, helping the industry to work faster and more efficiently with an innovative promotion and distribution tool. Increasing revenues through a micropayment system that is affordable by everyone. At MIDEM we want to proudly demonstrate our game-changing solution to our peers in the industry and to leave with the seeds of partnerships firmly planted through networking. In fact, we are so psyched about showing off what we’re working on, that we can’t wait to see you all there.
What was the last piece of music you bought? The album My One And Only Thrill by Melody Gardot, spreading jazzy tunes through my otherwise hectic working day.
David Vanacore CEO/Composer • Vanacore Music • US
I STARTED my first band in Los Angeles after high school, and by 1980, I started composing for the soap opera Santa Barbara on NBC. I spent a lot of years as a touring musician while honing my chops as a composer. I've been composing for television ever since. The availability of music technology has become so ubiquitous that almost anyone who wants to write music can put out their material. You don't need a record deal from a major label anymore to have a hit, but you do need years of production experience to truly produce great music. Our primary business is composing music for the most successful shows in television and collaborating with the most creative producers in our industry. Vanacore Music is expanding our offering and have launched our 24/7 Music Library website with over 6,000 unique cues hosted online for easy downloading. Our website is the first to feature Myna search technology. The search provides a list of
track matches for mood, texture or a 50/50 of both in relation to your target cue. We have also started a licensing division to promote library synchronisation usage. At MIDEM we are looking to build partnerships with international distributors who can help us exploit our music library in markets worldwide. We would like to make our music and services available to production companies and producers all over the world.
What was the last piece of music you bought? The new Kings of Leon record and other current artists so we can stay current with our production.
MIDEM PREVIEW MAGAZINE 2011 /
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THE MIDEM QUESTIONNAIRE
Glee is the perfect storm! Did the success of Glee come as a surprise? It’s safe to say this kind of worldwide success would surprise anyone. When we were making the pilot episode, all of us had a sense it was special. Then we began screening that pilot episode for industry insiders and press. The response was overwhelming. As far as why we’re successful… Glee is the perfect storm! The show’s creators are visionaries, the writing is top notch, the actors are brilliant, we use the biggest songs of all time as our soundtrack, we explore subject matter that touches our core teen audience and our older demographic, Twentieth Century Fox and Columbia Records are masters at marketing the show and exploiting our music, it’s entertaining, it’s dramatic, it’s novel. But perhaps most of all… Glee is fun! PJ Bloom
What's your advice to people looking to profit from the sync business?
Special guest and keynote speaker at the inaugural MIDEM Sync is PJ Bloom, music supervisor for the surprise US hit TV musical comedy series Glee — a massive ratings winner for the Fox TV channel. Bloom is also music supervisor for The Shield, Nip/Tuck and CSI: Miami, among other hit series. Last year he was awarded a Best In The Biz award from the Association of Record Industry Professionals as well as a Hollywood Music In Media award for Outstanding Music Supervision. He spoke to Julian Newby Conversation with PJ Bloom, (Music Supervisor of Glee) Monday, January 24 — 11.15-11.45
Auditorium K, Level 4
MIDEM PREVIEW MAGAZINE 2011
Creating music is not enough to achieve sync success. To be truly successful, you need to have comprehensive knowledge of the music business, the production business, your competition, your target audience and those to whom you are trying to sell your material. Synchronisation is one small sector of a huge market but it can work for you if you understand the mechanics of placement. Sync licensing will not save the music industry. Publishers and labels need to focus on exploiting all areas of the new business, with syncs merely being one small part. Moreover, music purveyors must concentrate on building positive relationships with buyers. Several desperate years of a music business economy have created dissent between those who sell and those who buy — and with fees continuing to decline, there’s no real end in sight. Don’t worry about art or money or selling out. Develop a reputation of being easy to work with and get those syncs when they’re offered, no matter how small, because that’s the only way you will be successful in the sync business. Those who focus on use quantity versus quality will be successful in the end.
Which comes first? The show or the music? With Glee, Ryan Murphy and his creative team are master storytellers. Sometimes they develop episode themes then choose songs relative to those storylines. Sometimes the songs dictate the story, like with our artist tribute episodes. In all cases, the story arc is the priority. We’ve also taken advantage of a huge ancillary profit centre by putting product into the marketplace that stems directly from our show. Yet Glee the show wasn’t created to support Glee the soundtrack. The perfect system is where all aspects of the brand work in harmony. That’s when the consumer will truly invest, both emotionally and financially.
Where are most of the new opportunities for musicians, labels and publishers? I would say gaming offers the most forward-thinking platform for music exposure. The way consumers interact within a game’s architecture to pursue acts and songs they experience during play then do commerce on the spot is incredibly advanced. However, the main downside for rights owners is that gaming still provides no back-end royalty structure. This will ultimately change as it must with all media, but in my opinion gaming still offers some of the broadest reach combined with the most sophisticated connection to the fan and the marketplace.
You have the power to break an act. Does your phone ring 24 hours a day? My phone never stops ringing, I receive hundreds of e-mails a day, thousands of pieces of audio a month, I get solicited everywhere I go and all my non-industry friends want to talk music with me. It’s a blessing and a curse.
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Collecting the cash in a digital world How have the mechanics of royalty collecting changed?
Counterpoint Systems is one of the world’s leading providers of rights and royalty accounting software. The company provides specialist rights and royalties management software for the entertainment industries, with the aim of helping clients to maximise the exploitation of their intellectual property, reduce the time and cost of administration, and manage the risk of revenue or expense leakage — across music, cinema, television and online. Counterpoint Systems CEO Amos Biegun spoke to Julian Newby...
MIDEM PREVIEW MAGAZINE 2011
Publishers and record labels are now getting a huge number of transactions with the use of their content, for example with Spotify, but with relatively small amounts of money. And they have a fiduciary duty to distribute that money to their customers — the artists and the composers. And it’s getting very complicated and difficult because, imagine you’re a Spotify user and you are paying £10 (€11.8) a month for 40 hours at about 20 songs an hour — that’s 800 songs, 800 songs which you’re getting for £10. That is then distributed between Spotify, the record label and the publisher. You can see how that model becomes a challenge to the industry.
Are there more people playing a business role in the music industry than there were 15 or 20 years ago? There are more players extracting funds from the pot than there were before. When the CD revolution started in 1982, there was a handful of players who had most of the value. The problem is, it’s become a market where it is very difficult to make enough money to cover your operating costs. And there are new players who we never foresaw, who are doing very well. For example whoever thought that iTunes — Apple — would be a very profitable part of the music industry? So I think the market is fairer and the barriers to entry are significantly lower than they used to be, but I think it’s still tough in the music industry for many companies to succeed.
Did the industry move too slowly in the face of the digital revolution? On the recording side, the small labels have adapted faster, and the big record labels have taken too long. When they were in the plastics business — selling a CD for £7.99 at retail and manufacturing and distributing — the margins were there to cover their costs. Now they are selling, say, three of the tracks of an album on iTunes for 79p each, and iTunes is keeping 33% of that. There isn’t enough margin in that to cover the operating costs that they had before. What a lot of independents are doing is deciding which elements of the business they can still do, and let the artists self-service, or find help with the rest. They are the ones that are able to adapt.
What are you hoping to gain from your visit to MIDEM this year? MIDEM is the best trade show by far. It is the show where we meet our customers, very senior people in the music industry, and we get a feel for what the trends in the music industry are. And the fact that it is in January, it’s early enough in the year to allow you to make adjustments. So this year we hope to pick up new business through having face-to-face time with customers we might not otherwise meet. So it’s a true market, where we can buy ideas and concepts from our customers, and sell our goods to customers and prospects.
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THE MIDEM QUESTIONNAIRE
BMG-Chrysalis deal no longer a Rumer How will the merger change BMG? I think it’s quite obvious if you look at the significance of Chrysalis, and what we have done over the past 18 months — the combined forces create a serious catalogue with respect to organisation and structure. For me, in short, it means OK, now we are the fifth major. Period.
One new talent that comes to you via Chrysalis is Rumer, an act that is enjoying massive success, and seemingly come from nowhere It's a wonderful record by the way, Seasons Of My Soul. It’s an example of very talented people dedicating a couple of years, while they are young, to creating music. The question is: ‘Why isn't there more talent like this coming to the surface?’
At the end of November 26, BMG Rights Management bought Chrysalis, one of Britain's biggest independent publishers, for £107.4m. BMG CEO Hartwig Masuch said at the time: “The acquisition of Chrysalis represents an important step forward in our strategy as we build a major, global music rights business. Chrysalis’ extensive and high-quality catalogue represents an excellent fit with our existing business.” He spoke to Julian Newby as he prepared to come to MIDEM 2011 as CEO of “the fifth major”…
Are you optimistic about the music industry? Absolutely. It’s a fantastic software that seems to work everywhere. So what more do you want? You almost can take a lead by looking at one of our competitors like Kobalt — based on a clear commitment to quality, transparency and fair relationships within the creative community they built an amazing business within five or six years. So obviously, that is a new paradigm in this industry, that artists are grown-up and educated enough to say we won't just accept the old business of ‘Baby I’ll make you a star but you’ll never make money!’. I don’t know whether you read the Keith Richards biography, reading about the first years of the band where the industry was never very concerned about paying artists and worrying about the quality of accounting — and I’m talking about publishing and recording. And we think it’s important to address this as a core principle and say that the key to the whole discussion has to be a new relationship between creative talent and industrial partners. That is the core issue.
And copyright protection, piracy, illegal acquisition of music — tired subjects, but important subjects... And nasty, no doubt about it. But again, you know, if you have to choose between no market at all or a market that has different parameters than you were used to in your, let’s say, eight to 10 core markets, well there’s a choice. And everybody who looks deeply into it says, OK, there are some markets where it would be very hard to institutionalise going forward a completely legitimised CD business. But if that means you completely ignore the market then you lose a lot of revenue that’s not based on the manufacturing of CDs. The other way around, if you look at digital distribution, if you look at mobile distribution, I mean, most of the participants in those segments are highly legitimate companies, publicly quoted in the US and Europe. Yes they might have very small transaction amounts at this point, but at least in principle it is believed that those channels will distribute legitimised music.
So we’re going from macro-payments to micro-payments? Yes, if you take away the aspiration that everything has to be 20 million unit transactions and you go back to a more fragmented but still growing perspective of the market, it's a great market.
You’re a MIDEM regular. Will it be business as usual for you at MIDEM following the acquisition? Yes, 30 years actually. I consider myself a veteran! It will be business as usual because we had always planned for 2011 to really present ourselves as the next major. It was always our plan from Day 1 to say that, from early 2011, we would be covering the markets we want to cover — you know we expand to Australia and Brazil early next year — and that is what we wanted to achieve.
MIDEM PREVIEW MAGAZINE 2011
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THE MIDEM QUESTIONNAIRE
A BIG YEAR
More music means better business How has the year been for you? Avex Music Publishing Inc was newly created in April 2010, and as the CEO of that I have been quite busy for its preparation and launch. Also I became the chairman of Music Publishers Association of Japan in June 2010, and most of my time ever since has been dedicated to MPA Japan duties.
What are the priorities of MPA Japan for the coming year and onwards? Haji Taniguchi
Avex Music Publishing Inc launched in April of 2010, with Haji Taniguchi as CEO. And in June 2010 he was named chairman of the Music Publishers Association of Japan (MPA Japan). He spoke to Julian Newby about these two distinct roles, and about the Japanese music industry
MPA Japan prioritises the following issues: the strengthening of anti-piracy measures; lengthening the copyright protection period to life plus 70 years; internationalising the Japanese music industry; and cultivating government co-operation. MPA Japan is in co-operation with various groups and bodies to strengthen anti-piracy measures. This needs to be done both by strengthening rules and regulations, and by educating young audiences that piracy is illegal.
What plans are in place for the development of international markets for Japanese music and artists? MPA Japan, along with the Japan Association Of Music Enterprises and The Federation Of Music Producers Japan, has launched the Synch Music Japan project, which is a web-based communications and sales initiative. Its website and accompanying Twitter feed provide a steady flow of news and updates about releases and activities of Japanese music artists. At MIDEM I would like to introduce Japanese music to other territories, and introduce the Japanese market to artists from other countries. I would also like to learn more about what is happening in the world now. As CEO of Avex Music Publishing, at MIDEM I will be looking for overseas publishers to ally in various ways.
The world's music industry faces great challenges at this time, the result of the need for new business models in the digital age. How is Japan dealing with these issues? The Japanese music industry is facing the same challenges, although the Japanese market is much healthier than others. The market for recorded music is about one-half of what it was in 1998, but the size of the music publishing market seems to have remained stable over the past 10 years. As far as publishing is concerned, we must seek new opportunities for copyright usage â&#x20AC;&#x201D; outlets other than CD releases and digital distribution. There is the potential to grow further in game syncs and advertisement syncs; I see many songs from the Eighties and Nineties being placed in TV ads nowadays.
How is changing consumer behaviour impacting on business? Avex Group is trying all the time to deliver music in whatever way the consumers would prefer. If consumer behaviour changes, the producers of music also have to find better ways to deliver music properly. The music companies have to transform themselves to suit the new market needs.
What are your expectations for the music industry and for Avex in the next 12 months? And in the longer term? According to a recent survey, the number of music lovers has not changed but the number of music fans the record industry is reaching directly has indeed become smaller in Japan. This trend will continue, but on the other hand, the numbers of active music lovers, and of die-hard fans of the artists, are increasing. Also the mobile phone businesses are expected to grow by 15% every year for the next five years. Therefore we need to be involved with mobile platforms and strengthen our strategies in that area, including strengthening our reach to the fans through mobile phones. We need to make sure we create hit songs in order to develop more core fans, and we need to widen our businesses by giving non-music opportunities to our music artists.
MIDEM PREVIEW MAGAZINE 2011
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