This week’s quick take away is—the sky is not falling (any faster than it was last week); physical sales are weakening while digital sales get stronger; and Lionel Richie remains country’s newest and best seller.
Unfortunately, the real story, like an iceberg under water, is hidden from view. That real story is a too familiar parable of revenues and costs which is being redefined by retailers like Google with its regular $3.99 album specials. For example, this week a quick search for country in the $3.99 digital bin found found Taylor Swift’s Fearless, Sugarland’s Incredible Machine, Martina McBride’s Eleven, Alison Krauss A Hundred Miles.. and more. We’ve been told that discounters like Google, Amazon and others are still paying labels the normal wholesale value, but this activity is a ticking time bomb sure to redefine music pricing going forward which can’t be good for record label bottom lines, long term.
Average Joes Entertainment CEO Shannon Houchins, in this week’s two-part MusicRow interview says he believes music sales will no longer be a revenue stream in as soon as a few years. [Click HERE to read.] It’s hard to accept that vision might become reality in the country industry. However, as music sales from all formats converge into a single handheld mobile device, it seems likely that what happens in one format will quickly spread to all. Imagine how the Nashville landscape might look if the revenue landscape were to alter itself that dramatically!
Albums
For the week ended 4/29/12 we see the overall industry struggling to remain even with last year, and falling .9% behind. As the grid shows, if one includes YTD TEA numbers, then sales are up slightly, 1.3%. Nashville-based Jack White debuts Blunderbuss this past week and sees it sit on top of the Top 200 list with sales of almost 138k.
In the world of country, Lionel Richie remains at No. 1 scanning an additional 78k units to push his 5-week total above 615k and YTD country album sales ahead 5.9%. Debuts take spots No. 2 and 3 on the country list; Curb’s Lee Brice sells 46k with Hard 2 Love and MCA’s Kip Moore scans 37k with Up All Night.
Carrie Underwood’s Blown Away just hit bins and next week’s debut numbers will surely bump up and keep country album sales in positive territory.
Tracks
Digital track sales are ahead for all genre and for country which explains why YTD TEA album numbers are higher than pure album sales. On the country list we see the usual suspects holding court in the Top Ten; Taylor, Eric, Luke, Carrie, Kip, Jason, Lee, Miranda, a Kenny/Tim duet and Eli Young Band. Eric Church’s “Springsteen” moves up a spot to No. 2 notching sales of almost 79k units.
Church’s tough-edged attitude brought him a few media lessons this past week when he dissed TV singing contests in a Rolling Stone interview and then incurred the Twitter wrath of Miranda and Blake. Church later apologized saying it was about the shows and “not the artists themselves.” We’ll watch next week for any chart fallout.
Country track sales are doing nicely passing the 54.7 million mark and up a robust 21.7% YTD.
See you next week!
Artists Seek Opportunity at Ad Agencies
/by Sarah SkatesDavid Nail
The road to stardom has long been paved with radio visits and media rounds, now artists are adding advertising agencies to the mix. Musicians are courting ad agencies in hopes of scoring coveted placements in commercials, which boost exposure and the bottom line.
Brands pairing with music artists is nothing new, particularly when it comes to tour sponsorships. But as music sales have decreased, artists are more actively seeking these partnerships.
Tom Lord
Tom Lord, VP Marketing at UMG Nashville, said he’s seen the agency-visit trend grow in recent years, particularly in the country world. Citing the major cross-genre success of Lady Antebellum, Taylor Swift and Sugarland, he explained, “All of the growth outside the format has made the agencies more aware of country artists and made brands interested in partnering with them.”
Television shows have also given country a nudge into the spotlight. Ratings magnet American Idol created stars Scotty McCreery and Lauren Alaina last season, and both landed on the UMG roster. Meanwhile, Blake Shelton’s career has been significantly elevated in the last few years, thanks in part to his coaching gig on hit show The Voice.
Another factor that makes licensing country music attractive for advertisers is its percentage of physical sales, which is higher than other genres. “Country has maintained a decent foothold with regard to physical sales,” added Lord. “And that’s appealing to brands who want to attract in-store shoppers.”
Laura Bell Bundy
When an artist is touring in a city that is home to a major agency—Dallas, Chicago and New York, for example—going to visit is a natural step in the introduction process. Laura Bell Bundy and David Nail are among the UMG artists who have wooed real-life Don Drapers. Bundy’s visit didn’t include a performance, instead the team was invited to her concert and the office meeting was so the staff could get to know her personality and interests.
“It’s all about relationship building,” said Lord. “You may not get an opportunity immediately, but you hope they will call the next time they are looking for a country artist or song.
“Agency visits help bury the preconceived notions about country music. You bring in an artist like David Nail—who I’d put up against any male vocalist—he performs and blows them away,” summed Lord. “That’s where we win.”
Attorney Fred Wilhelms Passes
/by Sarah SkatesBorn in Elizabeth, NJ, he graduated from Lafayette College and Vermont Law School.
He is survived by wife of 14 years, Teri; brother, Kip Wilhelms (Dolores); sister, Linda; daughters Erica Haas (Rob) and Rebecca Douglas (Matt), and grandchildren Caroline and Charlie.
Read a blog about him here.
Memorial donations may be made to the Pancreatic Cancer Action Network at pancan.org. Services by Nashville Funeral and Cremation Service (615) 256-1605.
Montgomery Gentry to Headline Kentucky Cares Benefit
/by Eric T. ParkerThe event, hosted by 98.1 WBUL/The Bull, will be held in Lexington, KY at Busters Billiards & Backroom with proceeds going to the local American Red Cross.
“Our hearts went out to all those families and businesses that were affected by the storms,” says Eddie Montgomery. “This is our home and we want to do everything we can to help.”
Tickets are available here.
The duo released “So Called Life” as the second single from its seventh studio album and first on Average Joe’s Entertainment, Rebels On The Run. Montgomery Gentry is also nominated for Duo of the Year at the upcoming CMT Music Awards on June 6. Fan voting is open here.
Ricky Skaggs to Celebrate 30 Years With the Opry
/by Caitlin RantalaThe 14-time Grammy winner was inducted into the Opry on May 15, 1982. In addition to performances by Skaggs, his anniversary will be celebrated by fellow Opry members Alison Krauss, Josh Turner, and The Whites, plus special guests two-time IBMA Entertainers of the Year Dailey & Vincent.
“Not unlike Ricky’s music, the list of artists lined up to honor him on May 15 is eclectic and award-winning,” said Opry Vice President and General Manager Pete Fisher. “It’s going to be a night of great musicianship as we celebrate all that Ricky means to the Opry family.”
Topspin and TuneCore Join Forces
/by FreemanThe combined services will have the ability to pair TuneCore’s ability to distribute music to all digital platforms (iTunes, Amazon, Spotify, and more) with Topspin’s fan-driven marketing capabilities, while still maintaining 100% of their rights. The service is for artists both established and independent.
Artists already using Topspin will receive a 30% discount on TuneCore distribution, and artists using TuneCore will receive a free month of Topspin Plus, a $49.99 value. These discounts are available immediately.
When the technical portion of the integration is finished, users can have their music delivered from one service to the other without having to re-upload. Topspin sales info will appear on the TuneCore artist dashboard.
More info here.
Wade Bowen Classic Adds Concert Performers
/by Eric T. ParkerThe benefit is scheduled for May 6-7 in Waco, TX supporting the Advocacy Center for Crime Victims and Children. The concert, which takes place May 6 at Noon in Indian Springs Park, will feature over 25 artists in addition to Bowen, including previously announced Jason Boland and the Stragglers, Casey James and Charlie Robison.
Registration for the classic and individual tickets are available here.
Wednesday Photos (5/2/12)
/by Caitlin RantalaL-R: SESAC’s President/Coo Pat Collins, John Mayer, NARAS President Neil Portnow, Rep. Howard Berman and NARAS Chief Advocacy & Industry Relations Office Daryl Friedman.
SESAC sponsored the 2012 Grammys on the Hill Awards in Washington, D.C. on April 25 at the Liaison Capitol Hill hotel. Rep. Howard Berman (D-Calif.) and seven-time Grammy winner John Mayer were honored for their commitment to improving the working environment for the nation’s music community. Mayer was also honored for his commitment to music education
Monty Powell entertained the crowd by performing a song he wrote with Senator Orrin Hatch, the very first Grammy On The Hill Awards honoree. Meanwhile, SESAC’s Pat Collins was on hand to present the award to Rep. Berman citing the lawmaker’s steadfast defense of intellectual property rights for songwriters and publishers.
• • • • •
Bradley and Senior Historian John Rumble. Photo: Donn Jones
The Country Music Hall of Fame and Museum recently hosted an interview with music executive Jerry Bradley. Bradley shared some of his favorite music business stories including those from his time as Chet Atkins’ assistant and, later, as head of RCA Nashville. The interview was offered as part of the special exhibition Chet Atkins: Certified Guitar Player, made possible through the support of the Gretsch Company with additional support provided by Great American Country Television Network.
• • • • •
L–R: Seth England, Kimberly Gleason, Craig Wiseman, Heather Buresh, Amy Allmand & Steven McMillian
Big Loud Shirt & Big Loud Bucks staff recently hosted its Annual Big Loud Parking Lot Party, themed “The Hungover Games.”
Weekly Register: Discounters Create Sales Iceberg
/by bossrossUnfortunately, the real story, like an iceberg under water, is hidden from view. That real story is a too familiar parable of revenues and costs which is being redefined by retailers like Google with its regular $3.99 album specials. For example, this week a quick search for country in the $3.99 digital bin found found Taylor Swift’s Fearless, Sugarland’s Incredible Machine, Martina McBride’s Eleven, Alison Krauss A Hundred Miles.. and more. We’ve been told that discounters like Google, Amazon and others are still paying labels the normal wholesale value, but this activity is a ticking time bomb sure to redefine music pricing going forward which can’t be good for record label bottom lines, long term.
Average Joes Entertainment CEO Shannon Houchins, in this week’s two-part MusicRow interview says he believes music sales will no longer be a revenue stream in as soon as a few years. [Click HERE to read.] It’s hard to accept that vision might become reality in the country industry. However, as music sales from all formats converge into a single handheld mobile device, it seems likely that what happens in one format will quickly spread to all. Imagine how the Nashville landscape might look if the revenue landscape were to alter itself that dramatically!
Albums
For the week ended 4/29/12 we see the overall industry struggling to remain even with last year, and falling .9% behind. As the grid shows, if one includes YTD TEA numbers, then sales are up slightly, 1.3%. Nashville-based Jack White debuts Blunderbuss this past week and sees it sit on top of the Top 200 list with sales of almost 138k.
In the world of country, Lionel Richie remains at No. 1 scanning an additional 78k units to push his 5-week total above 615k and YTD country album sales ahead 5.9%. Debuts take spots No. 2 and 3 on the country list; Curb’s Lee Brice sells 46k with Hard 2 Love and MCA’s Kip Moore scans 37k with Up All Night.
Carrie Underwood’s Blown Away just hit bins and next week’s debut numbers will surely bump up and keep country album sales in positive territory.
Tracks
Digital track sales are ahead for all genre and for country which explains why YTD TEA album numbers are higher than pure album sales. On the country list we see the usual suspects holding court in the Top Ten; Taylor, Eric, Luke, Carrie, Kip, Jason, Lee, Miranda, a Kenny/Tim duet and Eli Young Band. Eric Church’s “Springsteen” moves up a spot to No. 2 notching sales of almost 79k units.
Church’s tough-edged attitude brought him a few media lessons this past week when he dissed TV singing contests in a Rolling Stone interview and then incurred the Twitter wrath of Miranda and Blake. Church later apologized saying it was about the shows and “not the artists themselves.” We’ll watch next week for any chart fallout.
Country track sales are doing nicely passing the 54.7 million mark and up a robust 21.7% YTD.
See you next week!
Industry Updates (5/2/12)
/by Sarah SkatesBluegrass duo The Roys have joined SESAC for performing rights representation. The brother and sister act have just released their debut project on Rural Rhythm Records entitled Lonesome Whistle. “We are extremely excited to welcome The Roys into the SESAC family,” says SESAC’s Vice President, Tim Fink. “The Roys are a unique act with such an exciting and definable sound. Everyone at SESAC looks forward to being a part of the great things to come from The Roys. Pictured (L-R): Lee Roy, Elaine Roy, Tim Fink. Photo: Peyton Hoge
• MusicRow magazine founder David Ross will celebrate the release of his first book Secrets of the List with a reception Tues., May 22, 4:30 p.m. at BMI’s Nashville offices. Ross’ guide to digital marketing has been well received.
Manager and author Stuart Dill (L) appeared on NPTV’s “Word on Words” with John Seigenthaler (R) to discuss his debut novel "Murder on Music Row." The episode airs Sun., May 6 at 10:00 a.m.
• Mark De Lelys has been named Director of Merchandising and Retail Development at the Country Music Hall of Fame® and Museum. Reporting to Vice President of Sales and Marketing Sharon Burns, De Lelys will oversee retail operations, including the upcoming Museum Store expansion and new retail space for Hatch Show Print; and merchandise design and development. De Lelys most recently served as director of retail and visitor services for the Pennsylvania Academy of the Fine Arts. During his 18-year tenure there, De Lelys’ accomplishments included developing the concept for the academy’s new 1,800-square-foot retail store, and initiating the academy’s web store.
• Beginning June 11, The Time Jumpers will relocate from The Station Inn, where it has performed nearly every Monday night since June 9, 1999, to the recently renovated and enlarged 3rd & Lindsley. The band is making the change primarily to accommodate fans who are routinely turned away for lack of seating. “We are looking forward to making 3rd & Lindsley our new home,” says bandleader Kenny Sears. “The larger venue will enable us to accommodate our fans in a more comfortable way. We are so grateful to [owner] J.T. Gray and the Station Inn for taking a chance on us 13 years ago and giving us a place to play our music. Leaving here is truly like leaving home.” The Time Jumpers is made up of prominent musicians Sears, Joe Spivey, Vince Gill, “Ranger” Doug Green, Andy Reiss, Paul Franklin, Dennis Crouch, Larry Franklin, Dawn Sears, Jeff Taylor and Billy Thomas.
• Congratulations to artist Josh Kelley and actress wife Katherine Heigl who recently adopted a daughter. She joins 3-year-old big sis Naleigh, who was adopted from South Korea.
• Music Row will soon have a new dining option. Soulshine Pizza is set to open in midtown in the former Hollywood Disco building, reports the Nashville Scene. The Mississippi chain is a favorite in Oxford and Jackson.
Sirius XM Reports Positive First Quarter
/by Sarah SkatesSirius XM is installed in more than 60 percent of new vehicles. The current basic package costs $14.49 per month.
Revenue for the first quarter was $805 million, up 11% over Q1 2011 revenue of $724 million. Net income for the first quarters of 2012 and 2011 were $108 million and $78 million, respectively.
Karmazin also said the company plans to introduce a personalized radio service later this year which would be similar to Pandora.