Finding A Way Out Of The Record Biz Maze

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Hollywood entertainment blog TheWrap.com, usually content to bluster over the world of film and TV has issued a pair of music industry articles offering dire 2011 predictions.
“Has the music stopped for the broken record business?” asks writer Johnnie L. Roberts, who arrives at TheWrap via stints for Newsweek and the Wall Street Journal. Roberts quotes an unnamed major label senior exec who says, “No other industry will go through as much change as the music industry will in the next six months.”
Roberts notes that the recent arrival of CEO Lucian Grainge to Universal came with an imperative to cut expenses. Unofficial sources peg those cuts at anywhere from $50 million all the way to a seemingly impossible $400 million. Leadership changes are also in play at Sony with Rolf Schmidt-Holtz out in April. Will the Sony seat be filled by Doug Morris now leaving Universal or could it be Tom Whalley, recently of Warner Music Group who will fill the vacant chair?
“The business of selling music is over as we knew it,” a former label chief said to TheWrap. “And the future of it is yet to be determined by anyone.”
Roberts says that shrinking sales and narrowing margins are finally catching up with companies and points to EMI’s Guy Hands as another troubled example saying, “Unable to earn enough to avoid breaching billions of dollars of loans piled atop the music company, EMI is already essentially in play — to be traded all or in parts to the highest bidder.”

Total U.S. Album sales (in millions) have dropped 58.5% from 2000 to 2010. Source: Nielsen SoundScan.


Analysis: The grim discussion now facing the music industry is not totally unwarranted, although it may be a touch dramatized to help create more emotional headlines. According to Nielsen SoundScan, total U.S. album sales in 2000 were about 785 million. In 2010 those sales had dropped 58.8% to 326 million. During that time period the industry worked to reduce expenses and  take advantage of additional revenues from touring, publishing, merchandise, litigation and more. Those additional income streams have helped to offset the effects of falling album sales. However, little has been done to solve the specific problem of eroding music sales.
Will 2011 be the year that the industry tackles the music sales issue head on? With sales reaching ever lower levels time is running out to find a solution. Educating the consumer and locking files has had failed results. Maybe the next approach is ask consumers to pay on the way into the store.

Etix Acquires Rockhouse Partners

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Rockhouse founders L-R: Tawn Albright, Kevin Brown, and Joe Kustelski


Rockhouse Partners, the Nashville digital marketing company specializing in live events, has been acquired by ticketing service Etix.
Founded by former Echo executives Tawn Albright, Kevin Brown, and Joe Kustelski, Rockhouse had recently announced its expansion with Rockhouse Live, a division focused on helping live entertainment properties sell more tickets.
Kustelski and Brown will stay with the company and lead technology/product, and marketing integration, respectively. Albright will move on to a new opportunity helping Nashville-area start-ups.
Etix is an international, web-based ticketing service provider for the entertainment, travel, and sports industries. Etix operates in 40 countries and serves venues, arenas, festivals, fairs, performing arts centers, and multi-use facilities.
“Rockhouse allows us to expand in a direction that reflects the real needs of our clients,” explains Travis Janovich, CEO of Etix. “It’s becoming increasingly complicated for clients to manage and measure digital marketing in-house. And that’s what the team at Rockhouse does best.”

Rascal Flatts Concert Special on ABC

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The ABC Television Network will air a Rascal Flatts concert special on Sat., March 12 at 7 PM/CT. The band’s show this Friday, Jan. 21 at St. Paul, Minnesota’s Xcel Energy Center will be taped for the special.
Rascal Flatts: Nothing Like This Presented by JCPenney will be directed by George Flanigen and executive produced by Robert Deaton.
With more than 6 million concert tickets sold during Rascal Flatts’ career, the band launched the second leg of its Nothing Like This Tour on Friday (1/14). The tour will wrap in Oklahoma City, Oklahoma on March 12.
ABC is a frequent broadcaster of country music specials, including the CMA Awards, CMA Music Festival, and CMA Country Christmas.

Faith Hill, Pretenders Pair For Super Bowl CMT Crossroads

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A special episode of CMT Crossroads will pair Faith Hill with The Pretenders, live from the Super Bowl festivities.
The show will premiere on CMT Saturday, February 5 at 9 p.m. CT. It is part of the NFL Pepsi Super Bowl Jan Fam, a three-show concert series being held at the Verizon Theatre in Grand Prairie, TX.
Fronted by Chrissie Hynde, The Pretenders were inducted into the Rock and Roll Hall of Fame in 2005. This will mark the CMT Crossroads debut for both artists.
Hill has strong ties to the NFL as the voice of NBC’s Sunday Night Football.
CMT Crossroads is produced by Tom Forrest and Kathryn Russ. John Hamlin, Margaret Comeaux and Bill Flanagan serve as executive producers for CMT.

Schwartzenberg Named HoF Sr. Dir. of Marketing

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The Country Music Hall of Fame and Museum has named Jeff Schwartzenberg to the position of Sr. Dir. of Marketing. Schwartzenberg will report to VP Sales and Marketing Sharon Burns and will oversee advertising, promotions, creative, digital marketing and related initiatives for the museum.
Schwartzenberg most recently served as Sr. Dir. of Marketing and Communications for the Nashville Predators Hockey Club. Prior to that, he was the Sr. Marketing Mgr. for the Vanderbilt Owen Graduate School of Management.
A native of White Plans, NY, Schwartzenberg started his career with the New York Rangers Hockey Club in 1996, where he worked for over a decade. He also spent 18 months with Travelocity before relocating to Nashville in 2007.

Media Consumption Shifts Content Value

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It’s no secret that music sales have tanked over the last several years, and today’s LA Times examines how media consumption is shifting as Hollywood also feels the hurt.
All kinds of media purchases are on the decline, ranging from CDs and DVDs to video games and movie theater attendance. Another major factor impacting the film business is the popularity of renting movies instead of buying them. But according to the newspaper, the most ominous sign of trouble is that the pay-television industry recently suffered a net loss for the first time in history, signaling that consumers no longer see cable as a necessary expense on par with electricity and water.
“The studios and the content companies have become increasingly aware of the problem, but they seem collectively paralyzed about what to do about it,” Craig Moffett, an analyst with Sanford C. Bernstein & Co., told the Times.
The article goes on to point out that technology is making content cheaper and easier to access, but while there has been an increase in online consumption it hasn’t resulted in a corresponding revenue increase. Some analysts believe this may be a permanent shift in the way fans consume media.
According to the newspaper:

Consumers have proved that although they are willing to shell out for gadgets, they view content as cheap filler and are less willing to pay to own it. Because video is seemingly ubiquitous, consumers no longer feel they need to own a DVD or digital downloaded file to watch a movie or TV show.

Another major factor is economic conditions, which the paper says is “widening the gulf between the haves and the have-nots.” Those who are being more negatively impacted by the economy are simply spending less on entertainment.

The “other half” encompasses the lower 40% of American earners, who, after paying for food, housing and transportation, are left with just $100 a month to pay for healthcare, clothing, phone service — and entertainment, Moffett said.
“Right now it is a tale of two cities,” Moffett said. “On the high end, people can’t go up-market fast enough,” he said, referring to affluent consumers who are buying the latest in mobile phones, portable tablets, or Internet-connected TV sets. “Then you have this other half of the country that is being largely ignored in this discussion.”

Sounds like Nashville is singing the same tune.

The Producer's Chair Expands; Radio Show Debuts

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The Producer's Chair


The monthly interview series The Producer’s Chair will begin airing online and on TV. The show from creator/host James Rea is also moving to a new venue.
Beginning with the Friday, January 28 show featuring multi-Grammy winning producer, engineer, mixer, David Z (Prince, Elvis Costello, Lynyrd Skynyrd, Steve Cropper), The Producer’s Chair will be taped for MTSU’s MTTV.
To accommodate a multi-camera shoot, a larger seating capacity and the addition of a house band, the show is moving to Jefferson’s Showcase (1036 Jefferson St., Nashville, TN 37208). Doors open at 5 PM for the free series, and the audience must arrive by 6 PM for a 6:30 PM taping.
Contact James Rea at 

615-244-7555 or 
james@theproducerschair.com.
••••
A radio show called Nashville’s New Country with Chuck and Steve will debut on February 6, 2011. Chuck Wilder and Steve Southard will host the show. Artists scheduled for the debut installment include Sunny Sweeney, Thompson Square, Frankie Ballard, Walker Hayes, Ashton Shepherd, David Adam Byrnes and Tim Dugger.
Affiliates in Arkansas and Ohio are among those signed up to air the program.
For information about getting your music on the show, visit www.nashvillesnewcountry.com. To schedule interviews call the hosts at 615-669-2005.

Aldean's "Party" Goes Platinum

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That’s right, it’s time for the My Kinda Party party. Less than three months since the release of Jason Aldean’s fourth album My Kinda Party, it has earned Platinum certification. This makes his third career Platinum album and brings his overall sales total to five million.
“I just can’t say enough about country music fans and the amount of loyalty they have for their favorite artists,” says Aldean. “To think that a million people already bought this record is hard for me to get my head around. And five million since I started? No way! I am so grateful to them for giving me the opportunity to play music every night.”
Aldean launches his My Kinda Party Tour this Friday (1/21) in Little Rock, AR. The trek currently has 30 dates scheduled and features guests Eric Church and the JaneDear girls.

Hirings At Monarch Publicity, Davis Music Group

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Cindy Heath (L) and Heather Conley (R).


Heather Conley has joined Cindy Heath’s Monarch Publicity as Director, Marketing. With the company’s expansion, it will begin offering consumer, third-party marketing and sales support, as well as publicity services.
Conley was previously Marketing Director at Disney’s Lyric Street Records and most recently with Big Machine Label Group.
“Heather is a great creative mind who has overseen and executed marketing campaigns for a number of multi-platinum level acts, including Rascal Flatts, and partnered with companies such as JCPenney, Best Buy, Wal-Mart, Denney’s, and Kraft” explains Heath. “In today’s changing entertainment landscape, it is important we offer our clients a full spectrum of marketing services and Heather is the perfect fit for this role.”
Conley can be reached at heather.conley@monarchpublicity.com or 615-202-5070.
Heath can be reached at cindy.heath@monarchpublicity.com or 615-429-2203.
••••••

Dustin Hensley


Davis Music Group’s GM Gator Michaels announces the hiring of Dustin Hensley as Marketing Assistant, effective immediately.
“As our intern last fall, Dustin impressed all of us at Davis Music Group with his attention to detail, enthusiasm, and willingness to do whatever it takes to get the job done,” says Michaels. “He is a valued addition to DMG and we are thrilled to have him as part of the family.”
Hensley can be reached at dhensley@davismusicgroup.com or at 615-873-1224.
Please note the change in address for Davis Music Group:
1222 16th Ave., Ste. 10, Nashville, TN 37212.

Carter's Chord

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“A Little Less Comfortable”
Show Dog-Universal
Sister trio Carter’s Chord (Emily, Joanna, and Becky Robertson) is releasing its new single “A Little Less Comfortable.” The song was written by Emily and Joanna with Phillip White and tells the story of someone longing to return a more exciting, unpredictable time in a relationship.
The music of Carter’s Chord is steeped in tradition. The sisters were born into a musical family– their father was a pianist, producer, string arranger and their mother a singer, who both toured and recorded with Waylon Jennings during the height of the Outlaw movement.
After signing to Toby Keith’s Show Dog-Universal label, Carter’s Chord released the 2008 singles “Young Love” and “Different Breed.” The group has spent the last several months working on a new record with Toby Keith and Mark Wright.
“We’ve been spending the better part of this year in creative mode, living in the studio and immersing ourselves in writing,” says Becky. “We could not be more proud of the music we are turning out. It has been exciting to work in the studio with heavy hitters like Toby Keith and Mark Wright. This is the real Carter’s Chord; it’s the music we’ve always wanted to make.”
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