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Awards: Songwriters And CMT

ASCAP Celebrates “Don’t You Wanna Stay”

ASCAP celebrated the writers and publishers of the 3-week No. 1 “Don’t You Wanna Stay” during a party Wednesday (5/11). Writers Andy Gibson, Paul Jenkins and Jason Sellers each celebrated their first No. 1., and publishers Sony/ATV and Godfather Rich Muzik (with John Rich picking up his first No. 1 plaque as a publisher) were also honored. Jason Aldean was on hand to celebrate his sixth chart topper, and Michael Knox was also presented with a plaque for his contributions as producer.

(L-R): John Rich, Sony/ATV's Troy Tomlinson, Paul Jenkins, Andy Gibson, Jason Aldean, Jason Sellers, Michael Knox and ASCAP's Mike Sistad. Photo: David Braud


 
 

SESAC New York Music Awards

Lady Antebellum’s Hillary Scott took home Song of the Year honors for her hit, “Need You Now” at the 15th Annual SESAC New York Music Awards held Wednesday night (5/11). Rico Love was named Songwriter of the Year and publisher of the Year honors went to EMI Foray Music. A complete list of winners is available at www.sesac.com.

(L-R): SESAC’s Tim Fink, Linda Lorence Critelli and Pat Collins; Hillary Scott; and SESAC’s Stephen Swid and Treavor Gale.


 
 

CMT receives Mayor’s Award for Outstanding School Partner

Last week at the PENCIL Foundation’s BRAVO! Awards Luncheon, Mayor Karl Dean presented CMT with the Mayor’s Award for Outstanding School Partner for the network’s work with their Academies of Nashville school partner, McGavock High School. CMT Presiden Brian Philips accepted on behalf of the network.

(L-R): Mayor Karl Dean and Brian Philips.

Weekly Chart Report (5/13/11)



Margaret Durante has been on a national radio tour to promote her single “Maybe Tonight” and digital EP. She has visited more than 100 stations across the country. (L-R): Durante and WUSH/Norfolf, VA PD Brandon O’Brien.

SPIN ZONE
It’s a tight 1-2-3 configuration at the top of the CountryBreakout Chart, but Brad Paisley’s “Old Alabama” remains at No. 1 for a second consecutive week. Chasing Paisley very closely are The Band Perry’s “You Lie” at No. 2, and Taylor Swift’s “Mean” which makes a big jump up from No. 6. Factor in Justin Moore’s “If Heaven Wasn’t So Far Away” at No. 5, and Big Machine Label Group has 60 percent of the Top 5.
More summer singles are on the way. Lady Antebellum’s highly anticipated “Just A Kiss” has risen from zero to No. 30 in a short two week span. Similarly Zac Brown Band’s “Knee Deep” featuring Jimmy Buffett has climbed all the way to No. 27 in just three weeks. Bucking the upbeat, sunny summer trend is Kenny Chesney’s “You And Tequila” featuring rocker Grace Potter. The move seems to be working–the contemplative number has quickly ascended to No. 44 in its second week charting.
Joe Nichols sticks with the more traditional summer fare on his “Take It Off,” and earns the Power Chart Debut honor. Also debuting are Jennette McCurdy’s “Generation Love” at No. 76, Jordan Carter’s “Daddy Never Had A Chance In Hell” at No. 79 and Burns & Poe’s “Second Chance” at No. 80.
Frozen Playlists: KBCR, KLQL, KNCQ, KYYK, WCMS, WKBQ
RADIO NEWS
More radio personalities on the move this week, as WHWK/Binghamton, NY PD/Afternoons Don Brake announced his exit from the station. The search is on for his replacement and those interested can send resumes and airchecks to binghamton.job@citcomm.com. Brake says he’ll be resurfacing with another radio job soon.





Upcoming Singles
May 16
Burns & Poe/Second Chance/Blue Steel
David Adam Byrnes/She Only Wanted Flowers/Better Angels
Hunter Hayes/Storm Warning/Atlantic/WMN
May 19
Deborah Allen/Anything Other Than Love/Delta Rock
May 23
The Lunabelles/A Place To Shine/BNA
Shawna Russell/Get Right Or Get Left/Way Out West
Phil Vassar/Let’s Get Together/Rodeowave
Joe Nichols/Take It Off/Show Dog – Universal
Darius Rucker/I Got Nothin’/Capitol
Josh Kelley/Gone Like That/MCA
• • • • •
New On The Chart—Debuting This Week
Artist/song/label — chart pos.
Joe Nichols/Take It Off/Show Dog-Universal — 71
Jennette McCurdy/Generation Love/Capitol — 76
Jordan Carter/Daddy Never Had A Chance In Hell — 79
Burns & Poe / Second Chance / Blue Steel — 80
Most Added
Artist/song/label — New Adds
Kenny Chesney feat. Grace Potter/You And Tequila/BNA — 30
Lady Antebellum/Just A Kiss/Capitol — 30
Thompson Square/I Got You/Stoney Creek — 19
Rodney Atkins/Take A Back Road/Curb — 16
Billy Currington/Love Done Gone/Mercury — 16
Darius Rucker/I Got Nothin’/Capitol — 16
Joe Nichols/Take It Off/Show Dog-Universal — 14
Zac Brown Band and Jimmy Buffett/Knee Deep/Southern Ground / Atlantic — 14
Burns & Poe/Second Chance/Blue Steel — 11
Greatest Spin Increase
Artist/song/label — spin+
Lady Antebellum/Just A Kiss/Capitol — 664
Kenny Chesney feat. Grace Potter/You And Tequila/BNA — 453
Zac Brown Band and Jimmy Buffett/Knee Deep / Southern Ground/Atlantic — 437
Blake Shelton/Honey Bee/Warner Bros./WMN — 424
Jason Aldean/Dirt Road Anthem/Broken Bow — 297
On Deck—Soon To Be Charting
Artist/song/label — spins
Jonalee White/Sugar/Lick — 217
Landon Michael/This Ain’t California/Big Dog Records — 199
Jadi Norris/Workin’ Man’s Saturday Night/IGO Records — 198
Ben Gregg/From Lonely To Love/Cupit — 188
David St. Romain/Twenty Years Late/Aria/Turnpike — 168

Who needs Cinco de Mayo when you have Seis De Mayo with The Rodeo Club, KRTY and the Eli YoungBand? Hanging backstage in the kitchen with a bottle of Tapatio hot sauce and celebrating Musica in San Jose, CA are, pictured (L-R), EYB’s James Young, KRTY GM Nate Deaton, EYB’s Chris Thompson, Mike Eli, KRTY GSM Tina Ferguson, EYB’s Jon Jones and Republic Nashville’s Lois Lewis (on ground).


Davis Music Group’s Jacob Lyda performed as part of WFRE’s “Random Acts of Country” show in Frederick, MD last week. Lyda took the opportunity to showcase his new single, “I’m Doing Alright,” for the approx. 400 fans in attendance.(L-R): WFRE’s Dave Conrad, Nine North Records’ Will Robinson, Lyda, WFRE PD Jess Wright, WFRE’s Tom Whalen and WFRE’s Jessica Mitko (in front).


EMI Records Nashville newcomer Eric Paslay recently stopped by to visit his friends at WUSN/Chicago while on his first radio tour. (L-R): WUSN APD/PD Marci Braun, Eric Paslay, WUSN PD Buddy Scott, EMI Records VP Promo Angela Lange, EMI Records Regional Chuck Swaney

Protect IP Bill Aims To Curb Piracy

Legislation designed to crack down on rogue websites dedicated to the sale of infringing or counterfeit goods was introduced today (5/12) to the Senate Judiciary Committee. A bipartisan group of Senators including Patrick Leahy (D-VT.) , Orrin Hatch (R-Utah), and Chuck Grassley (R-Iowa) proposed the legislation.
According to an official press release, The Preventing Real Online Threats to Economic Creativity and Theft of Intellectual Property Act, or PROTECT IP Act, follows bipartisan legislation introduced in 2010, which won the unanimous support of Senate Judiciary Committee members. The PROTECT IP Act narrows the definition of a rogue website, while ensuring that law enforcement can get at the “worst-of-the-worst” websites dedicated to selling infringing goods. Copyright infringement and the sale of counterfeit goods reportedly cost the U.S. economy billions of dollars and hundreds of thousands of jobs, as well as billions of dollars in lost tax revenue for federal, state and local governments.
Senator Leahy said “This legislation will protect the investment American companies make in developing brands and creating content and will protect the jobs associated with those investments. It will also protect American consumers, who should feel confident that the goods they purchase are of the type and quality they expect. The PROTECT IP Act targets the most egregious actors, and is an important first step to putting a stop to online piracy and sale of counterfeit goods.”
Steve Bogard, President of NSAI commented on the new bill saying, “We applaud the introduction of the bi-partisan IP Protection Act by our friends Senators Leahy, Hatch and Grassley, and thank them their co-sponsors and all the members of Senate Judiciary.  This law is an important first step in showing the world that America is serious about protecting one of our most valuable resources, American Music.  As an industry, songwriters are committed to leading the way toward a new era of music industry cooperation that will help enable our government to protect and promote one of our most precious assets around the world American music.”
Key updates to the PROTECT IP Act include:

  • A narrower definition of an Internet site “dedicated to infringing activities”
  • Authorization for the Attorney General to serve an issued court order on a search engine, in addition to payment processors, advertising networks and Internet service providers;
  • Authorization for both the Attorney General and rights holders to bring actions against online infringers operating an internet site or domain where the site is “dedicated to infringing activities,” but with remedies limited to eliminating the financial viability of the site, not blocking access
  • Requirement of plaintiffs to attempt to bring an action against the owner or registrant of the domain name used to access an Internet site “dedicated to infringing activities” before bringing an action against the domain name itself
  • Protection for domain name registries, registrars, search engines, payment processors, and advertising networks from damages resulting from their voluntary action against an Internet site “dedicated to infringing activities,” where that site also “endangers the public health,” by offering controlled or non-controlled prescription medication.

Leahy and Hatch introduced legislation to counter online infringement in September 2010, and in November 2010, the Senate Judiciary Committee unanimously approved the legislation by a vote of 19-0. In February, the Senate Judiciary Committee held a hearing examining the impact of online infringement and counterfeit sales. The PROTECT IP Act builds on the consensus legislation approved by the Committee last year, while incorporating provisions in response to concerns raised by stakeholders. The PROTECT IP Act is cosponsored by Senators Chuck Schumer (D-N.Y.), Dianne Feinstein (D-Calif.), Sheldon Whitehouse (D-.R.I.), Lindsey Graham (R-S.C.), Herb Kohl (D-Wis.), Christopher Coons (D-Del.), and Richard Blumenthal (D-Conn.)
 
For varied opinions about the proposed Protect IP Act try the following links
LA TimesSenate leaders renew push to crack down on Internet piracy
TechDirt-The Good, The Bad And The Horribly Ugly
Copyright Alliance Executive Director Sandra Aistars- RE: Introduction of Legislation to Crack Down on Illegal Streaming

Luke Bryan Reveals New Album

Luke Bryan used the power of social media to announce his new album Tailgates & Tanlines, which is due out August 9. During a live stream on his Facebook page, Bryan revealed the album’s title and played two songs live including “Drunk On You” and “Kiss Tomorrow Goodbye.”
Produced by Jeff Stevens, Tailgates & Tanlines is Bryan’s third studio album for Capitol Nashville and features his current single “Country Girl (Shake It For Me).” The song had a digital sales debut of 105k during its release week, a career high for Bryan.
“I’m so excited to be giving my fans new music!” says Bryan. “Writing and recording this project has been a blast. I feel like I continue to grow in my artistry and I hope that feeling never goes away. Being out there on the road so much and seeing what the fans want make it much clearer for me to know what to give them. I hope they are as excited to hear it as I am to know what they think!”
Bryan is currently nominated for two 2011 CMT Music Awards, and he’ll be on the road with Tim McGraw’s Emotional Traffic tour this summer.

CMT Disaster Relief Concert Tonight

[Updated 5/12: The concert will feature call to action messages from President Obama, Big Kenny, Carrie Underwood, Courteney Cox, Ellen Degeneres, University of Alabama Coach Nick Saban, Nicole Kidman, Shania Twain, Taylor Swift and more.
MusicRow has the exclusive list of stars who will be manning the phone bank tonight, including Alabama, Ashton Shepherd, Big Kenny, Clay Walker, Clint Black, Crystal Bowersox, Danny Gokey, Darryl Worley, David Nail, Hank Williams, Jr., Hillary Williams, Holly Williams, Kellie Pickler, Montgomery Gentry, Phil Vassar, Randy Houser and Ricky Skaggs.
Alan Jackson will perform on the show and live stream it at AlanJackson.com.]




Robin Meade




••••
Robin Meade, CNN HLN anchor is set to co-host Music Builds: The CMT Disaster Relief Concert.” The show will air live from the Grand Ole Opry House stage and Studio A on Thur., May 12, 9 p.m. ET/8 p.m. CT.
HLN will re-broadcast the show in its entirety on Sun, May 15, 9 p.m. ET/8p.m. CT, to build additional awareness. Funds will benefit the American Red Cross Disaster Relief effort in the South and Red Cross and phone lines will also be open for HLN’s re-air on Sunday.
“When I anchor stories about the recent storms in the South, my mind isn’t on the statistics, or the footage, or the sound bites,” says Meade. “My thoughts are with that person who looks around and wonders, ‘what am I going to do now that everything is gone?’ I’m so touched by the resiliency of the storm victims, and the generosity of music fans and viewers to help these folks whose lives are now in disarray, and that’s what this telethon is going to be about, lifting up storm victims, letting them know, they’re not alone.”
Joining Meade as co-hosts will be ESPN’s Erin Andrews and comedian Ron White. Country artists scheduled to appear include Hank Williams Jr., Alabama, Alan Jackson, Keith Urban, Lady Antebellum, Little Big Town, Ronnie Dunn, Sara Evans, Tim McGraw and Trace Adkins. All money raised will benefit the American Red Cross Disaster Relief. Highlighted regions affected by recent storm, tornado and flooding damage will include Tuscaloosa and Birmingham, Ala.; Natchez and Vicksburg, Miss.; Vidalia, La.; Dyersburg and Tiptonville, Tenn.; and Raleigh, N.C.
Meade will also provide live reports from the Grand Ole Opry House and interviews with featured musicians on Thu and Fri for her popular HLN morning show, “Morning Express with Robin Meade” (6 a.m. – 12 noon, ET).
Information is as follows: Visit www.redcross.org, call 1-800-RED CROSS or text “REDCROSS” to 90999 to make a $10 donation to support the American Red Cross Disaster Relief efforts.

DISClaimer Single Reviews (5/10/11)

You remember albums, don’t you?

They are collections of songs that ask you to experience several of a favorite performer’s thoughts of the moment. Mind you, there aren’t a whole lot of folks in Music City that you want to spend that much time with. But one of them most certainly is Emmylou Harris. So for album achievement, her Hard Bargain is a Disc of the Day.
Country music is, was and probably always will be centered on hit singles. With that in mind, hand a Disc of the Day to the fun, catchy “Take It Off” by the always listenable Joe Nichols.
I am happy to report that there are three brand-new faces in this stack of platters. One of them, Jason Jones, wins our DisCovery Award with “Ferris Wheel.”
RIDIN’ HIGH BAND/Go Crazy With My Heart
Writer: M. Jason Greene/Chris Cagle; Producer: none listed; Publisher: Anjelito/Do Write/Sony-ATV Tunes, BMI/ASCAP; Centennial Records of Texas (409-296-2953)
—There’s talent here: The lead vocalist has personality and the band plays well. My suggestion is that they hire someone to actually MIX the sound the next time they record.
DARIUS RUCKER/I Got Nothin’
Writer: Darius Rucker/Clay Mills; Producer: Frank Rogers; Publisher: Universal/Cadaja/MXC/Still Working for the Woman/EverGreen, ASCAP; Capitol Nashville (track)
—Very cool. In a sea of happy-happy ditties, Darius puts out a defeated, dejected heartache song that captures loss beautifully. The steel playing and his soaring voice on the choruses are particularly gripping.
SHAWNA RUSSELL/Get Right Or Get Left
Writer: Shawna Russell/Keith Russell/Tim Russell; Producer: Julian King, Clif Doyal & Tim Russell; Publisher: Blue Buckaroo, BMI; Way Out West
—She’s a wailer. And this take-a-hike-buddy attitude is perfect for her rocking vocal chops.
ZAC BROWN BAND & JIMMY BUFFETT/Knee Deep
Writer: Zac Brown/Wyatt Durrette/Coy Bowles/Jeffrey Steele; Producer: Keith Stegall & Zac Brown; Publisher: Weimerhound/Lil’ Dub/Angelika/Poppsolotamus/Jeffrey Steele/BPJ, BMI; Atlantic (track)
—As breezy as a ride on Buffett’s boat. It takes you straight to that wave-washed beach in your mind. In other words, pretty darn irresistible.
DEBORAH ALLEN/Anything Other Than Love
Writer: Deborah Allen/Gary Burr; Producer: none listed; Publisher: none listed; Delta Rock (615-476-4086)
—She’s singing as soulfully as ever. The song and production are straightforward and sturdy.
THE LUNABELLES/A Place To Shine
Writer: Natalie Hemby/Angela Lauer; Producer: Jeff Coplan; Publisher: Tiltawhirl/Carnival/Bluewater/Sophie Park/Kobalt, BMI/ASCAP; BNA
—It somehow manages to be both acoustic/rootsy and pop/crunchy simultaneously. The banjo licks, percussion thump and feathery femme harmonies are all ear catching. I’m in.
JASON JONES/Ferris Wheel
Writer: Kyle Jacobs/Josh Kelley/Rachel Thibodeau; Producer: Brett Beavers; Publisher: Curb/Jacobsong/Fortune Favors the Bold/Kohaw/Dudeski/Bicycle/Little Champion/Dream Rock, ASCAP; Warner Bros.
—The delicate instrumental track practically twinkles. His boyish tenor vocal matches the innocent-romance lyric perfectly. Dizzy and captivating.
JOE NICHOLS/Take It Off
Writer: Dallas Davidson/Ashley Gorley/Kelley Lovelace; Producer: Buddy Cannon; Publisher: EMI Blackwood/String Stretcher/Songs of Southside Independent/External Combustion/Out of the Taperoom/EMI April/Didn’t Have to Be, BMI/ASCAP; Show Dog Unversal
—It’s not exactly life changing as a song. But this man’s superb voice can make even the trivial sound important. And the whole lovable thumping country thang is absolutely the Sound of Summer. I remain an enormous fan.
EMMYLOU HARRIS/Six White Cadillacs
Writer: Emmylou Harris/Will Jennings; Producer: Jay Joyce; Publisher: Poodlebone/Almo/Will Jennings/Irving, ASCAP; Nonesuch (track)
—Hypnotic. Electric guitars stutter and shuffle while percussion patters steadily behind her hushed, ghostly vocal delivery of a funeral lyric. This is the tune she chose to perform on Letterman to introduce her new Hard Bargain CD. But it could just as easily have been any of its other dozen shining gems. Jay Joyce’s minimalist sonic approach keeps you hanging on every line of this largely self-penned collection. Check out her moving odes to Gram Parsons (”The Road”) and the recently deceased Kate McGarrigle (”Darlin’ Kate”).
PHIL VASSAR/Let’s Get Together
Writer: Phil Vassar/Tony Mullins; Producer: Phil Vassar & Ross Copperman; Publisher: Phylvester/TMullins, ASCAP; Rodeowave
—Hey, everybody. There’s a party at Phil’s house, and we’re all invited.

Google Unveils Cloud Lockers: Analysis

Various sources are reporting that Google will announce a new unlicensed cloud locker service as early as today (5/10). Amazon recently debuted something similar and received strong criticism from the four major record labels who believe that a service which allows users to store music files in the cloud must be licensed.
Both Amazon and perhaps Google seem to believe that as long as the lockers are merely a storage facility for individual users a license is not necessary. The more streamlined approach—which apparently would require a license— would be to have one copy of a song in the cloud and allow various users to link and listen to it on demand. Apple is said to have such a system ready to roll as soon as it is able to negotiate licenses.
Google’s new system, termed a “passive” locker offers a limited set of fucnctions. Speculation is that the Google service will allow users to listen to songs they have uploaded in streaming mode, but users will then be unable to download them.

The WSJ explains, “Users of the service are expected to be able to listen to songs they have uploaded to the service in a so-called streaming mode but won’t be able to download the files themselves. That limit appears to be a bid by Google to hinder the service from being used to spread pirated music.”

Analysis: In essence the Google offering will resemble a personalized streaming music service, such as Spotify with the restriction that users will only be able to listen to music which they have uploaded themselves. This is a time consuming endeavor. Amazon has a similar unlicensed service which has some added bells and whistles as it is tied closely to Amazon’s MP3 music store and allows downloads. European company Spotify, has a complete streaming music service which is ad supported and/or subscription based. Labels are resisting a licensing deal which would allow Spotify to launch in the U.S. due to concerns that it will not generate enough revenue. Labels are also resisting a deal with Apple for a comprehensive streaming music service.
But is this smart? Pirated downloads outnumber paid downloads 20 to 1. Isn’t there something to be gained by subsidizing new business models and helping to create new “paid” consumer listening habits? Wouldn’t the music industry have benefited if it had nurtured Napster, for example, instead of litigating it out of existence which only succeeded in stimulating a new generation of filesharing sites and a decade of disastrous falling sales?
 

Tickets For Swift's "Speak Now…Help Now" Benefit

Taylor Swift is opening the final dress rehearsal for her Speak Now Tour to the public, with 100 percent of ticket proceeds going to tornado relief efforts. She announced the benefit last week and has now revealed ticketing details.
Tickets to “Speak Now…Help Now” will go on sale Thursday, May 12, at 10 a.m. CT. All tickets are $50, and will be available through TaylorSwift.com, and Ticketmaster.com.
The show will be held at Nashville’s Bridgestone Arena on Saturday, May 21. Doors open at 6:00 p.m., and the rehearsal will start at 7:30 p.m. Attendees will receive a complimentary commemorative event T-shirt.
Through this unprecedented step of opening the last dress rehearsal to the public, 13,000 fans will get a first look at Swift’s new show almost a week early. “We’ll probably still be doing some fine-tuning to the show that night, since this will be a true rehearsal,” she says, “but I feel like it is so important for me and my fans to help if we can.”
100% of ticket sales will go directly to help victims of the recent tornadoes in the southeast via the Speak Now … Help Now Fund established through the Community Foundation of Middle Tennessee.
“I was watching the coverage of the tornadoes backstage at rehearsals, and I wanted to do something for the families affected by the damage,” explains the star. “I’ve never opened a rehearsal to the public before, but I felt that inviting my fans to the last rehearsal for the Speak Now Tour would be a great way to raise money. So, tickets will be available for people to come see us in the Bridgestone Arena, where we’ve been rehearsing for the last five weeks.”
The North American portion of the Taylor Swift Speak Now World Tour 2011 kicks off May 27 in Omaha, Nebraska.
“Speak Now…Help Now” event details will be updated daily on TaylorSwift.com.

MusicRow Awards Final Nominations

Click to Download the Final Nominees


It’s time again for the annual MusicRow Awards, where industry peers salute the very best among Nashville’s thriving musical culture. Now in its 23rd year, this revered event is Nashville’s longest-running industry trade awards show.
MusicRow’s editorial team selects the nominees which are then voted on by magazine readers. Outside nominations are accepted only in the Breakthrough Songwriter category.
The 2011 MusicRow Awards will be hosted by ASCAP at the organization’s offices on Tues., June 21 at 5:30 PM. All magazine readers are welcome.
Readers will receive ballots later today (5/9). Ballots must be returned before voting closes at the end of the day on Friday, May 13.
Scroll down to see the complete nominations list or Click here to download the PDF.

Kerry O’Neil: Label Logistics

The Assets They Control Are Incredible.

So when people talk about the demise of the labels it sounds a bit ridiculous to me.


Kerry O'Neil


Traditional record label models have always been about creating and owning assets. But with today’s realignments, outsourced services, lower barriers to entry and digital distribution the rules seem to be in a constant state of flux. MusicRow asked Kerry O’Neil, a founding member of entertainment consulting and business firm O’Neil Hagaman to add some business perspective and frame the past, present and possible future for these all-encompassing music industry giants.
O’Neil, who specializes in strategic planning and negotiating for many high profile artists and entrepreneurs is not solely a spectator. In 1987 he co-founded Little Big Town Music which was sold to Sony/ATV in 1998. In 1998 he co-founded Big Yellow Dog Music which has already earned 13 No. 1 singles and 10 Top 10 singles. He also co-founded Warner Western Records, a joint venture with Warner Bros. Nashville.
O’Neil is strongly optimistic about the future for record labels, but sees new systems developing with many pathways to success.
MR: Describe the foundation of Nashville’s labels.
Kerry O’Neil: The traditional Nashville standard was something where labels provided financial support and access to national distribution to developing acts that couldn’t afford it by themselves. They also offered a dedicated promotion team with ongoing relationships to get the music introduced. Successful labels needed to have a keen eye for talent. Based upon their creative decisions they might enjoy periods of growth or contraction. An effective promotion staff was also essential, but no staff could succeed with mediocre music. So A&R and financing coupled with  physical distribution and radio promotion were the key points. Now these elements have moved out into their own corners. A&R can be done outside of the label by producers and/or publishers. Elements of the financing part can also be handled outside the label. The costs have come down quite a bit. And access to distribution, with declining physical and ascending digital has never been easier. However, aggregating an audience has never been harder.
MR: Are promotion groups a new label model?
Kerry O’Neil: Consolidation freed many experienced promotion executives who have formed alliances which has created options to take radio promotion outside the traditional label structure. The question is are these roaming promotion companies labels or promo companies? To me, it’s a service. The promo people were never in the ownership business, it’s not a concept they find familiar. But today an artist can own some of their assets, so perhaps these promo companies might also get into the ownership business. Radio is still the way our format’s stars break through so we have a two tier approach driving costs—promoting someone at radio which is tremendously expensive and the funding to manufacture and distribute product across a big nation like the US. The cost base on the digital side is declining, but radio costs are not changing dramatically. So the driving force for success will be a combination of having adequate resources and making good talent decisions. A great talent might even be able to get in without having to go through a major.



If you are relentless about finding great talent, you may find some unique opportunities to succeed without facing the same costs we are used to now.



 
MR: Does falling sales re-balance the label equation? Can new revenue streams replace shrinking album sales?
Kerry O’Neil: New artists are being signed to 360 deals, but it’s too early to judge the economics because labels haven’t started making money with them yet. However, earning money from multiple platforms could provide more reasons to keep supporting an artist. For example, a single might not be driving album sales, but if it drives merchandise or ticket sales, it could still be a good investment. And SoundExchange is starting to pay meaningful money to labels and artists. It’s now collecting about $250 million a year and growing fast. And if labels get a revenue stream from terrestrial radio it will further help profitability.
MR: What do you make of the fact that one major label is for sale right now and one was just sold?
Kerry O’Neil: There was tremendous interest in Warners which tells you something. For a company to aggregate so many assets is very difficult. It seems to be a money losing model, but the assets they control are incredible and people seem to be projecting it will have significant future value. EMI’s story is yet to be told, but there will be people interested in those assets as well. So when people talk about the demise of the labels it sounds a bit ridiculous to me. The labels are reorganizing how to deploy their resources. And make no mistake, they still have significant resources. They are trying to drive down costs and broaden their platform of income participation. All good decisions. If they get the A&R decisions right—it is still based on that—then 3-5 years from now, they should be positioned to do well. Plus, we’ve come through the worst recession we’ve had since the great depression. Everything over the last two years has been exaggerated to the downside. The labels will exist. They will change and figure it out.



Labels are trying to drive down costs and broaden their platform of income participation. All good decisions.



 
MR: Why so optimistic?
Kerry O’Neil: Look at the analogy of free TV and cable. When free TV’s market share started to erode people jumped on the bandwagon yelling it was going away. People said they wanted niche programs that were more meaningful to them in a personal way. Today free TV has robust shows like Idol and Glee. But you can also launch John Stewart on the Comedy Channel without ever going to Free TV. He becomes a star and gets invited to do guest appearances on network TV. What I hope to see is a strengthening of the traditional labels coupled with a broadening of the base of niche label “channels.” Look at the generational change about how people are finding music. It is not driven solely by radio and retail, but also by the web, social media and whatever comes next. So if you are an 18-year-old entrepreneur with excellent taste in music, you probably aren’t going to raise money to go to radio and/or retail. You’ll play the game using the new tools. Video with a smartphone, audio with your mac, viral marketing, etc. You’ll rely on these interconnections to introduce new music. And if the music is outstanding and the video charming it will move through the system. In addition you will know where your audience is, how to reach them and where to perform live. Eventually you may bump into radio and retail, but you didn’t need their permission to play the game. On Music Row today we don’t make our money this way. But if someone already involved in the industry asks, “How do I make sure I’m viable in my entrepreneurial gambles five years from now?” I’d say analyze these cost structures. If you are relentless about finding great talent, you may find some unique opportunities to succeed without facing the same costs we are used to now.