More on the music business and advertising
Recently had lunch with Brett Gurewitz , former guitarist from Bad Religion and founder of Epitaph Records. Brett's very switched-on about the music industry, having spent a lot of time considering the impact of the internet on his distribution model.
Among other interesting things he told me, one stands out: Companies like Live Nation are now generating so much revenue from in-concert advertising that they are striking deals with artists which pay the artist more than 100% of gross ticket sales.
Consider this: The fragmentation of media audiences has advanced to the point where mass-market advertisers (Sony, Nike, etc.) are going to the trouble of buying eye-balls by the 10,000, instead of by the 1,000,000.
Two related ideas spring from this:
1. Measurement of effectiveness is going to get much harder (and potentially more rewarding for those who understand how to do it).
2. Building a sales network for live event advertising which is capable of delivering eyeballs at scale (in the way that Live Nation has) would be a very good idea.
Among other interesting things he told me, one stands out: Companies like Live Nation are now generating so much revenue from in-concert advertising that they are striking deals with artists which pay the artist more than 100% of gross ticket sales.
Consider this: The fragmentation of media audiences has advanced to the point where mass-market advertisers (Sony, Nike, etc.) are going to the trouble of buying eye-balls by the 10,000, instead of by the 1,000,000.
Two related ideas spring from this:
1. Measurement of effectiveness is going to get much harder (and potentially more rewarding for those who understand how to do it).
2. Building a sales network for live event advertising which is capable of delivering eyeballs at scale (in the way that Live Nation has) would be a very good idea.
Labels: Epitaph, Live Nation, music
posted by Moses Kagan at
5:42 AM
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