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NEW YORK: As radio airplay becomes harder to secure and music channels
focus on reality television, record labels are looking at online
promotions as a viable option. Internet sites such as Kazaa average
about 14 million visitors a month while a music channel on AOL logged
10 million unique visitors in April, according to Nielsen/NetRatings.
Music companies in the US are aggressively pushing through deals
with broadband operators and convergence companies such as AOL Time
Warner's America Online, Yahoo!'s Launch and Microsoft's MSN in
an attempt to drive sales. Online sites are busy promoting new artistes
and lure surfers to pay for "premium offerings".
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still from Mumbai band's website www.metakix.com |
Meanwhile in India too, several budding Mumbai-based rock bands
such as Metakix, Sceptre, Freedom amongst others have posted their
offerings on the net to seek audiences beyond the geographic boundaries
of the city. Metakix spokesperson Zombie claims that their songs
are being downloaded by surfers abroad. Food for thought for companies
that are planning to foray into the convergence realm - Reliance
Infocomm, Bharti and other telecom majors.
An adage report states that the success of Avril Lavigne, a virtual
unknown until early 2002, demonstrates the power of online marketing.
The rocker's single Complicated debuted on AOL Music's Artist
Discovery Network, on 8 March 2002 even before the track had even
hit radio. The song logged more than 350,000 digital streams in
a month's time, helping to greatly boost demand for her first album
Let Go, released on 4 June 2002. The large number of hits
played an important role in "convincing" radio stations
to air the videos.
Even well-established artists like Jewel, whose latest release
0304 hit the stores on 3 June, benefit from online promotion.
The Atlantic artist's single, Stand was streamed 740,000
times in one day (26 May) on AOL First Listen, adds the report.
After the second day on First Listen and a Netscape promotion, the
platinum-selling artist shot to No. 3 on Amazon's Top seller's list
of the 100 hottest CDs based on advance orders. Atlantic saw a 30
per cent jump in CD sales in the first week of the release of Jewel's
last album, Spirit.
For the online sites, especially subscription-based ones like America
Online, offering exclusive access to artists is a way to entice
users to spend more time online. In AOL's case, the race is on to
convert the thousands of streams to MusicNet premium subscriptions
and ultimately to broadband subscriptions. An adage report says
that AOL is leveraging it's music offerings in order to move millions
of narrowband subscribers to broadband.
A PricewaterhouseCoopers report states that compact-disc shipments
in the U.S. fell nearly 9 per cent in 2002, while shipments across
all music formats dropped 11 per cent .
Major labels have high hopes that for-pay online music subscription
services will reverse their declining fortunes. Are the Indian music
companies listening?
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