Radical changes in the music industry landscape continue to transform the way we acquire and listen to music. At Billboard's Music & Money Symposium, held in the 20th floor Penthouse Ballroom of the St. Regis in New York City on March 2, 2006, cautiously optimistic leaders involved in the digital music revolution provided informative and spirited debates on acquisition, financing, licensing, distribution, business models, and opportunities in new technologies.
Tamara Conniff, Billboard's first female and youngest ever Executive Editor at age 33, opened the conference with an overview of the magazine, highlighting its redesign along with its online and digital strategies.
In session one, "Digital Days: View from the Top," witty moderator Bill Werde, Senior News Editor, Billboard, identified interoperability (the ability of software and hardware on different machines from different vendors to share data), as an issue plaguing the current music distribution model. Jim Griffin, Managing Editor, Cherry Lane Music, redefined music as "a service, not a product." Thomas Ryan, SVP Digital & Mobile Strategy & Development, EMI Music, highlighted his company's new partnerships with Robbie Williams and Korn. The Robbie Williams deal is a multi-platform approach, whereby EMI takes a share of touring, publishing profits, and merchandise in addition to cd sales. The Korn partnership involves three entities: the band, EMI, and Live Nation (the recently spun-off concert division of Clear Channel Communications). Each party gets a piece of the band's recording, publishing, touring, merchandising, sponsorship, and other activities. Brian Taptich, SVP Business Development, BitTorrent (free open-source file-sharing application effective for distributing very large software and media files), indicated the industry is undergoing a crisis of democratization of content. Shawn Gold, SVP of Marketing and Content, MySpace.com, emphasized how his company's virtual community has empowered both artist and audience. Greg Scholl, CEO, The Orchard, revealed that indie music accounts for 30% of his market. Jack Isquith, Executive Director of Music Industry Relations, AOL Music, stressed the importance of being a good partner to the music industry.
In the next session, "It's a Wireless World After All: How to Make Money in the Mobile Space," Antony Bruno, Digital Mobile Editor, Billboard, led his panel in discussing how investment opportunities are matched in number only by the degree of risk. Mark Desantels, VP Wireless Internet Development, CTIA, discussed his DC based international association dedicated to expanding the wireless frontier and his belief that the anytime, anywhere availability offered by wireless broadband has the potential to change the economic structure of our society. Ted Casey, Head of Mobile Music, Verizon Wireless, updated the audience on VCast (the ability to download music, videos, and more straight to your phone). The service already boasts a catalog of 500,000 songs. Shadid Khan, Partner, Interactive Broadband Consulting Group, serves leading broadband related product and service providers in the cable, mobile, and media industries. Khan, an acclaimed thought leader who has served Bertelsmann, Sony BMG, Warner Music Group, and the RIAA, said, "This is perhaps the most exciting time in the converging media and telecommunications industry." Greg Clayman, VP, Wireless Strategy & Operations, MTV Networks, announced that hit music, comedy, and entertainment programming form the nation's premier music brands (CMT, MTV, VH1) and Comedy Central is now available on demand on the Sprint TV lineup.
The keynote address was presented by Robert F.X. Sillerman, Chairman and CEO of CKX, Inc, which engages in the ownership, development, and commercial utilization of entertainment content. It owns 100% interest in 19 Entertainment Limited (American Idol and local adaptations of the Idols television show airing in approximately 30 countries). CKX. Inc. also has an 85% controlling interest in Elvis Presley Enterprises, Inc. and Elvis Presley Enterprises, LLC. Sillerman discussed how to best position music in the changing distribution opportunities. He suggested we define the term 'music business' as selling music, not recordings. Sillerman asserted that content is king and must be compelling; the emphasis should be on talent.
Susan Butler, Legal and Music Publishing Editor, Billboard, and her panel of experts explored ways of "Financing and Acquiring Music Publishing Catalogs." Mark Levinsohn, Jerome Levy, Joel Katz, and Nicholas Firth raised concerns on how intellectual property would be protected, multiples on net publishers' shares, new sources of income, and the recent increase of mechanical royalties to 9.1 cents.
John Frankenheimer, Co-Chairman, Loeb and Loeb, LLP moderated the discussion on 'What Venture Capitalists Are Looking For." Firms like Abry Partners, one of the most experienced and successful media-focused private equity investment firms in North America believe that content will increase in value and that thought leaders with teams of vision can create enduring business models.
Billboard Executive Editor Tamara Conniff returned to center stage for an exclusive Q&A with Doug Morris, Chairman and CEO, Universal Music Group. Doug spoke of the Universal Culture, consisting of people who respect each other and leadership steeped in the music business. His company continues to lead the music industry in global sales with a U.S. market share estimated at 34%.
The final session, chaired by Brian Garrity, Business Editor, Billboard, focused on the future: "Valuations, Deal Making, and Predictions For 2006." Harold Vogel (Vogel Capital Management) sees legal downloading gaining traction, becoming less expensive and easier to use. John Rudolph (Music Analytics, Inc.) continues to see music treated as a commodity. Hilary Rosen (Berman Rosen Global Strategies) predicted more advertising direct to consumers and increases in adult buyers. Rich Greenfield (Pali Research) noted significant increases in digital strength. Duncan Reid (Ingenious) shared a positive and enthusiastic approach to the media sector. He cited the success of MySpace.com and its influence on creating awareness of Arctic Monkeys.
In summation, the general climate is one of optimism, growth, and higher returns. Congratulations to the staff at Billboard for providing a classy, intellectual forum and networking environment that was personally enriching. Learn more about the many ways the Jerry Lembo Entertainment Group can help you achieve your artistic and financial goal to become a full-time musician.
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