Music & Advertising - Would You Like Fries with that? . . . By Director Wayne Hall

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During the past year it has been interesting to watch the re-emergence of the “advertising based content supply model”. This model is the one in which the supplier fully underwrites the content delivery system (hardware, installation, communications network, content etc) with revenue from advertising. Everyone from newly emerging juke box operators to background music suppliers have been touting it’s virtues.

This model has a lot of appeal – it seems to offer the supplier much higher returns then the conventional subscription model, while enticing the client with a “this won’t cost you a cent for a system” promise. Very alluring indeed.

But let’s look at the facts. The business music landscape is littered with the carcasses of companies who have gone broke trying to implement this model during the past 10 years.

Why….. ? Because the most important attribute – music and the environment it creates - is cast aside as having no or little value. Quite often music is an afterthought, and in some cases the cost of copyright hasn’t been accounted for. Secondly, the advertising model removes from the supplier the discipline of ensuring that staff needs are factored into the equation – and, as we all know, if you don’t have staff onside, “things” happen to your system. Furthermore, incredibly optimistic projections are made about the advertising revenue, without any thought to the realities of venue or store environments, advertiser expectations, and system reliability.

This is not to say that advertising cannot, and should not, form an integral part of an effective music delivery solution. There are some great examples of where businesses have done this successfully, but only after getting the environment right in the first place – which means valuing – and receiving a value for – music.

Watch this space as I report over the next year some big collapses in these supply models.

A quick congratulations to SBA Music Programming Department for their efforts in bringing the Emerging Artists Video Program to fruition (see article in this edition). This is a fantastic initiative, one I hope you can support by playing the bi-monthly programs whenever and wherever you can. It’s all about exposure.

Have a great month.


Wayne Hall
Director

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