Kings of A&R

According to a survey conducted by American Media Services 63% of American adults listen to the radio every day. The number among 25-34 adults is even stronger: 79 percent tune in to radio at least once a day.

Seventy-two percent of Americans say they’re listening to the radio as much or more now than they did five years ago, and they’re still tuning in in the car: 74 percent of Americans turn on the radio when they get in the car, including 72 percent of 18-24 adults and 80 percent of 25-34s.

Satellite radio subscriptions steady at about 11 percent — but 89 percent of respondents said they are unlikely to subscribe to satellite radio in the next 12 months.

“Many analysts seem to be enthralled with the technology of satellite radio, but the buying public isn’t,” said AMS President/CEO Edward F. Seeger. “Satellite radio continues to fill only a small niche in the marketplace.”

AMS also asked what would prompt respondents to listen to radio more. The top answer: More music and fewer commercials. (via Idolator)

The Bottom Line - We can’t verify the accuracy of the study. Some kids claim they only use the iPod and rarely listen to the radio except for XM satellite radio. Maybe more adults are tuning in on talk radio. Unfortunately, it’s overly fragmented to get a proper understanding, but radio has no doubt lost influence. Who really holds influence today?

Warner Music Group chairman and CEO Edgar Bronfman remains optimistic by eyeing industry growth potential. He sees a future for digital rights management and physical product in the music industry, although maybe not in their present forms.

Bronfman also said they will now invest in new and mid-tier artists with the expectation that it will share in all the artists’ revenue streams that could include touring and merchandising through helping to build other revenue streams, whether that be hosting and selling off of an artist’s Web site. He also said major music labels did not not create a website to offer music because the profit margins are not attractive.

TV turns to internet and will offer Free Downloads…
NBC Universal, acknowledging that viewers are increasingly moving away from traditional television viewing, announced plans for a service that will make popular NBC programs available to download free to computers and other devices.

It appears that California based band Thriving Ivory has signed to Wind Up Records. This band has put in their duties. Check them out in KOAR’s New Music and Recommended Listening Column.

When Kanye West opened up with 957k while 50 Cent topped 691k, Island Def Jam Music Group Chairman Antonio “L.A.” Reid said the sales are proof that music fans will still buy albums as long as the quality is good.

“Market conditions certainly have changed in the last few years, but the
decay we are seeing has more to do with the lack of quality in music,” he said.

The Bottom Line:

L.A. Reid is one of the few executives in the music business other
than Rick Rubin who acknowledges or at least speaks out that the decay in the music business is due to quality, in what KOAR calls the CREATIVE DROUGHT. Unfortunately, many other executives have fell to the idea that the lack of sales is mainly due to technology.

Many execs and music labels spend their long days in meetings thinking about selling music. This is a BAD OMEN. We can be rest assured with this mentality that the quality of music will continue to suffer. Instead execs in music labels need to focus on CREATING quality music with potential artists. Many execs will argue, it’s not that easy - ok fine, lets continue..

The Music business consists of ART and COMMERCE.

There is a lot of mediocrity out there that consumers will bypass. We have so many more releases, more genres, more artists, more competition. To many releases clogging up the arteries. Music labels do not set up a record for a year, its all about the first week. Music Labels cannot focus on 10 releases for the full year. When companies work more than three records they are overwhelmed.

You would think that with more competition we would have better music. The long tail is wrong, its just the opposite. With more competition we have less heroes because it gets watered down.

We know there is no such thing as artist development, instead we have priorities now.

Music Labels want FACTS. If there is not a story, a label won’t work a record. If you are that type of artist that is radio driven and you have lukewarm radio, you will get lukewarm attention - unless you are a multi-dimensional band. A multi dimensional band does not rely on radio for success - radio is icing on the cake. A multi-dimensional act has great songs, great players, great live performance, and has a true unique vision. Multi-dimensional artists are AFI, Slipknot, and Foo Fighters in the rock world, 50 Cent and Kanye in the Hip Hop World.

Our best guess that the creative drought may in fact have resulted from technology. We can make people sing in tune that cannot sing. What does this mean? It tells me that we have lead singers that should not be singers.  Developing………………

Apple and music companies fight claim that iTunes pricing hurts British Consumers, while Apple accuses the music companies of preventing
it from operating a pan-European, one-price service. (WSJ)

Myspace has created a new ad-system that will display ads
based on what’s in your profile. MySpace says the new system increased the
chances of a user clicking on a banner ad by 80%.

This Week Sales…..

Kanye West 956k
50 Cent 691k
Kenny Chesney 386k
Fergie 40k
Nickelback 34k

Barry Manilow says he has backed out of his scheduled appearance on the morning talk show - The View, after the show refused to pull Hasselbeck from the interview, Access Hollywood has learned.

He Says on his Web Site…

“I wanted to let you know that I will no longer be on The View tomorrow as scheduled.
I had made a request that I be interviewed by Joy, Barbara or Whoopi,
but not Elisabeth Hasselback . Unfortunately, the show was not willing to
accommodate this simple request so I bowed out. It’s really too bad because
I’ve always been a big supporter of the show, but I cannot compromise my beliefs.
The good news is that I will be on a whole slew of other shows promoting
the new album so I hope you can catch me on those.”

Sources close to “The View” claim Manilow is lying.

(more…)

KOARs new pick is Shannon Nicole who hails from St Louis, Missouri.
Her music roots stem from the time she spent in Texas which are evident
in her country/southern rock/pop crossover style.
We are finding out that other industry execs are as impressed as we are.
Check out the track Mama Raised You Right. For more info contact
Dan Friedman.

Britney Spears lawyer and manager Jeff Kwatinetz split from the camp.
Who wouldn’t bail from this media circus? We live in a time when media and
people are more interested in personal lives than anything else.
No wonder creativity is suffering, so lame….

Here is a statement from the FIRM:
“We have represented Britney for the past month.
We believe Britney is enormously talented, and has made a terrific record.
But current circumstances have prevented us from properly doing our job.
We wish Britney the best.

It looks like Kanye West’s album Graduation could top 850k and
50 Cent’s Shady/Aftermath/ Interscope album Curtis could end up with 625k.
Country star Kenny Chesneys first week could land 425k.

The free, ad-supported music download site SpiralFrog has launched today.
The songs can’t be played on iPods or burned onto CDs.

The Hint has entered the studio with Zack Odom and
Kenneth Mount (Cartel, Mayday Parade) to record a new six-song EP. (AP)

Los Angeles based pop rock band Billy Boy On Poison have signed to
Kiefer Sutherland and Jude Cole’s record label Ironworks Music.
Legal rep is Ben McLane.

Hinder sound a-like Jet Black Stare who comes from Vancouver, Canada has signed to Island Records.

Guy Hands the CEO and founder of Terra Firma, vowed to keep EMI’s recorded music division and to invest in artists big and small to restore the company’s fortunes following its £2.4bn buyout.

Guy Hands said that he was confident of overhauling EMI’s model
to make it less reliable on huge selling artists.
“We’re determined to keep that part of the business and
we’re determined to make it viable,”

He made clear that EMI would have to be restructured
so that it could generate a profit even
when an artist sells “only” 200,000 records.

EMI is expected to create a structure in which lower selling artists
with more niche appeal can still be profitable….

“The independent record labels are a lot livelier,” said Mr Hands.
“The vision of EMI is to be big enough to do everything we can for every artist,
but small enough to care for every artist.”

Peter Chernin, the CEO of News Corp says senior executives  must be willing to undergo a huge cultural shift and not be afraid of failure.

Broadcasters have been wrestling with the challenge of
maintaining revenues and viewers in the face of exploding choice
and fragmenting media options. But, said Mr Chernin, media groups
were well placed to benefit from an unprecedented period of technological change.

Fragmentation was having a positive effect on creativity, he
believed. “The middle is dead, and
that’s the greatest thing that has ever happened.
The bland, safe, central middle is never coming back.”

Mr Chernin echoed Mr Hands by saying companies should
concentrate on big blockbusters at one end of the market
and high quality niche offerings at the other. (TheGuardian)

The Bottom Line: Reality seems to be setting in that Major Music Labels need to restructure their finances so lower selling artists can be profitable.
Lower selling artists would no doubt require job cuts.  Everyone is interested if Hands can turn this plan into a reality. I couldn’t agree more that the MIDDLE is dead. The MTV VMA’s was a perfect example…