JacoBlog - Jacobs Media's Blog

That’s Engagement!

A recent article in USA Today about iPhones took an interesting sidetrack about device usage.  Nielsen research guru, Roger Entner, put together a mind-blowing analysis that clearly showed how totally active iPhone users really are – compared with owners of other mobile phones, wireless laptop computers, and even Blackberries.

When looking at the monthly megabyte usage, iPhone owners are sucking up twice the bandwidth as wireless laptops – an amazing 400 megabytes a month.

That’s incredible engagement, and it speaks to the powerful hold these devices create.  (My wife will tell you how much fun it is to have dinner with me, iPhone in tow.)

And now that the $99 iPhone is upon us, you have to believe that Apple is going to dominate the mobile device space in the same way they have personal mp3 players.

As it turns out, Enter writes a blog for Nielsen, and recently wrote about Apple’s big move.  Here are some salient quotes to consider (the bolding is mine):

…According to Nielsen’s Mobile Insights survey, which asks 25,000 Americans every month about their wireless attitudes and behaviors, the second most important factor-noted by 20% of respondents-as to why people did not pick the iPhone was its price.

What has been largely overlooked is the impact of the iPhone 3G price cut on the industry as a whole.  It is hard to overestimate the impact that a $99 iPhone has on the wireless carriers and handset manufacturers in the U.S.  The new $99 price point for the iPhone 3G completely changes the value proposition of every handset at every carrier in the U.S.

Some observers have commented that the $99 price point “kneecaps the Palm Pre,” but the kneecapping does not stop there.  The dozen or more Google Android handsets that are being launched in the second half of the year will have prices that either make them look non-competitive or extremely margin-challenged…

…The implied point of view and resulting strategy is that voice has been commoditized and has become table stakes.  Defendable differentiation will come from devices and data…

So that brings me to the second topic of this blog – what type of content should broadcasters include in their iPhone apps?

Many of you know Jerry del Colliano, the former editor and publisher of Inside Radio, and now the independent gadfly and all-round observer of the industry.  Now that Jerry is no longer tethered to a real company, having to serve clients, his rhetoric and criticism has gotten stronger and more pointed.  You may not always agree with his views, but he is out there telling lots of truth and slugging away every day in his well-read Inside Music Media Blog.  Jerry has spent lots of time in recent years teaching at USC, and obviously absorbing lots of “data” from young people, much in the same way we benefited from “The Bedroom Project” experience.

I don’t always agree with his POV, but it’s always provocative and interesting reading.  I’ve noted that he’s been disparaging of broadcasters’ streaming activities, and using iPhones for streaming purposes, and I’d like to use some space here to start a discussion.

Here’s a quote from a recent Inside Music Media blog:

Media execs love duplicating the same content that they air for free on the Internet.  Why?  Because they think they can make a fortune selling different cheap commercials on the stream.

But there has been precious little evidence that streaming is even wanted by their audiences.

Yes, if you're in a building and want to listen to a terrestrial format, of course, it comes in clearer online.  But even with all that factored in, terrestrial radio listening delivers not quite 3% more listeners to the station's format. By any standards that is a screw up.

Two thoughts here.  First, these are good questions.  But our Tech Polls consistently show considerable interest in streaming – and its value.  Consider how weekly streaming overall has increased over the past five years of polling:

 

And what are radio listeners tuning into?  Mostly local stations – not that Ska station from the Bahamas, or that cool Triple A in Taos.

 

In fact, the trend is improving for local station streams.

But Jerry questions low streaming numbers, and in that regard, you have to wonder why stations are even bothering looking at PPM numbers for their streaming stats.  Their own web analytics are more powerful – and easier to sell. 

For me, the streaming thing is a no-brainer.  We have been tethered to transmitters and towers, while the digital world has mushroomed.  Streaming gives us a digital foothold, right alongside podcasting.  In an era where radio has totally lost its portability (good-bye Walkman), the iPhone allows broadcasters to have a branded presence on the coolest device going – and it provides the ultimate portability, as well as connectivity in vehicles.  If we don’t take advantage of new platforms, we truly will go the way of the horse and buggy.

But then Jerry says this:

So, there appears to be an endless stream of major screw ups that radio and record industry CEOs have made -- enough to inspire a developer to design their own Apple iPhone app.

iScrewedUp.

Unfortunately, just like other radio apps, it would be downloaded by millions but I am afraid few people would listen.

So, of course, this one hits home, as we’re nearing completion of our 100th iPhone app.  Look, we work closely with stations to try to ensure the apps we design for them aren’t just “streamers,” but also offer other strategic benefits: iTunes tagging/purchase, sponsorship/promotional panels, podcast downloads, texting, and connections back to the station’s site.  We’ve read Meatball Sundae, too, and realize that just having an app at the App Store isn’t enough to create a meaningful digital presence, or to engage a listener.

But we also grasp the reality that these iPhone apps for radio brands bring a certain cache to a medium that is highly needed at this time.  At a time when radio can’t buy a PR break, the ability to play in the iPhone area is a major step up.  While he may never include an FM chip in iPhones, Steve Jobs has enabled broadcast radio to have a seat at his table.  If we don’t sit our asses down, we’re going to blow another golden opportunity to evolve… and survive.

 

The Mother Of Invention

As dismal as the current climate can often seem, new and sometimes odd opportunities continue to arise, often in the most unlikely of places.  We are truly learning about who is versatile, who is stuck in the past, and who is turning out to be a pretty good lemonade maker.

Adam Carolla falls into that last category.  Since being blown out of KLSX (and in the process, losing all his affiliate stations), Carolla has become a podcaster - taking his talent, his content, and his comedic friends, and making himself available to anyone and everyone via iTunes.  You can't hear him anywhere on the radio anymore, but you can hear him whenever you're near a computer - and he's on every day, without fail, without commercials, and without traffic and weather reports.

Impressively, his podcast is often the top ranked each week on iTunes, beating out some pretty big names (Ira Glass, Bill Maher, etc.).  Of the three "Stern replacement shows," Carolla was the only one that truly showed the potential to entertain and attract listeners.  Anecdotally, I looked forward to my visits to L.A., Sacramento, and Seattle to hear what he was up to.  Now, he's still cranking out a daily show, but he's doing it on iTunes.  While Apple doesn't release download stats, Carolla tells the L.A. Daily News that in a given week, his podcasts generated "3,000,000 hits."  While he's still grappling with how to monetize his content, Carolla is onto something, and his accomplishment on iTunes sends a message to struggling, displaced morning shows everywhere.

There isn't a week that goes by when I don't hear from out-of-work personalities, dying to get back on the air somewhere.  But maybe instead of going the U-Haul route, they'd be better off "growing their own," testing their content against the Internet audience, and working with their existing fans.  Moving the family to yet another market and starting from scratch is the way that radio personalities had to go.  Today, Carolla and others are proving that there's another way, not tethered to transmitters, towers... or broadcasters.

Wired's Kevin Kelly wrote an article some time back called "1,000 True Fans."  It's a primer about how independent musicians, quilt-makers, and other craftspeople can use the Internet, their existing followers, and word of mouth to grow their base.  The article suggests that the web provides a new model of survival, sustainability, and perhaps even profitability.  

To all the struggling personalities out there trying to find a new home, the answer may be in your basement studio.  To all the broadcasters out there, convinced that it's a buyer's market and that you can now set the price for talent, think again.

Thanks to Dave Beasing and Keith Cunningham for putting the Carolla bug in my ear.

KISS Off

You have to give KISS, Craig Lambert, and Tommy Nast credit when it comes to re-energizing old brands, and giving fans a voice.  The newest twist on this 35 year-old institution is to let the audience determine where KISS will play this year on their North American tour. 

Using Eventful as their back end, KISS fans can exercise their right to vote at www.eventful.com/KISS.  Check out the details in their email shown below.

You can also watch the band's video at www.KISSonline.com.

 

It's a smart way to mobilize the old KISS Army, use new digital tools, and involve radio in the process (how novel of them).  Of course, there will be stations who encourage listeners to vote for their hometowns.  And there may also be stations and shows who implore their listeners to vote for a town as far away as possible.
 
All the same, it's buzz, and a great example of melding a heritage brand, multi-media, on-demand, and consumer control.  And it's nice to see KISS - the greatest self-marketers in the world - acknowledge the importance of radio in making "KISStory."
 

 

Swimming Upstream

It is fascinating that at a time when there are real signs that streaming is working - in both PPM and in sales revenue - some broadcasters are pulling the plug.  I'm not talking about Jerry Lee's B101 because I believe his cessation is about protesting musicFIRST, rather than trying to save a few bucks.

As broadcasters spend all their energies computing how their slashing and budget-cutting might affect operations, and not enough time strategizing how their content can be best utilized to grow their audience and their revenue, many could miss the boat on streaming.

Here are two indicators that there's something going on:

Streaming is beginning to show up in PPM.  In San Jose, KSFO pulled a .9 (6+), while KOST in L.A. hit a .8.  This is an indication that there is indeed critical mass to be had with streaming, especially with solid content and a well-promoted web presence.  (Most stations continue to under-promote their streams, despite the at-work benefits.)

And revenue is being generated.  TargetSpot's Doug Perlson told the Kagan Summit that advertisers are quickly embracing online radio.  And the RAB's Jeff Haley noted that Internet radio revenue increased 28% in January, and 12% in February - in this economy.

Radio's future is to provide content in places where consumers have moved, and streaming should be thought of not as an unnecessary expense, but as the ability to build new transmitters and towers that reach listeners on their desktops and mobile devices.

As we saw in "The Bedroom Project" two years ago, radio is steadily losing its listening locations.  Those nightstand clock radios are being replaced by cell phone alarms.  The car radio is in the process of being usurped by the ability to connect iPods.

Streaming represents the way forward, yet another reason why our iPhone initiative has been so successful in the past several months, and why PPM is registering streaming listening.  Later in the month, Paul will be presenting at RAIN's Internet Radio Summit, an exciting day of sessions that focus on opportunity, growth, and revenue generation.  And we'll be unveiling some truly dynamic data from our fifth annual Tech Poll that continue to support streaming initiatives.

One year from now, when we're enjoying an improved economy, and everyone's talking about growth once again, those who continued to support their streams and looked forward will have an even better story to tell about how they survived this crisis.

(Throw) Back To The Future

It is more than a little interesting that during the same week that Greater Media's Buzz Knight praised FMQB's U2 3 Nights event, one of his own stations was pulling off another historic moment of their own.

I am obviously a shameless fan of Greater Media, especially in the current environment.  (Yes, I work for them in several markets, but there are reasons why.)  In the midst of radio industry downturns and cutbacks when it seems like we can't catch a break, it gives me hope when I watch the video of WMMR's "Cardboard Classic."  Hosted by Preston & Steve - but a labor of love from the entire station - this event provides many benefits at a time when radio needs all the positive attention it can get.  In many ways, it's a throwback to the days when radio station events were attention-getting, and the attractions that local papers and TV stations fought to cover.

http://www.youtube.com/watch?v=45l_JsoqfDA

http://wmmr.com/pages/pages.php?page=42

Let's work down the list.

1. It's big.  While everything is being slashed and downsized, WMMR continues to pull off the big event.  The 3rd annual "Cardboard Classic" was a sell-out for the Jack Frost ski folks, and helps to positively separate them from every one of their competitors.

2. It's all about audience involvement.  Listeners - and their creativity - are the stars.  Yes, the prizes are nice, but I would bet that's not what motivates Philly folks to spend hours creating works of art from cardboard to compete in this event.  (And you have to wonder that with all this creativity, how come we couldn't get some of these MMR listeners to figure out how to straighten out the economy?)

3. It's local.  Yes, it's great when radio can show its network reach and national footprint, but here's an event that is intensely local.  You could try to replicate this event in other markets, but the reality is that the "Cardboard Classic" is really all about WMMR and Preston & Steve.

4. It's multi-media.  While in many ways, the "Cardboard Classic" is totally old school, MMR updates it with fantastic video coverage.  This attracts eyeballs back to the station website, while bringing the event to the station's entire cume (and beyond).

5. It's a sponsor win.  How wonderful is this event for Coors Lite, and how does "Cardboard Classic" help to positively separate them from the myriad of similar beverages trying to raise their market share?  Without going too far, MMR really sold this event, and Coors Lite is one of the big winners.  Someone in their marketing department must be feeling good about the decision to go with radio - and WMMR.

6. It's fun.  During one of the worst winters on record in the midwest/northeast when it seemed like nothing was going well, here's a way for lots of Philadelphians to forget their troubles, and spend a morning feeling good about themselves, life, and their favorite radio station.

7. It can still be done.  Does this station have more resources than many others?  Truth be told, they do.  But what you'll see in this video is a reminder that big events produced by big brands are still possible.  Maybe many programmers and jocks reading this can no longer operate on this scale, but "Cardboard Classic" is a reminder that if you continue to think big and focus on entertaining the audience in a unique way, it is possible for radio to be that unique source of local entertainment.   When listeners can't afford to dine out, pay for concerts, or attend sporting events, here're lift tickets for $9.33 - a price that is affordable for everyone.

Congratulations to Bill Weston, Preston & Steve, and the entire MMR management and staff on another "Cardboard Classic" victory.  After watching the video, it's hard not to feel inspired by what you've accomplished.    

Don't Cut Off Your Stream to Spite Your Future

Jerry Lee started a firestorm.  But his B101 no-stream protest may be causing more ripples in the radio community than in the music biz.  Part of this is due to the fact that the folks running the music show lost their sense of direction years ago.  Their snub of radio and denial about its impact on recording artists and their music would be laughable if it wasn't so absurd.

But in radio circles. Jerry's decision has opened the floodgates.  Some broadcasters - in typical lemming fashion - are thinking they now have the perfect excuse to end their streaming, thus saving some money this quarter.  Of course, this is the same logic that suggests you can slash your way to success.  (Note to broadcasters:  Consumers are noticing.)  Radio's content isn't going to organically get better, or even keep pace amidst all these "staff reductions."  And as we know, once the night guy is eliminated, or you've got one PD programming two stations, it's never going back to the way it was. 

The other reaction is to suggest that streaming is lame to begin with because radio has already lost the content war, and cannot possibly keep pace with new technologies, social networking, and the immediacy of Twitter.  But this "logic" is simply naive, negative, and mostly coming from folks who are no longer working in radio.  It's easy to sit on the sidelines, especially in this crap economy, and take shots at the business that used to pay your mortgage.  It's another to provide valuable perspective, gleaned from years in radio, and honed by some time away from the day to day rat race.  But we're not getting much inspired thinking these days.

Just mocking, negativity, and more gloom and doom.  (Trust me - this blog will come under the same fire that greets the CEOs each day, as well as everyone still trying to make a difference in radio.)

So, let's look at streaming - again - and think about the implications of not participating over the long haul.  To suggest that mobile devices are just used for talking and texting is absurd.  Our Tech Polls clearly show that consumers are doing everything on these devices - and unlike other gadgets, they are with us at all times.  As someone who's been living alongside an iPhone for six months now, I can honestly tell you that I do email, web search, get my sports scores, talk, text, Twitter, and listen to mp3s and radio streams - all the damn time.  (Ask my wife.)  

Just like I used to reach for that pack of cigarettes first thing in the morning back in the '70s, I now grab my iPhone when I jump out of bed to check for emails and alerts.  That proximity and ubiquity are keys for radio because if we can keep our local (note the L-word) strong, we can still be very important in people's lives.  There's a lot of talk in media circles these days about hyper-local.  Hey, radio was all about that before it was cool.

If we're thinking that streaming is just another expense line on spreadsheets, we're missing yet another opportunity.  Look, I remember hearing Mel tell anyone and everyone that the Internet wouldn't make any money, and he would never give away his content.  That same logic is what's driving satellite radio today to sit tight with its "subscription or die" model.  

But for everyone else who missed the Internet the first time around, streaming is the most democratic thing that's happened to radio.  Let's face it - there are many areas in which broadcast radio cannot participate in the digital world.  But streaming allows our content to be distributed worldwide.  We finally can get past these towers and transmitters, and if we're good, anyone in the world can enjoy what we do.

I look at the download stats that our iPhone applications generate.  In most cases, 40% of them are coming from all over the planet.  Now I don't know whether these people were originally residents of Philadelphia or San Diego.  Or whether they are foreign nationals who are enamored by American radio.  But the bottom line is that these applications make it possible for anyone to enjoy our content.  

So Tom Yates' Coast in Mendocino has an equal footing with KROQ.  Or KUJO 99, an Internet-only station, has the chance to build an audience as big, if not bigger, than B101's.  And Positive & Encouraging K-Love, a network of Christian stations, often finds itself in the Top 25 free "music" apps on iTunes - sometimes edging out the big aggregated sites.  Why does the Public Radio Tuner and these Christian apps compete head-to-head with iheartradio and other commercial apps - because they attract millions of passionate listeners to their focused, quality content.  It is being done, not in the future, but right now today.

How can this be happening?  Because the Internet - and now its accessibility on high-quality mobile devices - levels the playing field in a way that has never happened before.  If radio would stop squabbling with each other, and start to look down the road at access, content, and new platforms, it might find the path to 21st century success.

There are 3 billion mobile devices on the planet - more than the number of radios, TVs, and even computers.  And people replace these devices about once every 18 months.  In the midst of "the worst economy since the Great Depression," mobile phones are virtually recession-proof.  The way that analyst Tomi Ahonen explains it, mobile is the 7th medium - with the ability to provide the features offered by the Original 6 (print, recordings, cinema, radio, TV, Internet) in a neat, handheld, take-anywhere package.  That's why streaming and mobile access are so important to radio. 

Radio's ability to gain access on mobile devices shouldn't be met with derision or skepticism.  This is an opportunity, not something to be mocked.  The Seattle Post-Intelligencer didn't have an iPhone app.  That's not why they went under this week, but it speaks to the print world's slowness to get their content on mobile devices so folks in Seattle could have read it while they were on the ferry from Bainbridge Island or on the bus riding in from Puyallup.  (By the way, the Seattle Times doesn't have one either.)  Yet, any radio station in any town - terrestrial or Internet - can have beachfront property on an iPhone.  

So enough already with the self-flagellation and the negativity.  As my old literary pal, Gnossos Pappadopoulis would say, "I've been down so long it looks like up to me."  Radio has to stop beating itself up, and dig its way out of this.  And streaming is an avenue that provides that equal footing.  If we offer a quality stream (a topic for another blog), we create quality programming, and we make it available to consumers on multi-platforms, then it's just a matter of marketing it to the world (yes, another blog). 

But as Erica Farber stated at our "Presidents of Radio" panel in Austin last fall as she offered her platform, "I would first declare a no complain bill.  What that means is no one is allowed to complain about anything unless they present a valid alternative to the issue or problem at hand."

A good idea then, a better idea now.  It's easy to shoot bullets in the middle of chaos.  It's another story to put down the weapons, and work through our issues.  So let's hold CEOs, bloggers, consultants, and everyone else to the same standard; if you bitch and moan, you're obligated to offer solutions.  

Let's stop being the "Industry of No" and start figuring our way to solutions and success.

"Going For The Gold" - By The Numbers

What a long, fun week it's been.  We have happily concluded our very successful “Going For The Gold” initiative.  What started out as an experiment has turned into a major statement about radio combating musicFIRST’s efforts to slap broadcasters with royalty fees/taxes.

“Going For The Gold” was an idea that originally came from Emmis/St. Louis' John Beck, and we thank him for the inspiration.  Chuck DuCoty and Mary Quass of NRG were also instrumental in its success.

Here are some key totals:

• More than 2,800 gold and platinum awards

• More than 200 contributing radio stations

• Participating stations represent 40 of the 50 states, plus the District of Columbia

• Markets range from New York and L.A. to Kearney, NE, and Casper, WY

We received gold and platinum albums from major stations that are household words in this industry, as well as call letters that you've never heard of.  The fact that this campaign included everyone from big companies to the mom & pop radio stations, and from Urban, Country, Rock, AC, Pop, and even Comedy should tell you how resonant and far-reaching it became.  We even received some "heavy metal" from private collectors and consultants.  I would encourage you to leaf through more than 80 web pages of awards, and marvel at the breadth and scope of these symbols of radio's value to the music industry.

Jacobs Media would like to thank the CEOs, group executives, programmers, managers, DJs, and everyone else inside and outside radio who contributed their collections and made the effort.  We would also like to thank the heads of all 50 state broadcaster associations who lent their support.  The industry trades were also instrumental in getting the word out.  And of course the folks at the NAB who know a good idea when they hear one.  Finally, the staff at Jacobs Media, many of whom dropped everything to make this happen.

"Going For The Gold" will send a message to those who have attempted to diminish radio, and its long-time contributions to music and pop culture.  It should also send a message to those who think this business no longer has clout or purpose.  When we pull together, we can get it done.

Up The Stream

The royalty debate (or debacle) continues to play out in radio circles.  Now WBEB's Jerry Lee has become even more involved by canceling his station's stream, saying that "the excessive SoundExchange rates don't work for artists, for local stations, or for listeners."

This is not an empty statement nor is it a cheap attempt to save a little money this quarter.  In fact, WBEB is one of only 14 stations whose stream showed up in the December PPMs (the only Philly station, by the way).  

Lee estimates that by 2015, half of his online revenue would go to SoundExchange in fees.  And as we warned when our "Going for the Gold" campaign started, broadcasters would rather not bother with streaming or music formats if the rates careen out of control.  

So once again, the musicFIRST luminaries are going to end up cutting off their best source of music exposure and artist branding.  And this time, one of the most prominent radio broadcasters has made a powerful statement.

Hip Hip Hulu!

It's amazing how video continues to be so dominant all over the Internet.  For this, we have YouTube to thank.  But as that category killer has grown and become an even greater force in web entertainment, something interesting has been happening back at the network ranch. 

NBC Universal and News Corp's Hulu has emerged as a big-time success.  Despite predictions to the contrary, Hulu (which is made up of some great TV and movie content) is making a huge impact, and more importantly, it's making money.  Newsweek reports that Hulu made $12 million in gross profit last year (compared to no profit for YouTube).  An analyst for Screen Digest, Arash Amel, estimates that Hulu could actually generate more revenue than YouTube this year.

You may not have known about Hulu, but after the Super Bowl and those great Alec Baldwin commercials, awareness is on the rise.  Hulu is a real video streaming force.

This year, our Tech Poll actually shows a drop for YouTube from 80% to 70%, among those who visit these sites.  So, while video streaming as an activity continues to rise, YouTube's share of this large audience appears to be decreasing.  Meanwhile, 17% of our rockers now visit Hulu - a very nice level indeed. 

Meanwhile, four in ten say they visit any of the networks' websites to stream shows and movies, also up considerably from last year.  This tendency to visit sites run by NBC, ABC, CBS, etc. while YouTube is downtrending is no accident. 

So how have the stodgy old networks actually outsmarted those brilliant web gurus that created YouTube?  Relying on some of Newsweek's observations, and including a few of my own, consider the following:

1. Content Shmontent - Yes, it matters.  While there's nearly an infinite amount of material on YouTube, much of it is junk.  Homemade videos will only take you so far.  But on Hulu, it's quality programming.

2. We're in the money - Only a small percentage of the videos on YouTube can even carry advertising, while on Hulu, 100% of the shows have that capacity (and about 80% actually run spots).  That says a lot about why Hulu had a good year, and why the future may be tipping in their direction.  And Hulu is experimenting with different advertising models.  In one instance, one of the car companies let viewers choose whether they wanted to see a spot for a pickup truck, a crossover SUV, or a sports car.  In another example, viewers could select whether they want to see a single long ad at the beginning of a program OR ads throughout the show. 

3. It's about talent - Unlike how a lot of "old media" companies are trying to master digital technology, Hulu went in a different direction - they brought in outside talent.  A former Amazon exec, Jason Kilar, became Hulu's CEO, and a former Microsoft researcher, Eric Feng, is in charge of development.  Let the experts do their jobs rather than try to retrofit broadcast execs. 

4. It just looks better - So many of the videos on YouTube look and feel amateurish.  While that's fine for consumer-generated video, it's not how we're accustomed to watching TV programming.  On Hulu, programs look the way you expect them to look - clean and high-quality.  After you watch a lot of Hulu, it's hard to go back to YouTube.

5. Use your stars (and your cume) - The Alec Baldwin commercials are helping to put Hulu on the map, and using mass reach vehicles like the Super Bowl and other highly-rated network shows to spread the word will increase awareness and page views.  

For radio companies, the Hulu story should serve as an example of how our medium could go about creating and marketing digital products.  Radio continues to have content, inherent benefits, and great reach. While many Internet powers (think Facebook) are well ahead of traditional media companies, they are still struggling to monetize all those unique visitors.  In radio - troubles and all - stations and networks know how to sell spots.  But relying on Internet-savvy professionals to help guide digital strategies is something that radio companies also ought to be considering, because even the best ideas won't make it unless they are implemented well.  

Hooray for Hulu.  Now let's learn from their model, and see if radio couldn't pull off something successful in the digital space, too.

So Much For "The Long Tail"

While indie musicians may be benefiting from airplay on websites like Pandora or even HD and satellite radio channels, it's a tough slog to sell their material one CD or song at a time.  The demise of the record labels, and the larger music industry model, challenges unknowns and even once-popular music icons to rethink how to market their songs and albums to consumers who now have infinite choices. 

"The Long Tail" effect which makes it possible for the little guy to sell and expose his music on iTunes (or get her films rented on NetFlix or his books sold on Amazon) won't make anyone rich, but it will keep careers alive. 

Kevin Kelly of Wired magazine wrote an article one year ago called "1,000 True Fans" - a manifesto for how artists and craftspeople can build a small but loyal fan base in order to survive.  That's great if you're the sculptor working out of your spare bedroom studio or the folk musician playing gigs on the weekend.

http://www.kk.org/thetechnium/archives/2008/03/1000_true_fans.php

But if you're U2 - trying to sustain a 30-year career during these tumultuous times for the music industry, what's your plan?  Well, they're one of the few bands that continues to rely on the traditional model - a record label (in this case, Universal Music) and its promotional department.  Yes, U2 is wisely exposing themselves and their music on network television (especially the Letterman 5-day stunt) and via large-scale awards shows and events.  A big band needs a big plan.

Here's Bono, from a recent New York Times article, speaking about the U2 philosophy in 2009:

“I’m interested in commerce. The excuse for bigness is that songs demand to be heard if they’re any good.  And without the kind of momentum of being in a big rock ’n’ roll band, you won’t get your songs heard.”

Obviously, not interested in chasing that long tail.