It seems everyone is trying to innovate in the digital space, especially when it comes to business models and processes in the industry. One strategy I’ve noticed, is the branding of some practices being “Old School” to make way for a company’s new and improved way of doing business. Sometimes, these “new school” ideas are very smart, necessary improvements.There are also those few ideas that achieve the end goal but go about it the wrong way. Here are some great and not so great business strategies that have recently sprouted up (or in one case, come to light) in this week’s Weekend Round-Up.
Nic Adler of LA venue The Roxy, is an advocate for one of the great movements in music marketing today, social media. Many businesses are finding it effective to utilize social media to market their brands. However, social media marketing is only effective when you have people willing to listen to your message. The Roxy revamped their entire image by launching a blog and engaging with artists and concert goers. Lisa Sniderman used a similar strategy, with the help of Michael Brandvold, a music marketing wizard. She only wanted help with her website, but he suggested another strategy, using social media. Lisa was willing, but had no idea where to start. She isn’t the only one. There are hundreds of musicians trying to use social media to engage their fans, many of which have found success on Facebook, Twitter, and blogging platforms. Fans love the personal connections that social media facilitates with their favorite bands and musicians. It took time for her to figure out what her fans wanted and how best she could manage the different platforms she was on. A year later, Lisa has 10,000 fans on ReverbNation, 1,400 fans on Facebook, and over 2,000 followers on Twitter. Not too shabby.
A new way in the ticketing business? Ticketfly thinks they’ve got it.
Ticketing hasn’t changed drastically since…well….forever.
Even though the process has been automated and moved online, it’s still a very routine business model at its core. Ticketfly wants to change that. The biggest change their suggesting, is utilizing the gold mine of data that they’re sitting on and using it to provide their service integrated into a band’s websites, social media accounts, as well as 150 partner event listing sites. In addition, they would open to clients their artist database which includes artist bios, headshots, video files of over 100,000 artists which would automatically upload as events are created. In this way, artists can see how many tickets they sold, to whom, and the demographics, almost instantly.
As we blogged about before, Universal Music Group filed a lawsuit against Escape Media Group, the parent company of Grooveshark, in regards to claims that Grooveshark’s leadership conciously committed copyright infringement by uploading pirated songs. The allegations haven’t been verified yet, but court documents have still been released and it is clear that Grooveshark’s business strategy is straying a little too close to the dark side. Here’s a sample:
“In our case we use the label’s songs till we get a 100 (million) uniques, by which time we can tell the labels who is listening to their music, where, and then turn around and charge them for the very data we got from them.”
—Sina Simantob, Grooveshark chairman
Simantob went on to say that they needed to make sure that the cost owed to labels must be significantly less than the amount they would charge the labels for the profit they would receive from selling the data back to them. When confronted about the correspondence, Simantob didn’t deny it and said that Grooveshark’s strategy was based on it being easier to ask for forgiveness rather than permission……..what type of excuse is that!? Regardless of the outcome of this case, it’s safe to say Grooveshark’s credibility is going to take a serious hit.