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Spotify Asks Creative Leaders What Music Inspires Them

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Spotify Asks Creative Leaders What Music Inspires Them Spotify – Growing Competitor in Music Catalog Field, But Not FM Radio Competitor • …the underlying premise of Spotify — that people want access to a giant catalog of music instead of buying it piecemeal through iTunes Source: Jeff John Roberts Mar. 12, 2013 paidContent.org Spotify Asks Creative Leaders What Music Inspires Them Wendy Clark, Bob Greenberg and Maurice Levy Share Their Fave Tunes in Cannes Campaign By: Shareen Pathak Published: June 10, 2013 Spotify is certainly taking this year's Cannes Lions festival seriously. The music streaming service is launching a new campaign to celebrate the 60th anniversary of the Cannes Lions that will pay tribute to people who have helped "shape creativity" by asking them what songs inspire them. Created by Droga5, the campaign, dubbed #60Inspirations, launches Monday and features people like Arianna Huffington, Maurice Levy, Bob Greenberg, John Legend and John Boiler. Wendy Clark, senior VP-integrated marketing at Coca-Cola, is also one of the "titans." The two companies signed a global deal in 2012 to create a seamless, social music sharing experience. Rounding out the list of titans are Shelly Lazarus, Chairman Emeritus, Ogilvy& Mather, Steve Stoute, CEO at Translation, David Droga, founder of Droga5, and David Lubars, chief creative officer at BBDO. The campaign lives online, and will result in a unique Spotify playlist of 60 songs, along with commentary from the titans about why they picked them. It'll also be pushed via out-of-home ads appearing at the airport in Nice. 1 Erin Clift, VP-global marketing and partnerships at Spotify, said that while last year, the company went to Cannes in a very "simplistic" way, they really wanted to make a bigger splash this year. Along with #60Inspirations, Spotify is also taking over a restaurant on the Croisette to create a space to showcase ways music has inspired advertising in the past year, and holding sessions for Cannes delegates about creativity and music. There's also a new app, "Resonate," that will let attendees explore their "agency's soundtrack," and of course, a mid-week party to celebrate it all. Ms. Clift said that each titan was picked based on people who play a unique role at Cannes, or who serve as inspiration for those attending. RELATED STORIES What's the Ad Industry Listening To? Find Out With Resonate Spotify, Ad Age Partner to Catalog Adland's Music Tastes "There's such an undeniable relationship between music and creativity," she said. "Spotify is really about access to music, and there is a lot of innovation happening around music." Of course, there's a business agenda too. Ms. Clift said that since Spotify does monetize its product by partnering with brands and agencies, Cannes is the perfect place to "showcase some of the amazing pieces of work that are happening when music and experiences that inspire customers are being integrated." Spotify is also starting to position itself more as a "curator" for great music rather than a more general, free-for-all conduit to access it. While the service has more than 20 million tracks that listeners can browse through, recently introduced product features like Discover indicate a move towards more "social listening," based on recommendations from people and artists you follow. "It's amazing to see what David Droga's taste in music is, what he might be listening to at Cannes," said Ms. Clift. "We really want to associate music with moments." 2 2 Spotify Doesn’t Deliver in Top Markets 94% 91% 93% 92% 92% 92% 92% 91% 93% 2% 4% 2% 2% 3% 3% 2% 3% 3% LA NY Chicago SF Phila Atlanta Dallas Washington Houston DC Radio past WEEK Spotify past MONTH Source: Spotify = Scarborough Release 1 2013 Sept 2012 – Feb 2013, Adults 18+ M-Su 6a-mid Metro Area 3 Spotify Can’t Deliver Adults 25-54 in Top Markets 97% 95% 93% 96% 93% 95% 95% 93% 96% 2% 3% 3% 2% 4% 3% 3% 3% 3% LA NY Chicago SF Phil Atlanta Dallas Wash DC Houston Radio past WEEK Spotify past MONTH Source: Spotify = Scarborough Release 1 2013 Sept 2012 – Feb 2013, Adults 25-54 M-Su 6a-mid Metro Area 3 Spotify vs Pandora • Pandora claims about 65 to 70 million monthly users (paid and free) • Spotify claims about 24 million monthly users (paid and free) • Pandora has approximately 1 million songs in its catalog • Spotify has more than 20 million tracks in its catalog • Pandora uses Triton Digital data to produce ratings that can be incorporated into Strata and Mediaocean radio buying software • Spotify has no third-party measurement sources • Pandora data available in Scarborough and The Media Audit • Scarborough and TMA have begun to ask about Spotify, but data not available until Fall 2013 • comScore reports Pandora with 66.7 million uniques but shows only 6.8 million uniques for Spotify Estimate based on Pew Research Center April 2013 “Report on Audio”; Pandora press releases in March and April 2013, comScore data from March 2013; /Net aricle about Spotify; comScore multiplatform media metrics April 2013 total users per month Spotify vs Pandora • Pandora claims about 65 to 70 million monthly users (paid and free) • Spotify claims about 24 million monthly users (paid and free) • Pandora has approximately 1 million songs in its catalog • Spotify has more than 20 million tracks in its catalog • Pandora uses Triton Digital data to produce ratings that can be incorporated into Strata and Mediaocean radio buying software • Spotify has no third-party measurement sources • Pandora data available in Scarborough and The Media Audit • Scarborough and TMA have begun to ask about Spotify, but data not available until Fall 2013 • comScore reports Pandora with 66.7 million uniques but shows only 6.8 million uniques for Spotify Estimate based on Pew Research Center April 2013 “Report on Audio”; Pandora press releases in March and April 2013, comScore data from March 2013; /Net aricle about Spotify; comScore multiplatform media metrics April 2013 total users per month Rhapsody has expanded its subscription music service to 14 additional European countries in a bid to compete more effectively with international services like Spotify and Deezer. The far-reaching expansion increases the number of territories where Rhapsody is available by greater than a factor of five. New 4 countries include France, Italy, Ireland, Spain, Sweden and Portugal. As part of its efforts to woo foreign subscribers, iterations of the service in each country launched with custom playlists and editorial content developed during the course of a year. Internet radio borrows a chapter from the broadcast radio playbook. The new buzz phrase in pureplay internet radio is “human curation.” In many ways it involves mining the broadcast radio programming playbook while still letting listeners personalize the content. Both Slacker and music mogul Jimmy Iovine’s soon-to-launch Daisy streaming service are integrating old school radio fundamentals to make their service more than just a lifeless algorithm that endlessly spits out music. Programming vet Kevin Stapleford and other former broadcasters have brought traditional radio elements to Slacker, including low key hosts that talk about the music on its most popular pre-programmed channels. “We’d like to get to a point where a majority of our preprogrammed stations are hosted,” Slacker SVP of content programming and strategic development Jack Isquith says. Even countdowns are getting a new interactive twist. Slacker used veteran rock radio personality Redbeard to host “The 101 Greatest Classic Rock Songs.” Listeners could skip and “heart” songs or even turn the DJ off. Pre-programmed stations organized by genre, mood or other characteristics are common across web radio. At Slacker they account for more than half of listening. The combination of programming art and algorithm science is at play on iHeartRadio, too. Its custom channels incorporate “quite a bit of our programming intelligence” from broadcast radio, Clear Channel Digital president Brian Lakamp said at a conference last year. Iovine and Dr. Dre’s forthcoming Daisy streaming service plans to lure an unspecified Clear Channel executive, according to the Hollywood Reporter, to supervise a 5 board of tastemakers that make music programming decisions. Iovine says curation will be at the heart of the service, combining “math with emotion.” Details emerge on Apple’s iRadio targeted ads By cmarcucci on Jun, 6 2013 with Comments 0 Apple‘s imminent iRadio music radio streaming service will feature an audio version of iAds, Apple‘s mobile ad platform. Ahead of its Worldwide Developers Conference 2013 in San Francisco, where Apple is likely to announce the service, Ad Age reports that the company is planning to include ―highly targeted ads‖ in iRadio. That means both audio and banner ads. The new audio ads will be sold via Apple‘s iAd platform, alongside banner ads on the streaming service. Apple has set up the ad platform to be competitive, offering 10% of ad revenue to music rights publishers – 6% more than Pandora currently offers. Specifically Apple reportedly asking to pay just $.06 per 100 plays for any song. Pandora currently pays about $.12, and Spotify $.35. People who also use iTunes and iTunes Match will be able to purchase songs they‘re listening to in iRadio, through iTunes, store them on Apple‘s cloud and access them through any Apple iOS device. iAd is expected to retain a higher percentage of that ad revenue compared with other iAd inventory. Currently, 70% of iAd revenue is given to publishers who monetize their apps using the service, according to Apple‘s iOS developer program. Selling streaming audio ads will allow Apple to offer the service free to users as is typical with most streaming music services.
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