Richard Kirstein, founding partner of specialist music consultants Resilient Music, explains the relationship between music and brand marketing
Music and brand marketing: a marriage made in heaven?
Everyone in the music industry has an opinion on band/brand partnerships. Many see these as one of the few sources of reliable income given the sustained falls in sales of recorded music. Record labels are signing far fewer artists - For those acts who do get signed, financial advances are lower and the period to prove themselves is short. Labels drop acts whose first albums aren’t instantly successful. So for artists, alignment with the right brand is an attractive goal. Brands offer far greater media exposure as their marketing budgets dwarf those of most record labels.
For brands, music is a strong passion point for consumers and an effective short-cut to engagement. Since the origins of UK 'synchronisation' placements (use of licensed tracks in TV spots)in the 80s, attitudes among artists (and their fans) to brands have changed from accusations of 'sell out' to almost universal acceptance. There’s now a daily plethora of artist/brand deals involving ambassadorship, experiential, bespoke product ranges, in-store platforms with digital and mobile showing the fastest growth. Brands want to create unique consumer experiences, capture the content and share it with the world. And here’s where it gets more complicated. The reason? Music rights.
Navigating music rights is complex and difficult. The problem stems from the historical legacies of the different branches of the music industry. Typically you’ll need to deal with music publishers, record labels and artist management.
Music publishers control songs on behalf of songwriters and composers. They look to monetise every licence. So, when brands work with artists and use songs (written either by the artist or professional songwriters), licences are needed from the appropriate music publishers. Generally, only unpublished songwriters control their own songs.
Key learnings:
• Find out the music publisher(s) that controls the song you wish to use.
• The publisher of that song, controls all versions irrespective of who records or performs it.
Record labels control sound recordings on behalf of recording artists. Sometimes the artist is also the songwriter, but that’s irrelevant to the record label – the label only controls the sound recording and not the song. When a brand engages an artist (currently under an exclusive recording agreement) or uses an existing sound recording, it needs a licence from the appropriate record label.
Key learnings:
• Find out the record label that controls the rights in the recording you wish to use (whether existing track or live recording from your activation).
• Many music companies have both publishing & record divisions, but they’re separate companies e.g. record label Universal Music Operations ('UMO') and music publisher Universal Music Publishing ('UMP'). Don’t assume that recordings owned by UMO necessarily contain songs published by UMP.
Recap
When using existing tracks, you must license rights from the publisher and record label. When engaging an artist’s services (e.g. live performance/brand ambassadorship), you must also liaise with artist management, as neither publisher nor label typically controls those rights (although the label may try to convince you that they do!)
The different parties may not share the same agenda so careful navigation is required.
Warning!
Negotiating clearance 'after the event' is dangerous. Exploitation of music rights without a licence constitutes infringement of copyright. Expect to pay punitive licence fees to make amends and/or face a legal claim for damages.
Watch out!
Frequent causes for failure of artist/brand partnerships :
(i) Brand doesn’t clearly define its objectives up-front and communicate them properly to the interested parties
(ii) Brand (or its agency) sacrifices its bargaining position from the outset by pursuing only one artist, rather than having back-ups.
Plan for success
So if brands understand the risks, how do you avoid them? Answer: use competitive tendering!
Dos and don'ts for brands for successful competitive tendering:
• DON’T start by choosing one artist to execute or amplify the campaign idea
• DON’T listen to your agency if they say that competitive tendering is the wrong approach
• DO define the type of artist that best matches the objectives of your campaign
• DO reference musical genre, emotional cues, career stage, social media stats, artist values, audience profile, past current brand alignments (or lack of), awards, sales
• DO build a clear picture of the ideal artist
• DON’T reference any specific named artists
• DO clearly define the artist deliverables for any live performance / brand ambassador activities
• DON’T assume the artist will deliver anything that you haven’t specified & agreed up-front
• DO define the required usage rights for filmed footage, songs, recordings, still images
• DO clarify usage in terms of Media, Territory, Term & options to extend these deal points.
• DO define your TOTAL music budget
• DO set the budget in stone
• DO put the onus on the rights owners and artist management to decide how the money is split between them.
Specific challenges for digital marketing and social media
Music rights owners grant licences for specific known usage – their business model is based on precise limitations, developed in the analogue world. They may demand that you specify exact URLs for all sites on which your content (including their licensed IP) will appear. They will certainly demand that all such usage is limited by Term (i.e. a defined time period). They will usually accept that all on-line use is (by definition) worldwide, though sometime will try to restrict this.
The challenge for marketers is that social media doesn’t work this way. You want consumers to share the content anywhere and everywhere – and for this content to live forever. Here are some useful tips:
• Before you commit to a particular track, ensure the rights owners can grant worldwide licences (otherwise you’ll need to navigate a split-territory deal which is complex, difficult and more costly)
• Ensure all content is streamed only ( and NOT downloadable)
• Clearly define whether the music is to be used audio-only or with moving images
• Commit to naming (or defining the number of) brand- owned URLs to which you or your agency will upload content – and commit that the content will be taken down from these sites at the expiry of the licensed Term.
• Include a clause which acknowledges the brand has no control over (and therefore liability for) how consumers will share the content, where it might appear and for how long.
• Allow the rights owners, artist management and artists to use the context however they wish for cross-promotion subject only to limitations of other third parties (e.g. actors in the content whose usage licence may expire after a given Term).
Key take-outs
• Start early – this empowers you with a stronger bargaining position.
• Commit to competitive tendering.
• Mandate that your agency adopts competitive tendering. Decouple music sourcing if they refuse.
• Identify a short list of artists.
• Understand the key music rights you need to license: song, recording, live performance, brand ambassadorship etc.
• Identify who controls each of these rights for each shortlisted artist
• Deal directly with each rights owner – not through other rights owners
• Bring all parties to the table as early as possible for each artist on the short list.
• Secure signed approvals from all parties for all artists on the short lists WITHOUT making any commitments from the brand’s side.
• Select the final artist from those whose signed approvals you have, safe in the knowledge that all commercial terms have been pre-agreed.
• If you don’t feel qualified to manage the above process, appoint a music specialist to act on your behalf. Carefully review their credentials in this area.
Ultimately, it’s all about the balance of power – if you keep it weighted in the brand’s favour, you’ll secure a better outcome. You are far better positioned than your agency to do this! Good luck.
Going for a song: Resilient Music's Richard Kirstein presents his personal top 5 campaign tunes
JOHN LEWIS 'She's Always A Woman'
http://www.youtube.com/watch?v=SHcm1ec7CcY
Brilliant, classic song by Billy Joel. Tasteful re-interpretation by Fyfe Dangerfield of The Guillemots. Who needs a voiceover when music like this tells the story so well? Mr Dangerfield’s career received a boost from the association too!
IKEA 'You'll Always Find Me In The Kitchen At Parties'
http://www.youtube.com/watch?v=mweZH3bOFG4
Great re-working of original Jona Lewie hit by Man Like Me. Subtle cameo of Jona in the background. IKEA’s irreverent positioning sits well with Man Like Me’s ska/cheeky chappie persona.
CITROEN C4 'Jacques Your Body'
http://www.youtube.com/watch?v=7WzfaJUuZXE
Generated significant noise in both media & consumer circles at the time. Broke with the traditional car driving down mountain road template, so very refreshing.
LEVI’S CREEK 'Inside'
http://www.youtube.com/watch?v=skWFyop_pxU
From the heyday of Levi’s advertising. Very cinematic rock 'n' roll signifying teenage awakening in 19th century puritan America.
Cadbury's 'A Finger of Fudge'
http://www.youtube.com/watch?v=X9W4rhhEq_U
Deeply uncool. Hopelessly nostalgic. Infuriatingly memorable song! Perfect example of jingle writing.
Richard Kirstein
resilientmusic.com