While in previous years the industry had wavered between nervousness and open hostility towards the internet and mobile phone manufacturers, especially on the issue of piracy, the mood was different for MIDEM 2009.
Summarizing this change, Ted Cohen, Managing Partner of TAG Strategic, told MidemNet attendees: “Now it is less about imagining a future and more about getting down to business. We no longer need to rage against technological advancements; instead, we must simply think about putting together something that works, by being pragmatic and aiming for models that can both monetize music and offer great experiences to fans.”
Nokia’s unlimited download service, Comes With Music, was among the new business models discussed this week in Cannes. Launched last fall in the United Kingdom, it allows Nokia phone purchasers to access a catalog of 5 million tracks. Speaking at MidemNet, Tero Ojanperä, Vice President of Entertainment and Communities at Nokia, announced that Comes With Music would be launched in Australia and Singapore in the coming weeks and that an expansion of the service in Europe would follow.
Martin Blomkvist, Head of Acquisition Management at Sony Ericsson, confirmed that he met many labels at MIDEM to negotiate pricing conditions and business models for the manufacturer’s PlayNow service. Laurence Le Ny, Vice President of Music at Orange, met rights holders in Cannes to discuss the expansion of Orange’s two unlimited download services: Musique Max and Musique Hits.
“I think the debate on the distribution of music on the internet or on mobile has radically changed and this evolution was evident at MIDEM,” said Dominique Leguern, Director of MIDEM. “The industry is no longer questioning whether it is interesting to work with these new channels of distribution; it is now about defining how to work together for everyone’s benefit.”
Kevin Arnold, founder and CEO of Independent Online Distribution Alliance (IODA), a leader in digital distribution for the international independent community, confirmed that the industry has reached a milestone and that 2009 would be seen as a key step toward a promising future. “As the music industry continues to transform, MIDEM represents a structuring force that brings us together to focus on the fundamentals of music, marketing, and innovation,” he said. “Historically, challenging times create the best opportunities, and MIDEM allows us to explore new directions and project into the future of our evolving industry.”
This new era will see the increasing development of collaborations between brands and artists, integrating them more and more into their overall marketing strategies. Bacardi took advantage of MIDEM to announce that its collaboration with the British electronic duo Groove Armada, started nine months earlier, was expanding with the launch of the sharing platform www.bliveshare.com, which will distribute their new EP. Other major international brands also chose MIDEM to develop their relationships with the music industry and present their music strategies such as Coca Cola, A|X Armani Exchange, or Guitar Hero from video game publisher Activision Blizzard.
“The growing presence of brands at MIDEM is a very good indicator of what the future of the music industry will be,” commented Dominique Leguern. “We are going through a period that is as difficult as it is exciting. We have been fortunate to be able to share the experiences of two emblematic groups at the forefront of new models, Radiohead and Trent Reznor/Nine Inch Nails. During the International Manager Summit, Brian Message, manager of Faithless, Kate Nash, and Radiohead, emphasized how flexibility and creating value are two fundamentals for success today. The case study of Trent Reznor presented the immense creativity this artist shows in his relationship with his fans.”
Certainly, physical sales are down, but many sectors of the music industry are bustling with development such as publishing, and the launch of the International Publishing Summit at MIDEM this year provided an important platform for discussion about this sector and its future.
