U2 TAPS SOCIAL MEDIA

If you want to hear U2's new album, " No Line On The Horizon'" before March 3rd, you better know something about Social Media. Actually, you better be a member of MySpace, becasue if you are not you can't hear get it until March 2nd. Click Here to hear the album. This is really a coup for MySpace, which last month fell to the number 2 spot in the social media space, behind Facebook. It would have been cooler to have the number one band in the world to be with the number one social media site in the world, but this just might propel MySpace back into the number one spot, for a month anyway. I guess they did it to help prevent piracy, but it is also a testament to how powerful social media is becoming. Granted MySpace was born out of music, but this is a big win for them. I am sure we will be seeing more and more bands doing things like this. To be honest, I beleive the era of the branded free album is actually not too far off.

As you know the real money for bands is made in touring and merchandise. The actual sale of CD's is not where bands make their money with the exception of albuns that go platinum. Imagine if a brand like Best Buy said "Hey band X... we will front you the money to make the album, give you some money towards touring and we will give the music away for free at our stores as a gift with purchase." They then let the band keep their touring money and merchandise money and there is no advance to pay back either. Hmmm...sounds like a tasty recipe for a band but why would they want to give it away for free? The answer is simple actually. Best Buy could give away millions of CD's as a gift with purchase which only increases the pool of fans who might want to go to see the band when they tour. It simply gives them a larger fan base and the opportunity to make more money when they tour and sell merchandise whcih is generally their bread and butter. It is a win-win. Further, the Brand could essentially retain a license to the music for a year and then have all rights revert back to the artist which again is a win-win. The brand can use the music in their advertising and branding activities for the cost of making the album and the artist gets to make the albumn with no payback of the advance. The only question would be who owns the publishing and I am certain we all know the answer to that... it is negotiable.

This is a recipe which the record companies will absolutely hate, but it sure does make a lot of sense to me. What are your thoughts?