Topic Talk Tuesday – How Do You Listen To Music?

Hola Todos!

Today’s topic talk is from Matt Kirsch, Owner/Artist Manager at Collateral Artist Group, LLC.  Matt has extensive experience in the music industry (click here for a Rolling Stone article on the new economics of the music industry).  In his topic talk, Matt asks us is the MP3 player dead and we’re moving to an all-streaming model?

Matt, the floor is yours…

 

Hello everyone,

Here’s a question I have been thinking about for awhile – – Would you rather have a song in your possession, whether on CD or as an MP3, or just be able access a stream of it whenever you wanted?

Throughout the past decade, the music industry has been in an almost constant state of adaptation, which, for better or for worse, has made a significant impact on how we view and listen to music today. With the advent of music based social media sites like Rdio, Last.fm, and most recently Spotify, the concept of how we listen to music on a daily basis has changed dramatically.

Leaving out the proverbial ‘elephant in the room’ of illegally downloading music, the debate becomes one of convenience. Why own an MP3 player or buy a CD when your phone can stream music anywhere? The obviousness of carrying around one less gadget, or emptying a glove-box full of disks is clear, at least to me.

MP3 players became dominant in the market because they could hold and store more music than a Walk-Man or portable CD player, and now it makes sense that they be replaced by the unlimited storage potential of internet streaming. While MP3 players are by no means outdated, in the ever-evolving world of music, online music streaming can go beyond simple playback to actually assisting listeners with the discovery of new music.

New technology is designed to make our lives easier, and while it is certainly possible to take advantage of all these resources for music listening, I like to support innovation wherever possible. The bottom line is that streaming services give the listener one more avenue to explore in the world of listening to, and most importantly, discovering new music.

Something to think about today…

Matt Kirsch

Owner/Artist Manager at Collateral Artist Group, LLC

Twitter is Trying to Create a Revenue-Generating Model

Hola Todos!

I learned a lot of nuggets in my Ph.D. program.  One of my mentors, professor Linda Price, often told us, “If you cannot explain your research to the cab driver in the car ride over to the conference, then your research idea is not clear, concise, or simple enough.”  My entrepreneurs out there know this concept as the “30 second elevator pitch.”  I talk about this concept in my class with the Key Word “Unique Selling Proposition” or USP.

To summarize, I feel Twitter has a problem because they cannot describe their revenue-generating model in 30 seconds or less.  Each year, I take a deep-dive into something (2011 was blogging) and 2012 will be micro-blogging (meaning Twitter).

Check this article out (click here) I read the other day. The first nugget I got was the concept of a “Chief Revenue Officer” or CRO.  That’s something new.  Second, we learned Twitter now has 2,400 advertisers, up from 1,600 in the spring.  Now that’s something clear and very easy to hang your hat on.  However, that is where the clarity ends.

The article goes on to describe (only briefly), Twitter’s main advertising platforms.

“Twitter offers three types of ads: promoted accounts, promoted trends and promoted tweets, which appear in users’ content streams. These types of ads draw “massive engagement,” Bain said, with a conversion rate of about 3% to 5%. The rate for traditional display ads is around 0.5%.  “The [return on investment] for marketers is insane,” Bain said, citing a handful of successful campaigns.”

While promoted accounts, promoted trends and promoted tweets are somewhat concrete, “massive engagement” and “insane ROI” is not.  Remember when you were little and there was always that one kid on the playground who ALWAYS over exaggerated just to grab attention?  That’s what Mr. Bain sounds like to me in this article.

In addition, while it seems natural to compare Twitter’s conversion percentage to banner ads (this is comparing apples to oranges), a better comparison would be to compare Twitter campaigns to Twitter campaigns.  For instance, you can report an average conversion rate of about 3% to 5%, but if 1 of those campaigns had a conversion rate of 25% and the other 9 had a conversion rate of 0.50% (note to mathematicians out there: I am making the numbers up for illustrative purposes), can Twitter really claim they average a rate of 3% to 5%?

Now that Facebook has announced an IPO, the pressure will be on Twitter to do the same.  Three years ago, we could have had a similar conversation about Facebook but not anymore with 4 billion in revenue last year. (However, I cannot wait to read their S1 to find out what their cost structure looks like on that 4 billion in revenue.)

I suggested a few weeks back (Click – Yahoo should buy Twitter and then merge with AOL) that Twitter should accept an offer from a “big brother.” This would take all the short-term pressure off of Twitter to build a solid revenue-generating model as opposed to a forced or hodge-podge revenue-generating model.

Something to think about today…

Best regards,

Dr. Dan-o

 

 

 

Nugget Dictionary Keyword – Modius Operandi

Hola Todos!

Today’s Nugget Keyword of the day is Modius Operandi or in its shorted form M.O.   Wikipedia (click here) describes modius operandi as a Latin phrase (approximately translated as “mode of operation”).  The phrase Modius Operandi is commonly used to describe someone’s habits, manner of working, or their method of operation or function.

We often hear the phrase used in police TV shows or movies – something along the lines of, “That’s not our killer’s M.O. – what’s going on here?”

I often see the expression used in business contexts.  For example, it is Apple’s M.O. to be very secretive about product development or Google’s M.O. to release everything in Beta form and let the user population determine future functionality.

Dr. Dan-o’s M.O. for the DigNuggetville blog is to do marketing strategy on Monday’s, topic talks on Tuesdays and Thursdays, Leadership on Wednesdays, and Nugget Keywords on Fridays.

Have a great weekend!

Dr. Dan-o

 

 

 

 

 

Today is Dr. Dan-o’s Birthday!

Hola Todos!

Yup! Today is Dr. Dan-o’s birthday and it feels great to be 41 years young (remember yesterday’s post – language is powerful and “young” is a better word that “old”).

I’m probably going to drink a sugar-cane Coke-Cola with Puerto Rican rum Don Q Limon at some point but not before spending a wonderful lunch with mi chica Maggie.

Sure, I would love for you all to send me gifts (preferable US currency with noted Philadelphian Benjamin Franklin in the middle) but that is not necessary.  Instead, a better “gift” would be to recommend www.dignuggetville.com to one person who you feel would “dig” learning one good nugget a day.  Ask them to sign up for “nuggets” to be sent to their email account.

Thanks in advance. I really appreciate all the interest, participation (especially the Topic Talks), readership and questions.

All the best,

Dr. Dan-o