Wednesday, April 05, 2006

And That's When I Realized Starbucks Had My Number

When I was a teenager, I got into Gram Parsons and Merle Haggard through the Grateful Dead's rendition of "Sing Me Back Home." In my twenties, the Talking Heads' Remain In Light became one of my faves after hearing Phish cover the whole thing in concert. And I started listening to 1950s do-wop with a whole new perspective after Spiritualized's Jason Pierce spent 10 minutes gushing to me about the genre during an interview.

One of the best ways to discover new music is through the recommendations of artists whose musical leanings you already trust. Enter the Artist's Choice series produced by Universal Music's special projects division (UMe) and distributed through Starbucks/Hear Music.

I came across this series while waiting for my grande soy mocha (no whip) this morning, and was pleasantly surprised - not only by the artists doing the choosing, but also by the songs that they selected. On the racks were mixes created by venerable artists like Emmylou Harris, Elvis Costello, and the late, great Johnny Cash. The songs were the perfect combination of the familiar and the untested, the old and the new (Rilo Kiley, Mr Costello?!). The packaging was compelling, and the price - at $12.95 - was right.

Of course, I didn't buy anything, since my degree of music snobbery and my access to all of the songs on Rhapsody overrode the impulse to plunk down cash for what was essentially a greatest hits collection. But the desire was definitely there.

This isn't a new idea, these artists' picks collections. In fact, the iTunes Music Store has an entire selection dedicated to it. But their artists and their artists' picks are, for the most part, pathetic pop culture tripe - cobbled together from what the iTunes staff perceives to be the tastes of 15-year-old boys and marginally involved fortysomethings, neither of which is the store's primary audience (trust me - it's my job to know that). I mean, who really gives a shit that the guy who plays Monk on the TV show has an assistant named Natalie and that's why he likes the Killers song "Believe Me Natalie?" And is it any surprise that Courtney Cox likes "Free Bird?"

Even the actual musical artists that iTunes got to play ball are not exactly engendering respect for the section or for their own person with the songs they chose (though Ashlee Simpson gets grudging props for checking Jeff Buckley).

Let me break it down:

Contrary to popular perception, teens are actually coming back to the music market in a big way. In 2005, they bought more CD's than they had since 2002, and they were the only age group to increase the amount they spent on music overall (including digital). By comparison, the 36+ age group - the industry's largest buying segment - slashed the hell out of their spending.

If the music industry wants to recover - or at least speed this metamorphisis into a digital distribution model that may have thinner margins but is certainly more stable than the physical market which has been dropping like a lead zeppelin for the past five years - they need to focus not on the kids (who are all right), but on the moms and pops who still love music (In fact, they cling to it as the last remaining tendrils of a less stressful past). And they're not going to do it by pinging Keifer Sutherland about his love for the pop punk band Snow Patrol.

Starbucks and UMe are onto something with their Artist's Choice series. Elvis Costello's picks will not only appeal to a generation of formerly angry young men (and formerly active music buyers) now collecting their vente lattes and ignoring their Blackberrys for two minutes. But the inclusion of fledgling artist Rilo Kiley in the collection might just send them back to the record store to pick up the band's 2004 release More Adventurous. I know I did.

9 Comments:

Anonymous Anonymous said...

Well said my friend. I think the most surprising aspect of this post is that you spend that much time at, gasp, Starbucks. I would think a smart guy like you would hit the indie coffeehouse, but hey, it exposed you to their music side, which, imo, has actually been doing a good thing.

The truth is, as people get older, they want to still feel connected to music -- new music. Look at what Alan Light attempted to do with Tracks. Sadly, not enough advertisers realized what a genius idea he had and the magazine folded. He knew that the 35+ market wants to know what their old standbys are currently doing and how younger artists pick up where they left off.

I was at the CYHSY show the other night and expected a totally young audience. I was shocked to see a very mixed-age crowd -- but happy to see it. Now that I'm turning 35 and still going to loads of shows, I'm not the aging rock hack in the crowd (that's Greg Kot -- LOL) -- but one of many upper classmen checking out the new crop of bands making waves.

10:02 AM  
Anonymous Anonymous said...

Funny you wrote this. I was in St. Louis a few weekends ago visiting a buddy and to see Wilco perform in front of a "hometown" crowd (rumor had it there were about 70 Tweedy's in the balcony).

Anyways, we were talking music and whatnot and I ended up blurting out that my favorite new record store was Starbucks. Seriously, I've bought more cd's there than anywhere else in the last year, pathetic as that sounds.

And, I'm always checking out their new releases. The compilations you mention have always intrigued me, though I've never bought one. But, thought it was kind of genius on the Dylan camp's part to release all the No Direction Home and Gaslight stuff through Starbucks. I'm actually glancing at my Starbucks cup now and it's got a quote from Rev Run on it talking about RUN-DMC.

I've glanced at playlists for their XM station as well, and it too is pretty impressive, at least for my musical taste. (although, I'm a Sirius subscriber, myself.)

Sorry for the long note.

12:37 PM  
Blogger mgrooves said...

I think this phenomenon is very real. As people get older, it becomes much harder to have organic music discovery experiences where you encounter new music in your day-to-day life.

In your 20s, it's easy to hear about a band through your friends or to get a random invite to go see a new band that you've never heard of. People have more time to make you mix CDs (or tapes if they're old school) that introduce you to new (or new to you) music.

As you get older, get a significant other, start a family and become more seriously involved in a career, these interactions become more infrequent. It becomes incumbent on *you* to become more active in pursuing new music if you want to keep on top of it.

Unfortunately, many people don't have the time or the energy to put in the work to stay active. But in my opinion, the desire to hear new music doesn't go away.

I think it would be very smart to market a music services like Rhapsody (where I work) in this way. I always tell reporters that services like Rhapsody help people rediscover their passion for music by making it virtually painless to check out a band once you've heard about them.

In this way, the pay-once, listen-to-anything music subscription model is vastly superior to the pay-per-song model. Sure, iTunes has Celebrity Playlists and iMixes where you can see what celebrities (or more cynically/likely, their publicists) are listening to, and why they like it, but do you *really* want to pay $15 for the privilege of hearing what Tony Shalhoub (the guy from Monk) is listening to? I'm guessing that for most people, the answer is "no."

Wouldn't it be more interesting if you could listen to these mixes at no extra cost?

We think the answer is yes and have begun offering "celebrity mix tapes" through Rhapsody; these mix an artist interview where they describe their favorite songs, followed by the actual song. We just launched one with ex-Kinks frontman Ray Davies, and as a music lover I find it fascinating.

Anyway, enough for now.

1:34 PM  
Anonymous Anonymous said...

The Artist Choice CDs are a GREAT idea. All fans love to get a mix tape from their favorite artists. I've actually seen business plans of people trying to run with the idea in the online world.

But I think it's important to acknowledge the limitations of the concept. Sure, it's relatively cheap to license tracks from old or little-known artists. But the only reason Starbucks can get artists the stature of the Stones without having to give them an enormous advance is their ability to distribute physical product.

Starbucks has got something like 4,000 stores and a huge base of literally addicted customers. They can really sell a lot of CDs. So the Stones get their new album and maybe some catalog titles sold alonside their Artist Choice CD. Voila, a lucrative new revenue stream. The problem, of course, is this model doesn't scale. Once you have more than 10-15 titles, you lose what made it special and Starbucks basically become a mini-Tower Records.

Interesting to note that Hear Music, the Starbucks-owned record chain based on recommendations, has basically failed. Their venture into into digital music (downloading & burning kiosks) has met a similar fate thus far. So I don't think Starbucks is the next powerhouse in music. Music is a quietly profitable sideline and an excellent lifestyle marketing vehicle for them.

Instead, the Artist Choice CDs just reaffirms the need for a gatekeeper. Whether it's a brand, magazines, blogs, radio stations or just friends you trust, we all need someone to help spearate the good from the mediocre.

1:59 PM  
Anonymous Anonymous said...

I want to say that Starbucks guarantees a buy of 100,000 CDs with every album they select. Such as this new Sonya Kitchell album. She's a good singer-songwriter. 17 years old (and a DownBeat Student Music Award winner, like Norah Jones ... we sure know how to pick them). She'll be huge as her album gets distributed in Starbucks. We had this in a story on Herbie Hancock's Possibilities album in our Oct. issue:

Ken Lombard, president of Starbucks entertainment, says that Hear Music took off meteorically with the success of the Charles album, which won eight Grammys and has sold more than three-quarters of a million copies in Starbucks locations. After the Genius Loves Company phenomenon, “artists, labels and their management began recognizing the strength of the Starbucks platform, from a distribution perspective. And all of our discussions just started heating up,” Lombard says.

Hancock was the next logical artist on their roster, which had previously issued only archival compilations. Possibilities is one of the titles in the small but slowly expanding catalog available in Starbucks, as well as its Hear Music web site and at traditional retail outlets. “When you think about the Starbucks platform and the assets we’re attempting to leverage to the industry, it starts with more than 9,200 stores worldwide,” Lombard says. “Our customer rate is over 33 million customers worldwide. As important as anything is the frequency. When you think about that loyal Starbucks customer who comes in up to 18 times a month, no other retailer can provide that type of visibility to the music consumer that we can.

“Our customers come in with a tremendous amount of passion and trust for the brand. A music consumer can come in and be provided opportunities that go beyond limited formats that you see in most big box retailers today, along with radio.”


OK, so they can sell a lot., But they sell a real narrow band of music. But they do a good job of it. Now, do oyu think they could sell this steel pan tribute to the Ramones that's tearing up my CD player?

10:34 AM  
Blogger Anu said...

I still think selling CDs is a "dinosaur idea".

I am certainly interested in what my favorite artists like - but what I really want is the metadata, not the music. WHY does Elvis Costello like Rilo Kiley? I can get most of the value out of the product just by reading the track list.

These playlists (that's what they really are) have much more value in a service like Rhapsody than actually buying a CD full of stuff, because you can then continue your exploration. If you find something you like on the Starbucks CD, what's next? A trip to Amazon or your local record hole? Or Rhapsody? How does that really help Starbucks?

The other problem is the artists' selections may not fit in the Starbucks demographic or even your tastes. It's like your friends selling you a mix CD, only the people selling you the CD don't even know you.

The disparity of content is going to hurt them one way or another. Either they all sound the same and you give up, or they sound too different and you give up. You might like one of these CDs...are you going to like more than 1?

I think the consumer risk is too high. Are people really going to buy a whole CD of stuff they presumably haven't heard before because Jason Mraz says so? It'd be more interesting if it was a "mix of the month" club with deep discounts. Or if the CDs were effectively free.

Of course, if the labels had any sense at all, they'd do this sort of thing for every artist on their roster and use it to cross-promote artists and back catalog stuff. And they'd sell it at a deep discount through fan clubs, etc.

12:58 PM  
Blogger isaacjosephson said...

Anu, that's not a bad idea. I might flesh it out and run it by some folks at the labels.

1:31 PM  
Anonymous Anonymous said...

A few years ago, I used to spend (waste!) a lot of time getting lost in allmusic.com, following the links of influences, predecessors, related bands, etc. Those weren't always the best matches, but generally there was something there interesting enough to check out at Amoeba.

If only my memory were better (or my head less congested), I could tell you about this website/matrix/thingy that someone wrote that had all sorts of bands listed as parts of constellations or vectors, so you could look at things that way.

1:05 AM  
Blogger jayne said...

I thought you were off coffee? Starbucks has your number on speed dial my friend.

2:48 PM  

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