The most exciting acts in the music industry are embracing the best of what technology has to offer and some fresh new takes on traditional marketing...
1. Shazam
For naming that tune. All the time. The “Pop-up
Video” for everyday life, Shazam has become the de facto method to
identify that song on the tip of your tongue. In 2013, it introduced
Auto Shazam, an opt-in feature that keeps a diary of your day’s
playlists without you even noticing. The company has also started
working directly with artists, allowing them to provide exclusive
behind-the-scenes footage, interviews, and unplugged versions of their
tracks. With no interruptions, the guarantee that no audio will be
stored, and the opportunity for companies to reach consumers based on
their TV show or commercial engagements, Shazam has moved from cool
party trick to major music-industry player.
2. YY
For reclaiming karaoke and taking it online. While
YY started in 2005 as a hub for hardcore gamers, it’s evolved into a
karaoke haven and cash cow with $198 million in revenue. Vocalists
perform for thousands of viewers live, and popularity leads to rewards.
Viewers can give virtual goods to the vocalists, which can be redeemed
for cash after YY takes its 60% cut.
3. Columbia Records
For staying up all night. A label more closely
identified with the old-school music business made two strategic bets in
2013. Without any previous promotion, Beyonce's surprise self-titled
release dropped at midnight on December 13th and sparked a downloading
frenzy that rocketed it to No. 1 on the sales charts. On the other end
of the spectrum, Columbia showed deftness in the campaign behind Daft
Punk’s new album, creating a stir with short teasers on
Saturday Night Live
and at Coachella, hitting overdrive with a clip of Pharrell and Nile
Rodgers performing “Get Lucky” and releasing a series of “Collaborator”
videos.
4. Spotify
For saving the music industry, one stream at a time.
Spotify’s influence can hardly be overstated. The company has
essentially trained roughly 25 million people to pay for streaming music
rather than pirate it for free. And more than 6 million of them are now
paying $10 a month for the ad-free experience. In 2013, Spotify
extended its reach to 55 different countries and became the second
largest source of music revenue, only behind iTunes. It also invested in
music data by acquiring The Echo Nest, which has compiled over 1
trillion data points about more than 35 million songs, undoubtedly
giving Spotify a leg up when it comes to providing users with more
personalized recommendations and radio playlists.
5. Mad Decent
For shaking up how music goes mainstream. The Harlem
Shake meme defined the early part of 2013. And it was all because of
how Mad Decent, the record label behind the artist Baauer, deftly
reached the masses. The viral sensation sold more than one million
copies and reached No. 1 on the Billboard Hot 100, but Mad Decent
reportedly spent less than $5,000 marketing the track--initially giving
it away for free. The label also continued expanding its popular Block
Party events, debuting in Johannesburg and Cape Town, South Africa.
6. VEVO
For mastering the magic of music videos. Once
inextricably linked with YouTube, the music video portal took steps
toward becoming a standalone musical monolith in 2013. Now, 40% of its
streams come outside of YouTube and half of its 5 billion monthly views
come from mobile devices. Part of that uptick on mobile comes from
VEVO’s newly redesigned mobile app, which allows users to create video
playlists that save to the cloud.
7. Macklemore LLC
For leveraging major label power intelligently.
Macklemore and Ryan Lewis's "Thrift Shop" received major radio play in
2013, holding court at No. 1 on the Billboard Hot 100 for six weeks and
selling more than 10 million copies since its 2012 release. But it was
the strategy behind the artist's own label, Macklemore LLC, that led the
track to radio success. After the release of
The Heist in
2012, the duo hired the Alternative Distribution Alliance, an arm of
Warner Music Group, to expose the track to markets outside their
hometown of Seattle. With the rights to the music in their back pocket,
the two could license it without losing creative control or splitting
revenue with a label, making the endeavor an unrivaled success.
8. SoundCloud
For going pro properly. The audio platform expanded
its reach with a new way for creators to bolster their presence on the
site. Partnering with acts like Snoop Lion and The-Dream as well as The
Guardian, Blue Bottle Coffee, Red Bull and the Nerdist network, Pro
Partners get a more robust profile and the ability to place images along
certain recordings. And in a surprise move, Bruce Springsteen streamed
his newest album,
High Hopes, on the platform before its release showing the influence of SoundCloud’s openness.
9. Ultra Music Festival
For bringing the world’s music to the rest of the world.
In 2013, the Miami-based dance music festival expanded to two weekends
(though it's scaling back to one weekend in 2014), which saw a spike in
ticket sales and continued its global expansion to Santiago, Chile;
Split and Hvar, Croatia; and Cape Town and Johannesburg, South Africa.
Ultra’s move beyond the United States to countries where dance music is
even more popular, while adding other, non-electronic acts to the
predominantly dance-focused lineup makes it one of the biggest festivals
in the world. The company's ability to consistently book the best acts
has led to almost immediate sellouts. Earlybird tickets for 2014 sold
out in just four minutes.
10. YouTube
For growing up. YouTube held its first annual awards
show in 2013 to recognize the best acts in music videos. Live-streamed
and often chaotic, the event was directed by Academy Award winner Spike
Jonze and hosted by Jason Schwartzmann and Reggie Watts--a musical
YouTube star in his own right. But YouTube has become more than a place
for artists to reach fans directly, it is also paying the artists who
are using the platform--more than a billion dollars in 2013. With music
streaming up 32% from 2012, the payout for artists will rise too.