COUNTRY LEADERS UPBEAT ABOUT STATE OF THE INDUSTRY Ken Tucker – Billboard Despite softer-than-hoped-for sales for record companies and flat revenue for radio, country music industry leaders are generally upbeat about their respective businesses.
Warner Bros. Nashville executive VP Bill Bennett says he is as enthusiastic about the record business as he was when the joined the label a year ago. “Finally we have really smart people running the companies and we’re embracing the technology,” Bennett says.
Noting that the record business is “in transition,” Bennett says the “modern record company is a content provider.” Ringtones and master tones (snippets of actual songs) are among the new media opportunities his company is taking advantage of. “Technology presents marketing opportunities,” Bennett says.
While there is some concern from radio that new technology such as ring tones and partnerships with AOL, for example, are being looked at as alternatives to radio, Bennett says that isn’t true. The idea, he says, is to make playing new music safer for radio through exposure. “If we’re going to ask radio stations to play a new artist, we need to make it less risky,” Bennett says.
While acknowledging that country album sales are lower than last year, Bennett is still positive. “We’re down a little bit in country, but the difference could be a Kenny Chesney record at Christmas,” he says.
Meanwhile, Clear Channel/Baltimore VP/GM Jim Dolan, whose responsibility includes WPOC, says that while radio usually posts a 5-7% gain each year, business is basically flat in 2005. The automotive industry, which accounts for roughly 20% of radio’s advertising revenue, is itself down about 20%, according to Dolan.
Still, he’s positive. “It’s been a tough year, but I don’t think anyone is more excited about where things are going,” he says.
Dolan believes that Arbitron’s Portable People Meter will reshape how stations are programmed. “How will we promote the stations once it’s not based on recall?” Dolan asks. While he doesn’t claim to know all the answers, he says that without station identifiers there will be “a lot less clutter.”
Buddy Lee Attractions president/co-owner Tony Conway says that the country touring business is “very healthy.” He specifically cites Kenny Chesney, who finished 2004 as the No. 2 touring artist and is currently ranked No. 1 this year, ahead of U2.
Another positive sign, according to Conway, is that there are an unprecedented number of country headliners. While there are typically eight to 10 country headline acts, Conway says there are currently 15.
On the downside, Conway says that there are two many artists touring, which results in unnecessary competition. “We’re the only format where artists never retire,” he says.
Conway believes that ticket prices are making concerts “out of reach” for many potential customers. The problem needs to be addressed by agents, artists, promoters and venues, he says.
On the music publishing side, Sony ATV senior VP/GM creative services Woody Bomar says that performance income is up according to performing rights organizations.
“The state of our business is pretty stable,” he says. “We’re getting new sources of income coming in while others leave.” Specifically he points to ringtones and master tones, which he says now account for 5% of his company’s income.
Despite recent firings at Clear Channel following an internal payola investigation, Dolan says instances of questionable behavior are rare.“I think people know our operation is pretty much squeaky clean,” he says.
For his part, Bennett says his staff should know how to do business above board. “I don’t want promotion people working for me that don’t know right from wrong,” he says. “If I thought someone on the promotion staff was dodgy, I’d fire them.”
The Spitzer-Sony BMG settlement, Bennett says, “redefines the symbiotic relationship” between record companies and radio.
Bennett, Bomar, Conway and Dolan made their comments at the Country Radio Broadcasters recent Fall Forum. |