22 MusicWeek 07.09.12 FEATURE MUSIC AND BRAND PARTNERSHIPS
could take the sports template and adhere to it so easily. Tulisa manager Jonathan Shalit – now a professor at Henley on its Music Industry MBA – responded: “Musicians rely on the public to buy into what they do. If you’re a sportsman, you can be the nastiest person in the world. You might not think Wayne Rooney is a nice man, but he’s a brilliant sportsman; he can behave in the most awful way, but if he’s scoring goals, he’s a hero. “If insurance got involved with artists, virtually
every artist in the world from Springsteen downwards would kill their career. People don’t trust insurance companies... a bank would bite my hand off to back Tulisa, but if she was associated with a bank, everyone would turn on her.” Moore cited Professor Green as an example of an
artist who had managed to maintain credibility despite working with Puma, Relentless energy drinks and Doritos, amongst other brands. Green said this year: “As long as you’re not compromising your integrity, who cares if you make it for Columbia, Universal, Coca-Cola or Puma?” One major criticism often thrown at the music
industry by brands with experience of working with the sports business is that it has a short-termist view. Do labels, managers and artists concentrate too hard on fitting a brand partnership in with an album cycle or to fund a single tour? Peter Palmer, senior vice president of licensing and
merchandising at AEG, has previously worked for brands including Kraft, Proctor & Gamble, Virgin, EMI and Universal’s merch arm Bravado. “What hasn’t changed since I came into the music
industry in ’98 is the lack of planning right through the process,” he said. “Look at the breadth of roster a label or even management company has. The level of planning and commitment to the schedule is still not as deep as it needs to be. I was with Arsenal FC recently and it really struck me how they presented a five-year plan in minute detail. There are very few managers who are really committed to that [timeline]. That’s not a criticism, it’s an observation. “When you’re working with brands, they want a
clear five-year plan. I only left EMI a few months ago, and I can assure you that one of the reasons their brand partnerships have been so successful is because when artists and managers have willingly wanted to engage, the setup process has been successful.
BELOW It’s not about the money, money, money: Universal’s deal with French bank Societe Generale is a rare example of music engaging with a financial institution
“I was with Arsenal FC recently and it really struck me how they presented a five-year plan in minute detail. There are very few artists and managers who are really committed to that [timeline]. That’s not a criticism, it’s an observation” PETER PALMER, AEG
“Even before Pro Green’s second album was
recorded, he and [manager] Jez Malone were talking about how brands could get their music out to a wider audience and be consistent with the artist’s values – in live as well as recorded, streaming, etc.” Palmer suggested that artists could be shown more
of the upsides of brand partnerships by their teams. “The deals are very transparent – the artist knows whether the agency is taking 12 or 15 points, and what the label is taking. That’s good news for artists.” Universal Music is one of the few music entities
which has engaged with a financial group on a brand partnership level – and done so on a long-term basis. Its global new business director Rob Gorczynski said that the company’s deal with Societe Generale bank in France was initially signed on a three-year basis – and because it focused on a roster, rather than an artist, it lessened concerns over individual acts not being keen on certain conditions. The deal has since been renewed twice over. “For us it’s about building long-term partnerships and using our whole repertoire,” he explained. “Yes,
we provided content and marketing assets [to the client]; showcases, meet and greets and things you’d expect from a label. But the bank was finding it hard to attract new customers. “Music brings brand awareness, so for everyone
who signed up to the new [Universal-affiliated] bank account, we got a revenue share. Traditionally it cost them €80 to attract a new customer. We were able to do it for a fraction of that.” Many in the room felt that a manager, rather than
a label, might be the best party to initially approach an artist with a potential brand deal – especially in cases when a commercial group was keen to work with particular talent. Lawyers pointed out that artists may not
comprehend the finer commitments of a deal unless it’s delivered by management alongside a legal rep. They warned that without legal protection from the start of a deal, brands could make career-damaging demands of artists which they were not expecting. Alexis Grower at Magrath LLP said he had
witnessed global FCMG brands sign deals with major artists and end up confused by the limitations of music rights. One such company believed they would be able to ask their consumers to remix an act’s work, only to discover it wasn’t part of the original agreement. Others argued that sports teams had the luxury of
signing brand deals as a ‘brand’ themselves, without having to worry about individuals’ opinions as much as the music industry. Capitalize’s Moore was upbeat about music’s
potential to improve its brand-affiliated operation in future, but said there may be a cultural obstacle the industry as a whole has to overcome first. “I look at Radio 1’s Hackney Weekend, and you
seem to be pretty good at giving stuff away,” he noted. “I’m not sure that’s actually that sensible in reality. I see free concert tickets, free music on Radio 1, free CDs on magazines. Culturally, brands don’t like that too much. At the moment, I’m not sure music as a proposition is doing itself any favours.”
Henley’s MBA for the Music Industry starts in late September. Visit
www.henley.com/mbamusic for more, or contact programme director Helen Gammons directly via
helen.gammons@
henley.com
LOOKING FOR A LONG-TERM PARTNERSHIP BETWEEN MUSIC AND BRANDS HOW LONG IS TOO LONG?
It’s all very well saying music companies should be prepared to plan five years in advance on a brand partnership – but is it realistic when the idiosyncratic nature of creative industries are taken into account? “In an ideal world, of course a longer-term
approach means more creative ideas but in reality, bands delivering albums is not an exact science,” says Ronnie Traynor of Vision Artists, which has partnered the likes of Ellie Goulding, Plan B and Friendly Fires with brands. “Some can take three months, some can
take three years. Also, artists evolve and they might not fit a brand in a few years which they do right now. Let’s allow brands to plan that they will be in music, and not have to commit to exclusively working with one label or one artist. “Also, brands should be talking to
management rather than labels. Managers
Vision Artists’ Ronnie Traynor
have access to artists and know them back to front – what brands they like, when the album’s really going to be ready, what football team they support, you name it. “Labels don’t work like that; they sell
records and license assets. Sometimes labels piss brands off by selling things they don’t have the rights to sell. Managers really are planning long-term now. The best ones are becoming like marketing directors.” Jade Garrow, head of marketing at Boxfresh,
adds: “I think having a long-term vision is more important than having a defined five-year strategy. The question of what a band brings and what a brand brings has to remain mutual – you need to work together on an important partnership for both sides. “Blue chip companies might have a five-
year plan, but lots of brands are just receptive to consumers and react to trends – just like an artist or a manager.”
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