Wednesday, October 10, 2007

No More Videos On MTV???

We have all said, “Does MTV even show videos anymore?” Well, it looks like consumers don’t want to see their videos on MTV anyway. USA Today reports that online music video viewer-ship has reached an all time high with more than 240 million videos being streamed monthly. Surprisingly, MTV has around 1 million viewers tabulated in comparison. The article goes on to explain the ever-changing business model of music videos. Apparently, Labels now charge channels such as MTV for video usage. President of Sony BMG Music Entertainment's global digital business unit, Thomas Hesse, states, “the times when we could make our content available for free so someone would buy the CD are over. We drive usage to the Internet sites, so we should be paid." And paid very well I might add. Rio Caraeff, executive vice president of eLabs, Universal Music Group's digital division, estimates licensing fee revenues of $20 million annually, in regards to music video airplay on and off the air.

Being the Marketing/Advertising professional that I am, this information screams one thing. Big business looms in music video advertising online. From product placements to pure and simple ads, before, during, and after music video streams, will be the way of the future. I bet we will see more artists with product-centered songs (Air Force Ones comes to mind) to ensure cross-promotional deals and guaranteed endorsements.

Interesting article. Check it out here


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