SXSW 08 panel: How widgets influence music on the web

You could sense the ‘we’ve got troubles but we’re still way cooler than you geeks’ (or are they?) vibe a mile off. The music biz was already rolling into Austin on the last day of SXSW Interactive 2008 before the full-scale SXSW Music conference kicked-off the next day – and they were out in force at this session on the afternoon of Tuesday 11th March.

PANEL:
John Bartelson – VP New Media , Island / Defjam
Rogelio Choy – VP Business Dev, RockYou
Chair: Liz Gannes – GigaOm
Ali Partovi – CEO, iLike
Jian Chen – Frontend Software Engineer, Meebo.com

After a year of Facebook mania, clearly the scent of widgets – and some massive widget players – was enough to lure artists, and indie and major labels into the room (if not the debate), and so it began…

Ali Partovi explained that they’ve built iLike into other social platforms but have also built a set of artist tools that will enable them to do stuff once, and publish / syndicate across Facebook, Bebo and elsewhere.

Bono of U2 started to write a new song ‘Wave Of Sorrow‘ and developed it through a process of discussion with fans on iLike. Partovi showed a video featuring Radiohead, Linkin Park and U2 and then rolled out the stats for some shock and awe impact (BTW, I haven’t checked these stats):

U2 – 2m fans on iLike / 131,000 on Myspace
Linkin Park – 542k iLike / 343k Myspace
Foo Fighters – 887k iLike / 588k Myspace
Radiohead have 1.4m fans on iLike

Through mediating their song development on iLike / Facebook in this fashion, he continued, U2 increased their iLike follower base from 1m to 1.3 million, and they’ve got nearly 10,000 comments on the video posted on U2’s iLike Facebook app about the creation of the song (also available on Youtube) .

Content everywhere: aggregating a wider audience…

Chen from Meebo described their product as chat room widgets embeddable across sites. They also generate traffic into the site and between sites. All the distributed widgets aggregate together a larger audience. Meebo widgets have totally skinnable interfaces for your brand or band.

In turn, their chat widgets recognize and play certain media URLs (video, audio, photo and URL previews). The media capabilities are not just for UGC, he added, but also media syndication.

Chen saw great potential in syndicating exclusive content from high quality content providers. He cited the Kanye West ‘Graduation’ album release, wherein Kanye’s label worked with Buddylube, a web 2.0 marketing management company who do a lot of customization of widgets. Graduation (released 11th September 2007) has now (March 2008 ) sold 950k albums, and had 330k legal digital downloads.

Widget marketing trends & the music value chain

Choy of RockYou said they went from 7m visitors to 45m since they’ve went onto Facebook. RockYou also works on Myspace and Bebo.

From the audience someone asked: how and when do we get to the stage where this is a normal way to market and communicate with fans? Chen replied: when the tools are simple enough for independent bands and indie labels to use.

Moderator Liz Gannes said we should check out Kanye’s blog. Is it all about the marketing? No one is talking about distributing…

Partovi of iLike commented that a lot of bands are thinking of themselves as a media business, where they’ll eventually be able to do an ad-supported model.

Choy said that the notion that artists can monetize on RockYou only works if they come through something like iLike. It’s very difficult process if you want to go into selling music online.

My question (which wasn’t picked, despite having my hand up for while) was: with a million widgets and oceans of UGC, will search and widget aggregators overtake the viral growth of widgets? Do they optimize widgets for search, and how to they monitor the level and spread of widget usage as content gets more and more disaggregated?

[Sidebar: This issue will be addressed at the Chinwag Live: Micro Media Maze event next week, Tuesday 20th May – and Myspace’s European Product Direcetor Mitch McAlister and Last FM‘s SVP of European Ad Sales Miles Lewis are among the panelists you can quiz on this topic. Booking and more info here.]

Future distribution – D2C scenarios and widget overload

Gannes asked the panel: is the distribution business viable for you? Choy said that selling (not just music but also photos, videos, etc) is not part of what RockYou does directly, but it is through relationships… I guess he meant RockYou is part of the value chain.

Partovi remarked that as things get more and more cluttered, utility decreases, usage decreases and it’s harder to get take-up. Things stagnate and there’s less innovation; and innovation is very important.

iLike lets artists know who their fans are based on peoples’ activity on the widget. This gives, for example, Radiohead access to a much bigger audience online than they could handle or attract through their own site. However, people still downloaded their new album from Limewire, and Radiohead got no metrics [never mind revenue] for that, and no email addresses for all those people.

And there’s the rub! Elsewhere that day, as reported by Paid Content, there was a rowdier session on ad-supported music services. If I could have widgetised myself (far preferable to cloning methinks) I would definitely have been there. 😉

—-

More coverage of this session:

Widgets put music where it’s at – Jemima Kiss, Media Guardian PDA blog

Upcoming evening panel event:

Chinwag Live Micro Media Maze – Tuesday 20th May 2008, London
http://live.chinwag.com/micromediamaze

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