Why Would Anyone Buy Warner Music Group Now

In this article, you’ll get deep background on what is really going on with the record labels and predictions about which labels will be sold and how consumer changes may make all that activity moot.

There are 10 predictions plus 3 changes in consumer behavior that will impact the music industry

A sampling  …

1.  Will anyone buy Warner Music Group and what will happen if they do?

2.  In light of the fact that Warner is for sale, what does that mean for EMI which is also rushing to sell?  Here is what I think will be the timeline.

3.  The back-story – finagling being done by Warner because it knows EMI has to be sold and why all Warner’s maneuvers may blow up in their face.

4.  I have a critical prediction about illegal music downloading that will surprise you.

5.  Three changes in consumer behavior that are not to be ignored.  One has to do with lifestyle.  Another with piracy and the third about radio.

This article is about what is really behind the inevitable sale of EMI and probable sale of Warner assets and what it will mean to the music industry.

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The Future of Radio

So much is happening in the media business right now. 

Pandora and Facebook are getting IPOs.  Both will affect terrestrial radio and the record industry.

Social networking has not only fueled a revolution in the music and media business but helped spread the word for democracy in Tunisia and Egypt.

Electronic products were selling like hotcakes right through that miserable recession we hope we’re done with.  So I thought you’d like to know what I am seeing specifically for the radio industry in the year ahead.

This piece focuses on …

1.  Consolidation – Did the Bonneville sale of 17 stations to Hubbard pave the way for more contraction.  It’s kind of interesting and not what you may think. I’ll get specific.

2.  The Cumulus Citadel takeover – is it possible?  Is it good?  What happens to radio either way?

3.  Local sales – This is the most important prediction I can make because the world of local sales is being pressured by online operators like Groupon and the proliferation of social networking sites.  I’ll tell you how much money Pandora is taking away from radio in its first year accepting local advertising.  You’ll want to sit down first.  I also have a solution that very few companies are using to bolster local sales but the ones that are using it are bolstering local sales.

4.  Morning shows – This year something major is going to happen with regard to local and live radio shows.  One way or the other, things will change.  Here’s the blueprint.

5.  Employment security – Are the layoffs over?  If not, which radio companies still have firing in their future.

6.  Social networking – What radio does not understand about social networking and what they had better learn soon.

7.  Online streaming of terrestrial radio – The missing link, the one thing radio streamers still don’t get.

This article is about the evolving trends that are being observed now that will have a direct affect on the future of radio.

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Pandora IPO Targets Radio

If the Pandora IPO announced last Friday doesn’t scare you, think about Facebook, Groupon, iTunes and Twitter because all of these companies are in the process of becoming powerful competitors to radio stations and record labels even as soon as the next 12 months.

Here’s what this article predicts:

1.  What Pandora, fresh from its new $100 million IPO along with Facebook and Groupon – all hunting for investment capital will do next that is sure to catch terrestrial broadcasters asleep at their transmitters.  Ignore them at your own risk.

2.  What Pandora will do with the $100 million.  Hint:  It won’t be paying music royalties.

3.  While radio is trying to sell local advertising – and while local advertising is going to improve for radio this year – you won’t want to celebrate until you read what Pandora and these few powerful mobile websites will target that will change everything.

4.  The unintended consequences of consolidators in the radio and record industries cutting too deeply into the bone.  How these industries allowed a handful of powerful competitors to emerge and to this day, they don’t see the real threat ahead.

5.  I’ll name the specific things that Pandora and others are now targeting in terrestrial radio that at the very least will cut into profits and at the most redefine a struggling industry.

This article lends insight to radio’s real competitors – the few, the proud and the financially well endowed – in ways that could not be previously imagined.

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The Next 3 Most Powerful Media Forces

Are Clear Channel, Citadel and Cumulus the next 3 powerful media forces?

Well, I’ll answer that right now – no.

ABC, CBS, NBC and/or Fox?

That would be another no.

Google?

Nope.  Not even Google.

You’re going to want to know the next 3 most powerful media forces emerging as we speak because they are going to change everything.  In fact, some of those changes are already being documented right now. 

In this article, you’ll discover …

1.  What the sale of Huffington Post to AOL and the sale of 17 Bonneville radio stations to Hubbard have in common.  You will never figure it out, but once you see it I think you’ll get it. 

2.  The corporation that is emerging as a greater force than even the U.S. government as it pertains to American media.  Do you know who it is?

3.  The one move that can abruptly shut down the future of new media commerce and it may happen this very year.  No, it’s not music royalties.  It’s worse.

4.  Who is emerging as the biggest player in new media access and why this will affect even traditional radio and television.

5.  Imagine if some consumers cannot have an iPad, iPhone or Android device because this handful of companies make it impossible for some to own them.  I’ll name names.

6.  What can shut down our entire new media culture in a matter of only seconds?  Just seconds! The culprit will be identified right here.

This article is about the unseen risks of doing business in the age of the mobile Internet and yet consumers increasingly flock there while content providers will have these 3 critical hurdles to overcome.

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The New Radio Royalty Scare

The NAB seems to be hell bent on snatching defeat from the jaws of victory.

There is absolutely no chance of a music industry-sponsored performance royalty tax exemption for radio being revoked this year.  Congress has too much else to do. 

But – the NAB is planning a surrender with dignity without you.

So unless you really, really want to start paying more royalties to the music industry, it looks like musicFIRST has lost at last.

At least for the foreseeable future.

But there is a lot going on behind the scenes that you will want to know about because the NAB has a plan to scare you into doing a deal with the music industry anyway.

1.  How the NAB is going to tell you what musicFIRST is planning to upset the operation of your radio station.  I’ve got all the details for you and why the NAB seems to be siding with the opposition in this dirty trick aimed at radio’s very own owners and operators.

2.  The secret plan by another labor organization to hurt radio stations where they cannot afford to be hurt.  I’ll tell you the threat and you can decide for yourself.

3.  What the NAB is most afraid of – not that radio stations will have to pay yet another music royalty but this one thing.

4.  The prospects of the NAB getting traction with their new fear mongering and what the NAB should actually be doing right now – something so critical to the radio industry that it makes the royalty performance tax pale by comparison.  That’s right, you won!  Now move on this or else radio will lose.

5.  The three NAB strategies being proposed for members to consider.  Take your blood pressure pills before reading this one.

6.  How the NAB is now pimping for its opponent, musicFIRST.  I’ll give you their words exactly.

This article exposes NAB’s secret game plan as well as their perceived motives.

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Why MySpace Failed and Facebook Didn’t

In a world where radio is declining, newspapers are yesterday’s news and the music industry is hopelessly lost in the past, we see a new age company fall flat on its face.

MySpace is done.  

Facebook prevailed.

News Corp is trying to sell MySpace and it doesn’t really matter who buys it.  MySpace missed its chance to be number one.  Even if MySpace is eventually reinvented by a new owner, MySpace may be history.

This piece examines:

1.  The fatal flaw Rupert Murdoch had after he bought MySpace.  If he had recognized his miscalculation, MySpace might have bested Facebook.   One thing.

2.  The lessons of MySpace’s failed strategy to compete with Facebook.  A strategic error as soon as the sale closed relegated MySpace to second-class status.  Do you know the error?

3.  What Warren Buffet might have done had he purchased MySpace.  He didn’t and that might be an indicator right there.  But if he had …

4.  The new rules of media dominance.  Things have changed over the past ten years, now only certain companies can prevail and they usually do this one thing.

5.  My list of five lessons the radio business, music industry and new media can learn from the MySpace debacle on content, management, competition, the mobile Internet and strategic renewal.  

This article is about the critical mistakes that News Corp made in what should have been the prosperous world of new media. 

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Clear Channel to Invent Pandora

Wonder Boy is at it again.

Now Bob Pittman, the Jim Jones of Clear Channel, is going to invent Pandora – even though Pandora already did it. 

Is anyone wondering why Pittman is on a blind PR blitz of the radio industry these days?

If you believe Pittman, he’s going to cram whatever radio programming he can into cool electronic devices even if consumers don’t want it.

Pittman is the face of Clear Channel and frankly, many people would rather see John Hogan because at least he can make up slogans that don’t matter.

Pittman is cranking out spin that doesn’t matter:

1.  How you can prove that Clear Channel is not going to invent its own Pandora – there is one big thing missing.  I’ll name it.

2.  Evidence – his own words – that Pittman has been away from radio for too long.  He hangs himself with these words.

3.  The real reason Pittman babbles on and on about nothing.  He’s actually hiding something – something very critical that he’d rather have you and more importantly investors not think about.  I’ll spell it out so you can think about it.

4.  What Clear Channel is saying and what I think it will do are two different things.  I’ll tell you what I believe Clear Channel will really do.

This article is about the number one radio consolidator, up against the ropes, because it screwed up demonstrating how bad the situation really is in spite of the rhetoric.

If you would like to read this story, have access to my entire archive (over 1,100 pieces) and get the next month of my writing included, click “read more” for your choices. 

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