Do You Need a Music Video?

Over the last year or so, never in my right mind would I have recommended to an indie label to shoot a music video. The delusions of grandeur an indie video would beat out a major label’s video investment for the extremely limited piece of the viewing pie seemed to be a crap shoot at best. Let’s call a spade a spade here- music videos are a sh** investment for an indie label, and in most cases, for majors as well. The model is obsolete, risky, and has little purpose outside of generating very limited/unexpected web interest, another form of artistic expression, and a “keep our fingers crossed” model in the hopes the video interest equates to downloads. Running a close race behind producing a new release, music videos rank #2 as a labels biggest expense. Seeing that videos generated less than 1% of labels total digital revenue in 2008, it’s unlikely I would have recommended an indie label, who already struggle to make ends meet, to invest in a music video. My views did a complete 180 with the creation of Vevo.

Vevo, which is the latest major label creation to maximize profits, has been coined the HULU of music videos. This idea is nothing short of genius, and an essential step by major labels to see a return on their music video investment. However, it appears major labels expect to have the upper hand with the Vevo creation but never before has the playing field become so level for independents. Vevo, as of now, is working with Universal Music Group to couple advertisement with video. A product placement model if you will. For instance you may see artist X using a HP computer throughout the video, produced in an unobtrusive way that isn’t in your face with the HP product. This approach eliminates banner ads and allows product creators/or partner companies a hand in producing how/why/when they want their product received to a particular music market. Despite the fact major labels will have a deeper pool of contacts in order to arrange advertising opportunities- big deal. It is the model that can be copied, not the contacts.

A quick world to major recording artists and labels: “Genius”. This concept is brilliant, and I commend you on creating the model and capitalizing on new ways to bring quarterly numbers back to the norm.

Word to indies: “Follow the model”. You don’t need advertising muscle to play this game. Step 1 → Exhaust your list of corporate contacts in order to find a potential company (large or small) that wants to be a part of the video creative process. Present the partnership as an opportunity, an opportunity to capture a tech savvy market through a new innovative approach. Step 2 → Generate a number that makes sense. Offer the potential partners an option based on the CPM (cost per thousand) model. Essentially they pay you per 1,000 views, which traditionally is $30 to $40. It is easy to generate a video budget or profit potential by evaluating the current number of web hits then projecting the number of viewers after going viral. The new music video model has endless potential for international musicians, especially for cross-cultural marketing opportunities, ability to reach new markets, and international exposure.