"In the prehistoric days, like when I started in advertising, you
used to say 'I wish I could have' -- name a big-time band -- and
then you'd negotiate a lot of money to get them," said Marlena
Peleo-Lazar, chief creative officer, McDonalds's USA. "But so much
has changed with the music industry, technology and the internet,
you certainly still can go and get Sting if you're so inclined --
and have a blank check."
"If you can find new talent instead of renting existing talent,
there will be an association with the product, and that's what I
think McDonald's is trying to get at," said Ira Antelis, co-CEO of
Artists & Brands. He cited "Grey's Anatomy" and the band the
Fray as an example of a lasting association, as well as Old Navy,
which featured Ingrid Michaelson's song "The Way I Am" in a sweater
commercial.
At Artists & Brands, Mr. Antelis is partnering with Rodney
Jerkins, a legendary music producer, and Daryl Jones, a top music
attorney.
McDonald's isn't alone. Frank Cooper, chief consumer-engagement
officer at PepsiCo Americas Beverages, pointed to Green Label
Sound, a platform for independent artists that quietly promotes Mtn
Dew, as an example of how brands will shape the music industry.
"You'll see through Green Label Sound the rethinking of
ownership of music, a rethinking of how to monetize it, how to
build the brand of an artist," he said. "And I think you'll see
where it's coming from artists, managers, record labels and
alternative methods of funding -- and brands will play an
incredibly critical part in that."
Music Dealers
Eric Sheinkop, president of Chicago-based Music Dealers, a
business-to-business music-licensing noted a sharp increase in
demand in the last two years, as his staff has grown to 30 people
from three. Music Dealers opened a New York office last month, and
has a London location opening in September.
Music Dealers works with clients such as Maxwell House, Corona
and GMC to find the perfect song for campaigns. The company works
from a database with thousands of songs by independent artists that
have been prescreened and approved, often turning requests around
in a day. Artists working on spec once took weeks or even
months.
Mr. Sheinkop, who quit the music management business two years
ago to focus on licensing, said one benefit of working with
up-and-comers is that "artists are going to be so proud to be
attached that they'll push it for you," he said.
But don't count the labels out yet. Coca-Cola made a big splash
with little-known artist K'naan last month. K'naan's song "Wavin'
Flag," with the lyrics rewritten for marketability, is the
centerpiece of its global World Cup campaign. Released last month,
it's already No. 1 in China, Mexico and Germany. Coke signed K'naan
to make appearances on some stops of its World Cup tour, leading up
to the tournament. He'll also be making appearances in South
Africa.
But K'naan was already signed to Universal when Coke linked up
with him. Joe Belliotti, director-global entertainment marketing at
the Coca-Cola Co. stressed that the label has been a big asset in
organizing every facet of the campaign and tour. "The music
industry is going through an evolution, but there's still really a
necessity for record companies," Mr. Belliotti said. "It might look
like their role is changing," he said, but "it's got to be a
collaborative process, really leveraging the power of each."
Coke owns a portion of the "Wavin' Flag" royalties, and all
proceeds will be donated to provide water for schools in
Africa.
Some marketers see potential to monetize these endeavors. While
underscoring that it's not Pepsi's primary mission, Mr. Cooper
said: "There's absolutely an opportunity for us to generate revenue
around some of the content and experiences we're creating in
entertainment."
