Investing In The Sound Of The Brand
In the summer of 2007, dance duo Groove Armada sent shockwaves through the music production industry by opting out of a deal with a traditional record label. In April 2008, the duo, who have become a household name thanks in part to the use of their music in commercials, instead signed-up with Bacardi making them the first mainstream group to turn to a major brand for investment. Considering the majority of digital music is downloaded for free, through the expansive networks of user to user file shares – it is not difficult to imagine that as record companies’ profits suffer amid the current economic squeeze, the emerging trend of band-brand partnerships will continue to develop.
The one-year deal has sparked a mixed reaction from fans. Although the majority are in support of the partnership and feel the pair is a good brand fit, some have expressed surprise that the group would choose to associate so freely with such a major commercial corporation. But speaking to the BBC, the band’s Andy Cato defended the move. “You’ve always needed big business to get your music out there,” he explained. “That help used to be major record labels, now it’s all kinds of different things. If you say one corporate pound is any more or less corporate than another, then you’re wrong,” he added. “What is a record label if it’s not a commercial brand?” So how long will it take for other global brands to become the major investing foundation of the music industry? In some ways the ball has already started rolling. Read more…


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