SAN DIEGO--While the music industry remains mired in declining revenues, executives suggest mobile applications may help stop the bleeding, but warn the user experience must first improve. Speaking here on a Mobile Entertainment Live! panel discussion titled "View from the Top," panelist Robb McDaniels--CEO of digital media distribution firm Ingrooves--cracked the dialogue should be retitled "View from the Bottom" to more accurately reflect the current state of the music business. "We're in the middle of a generational shift in terms of how consumers purchase content," McDaniels said. "It's pretty bad right now."
Although consumer interest in mobile music staples like ringtones continues to wane, execs remain high on the possibilities of next-generation mobile applications. "Mobile creates a connection between artists and fans like never before," said Ted Mico, EVP of digital with Interscope Records. TicketMaster VP of marketing and music, Adam Flick, agreed: "Connectivity has never been higher. Fan engagement has never been higher. Now, how do we capitalize on that?"
Most existing mobile music discovery and recommendation apps are insufficient to meet the challenge at hand, contended Kevin Arnold, CEO of indie music distribution, marketing and technology provider IODA. "Playlist sharing is not it," Arnold said. "From a technology standpoint, we're still riding in the back of the short bus."
Mico touted the promise of artist-specific mobile applications, singling out Interscope's partnership with digital media platform Kyte, a deal that yielded a series of iPhone and iPod touch applications featuring artist-produced video content, custom branding, mobile advertising, m-commerce links for purchasing content and merchandise, an RSS reader for artist news alerts and interactive user engagement features including fan chats, content sharing and concert comments and ratings. "[Dance-music superstar] Lady Gaga fed her audience a steady stream of content, and worked hard to make that audience loyal," Mico said. "Artists need to supply their fans immediacy and relevance. With Kyte, Lady Gaga was constantly filming in real time."
Still, the panel agreed that mobile applications are one answer to the record industry's malaise, but not the only answer. "There's no silver bullet," Mico said. "Apps are one of many solutions. But they've already proved to be a viable force."