Simon: Advertising Can Save the Record Business

MIAMI Joel Simon, president and CEO of JSM Music, discussed a joint deal with Artemis Records that he said will change the model of commercial music production during a presentation at the 45th annual Clio Festival today.

In an address titled “The Tail Now Wags the Dog: Commercial Music Production Today,” presented with attorney David Fritz, who is on the board of the new venture, Simon outlined how the music and advertising businesses have changed over the past two years, as an increasing number of artists and publishing houses are licensing songs for commercial use.

Calling it a “licensing craze,” Simon said, “You’re not going to see the ‘Softer Side of Sears,’ anymore.”

As the music business has changed-for example, there are fewer opportunities for artists to be heard because of fewer radio stations and labels are dropping artists because they are no longer profitable–an opportunity has opened up for advertising agencies to utilize new music like never before, Simon said.

“The agencies are the new A&R group,” Simon said. “The record business needs advertising more than the advertising business needs the existing record business.”

Simon said he was introducing a model that would allow the centralization of revenue streams and options made possible by the collaboration of the music and commercial production industries.

He cited an example of a project currently in the works at JSM, where Artemis artist Jeffrey Gaines recorded a Steppenwolf song, “Magic Carpet Ride,” that appeared in a Chevrolet spot. Artemis plans to release the song as a single in the coming months.

“This is a viable business that can save the record business and save artists from extinction,” he said.

The presentation was part of the four-day Clio Festival taking place in Miami. The Print, Design and Innovative Media Awards will be held on Monday and the TV and Radio Awards on Tuesday. The Clios are owned by Adweek parent VNU.