Wednesday, March 07, 2007

Promotional Power of Satellite Radio

We were reading over some of the testimony this evening from the Copyright Royalty Board hearings from late last October. It is very interesting reading. The following is an excerpt from Eric Logan's testimony. He makes a convincing argument on the promotional power of satellite radio. This is an important argument in the determinations:

67. The promotional power of XM is evident from the number and nature of the artists and labels that want to work with us. Our Artist Confidential series has featured legendary artists like Paul McCartney, Robert Plant of Led Zeppelin and Brian Wilson of the Beach Boys, and newer stars like Coldplay, Pink and the Dixie Chicks. Our Classical Confidential series has presented interviews and performances with conductor/pianist Leonard Slatkin, young violinist Joshua Bell, singers Cecilia Bartoli and Andrea Bocelli, and flautist James Galway. The XM Then.. .Again.. .Live series has featured full album performances of classic rock artists like the Allman Brothers Band, Jethro Tull, Christopher Cross, and Cheap Ttick. Virtually all of these artists came to XM for the freedom to discuss, perform and promote their music in the way they want to be portrayed, and received no monetary compensation from XM. hi addition to these Artist Confidential shows, XM has conducted and played literally thousands of interviews with artists.

68. Artists want to be part of the XM experience. Most guest celebrity DJs program their shows for free or for a modest stipend to cover their expenses. Many of XM's artist-led shows were born at the suggestion of the artists themselves, because they appreciated XM's approach to programming music and wanted to become part of it. For example, Tom Petty proposed the idea of his Buried Treasure show to XM. Quincy Jones came to XM with his ideas for multi-part special music programs. Willie Nelson proposed to XM the idea of changing the "Hank's Place" country channel to "Willie's Place/' Hip-hop artists Snoop Dogg, Ludacris,

Trick Daddy, and Chamillionaire came to XM with the ideas for their own personal programming. Blues legend B.B. King loved the Bluesville channel so much that we awarded him the honorary post of the "Mayor of Bluesville," complete with the key to the "city." Singer/songwriter Graham Nash created his "SongStories" show because of his appreciation for XM as a platform for musicians. Country star [ ] heard Willie's Place on XM in his car, and became so moved by XM's programming approach to showcasing music that he called us up and has begun working with us on the concept for a show of his own. Other musicians who host shows on XM include folk artists Christine Lavin and John McEuen, and country legend and Hall of Famer Bill Anderson.

69. Bob Dylan was interested in working with XM on "Theme Time Radio Hour" because he was an avid XM subscriber who appreciated that XM played music he hadn't heard in decades anywhere else. On August 28, XM played Bob Dylan's newest recording, "Modern Times," in its entirety before it hit the stores. After it hit the stores, many retail outlets (including Sony's online retail website, Sony Connect) packaged the CD with a bonus CD containing an episode of his XM radio show. "Modem Times entered the charts at number one, and we have been told that XM contributed to that success.

70. Jazz trumpeter and scholar Wynton Marsalis didn't know much about XM when we first approached him to do a show on our Real Jazz channel. But once he heard XM, he was excited at the opportunity to create his "In the Swing Seat"" show and to have broadcasts of concerts from Jazz at Lincoln Center, where he serves as Music Director.

71. One of the announcers on our X Country (Cross-Country) channel is a younger musician named Jack Ingram. His work on XM has helped him build his recording career, and to attract concert audiences all across America.

72. XM also creates long-form specials of three-to-eight hours' duration chronicling the history of a recording artist. Interviews, archival material and the complete range of their music is featured in these programs. This "Complete" series has, in the past, covered artists such as The Eagles, Chicago, Les Paul, Shania Twain, Toby Keith, Bobby Darin and the Rolling Stones. Artists are excited to work with XM on these programs for the exposure it provides to our listeners.

73. We regularly receive telephone calls and correspondence from artists, managers and labels thanking us for playing their music. Many labels, artists and managers tell us that airplay on XM has increased sales of their recorded music, attesting to the value of XM. As one example, in October 2004, country star George Strait was about to release a greatest hits CD. XM created a program that interviewed him about his recordings, played all of his previous hits and premiered his new single. The program aired in 2005, just before the CD came out. George Strait's Label Head of Promotion told us that he had his single biggest one day sales ever when the new CD was released. Exhibit 22 includes emails from labels, artists and managers describing the promotional impact of XM.


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