AOL MUSIC GROWING RAPIDLY OUTSIDE OF SUBSCRIBER BASE

From Digital Music News: "AOL Music has been quite a success story of late, jockeying to the top spot among online music destinations and breaking new bands in the process. The site has experienced solid increases after tearing down its walled garden, part of an overall strategy to ride the recent surge in advertising revenue…

"One big competitor on the music destination radar is Clear Channel, with ex-AOL executive Evan Harrison spinning some old tricks. The new Clear Channel digital initiative will see the rollout of a new slate of original artist videos, with existing radio sites receiving the beefed up content. According to Isquith, that model poses some challenges, with many listeners already abandoning terrestrial radio stations and their companion sites…"

"…That has had an unexpected impact for AOL Music, with Isquith noting that "the biggest thing for online radio was Howard Stern leaving for Sirius". While that may seem counterintuitive, Isquith reported a huge increase in calls after the move, with Stern representing a watershed moment.

Despite the increased interest, Isquith still recognizes the importance of other media outlets for artist campaigns. "Anybody alone can’t get it done," said the AOL executive, noting that the multi-tasking, heavily distracted consumer regularly canvasses across various media outlets for entertainment. That makes the successful marketing of an artist a diversified art, with MTV, radio, and other music sites having a significant collective impact. It also puts a lot more faces into the value chain, though internet music sales still account for less than 5% of total industry revenues. Meanwhile, AOL will be aggressively expanding, with Isquith pointing to a big advertising and promotional campaign this summer. "

Read the full article here.