Social Media: The Ups and Downs

By: Audrey Vejraska

For the past few years, American Idol has been engaging in the social media networks as a way to connect to the audience and encourage more viewers to tune into the show. However, although working with the social media may encourage audience participation, it has also caused the producers of American Idol to enforce stronger control over how the brand engages with these networks.

Joining the Social Media:

In 2008, Myspace partnered with AI to conduct a donation drive to raise money for Idol Gives Back. Myspace is owned by News Corporation, who also owns the Fox network. In addition to the Idol Gives Back donation page, Myspace also provided a widget that users could post and share on their own walls. This allowed the cause to be spread on a wider basis.

American Idol joined Facebook in 2010, allowing individual contestants to have personal Facebook pages. The show also joined the Myspace and Twitter sphere.  Viewers were able to write personal messages to contestants, but during the season, the individual pages were consolidated into the official pages on Facebook, Myspace, and Twitter because of certain issues.

The official page for the show is a result of the consolidation. It offers information and updates about each episode, links to contestant biographies, and discussions that followers can engage in.

Although the integration into these social media groups contributed to the contestants’ fan base, it also encouraged the American Idol producers to have more control. Producers ended up consolidating the contestants’ accounts into the group page.

There was speculation that the social media may have had the potential to spoil the show’s results and suspense. Badaku.com is a site that gauges public opinions from online data. Also, because of changes in Facebook’s privacy rules, the content displayed online is considered fair use as a public resource.

The site began tracking the correlation between social response and the performances, but their predictions are not completely accurate.

Although the data analyzed by social network trackers may be inaccurate, the threat of possibly spoiling the results of the show was enough to cause producers to tighten control on their social media involvement.

By depriving contestants of having their own social media sites, it is depriving them the ability to promote themselves as their own brand.

Synergy:

American Idol is using the social media networks to launch synergy. AI launched the American Idol Star Experience online game which was integrated with Facebook. FremantleMedia and Ludia–the company behind the iPhone and console versions of The Price is Right–collaboratively released the online game in which users can upload their virtual performances on the Facebook application page for the public to see.

Expanding the Idol brand to online games with the integration of social media networks allows a wider spread of synergy and promotion.

Online Auditions:

American Idol representatives announced this year that next season’s auditions would be joining the social media. Because Fox believes in a Myspace revival, AI will be correlating the auditions online, as well as in the major U.S. cities. Rupert Murdoch purchased Myspace in 2006 for $500 million, prior to a decline in users.

It is no surprise that 19 Entertainment, FremantleMedia North America and FOX would partner with an affiliate of News Corporation, which is bound to gain traffic for Myspace and American Idol.

Partnering with Myspace will not only expand the audition process, but also gain more traffic for Myspace as well as for the show. Heading into its tenth season, the new addition to the audition process may also be what the show needs to continue and revive their viewership.

The integration with social media networks in the past few years has both been beneficial for involving the audience, as well as providing new ways for interaction. However, the need for social media sites may also be a way to spark new interest based on the decline in viewership over the years. The most dramatic change will be the incorporation of online auditions, which will eithe be beneficial or negative for the way the show operates.

The prominance of social networks have put pressure on brands to become more involved and saavy about what they offer online to their audience. The more American Idol uses social networking, the more exposure viewers get to the brand and its synergy.

Idol Gives Back Myspace Widget

Idol Gives Back Donation Page

AI Gets a Twitter, Facebook, and Myspace

Social Media Consolidation

AI Facebook

Consolidation

Could Facebook have Ruined the show?

Predicting Winners

Auditions coming to Myspace

Game on Facebook

AI and the Music Industry

By: Audrey Vejraska

American Idol has reinvented the music industry’s way of discovering talent. Although the best in talent is not always represented on the show, viewers have the power to vote and influence who they want to win. That is not to say that the voting is necessarily accurate or precise, but the concept is what makes it different.

Different record labels have been known to sign many of the artists who began their careers on American Idol, which include not only the winner, but also the top three and other finalists who are thought to make it in the music industry. American Idol has furthered the connection between television and the music industry to create synergy and advance profit.

Contracts

The winner of American Idol, as well as some finalists, are rewarded with a recording contract under Sony Music Entertainment Inc. RCA, Jive, and Arista, all a part of Sony Music Entertainment, are labels in which contestants have been known to be signed to in relation to 19 Recordings Limited, the label founded by Idol creator Simon Fuller.In November 2005, Sony BMG signed a contract to continue being the record label that signs Idol finalists up until Season 9.

Among the music labels, RCA has signed a profound number of American Idol finalists and was the US licensee for the first four seasons of American Idol.

After 2005 these rights were given to Syco, the record label formed by Simon Cowell, also a subsidiary of Sony Music Entertainment Inc. Syco holds the power to acquire record rights, as well as the option of requiring 19 Recordings to appoint a nominated label under SMEI.

Universal Records has also signed Idols such as Kris Allen, the winner in 2009. In the contract, Universal Records acquired distribution rights to his entire album of compositions, which included his previous self debut album with Jive Records.

19 Entertainment and FremantleMedia have an agreement for the production and distribution of the IDOLS brand. In their arrangement, FremantleMedia Limited has the right to produce, sub-license, and distribute programs anywhere in the world, except in the United States in which 19 Entertainment co-produces American Idol.

19 Entertainment franchised the format license to FremantleMedia–part of the RTL Group, which is owned by Bertelsmann. Before Bertelsmann and Sony parted ways, Bertelsmann still acquired profits from Idol record sales as well.

Although Sony and BMG split, both companies planned to continue sharing the manufacturing and distribution resources, which were split between Sony DADC and Arvato Digital Services GmbH.

When It comes to signing a recording contract, American Idol contestants are not allowed to have been previously signed to a label. Some contestants, such as Chris Golightly, were removed from the show after producers discovered his previous contract. 19 Entetainment has strict authority over the finalists’ contracts. Contestants must also wait to sign with other labels until their initial contract is over, unless 19 Records releases them early.

19 Entertainment may sign a management contract with any of the contestants, which binds the contestant to pay 15 percent of his earnings. This is excluding a manager’s fee from related 19 Entertainment companies in recording and merchandising contracts.

A contestants contract initially extends for three years, but 19 Entertainment still collects a percentage of earnings for up to 10 years.

iTunes

Because of such a focus on digital distribution, iTunes has become vital in the promotion of American Idol during and after the show’s season. During the show, the top 12 singers record a version of their songs each week which are sold on iTunes.

Each contestant receives a one-time payment of $1,000 as well as a $1,000 advance for royalties on each recording. This is one way iTunes has become such an important enabler in the sales and promotion of Idol finalists, while also providing payment to the artists.

Fox Broadcasting Company, Fox Digital Media, 19 Entertainment, FremantleMedia North America, and Apple partnered to provide the performances on iTunes download. Apple created a special IDOL section on their iTunes store where fans can download music and videos.

Fox also created direct links to the iTunes store on their website. This relationship has created synergy between iTunes and American Idol, furthering exploitation of both brands.

Advertising revenue rose up to $903 million in 2009, which excluded Fox’s sponsorship deals and other income, like royalties from the sale of music performances by contestants. The sale of music performances, partly from the use of iTunes downloads, directly benefits Fox Entertainment in addition..

Licensing

For every song that a contestant chooses to sing, it must be cleared first and producers have ways of suggesting certain songs for use. For instance, the producers may give contestants a CD with specific songs that correlate with that week’s genre that are able to be cleared.

They must acquire a music license in order to use the songs. Contestants may also choose a song not provided from the suggestions, but they still must see if it is able to be cleared.

American Idol has deals with the publishing companies, ASCAP and BMI, but that is only a part of the clearing process. American Idol needs the performance and the synchronization rights as well.

The producers of American Idol have simplified the licensing of material by offering the same amount for all of the songs sung on the show. If a publisher turns down the offer, contestants must choose from a list of pre-licensed material.

Several artists simply refuse to clear songs for American idol, mostly legends and newcomers. Producers say it would not be fair to pay millions for a song by the Beatles, for example, even though the budget has risen each year for licensing because there are plenty of other songs that they would be able to clear.

Some publishers simply do not want a contestant to butcher one of their songs, hence why it may be easier to clear songs once the contestants reach the top ten.

Creating each contestant’s image is directly related to the songs they sing on the show and what type of artist they decide to be. The processes for licensing and distribution are based upon a complex relationship with different music corporations in which American Idol’s success relies on.

Because of the expansion of the American Idol franchise, more focus is being spent on linking the music and performances to other modes of promotion, specifically through digital distribution and marketing. The digital market has allowed AI to expand its image based on weekly erformances, singles, and compiled CDs. It not only is a part of branding and promoting each contestant, but about discovering more ways to elevate distribution to a larger level.

Sony Music

Contract Agreement

Recording Contracts

American Idol Contract

Syco Music

Universal Signs Allen

FremantleMedia and 19 Entertainment

RTL Group

iTunes and AI

Secrets to Song Selection

Simplifying Licensing

Profile: News Corporation

By: Audrey Vejraska

History

News Corporation, formerly News Limited, was acquired in the 1953 by Rupert Murdoch, an Australian-American businessman, after the death of his father Sir Keith Murdoch who owned News Limited at the time. Sir Keith Murdoch was the managing director of The Herald and The Weekly Times, but did not own many shares in the group as he did in News Ltd. News Ltd. was the publisher of  Adelaide News and Sunday Mail.

In 1953, Rupert Murdoch took over Adelaide newspapers and in three years News Ltd. also acquired The Perth Sunday Times. In 1957 it launched TV Week in Australia, which was one of the most profitable Australian publications at the time. They acquired control of Channel 9 in 1958 and then later received 60% of the shares in the Southern Television Corporation.

News Ltd. had initially been mostly involved in owning newspapers and started the first Australian national paper The Australian. News Ltd. then joined the British and US markets by buying The Sun in 1969,  three US papers based out of Texas in 1973, and the New York Post in 1976.  The company was then reorganized into News Corporation in 1979.

News Corp. continued to become more involved in the newspaper, television, and film markets and in 1983 they purchased a stake in the 20th Century Fox Film Group. This led to the Fox Broadcasting Company in 1986, and in 1999, News Corp. gained full control of Fox/Liberty Networks. News Corporation’s main competitors are The Walt Disney Company, Time Warner, and Viacom.

Susidiaries:

News Corporation is currently focused on its entertainment, satellite, and cable operations. It is vertically and horizontally integrated, owning different companies in production, distribution and licensing, marketing, publishing, and advertising. It owns many international companies as well.

• Filmed Entertainment: View All

20th Century Fox
20th Century Fox Television
Fox Searchlight Pictures

• Television

FOX Broadcasting Company
FOX Sports
FOX Sports Australia
FOX Television Stations
MyNetworkTV

• Cable Network Programming: View All
  

FOX Business Network
Fox Movie Channel
FOX News Channel

FOX Sports Enterprises

National Geographic Channel

• Newspapers and Information Services: View All

The Times

New York Post

The Wall Street Journal
Dow Jones

The Australian

• Books: View All
  

HarperCollins Publishers
Children’s Books

News Corporation also has ownership of certain direct broadcast satellite television companies, integrated marketing services, Myspace, AmericanIdol.com, hulu; a joined ownership with Disney and NBC Universal, and other assets available on their website.

Board of Directors

News Corporation is run by Chairman and Chief Executive Officer Rupert Murdoch; President Jose’ Maria Aznar; former President of Spain; Chairman and Chief Executive Officer Mark Hurd, who is also the president of Hewlett-Packard; Director Natalie Bancroft, an aspiring opera singer and the heiress to the Dow Jones fortune; and Chairman and Cheif Executive James Murdoch, Rupert’s son.

The Board of Directors are closely linked with other companies such as Allen & Company, British Airways, Commonwealth Bank of Australia, Gateway, New York Stock Exchange, Six Flags, Western Multiplex Corp, and Worldcom, to name a few.

Financial

News Corp. has been experiencing more growth in their quarterly profits, mainly because of the positive performance of cable networks and DVD sales.  Operating income rose 76 percent, from $282 million to $497 million in film entertainment. Some of the success was also due to viewership of programs such as Fox News and regional sports networks. Their revenue was reported to have grown 19 percent to $8.78 billion from $7.37 billion for the quarter that ended March 31. The rise in profits is associated with improved advertising revenue, strong cable performances, and the success of the movie Avatar, which is partly responsible for the big boost.

Politics

Rupert Murdoch’s conservative position is reflected upon News Corporation and its affiliates. Fox News, for example, is an obvious supporter of the Republican party, which is highly influenced by Murdoch’s own political views. He has been criticized of using his media empire to advance his political agenda.

News Corp. and News Corp employees also have been known to donate money to different political candidates over the years, for members of both the Republican and Democratic party. Since 1999, employees at News Corp. contributed to political campaigns nearly $24, 344 to the Republican party and 90,300 to the Democratic Party.

Murdoch’s conservative political interests are spread heavily over the influence of his corporations. Fox News has been criticized for being biased and unbalanced. The tactics of Fox News for pushing the Republican agenda have even been questioned by people of the Republican party. Here, Murdoch talks about his attempt at shaping public opinion through the news outlet:

http://www.youtube.com/watch?v=0K2pLo8JV5Y

News Corporation has expanded and integrated into all platforms in the media. It owns and operates divisions of television, film, publishing, distribution, radio, the Internet, and music. It is important to know the foundation of particular media comodities to understand how they manipulate and persuade the public both on small and large scales. Because News Corporation still has hopes of expanding even more, their power over the media we consume remains prominent.

Links

News Corporation Limited

The History of Corporate

News Corp. Website

International Business Times: News Corp

Avatar Boosts Profits

Interlocking Directorates

Disney Snares Fox Family

Campaign Contribution

Murdoch Rips Competitors for Bias

Right Web Profile: Rupert Murdoch

Manipulating News for Agenda: YouTube

Idol and AT&T

By: Audrey Vejraska

The Basics

American Idol manages the voting process not only by allowing viewers to vote by dialing a toll free number from their telephones, but also through text messaging. However, AT&T, which previously merged with Cingular, is the only service provider that offers the text your vote feature. AT&T has been a prominent sponsor of American Idol since it began and is the only phone service that allows this feature.

AT&T customers may text their vote to a specific number that each contestant is assigned that week. There are different options that AT&T offer customers, which are outlined on the website. Customers may either pay as they go, $0.15 per text message, or purchase a messaging package that also allows them to receive photos, videos, and other features, including any American Idol content and videos that are available for download. According to a report in February 2007, AT&T stated that text messages grew from:

• 7.5 million text messages in its debut season
• 13.5 million text messages sent in season 3
• 41.5 million sent throughout season 4 highly due to he merger of AT&T Wireless and Cingular

By introducing American Idol related content, such as contests, ringtones and answer tones, audition videos, polls, sweepstakes entries, text chatting with the top twelve contestants, trivia, music downloads, and even text reminders, they have reached another level in viewer participation with the American Idol brand. American Idol producers will not disclose the amount that AT&T pays to sponsor the show, but it is estimated that the revenues made from text messages and other content is almost pure profit.

It’s stated that over a third of AT&T participants had never sent a text message prior to American Idol. In 2003, the voting increased by nearly 5,000 percent from the first voting episode and there were about 2, 300 text messages processed per second at one time. However, 70% of text voters were said to have voted more than once.

The growing wireless use among AT&T contributed to the rise in profits for the company, and in 2007 AT&T saw a growth of about $2.4 billion, which excluded merging costs and special costs. Recently, it is said that AT&T has been experiencing fewer cell phone contracts , even with the possession of the iPhone. Wireless customers went down 43 percent from a year ago, which may also affect the distribution of American Idol themed content through AT&T subscribers.

In May 2009, the American Idol brand extended to smart phone applications that gave fans exclusive content that was available on the iPhone, iPod touch, and the Google Android phone. The application was part of a partnership between Fremantle Media Enterprises and Zumobi. The application had cost $1.99 and included videos, blogs, biographies, and photos. It also linked directly to iTunes so songs from the show could be purchased. There was much consideration of product placement inside the application as well.

Voting Controversy

Although the addition of text voting has increased voter participation, there have been issues surrounding “power texting” and intervening to influence votes. Aside from voters at home being able to call in as much as they want, a recent issue involving AT&T representatives and swaying the votes caused a great deal of controversy.

In 2009, it was reported that some overenthusiastic AT&T representatives provided phones for free text-messaging services and lessons in casting blocks of votes at parties organized by fans of Kris Allen, the winner of the show that season. Because there were no attempts to provide the same services to parties who supported the runner up Adam Lambert, the obvious front-runner, AT&T was a culprit in influencing the final results of the season. AT&T reported they were instructing voters how to “power text”, which could potentially sway the results.

However, the voting process is remains disclosed prior to the final totals. Voting discrepency is another way that people vote for their favorites, whether or not the talent is there, and when sponsors support particular contestants and their fans, we see how voting can easily be skewed to favor a particular Idol.

Idol Advertising

Another aspect in the relationship between AT&T and American Idol is the “reminders” that AT&T had sent out to a certain number of text message subscribers. There were some customers not happy with the advertisements being sent to their phones, but AT&T insisted that there were clear instructions on how to opt out of future messages if they were not satisfied.

The reminders, though free of charge for those who received them, were meant to encourage voters to continue in the voting process by texting each week, as well as become more involved with the website and different contests. With 78 million text messages sent through the AT&T network during a previous season, more participants using text message voting ultimately means more profit for AT&T.

This has been argued as a violation of the law by sending unsolicited text messages, but also as a good way to reach the voters. Mobile has the ability to target  customers with content, but AT&T could have promoted the reminders in a better way by targeting only voters from previous seasons and customizing content to their likes and dislikes .It is more of an issue than e mail advertisements because with texts, the more you send and receive; the more you pay.

AT&T Sends Controversial ‘American Idol’ Text Message

AT&T May Have Swayed ‘Idol’ Results

AT&T Profits Jump

Setting Global Records

‘Idol’ Mobile

Cingular/AT&T Merger

AT&T Reaps Big Profits

AT&T Nabs Fewer Cell Contracts

Smart Phone Application

Text Message Promotion Out of Key

The Commodity

By: Audrey Vejraska

This year, American Idol has come into its 10th season, bringing viewers a whole new batch of upcoming pop stars. Each year, the show has some factors that evolve and this season seemed to introduce the greatest changes yet. Along with the addition of Kara last season, the show made headlines once again with its announcement that Ellen DeGeneres would be the fourth judge on the panel and replacing Paula Abdul.

But why is American Idol so important to us? Why do we care? It seems that American Idol has seeped into all aspects of our society. Not only has the show made an impact with both the good and bad talent that amuse home viewers, but also it’s infusion into other sources of media, ranging from tee shirts to amusement park rides. The reality television show has transformed into a multifaceted brand that consumers inevitably buy into.

History/Context

American Idol originally was a branch from the British version, Pop Idol, as a reality show in search of the best singing talent in the United States. The show first aired in the United States on June 11, 2002 on FOX and is now in it’s 9th season. The judges consist of Simon Cowell, Randy Jackson, Kara DioGuardi, and Ellen DeGeneres with host Ryan Seacrest. Simon Fuller, who created the Spice Girls and Pop Idol, also owns the rights to American Idol.

The Fox Network has the airing rights to American Idol, which is owned by the third largest media group News Corporation, which in turn controls a number of other television stations, newspapers, magazines, book publishers, etc.  News Corporation is owned by one of the most powerful men in the media, Rupert Murdoch.

Production

Fuller’s companies, 19 Management and FremantleMedia joined together to create the show when it first debuted as Pop Idol. The show is licensed by FremantleMedia which  is one of the largest international producers of entertainment in the world. It is part of the  RTL Group, Europe’s largest television and radio broadcast companies. Not only do they have other production companies, such as talkbackTHAMES (UK), FremantleMedia North America (FMNA), UFA (Germany), Blu (Denmark), Blue Circle (Netherlands) and Original Productions (US), but also multiple brands. Some of their brands include:

19 Management owns, develops, and commercializes entertainment content including shows such as So You Think You Can Dance and American idol.

It also owns the rights, image, and likeness of celebrities ranging from American Idol’s Carrie Underwood and David Cook, Victoria and David Beckham, and even legends Muhammad Ali and Elvis.

The companies broadcast American Idol on the Fox network in the United States, owned by News Corporation and head of News Corporation, Rupert Murdoch. Fox possesses all airing rights to the show.

Distribution

American Idol is distributed on FOX every Tuesday and Wednesday during the season. The official American Idol website, owned by Fox Interactive Media, also provides information on contestants, photos, videos, games, downloads, behind the scenes info, and mobile interaction produced by AT&T. There are contests, such as the Ford Music Video Challenge, which is sponsored by Ford. Idol songs are also available on iTunes, as well as the availability of screen savers and widgets for download on the website.

Although there is no official American Idol channel on YouTube, videos remain on the site that are posted by others. Spin offs also include DVDs, such as From Justin To Kelly in 2003, which was distributed by Fox Entertainment. Along with iTunes downloads, American Idol CDs also emerge each year with songs by the top contestants and every summer the American Idols Live Tour also kicks off around the country. RCA, owned 50% by Sony BMG Music Entertainment, is  partnered with 19 Management and sign American Idol finalists with recording contracts, in which multiple albums have been produced by winners and other top contestants.

Synergy

Along with CDs and iTunes downloads, the show has merchandised its brand into many different commodities. Anyone can buy their very own American Idol baseball tees, American Idol monopoly, hats, American Idol All Star Challenge game, CD cases, and water bottles to name a few products. These are available on the fox shop website. A number of books, video games, karaoke, online games, and not to mention barbies are also available. On the Barbie website there is even an interactive “Sing With Your American Idol Finalist” game.

There is also a huge connection to product placement and sponsorship in American Idol. Three of the main sponsors are Ford, AT&T, and Coca-Cola. Apple is another sponsor added and is supporting the show through the promotion of music on iTunes.

Partners include:

Non-profit partners include:

These corporations are all vital sponsors of American Idol and its endeavors, such as Idol Gives Back, which News Corporation, Coca-Cola, Ford, and AT&T are all corporate sponsors of. Bill & Melinda Gates Foundation and ExxonMobil also made donations to the recent Idol Gives Back.

We also see product placement within the show. For instance, judges have Coca-Cola cups constantly in front of them. In 2008, American Idol had almost 4,636 product shots within the first half of the season.

Through the contract, Coca-Cola also gets to decorate the contestant’s “red room” however they choose. There have been some irritation by fans about the amount of products placement, but the series’ representatives do not seem to be concerned about this. A critical use of promotion is made by Ford and their creation of  music videos which use contestants and air on the show. One week, Ford wanted to highlight their “think” technology which is seen in this video.

Consumption

American Idol, primarily a show to boost the music careers of talented performers, seems to be holding its spot in the adult 18-49 ratings during the prime-time week with about 41 million viewers. It seems to not only be targeted to these ages, but also young kids with its cross merchandising with toys and other entertainment.

What It Comes Down To

American Idol has continued to remain a popular reality show, despite signs of a decrease in viewership in the past few years, due to strong corporate relationships with the television and music industry, as well as its reliable sponsorships. Along with the talent seen on the show, there is much control as to what image is presented by contestants and the show in general. This analysis is meant to deliver a picture of how American Idol operates and who is involved with the process.

Links

Disney American Idol Park Ride

American Idol Information: Absolute Astronomy

NNDB: Rupert Murdoch

The X Factor and American Idol: Who Owns What

FremantleMedia

Fortune Global 500 2009: News Corporation

American Idol: From the Selling of a Dream to the Selling of a Nation

19 Entertainment Projects

Columbia Journalism Review: Sony Corporation

Product Placement and American Idol

American Idol: Behind the Scenes