This week, Chicago-based Music Dealers begins a first-of-its-kind deal with a global advertising agency, a move that signals another significant change in the commercial music business.
It will exclusively provide all music needs for London-headquartered Havas Sports & Entertainment and experiential ignition, both divisions of worldwide Havas Media Group.
HS&E and ignition will draw on Music Dealers’ 20,000 emerging music artists spanning 80 countries, complementing HS&E’s global footprint of 35 offices in 20 markets, to achieve a global communication brand consistency and save time and money.
While Music Dealers does business with many global agencies and brands, HS&E/ignition is its first “enterprise partnership,” said Eric Sheinkop, the company’s CEO and co-founder, “and breaking the traditional way things have been done in the past.”
They are working directly with London-based Fredda Hurwitz, Havas VP/Global Director of Communications, who said Music Dealers was “obviously selected because of their technology, people and music diversity.”
The partnership officially will roll out Sept. 18 in New York, when Sheinkop and London-based Anthony Demekhin, Music Dealers’ VP/Director of Strategy and Content, personally introduce details of the partnership to Havas Worldwide executives.
The next day, a video webinar will demonstrate how to utilize Music Dealers’ proprietary platform to creatives, producers, business development and account managers in 20 Havas US and international offices.
The platform, called the Discovery Tool, offers instant access to an ever-growing, pre-licensed catalog containing hundreds of thousands of high-quality songs, produced by the best emerging musicians on Music Dealer’s roster throughout the world.
Music Dealers/Coca-Cola’s partnership
In 2011, Music Dealers made industry history when Coca-Cola acquired a minority stake in the company as part of a non-exclusive deal whereby Coke and its soft drink brands incorporate music by Music Dealer artists. It allows Coke to cut through music licensing red tape and gives it access to new music.
Artists who license a song to Coke retain worldwide publishing rights and receive all publishing royalties. Music Dealers are paid upfront fees and a percentage of publishing royalties.
Sheinkop started the company five years ago this September when he was 25 (he just turned 31). He co-founded it with his older brother, Jonathan Sheinkop, chairman, EVP/New Business/Corporate Strategy, and John Williams, COO, former record company owner and music producer.
Music Dealers is located in the West Loop at 328 S.Jefferson and employs 37 throughout offices in Chicago, Los Angeles, New York, Atlanta, London and Mexico City.