Sony and the JK Wedding Dance

Submitted in partial fulfillment of the requirements of the course

Written Analysis and Communication I

A report submitted to

Instructor: Prof. Avani Desai Academic Associate: Mr. Sudhir Pandey

On

28th July 2012

By

Ankit Garg Ayush Mittal Section: B

To: Mr. Jeff Dodes, Executive Vice President, Marketing & Digital Media, Sonys Jive Label Group

From: XYZ, Student, WIMWI Date: 21st July, 2009 Subject: Decision on the JK Wedding Dance Video copyright issue Dear Mr. Dodes, The attached report contains my analysis of the JK Wedding Dance Video copyright issue. Based on the revenue generating opportunity, promotion of artist, impact on Sonys image and precedent for future copyright issues, it is recommended that Sony should claim the song in the video and negotiate a revenue sharing agreement with YouTube. I have worked out an action plan for the same, which has been included in the report.

Yours Sincerely, XYZ

Executive Summary

JK Wedding Dance Video, which has people dancing to the tune of Chris Browns Forever, has gone viral over the internet. Sony owns the right to the song in the video and can strike a deal with YouTube to monetize its popularity. Recent growth in social media has provided entertainment industry with a powerful tool for marketing and sales but any aggressive promotional campaign for Brown could raise publics ire since he was recently arrested on charges of domestic violence. Sony has the option to do nothing about the video or issue a take-down notice or claim the song and negotiate a revenue sharing agreement. The options were evaluated on the basis of revenue generation, promotion of artist, impact on Sonys image, precedent for future copyright infringement cases and social media learning opportunity. It is recommended that Sony should claim the song in the video and negotiate a revenue sharing agreement.

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Table of Contents
Page No. Situational Analysis ................................................................................................................... 1 The Problem Statement .............................................................................................................. 3 The Options ................................................................................................................................ 3 Criteria for Evaluation ............................................................................................................... 3 Evaluation of Options ................................................................................................................ 4 The Recommendation ................................................................................................................ 6 Action Plan................................................................................................................................. 6 Contingency Plan ....................................................................................................................... 6 References .................................................................................................................................. 7

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Situational Analysis
JK Wedding Dance Video, which was posted on YouTube on 19th July 2009, has gone viral over the internet. It has already broken the record for most views for a single video by getting 3.5 million hits within the first 48 hours. The video has people dancing to the tune of Chris Browns Forever at a wedding ceremony. The copyright to the song belongs to Sonys Jive Label Group (JLG). YouTube has a system in place that alerts rights-holders whenever a video pops up that uses their copyrighted material (Content ID, 2009). Typically, this results in a request to take down the offending video. YouTube has informed Sony that their song is being used without authorization and is awaiting their reply on what to do with the video. Chris Browns promising career came to a halt about four months ago when he was arrested on charges of domestic violence (Santo, 2009). It has created a torrent of negative publicity for the young artist. Sales of his albums have plummeted since then and several companies have broken ties with him. JLG is keen to revive Browns sagging career but promoting an artist involved in a public scandal could reflect badly on Sonys image. Also there is a possibility that people may construe video's popularity to be manufactured by Sony to revive Browns career. This could negatively affect Sonys image. Sony owns the right to the song. It can strike a deal with YouTube to monetize the popularity of the video. It can place various advertisements and click to buy overlays (Kreps, 2009) on the video. Additionally, Sony could publicize the song by posting the link to the video on Browns website and also through email to fans. This could lead to a direct increase in sales of Browns other songs and albums as well. Since the song has been used in a positive connotation (i.e.

wedding ceremony), it would have a positive impact on Browns image. This could generate revenues through indirect sources like sale of concerts tickets and other media products. The past few years have seen tremendous growth in social media. Facebook, Twitter, YouTube, etc. have become effective tools for marketing (Social media marketing, 2009). Legal downloading services like iTunes and Amazon have become important tools for the entertainment industry to sell their products. One of JLGs tasks is to promote its artists through these social media channels and generate revenues by selling their songs and other related media products. The JK Wedding Dance video has presented JLG with a unique opportunity. Rarely do they get a chance where they own the rights to a song that is going viral over the internet. All they need to do is devise a strategy to make money out of it. Since promotion through social media is a relatively new phenomenon, it would serve as a great learning experience for its employees. The copyright laws prohibit anyone from sharing the song Forever or using it for commercial purposes without Sonys permission (Katers, 2009). Currently people are listening to the song for free over YouTube and JK is in violation of the copyright laws. This is resulting in a direct revenue loss for the company. JK could also use the video for commercial gains unless Sony stakes a claim on the song. The video has tremendous earning potential. All parties including JK, Sony and YouTube would like to use it to their advantage. Each party would be interested in entering into a revenue sharing agreement. If Sony doesnt claim the song, it would set a bad precedent and various other parties will try to abuse Sonys copyrighted properties in the future for commercial gains.

The Problem Statement

What should Sony do regarding the use of their copyrighted song in the JK Wedding Dance Video?

The Options
1. Issue a notice to YouTube to take down the video. 2. Do nothing about the video. 3. Claim the song in the video and negotiate a revenue sharing agreement.

Criteria for Evaluation

1. Revenue Generation- Sonys aim is to maximize its revenues through sales of albums and related products. 2. Promotion of artist- Since Chris Brown is signed to Sony; its their responsibility to promote his songs and albums. In face of the recent public scandal, it becomes even more essential to redeem his reputation. 3. Public perception of Sony- Sonys image as a company should not be tarnished due to the action taken by JLG on the JK wedding dance issue. 4. Copyright Infringement- Sonys decision would set a precedent for handling future copyright infringement issues. 5. Social media learning- Since the video has already gone viral over the internet; it provides a unique opportunity to Sony to use social media as an effective tool for marketing and revenue generation. 3

Evaluation of Options
1. Issue a notice to YouTube to take-down the video. Revenue Generation: Taking down the video would eliminate any opportunity of generating revenues through online purchases and advertising. Promotion of artist: Sony would miss the opportunity to promote Chris and improve his public image. Public perception of Sony: Since Sony is not trying to cash in through the songs of a disgraced artist, it would reflect positively on the image of Sony. Also the issue of manufactured success wont arise. Copyright Infringement: This would set a precedent for the future that no one is allowed to use Sonys property without their permission. Social media learning: Sonys employees would miss the chance of using social media as a tool for marketing and revenue generation.

2. Do nothing about the video. Revenue Generation: Sony will lose advertising and sales revenue since people will listen to the song for free on YouTube. However, it could lead to increase in revenues through indirect sources like sale of tickets to concerts. Promotion of artist: Chris Brown is getting free publicity. Since the song has been used in positive connotation (i.e. wedding ceremony), it would help offset his negative image. Public perception of Sony: Though Sony is not trying to cash in on the songs of a disgraced artist; neither is it taking any action to prevent the spread of his video. Also 4

people may construe videos success to be manufactured by Sony. This might reflect badly on Sonys image. Copyright Infringement: Since Sony is not taking any action, other people might try to exploit them by using their copyrighted material. Social media learning: If Sony does not do anything about the video, it would miss this learning opportunity.

3. Claim the song in the video and negotiate revenue sharing agreement. Revenue Generation: People watching the video may want to buy the song or the album. Since the agreement is in place, Sony can display links to iTunes and Amazon where people could directly make purchases. Sony would also get a share of the advertisement revenue generated through the dance video. Promotion of artist: Chris Brown will get free publicity. Since the song has been used in positive connotation (i.e. wedding ceremony), it would help offset his negative image. Sony could also promote other albums of Chris through the video. Public perception of Sony: People might perceive Sony as an opportunistic company since it is trying to cash in through the songs of an artist who has recently been convicted in domestic violence case. Copyright Infringement: By claiming the rights to the song, Sony would set a precedent that no one is allowed to use its property without permission. Social media learning: Sonys employees would get to promote Chris using social media. This would be a rare opportunity for the employees to learn how to use a viral video to serve their purpose and generate revenue out of it.

The Recommendation
Based on the analysis of the options, it is recommended that Sony should claim the song in the video and negotiate a revenue sharing agreement.

Action Plan
Contact YouTube immediately and ask them to notify the host that Sony is claiming the song in the video. Put click-to-buy overlays on the video which would enable viewers to click through to iTunes or Amazon to make a purchase. Contact advertising agencies and negotiate deals with them for placing their ads on top of the video on YouTube. Post the link to the video on Browns website and mention about it in email to fans. Refrain from aggressive promotional activity like advertising through Television or Radio.

Contingency Plan
It is possible that the Sony may face publics ire since it is trying to cash in using Browns songs. In such a scenario, Sony should donate a part of revenues to charities and NGOs fighting against domestic violence and publicize this fact through media channels.

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References
Content ID. (2009, July 21). Retrieved from http://www.youtube.com/t/contentid Social media marketing. (2009, July 21). Retrieved from http://en.wikipedia.org/wiki/Social_media_marketing#Facebook Katers, N. (2009, March 24). Copyright Laws in Music. Retrieved from http://www.ehow.com/about_4793153_copyright-laws-music.html Kreps, D. (2009, February 09). YouTube Adds New Click-To-Buy Overlays To Music Videos. Retrieved from http://www.rollingstone.com/music/news/youtube-adds-new-click-tobuy-overlays-to-music-videos-20090126 Santo, M. (2009, January 26). Rihanna's Boyfriend, Chris Brown, Arrested for Alleged Domestic Violence. Retrieved from http://www.huliq.com/3257/77257/rihannas-boyfriend-chrisbrown-arrested-alleged-domestic-violence