April 20, 2024

Billboard Makes YouTube Part of Hot 100 Formula

This week the Billboard Hot 100, the magazine’s 55-year-old singles chart, takes a evolutionary step by incorporating YouTube plays into its formula. The move comes just in time for Baauer’s song “Harlem Shake,” the latest viral video phenomenon, which will make its debut at No. 1 this week thanks to the change.

“Harlem Shake,” a bass-heavy hip-hop track with no lyrics beyond a few samples, got little mainstream attention when it was released in May as a free download. But this month its popularity exploded on YouTube, as thousands of fans uploaded videos of themselves dancing — some might say simply flailing — along to the song. By last week more than 4,000 videos were going up each day.

Download sales and Spotify streams of the track also skyrocketed. But the remarkable trajectory of “Harlem Shake” led Billboard to move forward right away on its methodology update, something it had been in discussions with YouTube about for nearly two years, Bill Werde, the magazine’s editorial director, said on Wednesday.

“The notion that a song has to sell in order to be a hit feels a little two or three years ago to me,” Mr. Werde said. “The music business today — much to its credit — has started to learn that there are lots of different ways a song can be a hit, and lots of different ways that the business can benefit from it being a hit.”

The move is Billboard’s latest step in modernizing the Hot 100, which besides sales and airplay now also incorporates data from streaming services like Spotify. YouTube has taken on an essential role in propelling songs to the cultural forefront, often long before they are picked up by radio programmers.

Psy’s “Gangnam Style” and Carly Rae Jepsen’s “Call Me Maybe” are the most prominent examples of this trend, but plenty of other recent hits — like Gotye’s Grammy-winning “Somebody That I Used to Know” — also owe much of their success to video virality.

The rise of “Harlem Shake” is all the more remarkable because of its speed. With only 18,000 downloads the song did not make the last Hot 100 chart at all. But last week it caught fire online, and across the tens of thousands of its scattered YouTube dance videos the song had 103 million views in the United States, according to YouTube, and sold 262,000 downloads, making it the third-most downloaded track of the week. (Even without the YouTube data, “Harlem Shake” would have charted in the Top 15 this week, Mr. Werde said.)

Billboard’s charts are based on data collected by Nielsen SoundScan, which has also been modernizing its data. When the service started in 1991, it gave the music industry its first reliable, third-party sales data, transforming the way record labels, retailers and others did business. Now Nielsen also tracks radio plays and most major streaming services.

“We want to measure how much consumption is going on, in whatever form a consumer chooses to consume something,” said David Bakula, a senior analyst at Nielsen.

Also on the charts this week a number of acts benefited from their exposure at the Grammy Awards. Mumford Sons rose three spots to return to No. 1 with “Babel” (Glassnote), the album of the year, which sold 185,000 copies last week. And a compilation of this year’s Grammy nominees is No. 2 with 88,000 sales.

Macklemore Ryan Lewis’s track “Thrift Shop” was once again the most-downloaded track of the week, with 412,000 sales. But with the arrival of “Harlem Shake,” it falls to No. 2 on the Hot 100.

Article source: http://www.nytimes.com/2013/02/21/arts/music/billboard-makes-youtube-part-of-hot-100-formula.html?partner=rss&emc=rss

Economix Blog: The Most Important Problem Facing Small Businesses

CATHERINE RAMPELL

CATHERINE RAMPELL

Dollars to doughnuts.

For years industry groups have complained that government regulations and taxes were at the root of the weak recovery, but survey data consistently showed that demand was actually far and away the biggest problem. Until recently.

As I note in my article about the gulf in economic optimism between small businesses and large ones, the National Federation of Independent Business surveys its members each month about the “most important problem” facing their business. They have 10 possible answers: taxes, inflation, poor sales, financial and interest rates, costs of labor, government requirements and red tape, competition from large businesses, quality of labor, cost/availability of insurance, and “other.”

Source: National Federation of Independent Business, via Haver Analytics. Shown are selected answers to the question, Source: National Federation of Independent Business, via Haver Analytics. Shown are selected answers to the question, “What is the single most important problem facing your business today?”

Starting in September 2008 (the month Lehman Brothers imploded), “poor sales” claimed the plurality of answers every month for more than three years. But the shares answering “taxes” and “government requirements and red tape” crept up, and since early 2012 have been more or less tied with the “poor sales” group. In fact, the share complaining about government requirements has not been this high since the mid-1990s.

It’s not clear why this is the case. The rise in tax complaints predates the recent marginal income tax and payroll tax hikes. (Maybe state and local taxes are a big concern?)

And red tape is always a pain, but there does not seem to have been a huge burst of new regulations, at least not yet. Some of the main parts of the Affordable Care Act that affect businesses — including the penalty that employers with more than 50 full-timers will pay if they don’t offer health insurance — start in 2014. There’s a lot of confusion about these regulations, though, and many employers who will probably not even be directly affected are still freaking out.

It’s also worth noting, of course, that “poor sales” and almost any other answer are two sides of the same coin: sufficiently strong sales can outweigh just about any burden from taxes, regulations, wage increases or most other costs of doing business.

Article source: http://economix.blogs.nytimes.com/2013/02/14/the-most-important-problem-facing-small-businesses/?partner=rss&emc=rss