In 2008 Adam Kluger looked at the lack of profitability in music in a different light. He wanted to be able to make music more about a brand and less about how many people listened to music. The music industry was between mediums. Streaming was not yet popular and the CD was being phased out by digital downloads. Kluger created the “Brand Drop” to increase profitability.
A “Brand Drop” is product placement in musical verses or videos. While artists have always mentioned products or brands in music, Kluger was the first to monetize these promotions in music.
At the beginning of his innovation, Kluger faced some backlash from the industry for his practices possibly violating artistic integrity. Kluger used the guise of furthering an artists vision as an excuse for his questionable practices. Kluger provided his services as a middle man to Lady Gaga in her first music video.
While Kluger’s ethics are questionable when it comes to the products and artists he works with we cannot deny his prowess as an entrepreneur. Kluger has hired skit artists involved in videos for musical artists such as Eminem.
Kluger’s innovation makes him a middleman meaning artists have tried to go around Kluger and cut him out of his cut of the transactions. Kluger was almost cut out of $320,000 during his deal with Britney Spears.
As Kluger’s deal with Spears fell apart, Dannielle Bregoli’s fame began. Kluger decided to prove his worth through his ability to popularize products or people through the internet. As soon as Bregolli’s fame had peaked and it seemed that she would fade back into irrelevance Kluger called her and offered to be her manager. After that Bregolli has exploded as a rapper and personality all incubated by Kluger’s entrepreneurship.
It’s great to see another example of someone capitalizing on a need that was in the music industry. And even though his practices might have not been the best, his ability to innovate is definitely impressive.
Wow– I had never heard of a “brand drop” before but it makes sense that someone is profiting from that use of music. Though he faced controversy, I commend Kluger’s evident entrepeneurial drive and work ethic. Interesting article!