The Orchard recently named Brad Navin its new CEO, a role he had been filling on an interim basis after the departure of former CEO Greg Scholl in October. Navin previously served as executive VP/GM of the indie-focused digital distribution firm. In an interview, Navin outlined his immediate plans for the company, the Orchard's strategic approach to new digital models and why access to content will be the winning model in the end.
What's your plan for the Orchard now that you're officially in charge?
First and foremost, we're proud of being a distributor. It's our core business model. We'll continue to be one of the best at doing that. The Orchard has always been about working closely with our partners on marketing and promotion and distribution. We're going to focus more on the technology side to do that better, whether it's data analytics from the stores themselves or working more with marketing partners to get the stats and data needed to understand that information. We have a long way to go to understand what sells where and why, and I want to bring that to the forefront.
Any staffing changes expected?
We just brought in a new head of engineering, and he's going to help us with a lot more technological throughput. Not being a technology company per se, but using the information we get in a digital and mobile world and putting it to work for our clients better. It just enhances the core of what we've been doing all along.
Will anything change from how things were done previously?
We're really focused on our core business. We don't have the need to be caught chasing revenue streams. What may be sexy or interesting today may be gone six months from now. We won't get caught in that trap. One of the things we've done well is partnering more and more with our distributed label clients when they have a hot release and help them take it to the next level by getting involved in more direct marketing and promotion. That includes investing in the product itself.
What are you doing about new revenue streams, such as on-demand and noninteractive streams or mobile apps?
Just as you'd expect when a new revenue stream launches, you're still dependent on what you've known and what's been your revenue stream. You may see a transition to new models, and we want to support and be in those models. But all of us, whether it's the Orchard or Universal Music, have to balance the increasing activity in a streaming on-demand or ad-based model to make up for the shortfall of what we've known as price-per-download before that.
Can you discuss your plans for new funding or address the rumor that you're looking for a buyer?
Unfortunately, due to the way the legal construct is and the fact that it's fairly well-known that Dimensional [Associates] is making a play to buy out the outstanding shares of the company, it's something I can't comment on right now. We'll continue to be really aggressive in this space that we know and are best at.
Where will the Orchard, or the broader digital music market, be in the near future?
It's more of a philosophy than a prediction. I'm a firm believer that it doesn't matter to a consumer if they own the music outright. It's about access to music. If access is through subscription or through outright ownership, it doesn't matter. When that convergence happens, that's the exciting part. People are still confused over what devices work with what stores, or fears that you're with an imeem and the next day they're out of business. When these things shake out and it no longer matters where you get it or how you get it as long as you can get it, that's all that people are going to care about. The Orchard will continue to look at the world that way. And that's the beauty of working with independent clients. They're interested in finding new ways to expand revenue and promote their artists. ••••
Dimensional Associates CEO Danny Stein will be a featured speaker at Billboard's Music & Money Symposium March 4 at the St. Regis in New York. For more information, go to billboardmusicandmoney.com.
Music & Advertising Chicago Billboard & Adweek are taking the Music & Advertising Conference, in
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