Like he once said so fervently, Jay-Z is not a businessman, he’s a business, man, and now he’s proving his industrial scope in a bold new partnership with Samsung.
On Sunday, the Roc Nation head broke news during a three-minute-long commercial at halftime of the NBA Finals that he would be releasing his next album, Magna Carta Holy Grail, via Samsung Mobile. The commercial led viewers to the record’s website, where virtual posts explained how the album will be free for the first one million Galaxy mobile phone owners who download it through a custom app on June 24. It will be available for regular sale on July 4th.
Immediately, Jay-Z, Samsung, Magna Carter and HOV were trending on Twitter, as talk of the 43-year-old rapper’s ability to push album sales, upstage marketing trends, and conveniently detract from Kanye West’s new release (out today) flooded social media.
For a guy who’s previously rapped about an “uncontrollable hustler’s ambition,” it seems like the next move of his chess piece.
“Twenty years ago no one would have predicted hip-hop would be this global and corporate force,” Simone Pratt, Director of Account Planning & Strategy at SpikeDDB, tells theGrio. “When you ask people who are masters at their craft like Jay, why do they continue to achieve these amazing goals, it no longer becomes about money. It becomes about silencing the critics, broadening his catalogue, not being just a rapper.”
Building the dynasty
Truth be told, Jay-Z’s deal with Samsung marks only the latest in a line of brand initiatives that the artist has embarked upon over the years. It began in the music business, a forum where he couldn’t even sell a record until he established his own label. Hence, Roc-A-Fella Records was erected, followed by an accompanying clothing line, Rocawear, and film company, ROC Films.
The “Empire State of Mind” rapper eventually bought out his stake in the company, and opted to partner with Live Nation to create Roc Nation, a music management firm and label. More recently, he expanded the venture into sports.
In addition to his day job, Jay-Z’s co-owner of the 40/40 Club in New York, and formerly part owner of the Brooklyn Nets (his decision to open a sports agency forced him to relinquish his stake in the NBA team).
As far as sponsorships go, he became a co-branding director for Budweiser Select during the release of his album Kingdom Come in 2006 after cutting ties with Cristal. The beer company went on to spearhead his Made In America Tour in 2011, now in its second year running.
In other news, he patented his own color: “Jay-Z blue.”
Altogether, the rapper and wife Beyoncé are reportedly worth over $1 billion, a sublime sum for a man who got his start dealing crack on the streets of Brooklyn.
“Everybody craves authenticity, and that is what hip-hop is all about,” Pratt observes. “What gives Jay-Z credibility is he has lived what he raps and writes about. His hits & units give him an incredible reach. Interviewing with Oprah, the cover of Fortune with Warren Buffet, hanging with Obama, singing with Coldplay, his collaborations with Linkin Park, even adding a beloved Broadway soundtrack (Annie), gives him further access.”
Could Jay-Z jeopardize his street cred?
Yet money, power, and unlimited domain often bring scrutiny to figures in the public eye. Jay-Z’s boy from the ‘hood appeal began to change years ago when his lyrics shifted from talk of poverty to gush about lavish living.
Now a billionaire, five million extra dollars from Samsung doesn’t sound that grandiose, making his corporate ties questionable to some.
“This a loss for Jay-Z,” Darwyn Metzger, CEO of Phantom Media, believes. “Sometimes what happens when a celebrity or a brand blows up, they become incredibly powerful and influential, and then they may try to go to the well a few too many times. I think this might be Jay-Z’s reverse tipping point…He does have an incredibly powerful brand and he’s the sort of person that people will buy something simply because he has signed off on it. This may end up cutting some of that brand power out.”
Or conversely, the star musician could be pulling tricks on the trade.
“Perhaps, he’s now playing a game against the Fortune 500, and wants to see how high he can climb the list,” Metzger notes.
Straight from Hov’s mouth
What’s promising about Jay-Z’s promotion with Samsung, and what some see as a likely boost for sales, is the direct connection the campaign makes between the artist and his fans.
From the onset, the experience was exciting for audiences to track. Those who caught the cryptic commercial on Sunday were instantly captivated, and the rest of the world tracked the news via his album website and custom hashtag “#MagnaCarta.”
David Bakula, SVP of Client Relations & Insights at Nielsen, says Jay-Z acted with sagacity.
“Consumers want to have more attachment to their favorite artists,” he observes. “They want to feel like they’re behind the scenes, that they’re insiders. That three-minute commercial, and presumably the content that’s going to come along with the promotion, is going to make consumers feel like they’re apart of what’s going on.”
As Bakula points out, Jay-Z fascinated fans in order to engage them in the process of his album’s release. His advertisement featuring top producers Pharrell, Rick Rubin, Timbaland and Swizz Beatz led many to ponder the creative direction, and the rollout plan continued their amusement.
“The amount of marketing exposure this is creating, and the amount of chatter it’s creating, and certainly the amount of media, I think more than offsets the few people that are going to get it for free,” Bakula remarks. “This can do nothing but drive sales upward.”
On that note, Metzger agrees, commenting, “There’s already success to be found in the fact that they’re going to get free media coverage for the album and for Samsung. When it comes to album sales, obviously Jay-Z’s happy to have sold an additional million albums with money upfront. He’s a businessman; this is money in his pocket.”
But is the album guaranteed platinum?
Jay-Z’s ensured himself a down payment, but will these million pre-sold albums guarantee him a platinum-selling, chart-topping record before it’s even released?
Not necessarily.
In fact, Nielsen will not even count the tallies in its weekly SoundScan report, which is the industry’s official method of tracking music sales. A spokesperson for the company confirmed to theGrio that it does not factor bulk purchases or giveaways into reporting.
Similarly, according to Billboard’s policy, bulk sales are not counted in total sales, thus these pre-sales won’t guarantee a chart-topping debut for Jay-Z.
In order for the album to go platinum, it would have to be certified by the RIAA after meeting a series of criteria. A representative of the organization told theGrio that at this point, it would only be speculation. One major factor is that the album must be sold to a retailer at a minimum of one-third suggested retail price.
The Wall Street Journal reports Samsung paid $5 per album to acquire rights to Jay-Z’s digital release, which could meet the eligibility requirements as accreditation is based on shipments, not sales.
The RIAA would not confirm if these pre-sales would successfully pass an audit, but regardless, the album has to be released for 30 days before it can begin the process.
Jay-Z might not need the help anyway.
“I don’t think it’s going to kill digital sales,” Bakula says. “It’s going to get his content out to more fans and I think it’s going to do nothing but drive interest across the board, digital and physical.”
One million free downloads will likely translate to an exponential amount of leakage, nonetheless. Metzger feels the hip-hop star might have sabotaged his chance to hit traditional ranks of achievement – If he even cares.
“If 1 Million records gets SOLD and billboard doesnt report it, did it happen? Ha. #newrules #magnacartaholygrail Platinum!!! VII IV XIII, [sic]” Jay-Z tweeted Monday.
Samsung, on the other hand, is looking for an image boost.
“Anytime a corporation can take advantage of the love and credibility of an artist for their own good, it’s always going to be a win,” Metzger observers. “But if they think this sort of stunt is what will motivate somebody to make their next phone a Samsung, they’re way off the mark.”
Big brother always wins
One indisputable fact of the matter — attention has waned from West, Jay-Z’s so-called little brother, and his new release, Yeezus.
Some saw it as a comical slight. Others noted the irony of West shying away from corporations with his latest release, as HOV gravitated towards big business.
“Remember Yeezus?” tweeted @jamarhudson.
“jay-z is gonna give kanye the same taste of what beyonce does to kelly rowland, [sic]” tweeted @speriod.
@BlackElleWoods tweeted, “Imma let you finish.” RT @MrSpradley: Hov definitely stole Yeezy’s thunder though. [sic]”
From a sales vantage, Bakula says the Blueprint rapper has successfully placed his work at the forefront of the industry.
“When you get the majority of music being consumed and purchased digitally, partnerships with technology companies like this are going to continue to grow,” he says. “Kanye showing his video on the side of a building – that’s great that we have the technology to do that. But Jay-Z is actually putting music in the hands of people.”
Even Metzger admits that Jigga wins the battle for best spectacle, adding, “Kanye’s most successful stunt was impregnating Kim Kardashian.”
Follow Courtney Garcia on Twitter at @courtgarcia