Britney Spears signs deal with Malta-based iModel Music

Blanche Gatt - The Malta Business Weekly, August 2002

Mega-star Britney Spears, a leading music artiste with millions of fans worldwide, has signed a deal with Malta-based iModel Music who will be running the e-mobile services for the pop star outside the United States.

Vivien Lewitt, a member of Rudolph & Beer, LLP, New York, the law firm that represents and co-manages mega pop star Britney Spears, flew in to Malta from New York last week to visit iModel Music, an offspring company within the iWORLD GROUP (iWG). Contracts between the two companies were signed last month, and a launch date has been set for end September 2002, when Britney's European emobile service will go on line in Germany and then the UK. This news marks the beginning of a new phase for iWG and iModel Music. After months of extensive research and testing both in Malta and other parts of Europe, the company is now ready to switch on its engines and provide the services in the third and fourth largest music markets worldwide. "Malta was instrumental in us validating our business model," commented Franco de Gabriele, Head of iDeasTank the think-tank arm of iWG. "Malta is the perfect market for testing e-mobile applications and our experiences with local pop star Ira Losco and up and coming band Corkskrew were fundamental to us securing the deal for our company," added Franco de Gabriele. "People are driven by the same primary drivers regardless where they happen to be living. If it works in Malta there is good reason to believe that it will work also in more populated markets such as the UK and Germany. Our signing one of the most popular pop stars in the world is a living proof of this and our test results in Malta were essential to broker the final deal." iModel Music will give Britney Spears fans the unique opportunity to connect directly to her wherever they are, allowing them to also express their likes and dislikes through their mobile phones. Signing up Britney Spears as one of the first big name stars to own an e-mobile service was part of iModel's launch strategy. The young star has sold more than 70 million CDs worldwide in just three years. Vivien was in Malta to meet the iModel Music team in order that both parties could cooperate in putting together the most compelling and satisfying package possible for fans.

" It was time extremely well-spent," commented Vivien. "I was able to see the operations here and the way in which they work... and I was very impressed by what I saw. The way all the people at iWG are working together for a common goal far exceeds anything I have seen in the United States, where operations like this appear far more makeshift. At iModel Music they have got everything, brilliant individuals putting together business planning, the structural requirements, the revenue creation and the people actually executing the plan."

In fact, it is the reputation and background of many of the people involved in iModel Music that was instrumental in bringing the two companies together to offer the Britney Spears iModel Music service.

"My law firm represents and co-manages Britney Spears," said Vivien, "and in the States we already have a partner in the mobile space. This company, that provides a mobile service to fans in the States, is called WFX and is run by an ex-colleague, Jed Alpert. He recommended iModel Music very highly, and, coupled with what I know of iWG founder and chairman, Andreas W Gerdes and his background, I took the decision to sign up with iModel Music on behalf of Britney."

While she was in Malta, Vivien participated in a couple of workshops moderated by Malcolm H. Ross, during which the potential of using the upside of emobile, that is, being personal, realtime and mobile, to increase sponsorship and performances revenues for artistes was examined.

"I was most struck by the creativity and input from all the different employees in the company," commented Vivien. "Everyone in the room had a different role within the company, yet all were contributing enormously valuable input about the business models we were discussing. This is a very rare, but very important, trait... it is so valuable to see that everyone in the company understands precisely what it is they are creating and marketing."

While all the administrative and coordinative elements of the iModel Music service are handled by her representatives, Britney Spears herself will be fairly deeply involved in the running of her emobile services.

 "She signed the contracts of course," said Vivien, "and once the service is up and running she will be recording messages and sending text messages for the service regularly. She already does this for the service we have in the States, and much of the content will be used for both services. However, she will also be preparing additional material specifically for Europe whenever there is an event or a launch that could benefit from the added thrust of an emobile impetus."

The iModel Music service offers fans the opportunity to opt into an exclusive mobile phone based service, connecting them to Britney's world by giving them access to specially recorded interviews, diary updates, information, surveys and special offers on CDs, merchandise and other products, on a one-to-one basis. New and innovative ideas on how to help fans feel they "belong" to their artiste are constantly being examined and evaluated, a process which will be on-going and continuous. Ideas from both sides of the partnership will form the basis of this process, in order to ensure the iModel Music emobile service remains dynamic and exciting.

"For example," said Vivien. "The service in the States also offers fans info about shows, interviews with Britney's make-up artist or security guards and insider's tips about how her dressing room is decorated, or what type of mascara she wears, which is great fun for the fans."

The iModel Music service will be launched, in Germany, some time around the end of September, and the team is currently working on putting together an effective and powerful promotion campaign.

"We are looking at promoting the service via most traditional media," added Vivien. "Most likely these will include print media like specialist music magazines, video games, film videos... anything that her fans might buy and therefore see our promotion. Britney also has a partnership with AOL, so that is likely another promotional vehicle we will be using."

Britney's US service, referred to as the "wireless fanclub", has so far been limited to distribution within the nation-wide "Best Buy" stores, which are comparable to the UK firms, Dixons or Argos. Her sponsorship endorsement deal with Samsung Wireless means that she will be featuring in Samsung's launch of their new mobile phone, an event that will be utilised to expand distribution in the States and beyond, as discussion between iModel Music and Vivien also looked at the possibility of using these opportunities for the promotion of Britney's emobile service in Europe.

"This is the kind of thing that was so useful about my coming here to Malta," concluded Vivienne. "Both sides were able to share ideas and teach each other how to do things in a different way. We both brought new ideas to each other, sharing information on ways to best capitalise on business. This I found very striking. No-one we do business with has ever brought their company together with ours in this way to make both sides feel so involved and part of the whole process. I have enjoyed the experience enormously."