Trapital - did somebody say McDonald's?

This Trapital memo covers Travis Scott-McDonald's, Spotify exploring karaoke, #TheShowMustBePaused, and a new podcast with Donald Albright.

memo 005: did somebody say McDonald's?

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Hey! Hope you enjoyed the long weekend. I took Friday and Monday off to relax, watch the NBA playoffs, and stay cool in this Bay Area heatwave. Trying to be better about taking days off!

This is your weekly breakdown on what matters most in the business of hip-hop. This week we have a new Trapital podcast episode with music exec turned podcast mogul Donald Albright, and breakdowns on Travis Scott - McDonald's, Spotify exploring karaoke, and important updates from The Show Must Be Paused.

new podcast: Donald Albright, co-founder and President Tenderfoot TV

Tenderfoot TV created the hit podcasts Up and Vanished, Atlanta Monster, and To Live and Die in LA. The company has 500M+ downloads (10M+ per month).

Donald is a former music exec in Atlanta. He worked with LaFace Records and managed August Alsina back when "I Luv This Shit" blew up. He used his marketing and street team skills to grow a podcast network that recently signed a nine-podcast deal with iHeartMedia.

If you're interested in the business of podcasting, and IP ownership, and strategic partnerships, then this pod was made specifically for you.

Listen on Apple Podcasts, Spotify, or now... watch us on YouTube! Finally started putting episodes on YouTube. I know, I know... about damn time.

'The Travis Scott Meal' is here

Starting today, you can visit a participating McDonald's and order the fast-food chain's new menu item in collaboration with the superstar rapper. Watch the commercial here.

A lame name. 'The Travis Scott Meal' tho? Really? Could have been 'Cactus Jack Big Mac,' or 'Astro Quarter Pounder.'

But can't say I'm surprised. According to a survey, two-thirds of franchisees pushed back on the collab due to Travis' lyrics. McDonald's corporate office probably shut down the more clever names.

The power in personal branding. I've been to several restaurants that pitched me on "when President Obama visited, this is what he ordered." It gets me every time, I can't even lie. It's irrational, but it works. If casual dining can use this tactic, fast food chains can too—especially with a superstar rapper like La Flame.

It's also an easy lift for McDonald's. It's literally a quarter pounder with bacon and lettuce. It's a remix of an existing product and ingredients.

Everything is a merch drop. It wouldn't be Travis Scott without a merch drop, right? Fans are expecting a drop today. Buyers beware though, counterfeit merch is everywhere. Please don't get got by a fake Gildan t-shirt.

'I'm Lovin It' 2020? Will Travis Scott drop an updated version of the popular McDonald's jingle, "I'm Lovin It"? It's been 17 years since the Neptunes-produced Justin Timberlake song. Might be time for a refresh.

Read more about Travis Scott's business strategy in this Trapital favorite, How Travis Scott Growth Hacked Hip-Hop.

Is Spotify adding karaoke?

Spotify is working on karaoke mode, according to a trusted source who often uncovers what tech companies are up to.

Software engineer Jane Manchun Wong is known for finding new features on popular apps before they become public. Yesterday, she tweeted that Spotify is working on karaoke mode.

About time! Tencent has made a ton of money on its WeSing karaoke service. 70% of its top-line revenue came from "social entertainment services and others," which includes karaoke. Spotify's investors have pushed for something like this for a while.

When I was on CNBC last month, I suggested that Spotify consider this opportunity. Gamification and interaction are increasingly popular ways to monetize platforms.

Potential challenge? Spotify once seemed hesitant to go this route. Karaoke is more popular in Eastern cultures, while Spotify is strongest in the West. Furthermore, Tencent operates in China. CCP's policies have directly supported Tencent's rise and integration. It's unlikely to expect the same results in the free market regions that Spotify now relies on.

But Spotify is growing fastest in regions outside of North America and Europe. A global digital streaming provider needs to push for strategies (like karaoke) that are more popular among users in those growth areas.

Read more about Spotify's karaoke push in this article by Music Business Worldwide.

'The Show Must Be Paused' Has New Demands for the Industry

Jamila Thomas and Brianna Agyemang (via Flo Ngala/Billboard)

The social justice initiative made a list of demands to all organizations operating in the world of Black music.

A call for justice. #TheShowMustBePaused was launched shortly after George Floyd's murder on May 25. The initiative was started to urge the music industry to do better in diversity, equity, and inclusion.

Last week, the initiative's founders, Jamila Thomas and Brianna Agyemang, followed up with a list of actionable demands for the industry. Here are a few of the demands:

  • conduct and publicize diversity audits at all leadership levels
  • address pay disparities across race and gender
  • create anti-racism and anti-sexism clauses on tour
  • develop a stronger Black talent pipeline.

Companies were asked to respond within 30 days (by October 2).

Time to take action. If you're reading this, there's a strong chance your company operates in this world. Your company can publicly respond to the demands, the same way that your company made public statements in the wake of George Floyd's murder.

Read the full list of The Show Must Be Paused's demands in this Billboard exclusive.

Trapital Player of the Week: SZA

SZA's new song is named "Hit Different." That's SEO for the social media era right there. If someone says "that hit different" about anything, SZA will come up. This trend has been well-documented in the streaming era.

Also, shoutout SZA for working through it with TDE. The last time she had issues with the record label, she dropped CTRL soon after. Let's hope there's something else in store.

Coming soon...

podcast with Jason Geter. Jason is the founder and CEO of Heavy Sound Labs, co-founder of Grand Hustle, an investor in All Def Digital, and more. We talked about his career as a music exec, building Grand Hustle with T.I., discovering Travis Scott, why he launched a music incubator. Really great conversation. Make sure you're subscribed to the podcast! Drops later this week.

webinar with Marcus Collins. Next Thursday 9/17 at 2pm ET, I'm hosting a webinar with Marcus Collins. He's an award-winning advertiser and marketing lecturer at the University of Michigan, Ross School of Business. Marcus and I met years back when I was in business school. He worked on famous ad campaigns like State Farm's Chris Paul/Cliff Paul and previously ran digital strategy for Beyoncé. He's an expert in both hip-hop and marketing.

I'll open the invites later this week. To stay informed, click here.


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Older messages

pump, p-pump it up

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it's just business

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This Trapital memo covers record label disputes, music investments, the VMAs, and TikTok v. Trump. memo 003: it's just business was this forwarded to you? sign up here. Back with another memo. This

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This Trapital Memo covers a new Tyler The Creator essay, TikTok-UnitedMasters, Drake's Nike commercial, and Warner Music-@Daquan. memo 002: music and memes was this forwarded to you? sign up here.

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This Trapital Memo covers "WAP," Roc Nation's new school, Live Nation's bad quarter, and Lizzo's Amazon deal. memo 001: controversy sells Boom. This is your first Trapital Memo!

hip-hop's CMO

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