Under the Influence with Terry O'Reilly - S10E15 - Who Will Buy My Memories: Fan Club Marketing

Episode Date: April 15, 2021

This week, we dive into the world of Fan Clubs. They are huge marketing tools for celebrities. We’ll track some of the earliest fan clubs, then compare them to the fan clubs in the digital era. We��ll also explore the big shift in power that swung from celebrities over to their fans. Hosted on Acast. See acast.com/privacy for more information.

Hi, it's Terry O'Reilly. As you may know, we've been producing a lot of bonus episodes while under the influences on hiatus. They're called the Beatleology Interviews, where I talk to people who knew the Beatles, work with them, love them, and the authors who write about them. Well, the Beatleology Interviews have become a hit, so we are spinning it out to be a standalone podcast series. You've already heard conversations with people like actors Mark Hamill, Malcolm McDowell, and Beatles confidant Astrid Kershaw. But coming up, I talk to May Pang, who dated John Lennon in the mid-70s. I talk to double fantasy guitarist Earl Slick, Apple Records creative director John Kosh. I'll be talking to Jan Hayworth,

who designed the Sgt. Pepper album cover. Very cool. And I'll talk to singer Dion, who is one of only five people still alive who were on the Sgt. Pepper cover. And two of those people were Beatles. The stories they tell are amazing. So thank you for making this series such a success. And please, do me a favor, follow the Beatleology interviews on your podcast app. You don't even have to be a huge Beatles fan, you just have to love storytelling. Subscribe now and don't miss a single beat. We'll see you next time. new locations. What matters is that you have something there to adapt with you, whether you need a challenge or rest. And Peloton has everything you need, whenever you need it. Find your push. Find your power. Peloton. Visit Peloton at onepeloton.ca. This is an apostrophe podcast production. You're not you when you're hungry.

You're a good hand with all things. You're under the influence with Terry O'Reilly. Riley. Singer Willie Nelson is a legend. He has written classic songs. He has recorded more than 60 studio albums, multiple live albums, 37 compilations, two movie soundtracks, and 27 collaborations. But back in 1990, Willie got in trouble.

After an investigation, the IRS hit Willie with a $16.7 million tax bill, one of the largest individual federal income tax bills ever generated by the IRS at that time. Apparently, Willie's accounting firm had set him up in a tax shelter that was eventually disallowed by the IRS. Willie was assessed $6 million in taxes and $10.7 million in interest and penalties. While he and his lawyers were able to negotiate the tax bill down to $9 million, Willie Nelson still didn't have the money to pay off the reduced debt. Because he couldn't pay the debt, the feds raided his home and seized his assets,

including his recording studio, his ranch, properties in four other states, all of his furniture, vehicles, gold and platinum records, and all of his instruments, except one. He hid his famous guitar, Trigger. Then Willie Nelson entered into a most unusual compromise. He would record an album and share the revenues with the IRS. The name of the album was The IRS Tapes, Who Will Buy My Memories. Willie did an infomercial for the album. Fans could dial a number and buy the record for $19.95. This is the only Willie Nelson album where proceeds go directly to retiring his IRS

debt. There'll never be another Willie Nelson, and there will never be another album like this. Call now. The IRS tapes album only generated about $3.6 million for the IRS. But Willie eventually settled his lawsuit with his accounting firm and was finally able to pay off the debt. But Willie's fans took the album title, Who Will Buy My Memories, to heart. When the IRS put Willie's belongings up for auction to pay down the debt, his fans mobilized. They launched fundraisers, bought many of the items, and gifted them back to Willie.

One group of fans even bought his home and sold it back to Willie at well below market value. It was an extraordinary gesture by Willie Nelson's fans. He had given them a lot of pleasure over the years, and his fans took the opportunity to send a little love back his way. In the world of marketing, fans are an incredible source of revenue for bands and celebrities. From the early days of mail-in fan clubs to the 21st century digital versions, fan clubs are a way for stars to sell their wares to their most loyal fan base. But an interesting thing has happened along the way.

Once upon a time, celebrities had all the power. But not anymore. You're under the influence. The evolution of fan clubs is a fascinating story that mirrors the evolution of pop culture. And of course, it all starts with fans. The first use of the word fan is hard to pin down, but hints of it can be found as far back as the 17th century. In that era, anyone who was considered a zealot

was sneeringly referred to as a fanatic. Later in the 1800s, boxing played a role in the etymology. Spectators would take a fancy to a certain boxer and soon became known as fans of that boxer. The term then slipped over to other forms of popular culture like literature, sports, theater, radio, television and film. Fandom really took hold in the 19th century when industrialization turned simple informal pastimes into products that could be consumed. For example, the public could now buy sheet music of their favorite songs to play on their home pianos. Soon, concerts came to town.

Theater productions went on the road. Sports teams traveled to different towns to play the home teams. Mass publishing made books by popular authors available. And a basic dynamic evolved. Now, there were essentially two groups. One produced and sold popular culture as writers, composers, athletes, and actors. The other, much larger group, purchased this culture as spectators, readers, and viewers. With this new order, some fans became super fans of specific performers or writers.

They yearned for more than just the temporary thrill of a concert or a sporting event. They wanted a deeper, more meaningful connection to the singer, the actor or the team. This devotion led to collecting items that reminded them of their experience. They wanted to find other like-minded fans to share their experiences with. And they wanted to maintain a special group identity. All of this happened earlier than you might imagine. When writer Charles Dickens traveled to the United States in 1842,

thousands of fans tried to meet him. Around that same time, the public started to become fiercely loyal to hometown baseball teams. In 1850, Swedish opera singer Jenny Lind toured the United States. Called the Swedish Nightingale, Lind was managed by none other than P.T. Barnum.

Barnum saw Lind's success in Europe and advertised Lind heavily before her arrival in the States. The resulting demand for tickets became so overwhelming, Barnum ended up selling them by auction to the highest bidders. Then he created Jenny Lind merchandise. The Swedish Nightingale gave 93 concerts and earned

the modern-day equivalent of $9 million. The press labeled it Lindmania. That fan obsession was unlike anything that had ever come before. Fans attended multiple concerts, they followed Lynn town to town, they filled the streets just to see and touch her,

and most tellingly, they were fascinated with her private life. In the late 1800s, rabid fans of Jane Austen formed and called themselves the Janeites. In the 1920s, Babe Ruth ignited baseball fandom like never before. When silent film star Rudolph Valentino died suddenly at the age of 31, over 100,000 fans gathered outside the funeral home, and a riot erupted when they weren't allowed to view his body. Dozens of fan suicide attempts were reported. From 1935 to 1938,

child star Shirley Temple was the biggest box office draw in Hollywood. A true phenomenon, the 8-year-old had 384 fan clubs scattered across the U.S. with over 4 million members. Fans couldn't get enough, and they were willing to spend money. Shirley Temple dolls sold at a rate of 1.5 million per year. There was everything from Shirley Temple dresses to dishes and even a non-alcoholic Shirley Temple cocktail.

As popular music swept the nation, Bobby Soxers screamed and rushed the stage when a young Frank Sinatra sang. At one point in the 1940s, there stage when a young Frank Sinatra sang. At one point in the 1940s, there were over 1,000 Sinatra fan clubs. There were membership cards, newsletters, and lots of glossy photos. The more members fan clubs could attract, the more Sinatra's records sold.

Then came Elvis. When Elvis the Pelvis burst onto the scene in the 50s, rock and roll redefined what a fan club could be. Presley had more fans and more fan clubs than anyone had ever had before. Elvis' manager, Colonel Tom Parker, instantly understood the grassroots value of fan clubs. He also reportedly had a 50-50 deal with Elvis on all record sales and merchandise. Therefore, the wily colonel made sure there was everything from Elvis dolls and trading cards to lunchboxes, jewelry, and teddy bears. When I worked at radio station FM 108 in 1981,

it was the first golden oldies station in Canada. At that time, rock music was just becoming old enough to be classified as oldies. We had an Elvis tribute show every week, hosted by Fran Roberts, the Canadian president of the Elvis fan club. Elvis had only been gone four years at that time, but it was one of our most popular shows. That Elvis fan club phenomenon has not slowed down to this day.

44 years after his death, there are still more than 600 Elvis fan clubs worldwide. The official Beatles fan club began in 1962. Fans paid an annual membership fee of under $1, what a bargain, and got the latest newsletter, photos, exclusive fan club records, and fab for news before anyone else. The first Canadian Beatles fan club was started in Montreal in 1963, well before the band's famous Ed Sullivan appearance. The Toronto fan club was started soon after by a 14-year-old named Trudy Medcalf. She had traveled to England to visit relatives in 1963,

where she first saw the Beatles on television, then she saw them in person. She was smitten. Back home in Toronto, she sent a letter to the official Beatles fan club in London asking permission to start a Toronto chapter. She got that permission, but that was all. She was given no instructions on how to start or run a fan club. Over time, Trudy Metcalf began receiving materials from the London Fan Club head office.

As author Piers Hemmingsen says in his excellent and highly recommended book, The Beatles in Canada, Trudy contacted the two top pop radio stations in Toronto, CKEY and Chum, to see if they were interested in talking to her about her Beatles fan club. Chum responded and invited her as a guest on one of their top shows. Trudy actually gave out her home phone number on the air to encourage fans to join the club. That resulted in an avalanche of calls. When Chum invited Trudy back, they took her to the mail room and showed her mail bins

that contained over 10,000 letters from Beatles fans. One day, the London fan club invited Trudy down to New York to meet the Beatles. She was invited to the studio to watch the Beatles rehearse for their big Ed Sullivan show. She was told to show up at the stage door at 2 p.m. She managed to fight her way through the crowd and was met at the studio door by Paul McCartney, who took her backstage to watch the rehearsal. The next day, Trudy was invited to spend time with the Beatles in their suite at the Plaza Hotel.

But the crowds were too big and police weren't letting any teenagers near the entrance. So Trudy went back to her nearby hotel, took her empty suitcase and hailed a cab. The cab dropped her off at the plaza's front entrance, and the doorman quickly ushered her into the lobby thinking she was checking in, but instead, she bypassed the front desk and made her way up to the Beatles suite on the 12th floor. She ended up spending a few hours with the Fab Four and helped them with mountains of

fan mail. The Beatles were generous with their time because the Canadian fan clubs were the only ones in North America at that time. Their appearance on Ed Sullivan would change all that. The Canadian fan club would peak with 90,000 members. It was the largest Beatle fan club operation outside of London, England. Big numbers, but tiny compared to what the internet would bring one day.

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Find your push. Find your power. Peloton. Visit Peloton at onepeloton.ca. You're listening to Season 10 of Under the Influence. If you're enjoying this episode, you might also like Putting Fans in Stands, How Sports Teams Sell Tickets, Season 9, Episode 3. You'll find it in our archives wherever you download your pods.

In the 21st century, fan clubs took on a new form. Because the internet is the perfect fandom tool. It gives fans instant information, endless biographies, chat rooms, tour schedules, and hot gossip. If you think fan clubs are obsolete,

think again. In a recent music magazine, fan clubs were a trending topic. 80% of people aged 13 to 37 currently follow a celebrity on social media. In the early days of social media, it was assumed celebrities

didn't want direct contact, that they would require a vast buffer zone. Not even Twitter thought celebrities would ever tweet. That turned out to be absolutely incorrect. Celebrities embraced the direct-to-fan channels,

circumventing gatekeepers, agents, and studios. Lady Gaga uses teasers and riddles about upcoming albums, tours, and videos. She shares information about her creative process with her fans. Taylor Swift often chats directly with her fans on social media, comments on her fans' Instagram stories, recruits them to dance in her videos, and even invites fans into her home for album listening parties. Neil Young embraced the old-school model

and combined it with internet monetization, offering fans access to his entire high-res music catalog for $1.99 a month. Fans also get the ability to pre-order concert tickets and get all the latest Neil Young info. Bands also offer live streams, concert replays, annual gifts, and backstage passes. Actors answer live questions about their new movies. It's all about relationships and monetization. Fans want to see more, get more, and talk to the artists and athletes they admire,

and they're willing to pay for it. Beyonce has her beehive, Taylor Swift has her Swifties, Justin Bieber has his Beliebers, and Lady Gaga has her beehive, Taylor Swift has her Swifties, Justin Bieber has his Beliebers, and Lady Gaga has her little monsters. Something else is happening with fans these days. They know they now have the power. Fans of Betty White, for example, stormed Twitter and Facebook

to demand that Betty host Saturday Night Live. She got the gig. As one PR executive said recently, it's not five girls at a sleepover mooning over Harry Styles, it's five million girls chatting on Twitter all day about Harry Styles. And 53 million Justin Bieber fans repeatedly watching Bieber videos creates a lot of revenue with monetized pre-roll ads. Fans are realizing their time and attention is valuable.

In return for that loyalty, they want a relationship, and they want to be listened to. Yes, it can be thrilling to be retweeted by a celebrity, but fans also demand VIP experiences, exclusive merchandise, inside scoops, and private meet and greets. Posting selfies taken with celebrities is the new autograph. Taylor Swift says she hasn't been asked to sign anything ever since iPhones came with front-facing cameras. That may be bad news for Sharpie sales, but that intimacy, or perceived intimacy with celebrities, helps sell a lot of merchandise. But social media also invites trolls.

So fans and celebrities are redefining their meeting places. Recently, there has been a trend where celebrities share their phone numbers on social media, telling fans to text them directly. Of course, it's not their real numbers. It's an app called Community. The app gives each celebrity a new number to use and celebs can then invite fans to text and have a direct conversation with them. Celebs like it because they're not reliant on advertisers or algorithms and there are no filters. Fans like it because texting is private. And because trolls need the oxygen of an audience,

they aren't on Community. According to a social media analytics firm, the percentage of fans that interact with a post on Twitter is only 0.48%, and on Facebook, it's just 0.09%. On the other hand, 80% of texts on the community app are opened within the first three minutes. In the middle of a Jonas Brothers show before 23,500 fans at Chicago's United Center, one of the brothers used Community to text a few hundred fans and invited them to a private show at a small club later that night.

When actor Kerry Washington was flying in for the Toronto International Film Festival, she needed something to help her through a long day of interviews. So she used Community to direct message her Toronto fans, specifically, to ask where she could get a great green juice when she landed. She received some great suggestions. Washington then offered TIFF tickets to a few of those fans and used Community to invite them backstage to say hi. Paul McCartney offered his Community fans a special colored vinyl edition of his new album McCartney III. His offer had a 42% click-through rate and he sold all 2,000 albums in less than 10 hours.

Both Washington and McCartney are investors in Community. While Community says it's not a marketing channel, it is a marketing channel. There may not be advertisers on it, but celebrities are using it to market to their fans. And the geofencing nature of apps like Community allows celebs to target their text to specific fans in specific cities at specific times. Community makes its money by charging user fees based on audience size, which can pay off quickly if you're selling thousands of albums or filling stadiums.

And community is not just limited to celebrities. There are athletes, business leaders, authors, and public figures using it. If you're looking for flexible workouts, Peloton's got you covered. Summer runs or playoff season meditations, whatever your vibe, Peloton has thousands of classes built to push you. We know how life goes. New father, new routines, new locations. What matters is that you have something there to adapt with you,

whether you need a challenge or rest. And Peloton has everything you need, whenever you need it. Find your push. Find your power. Peloton. Visit Peloton at onepeloton.ca. YouTube tracks uploaded videos and alerts record companies when a video contains copyright music. But some record companies have decided to respond to those violations

in an unusual way. Rather than order the video removed for copyright infringement, record companies instead have chosen to run ads before and during the fan videos. For example, the Toronto Star reported that an American comedian posted a video of himself in a bikini lip-syncing to Carly Rae Jepsen's song, Call Me Maybe. The video racked up 14 million views. The record company behind Jepsen's hit single made big ad dollars off those views. In other words, fan-generated content like mashups and fan-made music videos

can actually generate more money for record labels than the official music videos posted by the record labels themselves. Then there's K-pop. For those who don't know what K-pop is, it's K-pop. For those who don't know what K-pop is, it's Korean pop music. The seven-member boy band from South Korea called BTS, for example, were the first Korean group to reach the top 10 on the Billboard 200 chart. They have over 9 billion views on YouTube. BTS also beat Justin Bieber's six-year streak

to win the Top Social Artist Award at the Billboard Music Awards. The BTS fans, called the BTS Army, logged 300 million orchestrated votes to make that happen. But the BTS Army is doing more

than just voting and attending concerts. They run fan sites, create self-designed band merchandise, and produce fan chants. These fan chants are lyrics created by the fan club that they shout out during performances at collectively agreed-to points in certain songs. Which BTS welcomes. And get a load of this BTS fans actually pay for outdoor digital billboards to promote the band it started around 2017 BTS fans

organized and purchased between 20 and 30 digital billboards in one of the world's priciest ad locations, Times Square in New York. The fans paid for the digital billboard ads promoting BTS, which ran for 15 seconds once every hour. The cost? $30,000 American dollars per week. The fans then traveled to New York to see the billboards they paid for and to take photos of themselves standing under them. It's the ultimate collectible.

Fan clubs have come a long way. From the adoring crowds who followed Jenny Lind in the 1850s to screaming fans who worshipped Elvis in the 1950s, fan clubs filled the venues, bought the records, and kept the embers burning. In return, stars would dribble out 8x10 glossies, membership cards, and mimeographed love letters. Fans would take whatever they could get. But all that changed with the Internet. That tectonic shift has tilted power over to the fans.

Today's fans are data-savvy and proactive. They are worldwide and organized. They wield a big stick when it comes to record charts, media companies, and award show results. But unlike past decades, they now demand to be recognized, listened to, and they want a personal relationship. So stars have had to remove that historic fourth wall

and invite fans inside. That's why apps like Community have taken off. It gives fans a way to send personal texts to their favorite celebrity. And it gives celebrities a direct line to a treasure trove of target-rich fans. The difficulty community will face is how to maintain that personal feeling

when 10,000 fans text Kerry Washington next time, or a million gushing fans text Harry Styles tomorrow. Because once fans lose that special feeling, it can get ugly. And when that happens, there'll be a lot of blue eyes crying in the rain when you're under the influence. I'm Terry O'Reilly. This episode was recorded in the Terrastream Mobile Recording Studio. Producer, Debbie O'Reilly. Sound Engineer, Keith Ullman.

Theme music by Ari Posner and Ian Lefevre. Research, Allison Pinches. Follow me on Twitter and Instagram at Terry O Influence. See you next week. Do not make direct eye contact with Star. If hyperventilating persists, consult a physician. See listings for showtimes. Offer only valid in new year new me season is here and honestly we're already over it enter felix the health care company helping canadians take a different approach to weight loss this year weight loss is more than just diet and exercise it can be about tackling genetics hormones metabolism felix gets it they connect you you with licensed healthcare practitioners online who'll create a personalized treatment plan

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Just workouts and classes to strengthen who you are. So no matter your era, make it your best with Peloton. Find your push. Find your power. Peloton. Visit Peloton at onepeloton.ca.