Macy’s CFO Karen Hoguet is blaming Netflix for her brand’s slow sales.
Millennials have a tendency to spend money on electronics and online subscriptions rather than apparel, Hoguet said at a recent conference covered by MarketWatch.
“I think part of that is the customers are buying other things, whether the electronics, cable services, Netflix, whatever,” Hoguet said.
The brand is struggling to attract a younger audience. Sales grew 1.4% last quarter, less than analysts had predicted.
While some products, like cosmetics, are selling well with the younger set, Hoguet told analysts that consumers today have priorities other than clothing and housewares.
“Shoppers are spending more of their disposable dollars on categories we don’t sell, like cars, healthcare, electronics, and home improvement,” Hoguet said in a call with investors.
This chart from Morgan Stanley shows that Americans are spending less on apparel and footwear.
Mark Ronson‘s “Uptown Funk!,” featuring Bruno Mars, leads the Billboard Hot 100for a 12th week, while Flo Rida‘s “G.D.F.R.” enters the top 10, marking the Sunshine State rapper’s first top 10 in more than two years
As we do each Wednesday, let’s run down all the songs riding up and down the top 10 of the sales/airplay/streaming-based Hot 100.
“Funk!,” released on RCA Records, becomes just the 15th No. 1 in the Hot 100′s five-and-a-half-decade history to rule for at least 12 weeks. It also ties for the longest reign of the 2010s: Robin Thicke‘s “Blurred Lines,” featuring T.I.and Pharrell, also logged a 12-week command beginning in June 2013.
“Funk” inks a 12th week atop the Digital Songs chart with 187,000 downloads sold (down 1 percent) in the week ending March 22, according to Nielsen Music. It’s now within one week of tying the record for the most time spent atop Digital Songs: the T-Pain-assisted “Low” by Flo Rida (more on his new top 10 coming up …) led for a record 13 weeks in 2007-08.
“Funk” leads the subscription services-based On-Demand Songs chart (4.6 million U.S. streams, down 6 percent) for an 11th week and Streaming Songs (19.1 million, up 13 percent) for a 10th, adding top Streaming Gainer honors on the Hot 100. Helping fuel its burst in streams: a clip that YouTuber Carson Dean created(featuring the song’s audio), in which he dances, and gets in a good cardio workout, on a treadmill. It drew 2.2 million U.S. clicks in the chart’s tracking week.
On Radio Songs, “Funk” reigns for a ninth week with 173 million in all-format audience (down 3 percent).
Ronson and Mars’ smash, therefore, leads the Hot 100 and its three main component charts (Digital Songs, Radio Songs and Streaming Songs) simultaneously for a record-extending eighth week (nonconsecutively).
Twelve weeks into its Hot 100 reign, “Funk” even widens its lead at No. 1, as it’s up by 3 percent in overall activity, while Maroon 5‘s “Sugar,” at its No. 2 peak for a second week, dips by 4 percent. “Sugar” holds at No. 2 on Digital Songs (156,000, down 13 percent) and No. 4 on both Radio Songs (129 million, up 5 percent) and Streaming Songs (9.8 million, down 1 percent).
Ed Sheeran‘s “Thinking Out Loud” stays at No. 3 on the Hot 100 after peaking at No. 2 for eight weeks. The ballad remains at No. 2 on Radio Songs (138 million, down 6 percent), where it’s peaked for six weeks. (It has a ways to go before potentially spending the most weeks peaking at No. 2 on Radio Songs, if, in fact, it doesn’t rise another notch: Nickelback‘s “How You Remind Me” peaked at No. 2 on the airplay ranking for 11 weeks in 2001-02.)
“Loud” descends 2-3 on Streaming Songs (9.9 million, down 9 percent) and rebounds 5-4 on Digital Songs (127,000, down 7 percent).
Ellie Goulding‘s “Love Me Like You Do” holds at No. 4 on the Hot 100 after reaching No. 3. The Fifty Shades of Grey soundtrack hit edges 4-3 on Digital Songs (132,000, down 14 percent), bumps 6-5 on Radio Songs (110 million, up 14 percent) and slips 3-5 on Streaming Songs (8.3 million, down 22 percent).
Rihanna, Kanye West and Paul McCartney‘s “FourFiveSeconds” is stationary at No. 5 on the Hot 100 after climbing to No. 4. It lifts 6-5 on Digital Songs (113,000, down 9 percent) and 8-7 on Radio Songs (78 million, down 3 percent) and keeps at No. 7 on Streaming Songs (6.8 million, down 10 percent). The superstar trio’s single spends a seventh week at No. 1 on Billboard’s Hot R&B/Hip-Hop Songs chart.
The Hot 100′s top seven songs, in fact, remain in place. The Weeknd‘s “Earned It (Fifty Shades of Grey)” holds at its No. 6 high and claims the top Airplay Gainer nod, bounding 15-9 in just its fourth week on Radio Songs (70 million, up 44 percent). Taylor Swift’s “Style” ranks at No. 7 on the Hot 100 for a second week after reaching No. 6.
Fetty Wap ’s debut hit “Trap Queen” surges 10-8 on the Hot 100, leapfrogging Pitbull and Ne-Yo‘s “Time of Our Lives,” which holds at its No. 9 peak. “Queen” also dethrones “Time” on the Hot Rap Songs chart.
Closing out the Hot 100′s top tier, FloRida returns to the top 10 with “G.D.F.R.,” featuring Sage the Gemini and Lookas (13-10). The track pushes 8-7 on Digital Songs (101,000, up 9 percent, passing 1 million in downloads sold to-date), 23-13 on Streaming Songs (5.2 million, up 4 percent) and 40-26 in its second week on Radio Songs (39 million, up 23 percent).
While the track’s featured acts each enjoy their first trip to the Hot 100′s top 10, Flo Rida posts his 10th top 10. It’s his first since “I Cry,” which peaked at No. 6 in December 2012. He becomes the 15th rapper in Hot 100 history to tally at least 10 top 10s; Jay Z leads the category with 21.
“G.D.F.R.” is short for “Going Down for Real.” But, “I mean, it’s a lot a lot of words,” Flo Rida told Billboard with a laugh earlier this year. “We just wanted something that would be eye-catching and different when it came to iTunes and promo, when you just see it. We [also] wanted it to remind you of graffiti, where people would be like, ‘What’s that?’ ”
Visit Billboard.com tomorrow (March 26), when all rankings, including the Hot 100 in its entirety and Digital Songs, Radio Songs and Streaming Songs, will refresh, as they do each Thursday. The Hot 100 will also appear in the next issue of Billboard magazine, on sale on Friday, March 27.
Check out @black_ishABC Tonight!!! at 9:30pm/8:30c on ABC, with guest appearance by me lol, djing Dre’s 40th bday
Boko Haram extremists have reportedly kidnapped more than 400 women and children from the Nigerian town of Damasak, which was freed earlier this month by Niger and Chad troops.
The mass kidnapping took place in northeast Nigeria, on the country’s border with Niger.
The Niger commander of the Niger-Chad forces in Damasak, Lieutenant Colonel Toumba Mohamed, has confirmed that residents had reported between 400 and 500 women and children were kidnapped.
According to Reuters, witnesses suggested that the number of kidnapped could be around 500 people.
“They took 506 young women and children [in Damasak]. They killed about 50 of them before leaving. We don’t know if they killed others after leaving, but they took the rest with them,” Souleymane Ali, a trader, told Reuters.
The figures have not been officially verified.
On March 17, Nigeria’s army managed to regain control over large swathes of the northeast of the country, but the extremists are still in control of three regions.
Last week, troops from Niger and Chad found the bodies of about 100 people buried in a mass grave under a bridge leading out of Damasak.
In the beginning of the year, Boko Haram controlled 20 regions of the country.
But after an offensive by the Nigerian army, with its allies from Chad and Niger, the militants lost a number of battles and had to withdraw from most of the territories they were controlling.
Over the last six years, Boko Haram has killed more than 13,000 people in an effort to establish an Islamic caliphate in northeast Nigeria. Boko Haram started its insurgency after an uprising in 2009, when they began carrying out massacres, kidnappings and raids.
Nearly 300 schoolgirls were abducted by Boko Haram in the town of Chibok last April. This caused international outrage and attracted global attention to their six-year insurgency.
The group has recently pledged allegiance to the Islamic State jihadist group in Syria and Iraq.
Elections planned for last month in Nigeria, Africa’s most populous country, were delayed due to a sharp increase in violence.
In six years, Interscope records mogul Jimmy Iovine and hip-hop icon Dr. Dre have turned Beats By Dr. Dre headphones into a $1 billion-plus business. Now, together with new president and former Interscope executive Luke Wood, they’re faced with a new challenge: taking a hot brand and making it, you might say, even hotter.
To that end, Beats Electronics has introduced portable and wireless speakers, co-branded smartphones–and in January it even launched a new streaming music service, Beats Music, to compete with the likes of Spotify. Beats Electronics, despite some ferocious competition, still controls almost 70 percent of the market for premium headphones. For that it can thank lightning-fast marketing and an unbeatable grasp of pop culture. Iovine and Wood explain how they and Dr. Dre pulled it off–and what they have to do to stay on top.
Find the Golden Niche
“You’ve got to be lucky enough to identify a problem where you think you can help,” says Iovine. Back in 2006, Iovine felt the music industry had two problems: first, the degradation of record sales because of piracy. Second: the degradation of audio quality because of Apple’s plastic earbuds. “Apple,” he says, “was selling $400 iPods with $1 earbuds. Dre told me, ‘Man, it’s one thing that people steal my music. It’s another thing to destroy the feeling of what I’ve worked on.’ ” But the Cupertino, California, tech giant was both their bane and their inspiration. “Steve Jobs was the first to marry technology directly with popular culture,” says Iovine. “I thought, Wow, technology is the new artist.” He and Dre settled on a plan. “They’re making a beautiful white object with all the music in the world in it,” Iovine says. “I’m going to make a beautiful black object that will play it back. Dre and I decided to market this product just like it was Tupac or U2 or Guns N’ Roses.”
Ignore the Critics
“We got dumped on by audiophiles on Day One,” says Iovine. Beats headphones weren’t tuned evenly, like the usual high-end headphones. They were tuned to make the music sound more dramatic. Iovine adds: “We wanted to recreate that excitement of being in the studio. That’s why people listen.” But skeptics also wondered why anybody would pay $200 for headphones when you got the earbuds for nothing. “I was like, ‘Bad audio is free,’ ” Iovine says. “When you believe in something, the last thing you say to yourself is, Well, no one’s doing this, so there must be no good reason to do it.”
Assemble an All-Star Focus Group
When developing the first Beats headphones, Iovine would lay out various prototypes in his Interscope offices and then poll everyone who came to see him. “It was this incredible parade of the world’s great artists,” says Wood. “M.I.A. or Pharrell Williams or Gwen Stefani or Will.i.am would come around, and I’d ask them, ‘What do you think of this one? What about this? What about that?’ ” says Iovine. “It’s not a numbers thing. I go to people with great taste.” As he and Dre prepared to launch the final version of Beats, Iovine sent a pair to another world-famous guy: LeBron James. Iovine had been hanging out in the editing room with James’s friend and business partner Maverick Carter during the development of a documentary on the basketball star. “Mav called me back and says, ‘LeBron wants 15.’ ” Iovine sent them, and they turned up on the ears of every member of the 2008 U.S. Olympic basketball team when they arrived in Shanghai. “Now that’s marketing,” says Iovine.
What Are Consumers Thinking About? Make That
“When we look at marketing for our year ahead, we don’t look at what products have the best margin or which ones sell best–that’s detrimental to progress and innovation,” says Wood. “We ask, ‘What do we think the consumer should learn about?’ ” This year, they’re talking a lot about wireless speakers and headphones–”We want to teach people that Bluetooth can sound good,” says Wood.
Trust Your Gut and Double Down
“I always go back to my experience in the music business,” says Wood. Today, as then, Wood looks for the “tug”–the little sign that he has a hit. Then he trusts his gut, and doubles down. Back in the day, a tug could be an album that gets sudden critical acclaim or a band that suddenly sells a lot of merchandise at its gigs. Now, he says, he gets the same sense from how fans–and Iovine and Dre’s music-industry buddies–respond to Beats’s ads and products. When an ad featuring Brooklyn Nets star Kevin Garnett with the slogan “Hear What You Want” got a big response on Twitter–and Iovine got complimentary emails from none other than Will.i.am and rapper P. Diddy–”we knew we had something,” says Wood.
Beats rolled out more ads, including one featuring a press conference with outspoken Seattle Seahawks cornerback Richard Sherman, that did even better. It ran in the third quarter of the playoff game against San Francisco. When Sherman talked trash about his opponents in the postgame commentary, the Beats ad also got attention.
Move Pop-Star Fast
When Iovine heard Robin Thicke’s “Blurred Lines,” he smelled a hit–for Beats Electronics. Iovine and Wood got the rights to use the song in an ad and then got Thicke to reshoot the music video–within five days of the original shoot. Then Wood phoned up the CEO of RadioShack and offered to make the ad a dual promotion; RadioShack partly footed the bill. Beats has moved even faster. The Sunday before Black Friday 2012, Will.i.am phoned Iovine: He had just recorded a single with Britney Spears–would it make a good Beats ad? Within 72 hours, Beats filmed Will.i.am and cut a new Black Friday commercial with the song; it aired during Thanksgiving football games. “We got to break a new song, and Will.i.am got millions of dollars in broadcast advertising exposure,” says Wood.
Stand on the Shoulders of Giants
Co-marketing deals with big brands are a big part of the Beats playbook. Since the beginning, they have put Beats audio in products ranging from HP laptops to Chrysler 300s to HTC cell phones–and Beats has enjoyed plenty of the big guys’ marketing muscle along the way. “We sold half a billion worth of product before we paid for one ad,” says Iovine.
Hide the Gold Records in the Basement
“I’m always thinking about what Beats is not, about what’s missing,” says Iovine. “When you succeed, don’t think you’ve done this incredible thing. Stay focused on the product. I never collected the gold records of the albums I engineered.” (Iovine has worked for U2 and Tom Petty.) “My father asked me why I never put them up. I said, ‘Dad, they haunt me. I can’t think about anything yesterday.’ ”