The time for online shopping is now.
The pandemic has ushered in the era of ecommerce as Americans embrace curbside pickup, next day deliveries and grocery pick-up services. There's likely no going back as an increasing number of consumers get accustomed to shopping online.
Now, retailers are taking experience to another level with streaming, data personalization, augmented reality and other features that are only likely to grow digital shopping habits.
Here are three trends sweeping ecommerce and the Los Angeles companies that are fueling it:
<h2>AR and Livestreaming Usher in New Virtual Shopping Experiences </h2><p>
Makeup and clothing retailers that relied on in-store shoppers have turned to augmented reality features to lure customers — from their own homes where they don't have to social distance.
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YouTube and Amazon both launched livestreaming services this year, letting consumers shop for clothes or try on makeup from their phone screens. Meanwhile, Google's new augmented reality platform built with Toronto-based ModiFace pairs ecommerce sites with the virtual try-on technology.
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In Los Angeles, two venture-backed livestreaming shopping companies are making waves. Popshop Live launched in 2019 and this year closed a <a href="https://dot.la/popshop-live-2646369816/particle-2" target="_self">$3 million round in July</a> as CEO and founder Danielle Li watched users spike in a push from businesses to stay afloat.
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"Retailers who have one to three locations quickly realized they're getting nearly the same amount of traffic," said Philip Soriano, Popshop Live's head of operations. "People come to us and will probably stick around even if the foot traffic comes back."
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Meanwhile, L.A.-based NTWRK offers livestreamed shows featuring limited-edition gear launched by celebrities and designers. The video commerce platform, founded in 2018 and backed by Live Nation Entertainment, recently partnered with Snap to stream interviews with designers and creators about items they're preparing to drop.
</p><p class="shortcode-media shortcode-media-rebelmouse-image">
<a href="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzQ0MzU5Mi9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY2ODEwMDUwM30.v7E4hnsaVUx6nW9dQAd5GP8Vfjm8nWMcCZuXvWg-BkI/img.png?width=980" target="_blank"><img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzQ0MzU5Mi9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY2ODEwMDUwM30.v7E4hnsaVUx6nW9dQAd5GP8Vfjm8nWMcCZuXvWg-BkI/img.png?width=980" id="6bc48" class="rm-shortcode" data-rm-shortcode-id="ba7f934e0b8a437235ad5ea58adfe58f" data-rm-shortcode-name="rebelmouse-image" alt="Popshop Live" /></a>
<small class="image-media media-caption" placeholder="Add Photo Caption...">Popshop Live Became Essential for LA Boutiques During the Shutdown. Now It's Got $3M to Grow</small>
</p><h2>Entertainment and Shopping Have Teamed Up</h2><p>
From platforms like Popshop Live to Instagram's new Reels feature, tech companies are harnessing influencers and networks of users to promote consumer products.
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As companies feel the pressure to build an online presence, many are turning to <a href="https://dot.la/influencer-marketing-2648899321/influence-in-the-wake-of-ecommerce" target="_self">influencer marketing campaigns</a> to ramp up sales. And marketers only expect that trend to continue.
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MagicLinks, an L.A. social media marketing company, found that across a sample of 4,500 ecommerce retailers, sales directed through YouTube influencers jumped 80% year over year in the quarter from June through August. The company said influencer-driven sales were up 115% across customers, including Target, L'Oreal and Best Buy.
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Other marketing agencies said they've increased budgets for influencer content since the pandemic. Even bigger companies are giving it a shot: Tito's Vodka and Superdry to name a couple.
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"Any brand that wants to connect with Gen Z, and sell whatever product or service they have, has to engage (with these platforms)," Glenn Ginsburg, SVP of global partnerships at influencer marketing agency <a href="https://www.qyoumedia.com/" rel="noopener noreferrer" target="_blank">The QYOU</a> told dot.LA. "Moving forward I think we'll see brands start to build deeper relationships with influencers."
</p><h2>Better Recommendations Are on the Way </h2><p>
Personalization has swept ecommerce as companies are ramping up product recommendations online. AI is now becoming more precise in helping companies steer shoppers toward products that fit their profile.
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Gabriel Nipote is the co-founder and COO of Halla, the L.A.-based machine learning company builds algorithms for online groceries to make smarter food recommendations. Unlike retail where shoppers are comfortable, online grocery shopping is starting to gain market traction.
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It's there that the gaps to machine learning are clear. For instance, some online markets during the pandemic offered customers product substitutions that didn't resemble what they ordered.
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"There are special places on Twitter and Reddit for people to complain about their tortillas being replaced by bags of flour, or receiving recommendations for hygiene products while browsing bagels," Nipote said.
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And because shoppers have only recently started coming around to grocery shopping online, data is still scant and difficult to draw broad conclusions from. As more shoppers fill shopping carts online, Nipote, whose startup team has doubled since March, expects more tech solutions for personalized shopping to launch in 2021.
</p>
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'More Songs, But Not More Streams': Former Spotify Executive on the Future of Music Technology
Dec 23 2020
dot.LA sat down with Will Page, former chief economist of Spotify, and Ed Buggé, partner at leading L.A. entertainment law firm Hertz Lichtenstein Young & Polk, to discuss the future of music tech. The two explore livestreaming post-pandemic, the growing glut of music fighting for attention and potential new streaming regulations.
<p><strong>Assume the pandemic is over and we're all waking up to whatever resembles business-as-normal in the world of music and tech. What jumps out to you? </strong></p><p><strong>Will Page (WP)</strong>: Live Nation's stock price has already reached its pre-pandemic peak, suggesting the market's mood is that we're indeed well on our way back to normal. But all the advancements in livestreaming won't go away once live music returns. The question is, how do they coexist?</p><p><strong>Ed Buggé (EB)</strong>: The sense of what's "normal" in music and wider media is constantly being challenged and disrupted, with the pandemic accelerating much of that change. That's what's so exciting about where we are now: There won't be a return to old ways of doing things.</p><p>Returning sectors like live concerts will coexist alongside new developments like the increased volume of livestreaming, which proliferated as artists used them to connect with fans during lockdown. Which livestreaming companies thrive once things normalize will depend on the quality of their tech, including VR and AR components that offer fans an immersive experience worthy of their attention in a world where physical shows are once again an option, (and) how well they enable artists to reach audiences on a previously unprecedented scale. </p>
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDk5MDgyMS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyNjg5OTEyMH0.bCcd4yz4XDW6nStRM7KNXxQBIJ3UtwXCAwhuiWMSv2s/img.jpg?width=980" id="b847d" class="rm-shortcode" data-rm-shortcode-id="1e619d32850e69b9681b0f30aa6ad0f5" data-rm-shortcode-name="rebelmouse-image" alt="Will Page" />
Will Page was Spotify's chief economist.
<p><strong>How does music's battle for attention look coming out of the pandemic?</strong></p><p>EB: Competition for attention is only going to increase as post-lockdown life returns. Livestreaming and live concerts is just one example. There will be more songs, as independent distributors and service providers continue to grow. Social media, gaming and fitness industries will likely increase their power to dictate viral hits. And artificial intelligence will keep shaping music discovery and listening experiences – including "lean back" listening while other activities command our attention.</p><p>WP: Audio streams flattened in the second half of 2020 - that's a trend worth watching in 2021. We can expect more subscribers and more songs, but not more streams. The constraint of attention — only 24 hours in a day — will keep biting as kids game, teens TikTok and adults podcast.</p><p><strong>Given that constraint, what's your take on whether 2020's flurry of investment into music copyright will continue?</strong></p>
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDk5MTI1Mi9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYxNjU1ODY5OX0.0z-DuLC5Y0-vUR9fY5JIR2Ex4QVQYL7r4o2dBz8fU0s/img.jpg?width=980" id="a3898" class="rm-shortcode" data-rm-shortcode-id="40468517c550a2db5913ca4fd3662472" data-rm-shortcode-name="rebelmouse-image" alt="Ed Bugge" />
Ed Buggé is a partner at L.A. entertainment law firm Hertz Lichtenstein Young & Polk.
<p>EB: Publishing catalogues are now firmly established as an asset class. The eye-catching prices being paid for them, with some acquisition multiples above 20-times annual earnings, is a long-term investment relying on the assumption that hit songs will continue to command attention for decades. Given the competition between potential purchasers right now, it's a great time to be an established songwriter with a catalogue to sell.<br></p><p>WP: I think there's too much trajectory logic at the moment. It's worrying that some people think that as the pie gets bigger, a given catalog's share of the pie will remain the same. There are too many variables (and not enough equations) for past performance to be a good indicator of the future. The next cohort of listeners could have a completely different demographic, geographic and cultural makeup from the last.</p><p><strong>How can talented musicians get ahead of the curve when it comes to technological trends and position themselves for success?</strong></p><p>EB: In such a crowded marketplace there needs to be something remarkable about what you are doing. The music, your story – the creative needs to stand out. </p>
<p>Once you've leapt that hurdle, the artist teams that will stay ahead are those who are prepared to embrace change. At the start of the year, breaking tracks through TikTok or gaming collaborations were innovative strategies; now they've quickly become established methods. That's the pace of change that we are seeing at the moment. So the question is - what's next and how can you be a part of it?<br/></p><p>WP: Here's one example: I'm obsessed with the 'early access' model in gaming, where you monetize a new game whilst it's still in development. Minecraft is an early example, but to date, it rarely happens anywhere outside gaming. I think that may be about to change. Music can't afford to disappear into the studio for two years any more. It'll need to pivot and monetize whilst still in the studio. </p><p><strong>The British government is currently examining whether the streaming economy needs reform. How might that ultimately ripple into the broader world of music-tech? </strong></p><p>WP: This is a big one. Expect contagion as many more major music markets are called up in front of their respective governments in 2021 as politicians seek to establish (a) whether the streaming model is fair and (b) if it's not, whether intervention is merited. What's been made clear is there's a problem with the 'trickle down' economics of streaming. The UK government has a first-mover opportunity to explore ways of fixing this. </p><p>EB: With the pace of change in music and media, you inevitably have a legal and regulatory framework that has to play catchup. If the British government looks to enact legislation to alter the economics of streaming in favor of the artist, then it may act as a standard that regulators in other territories follow. </p><p>WP: Radio and television are heavily regulated, but streaming is not. The U.K. is taking steps to work out the 'if' and 'if so, how?' and the U.S. should be tracking developments here closely. </p><p><strong>Beyond what we've covered, what else will you be watching for in 2021 music tech? </strong></p><p>EB: Technology will continue to enable an increasingly direct relationship between artists and their fans. For example, providing access to exclusive content, physical and virtual merch drops and livestreaming concerts, as well as the ability for fans to communicate more directly, both with artists and with each other. </p><p>WP: Kevin Kelly (co-founder of "Wired") penned his <a href="https://kk.org/thetechnium/1000-true-fans/" target="_blank">1,000 True Fans essay</a> back in 2008, predating the launch of streaming. Now, it feels like we're subconsciously revisiting it. After all these years of success in music streaming with Amazon, Apple and Spotify, it's still largely impossible to directly pay for your favorite artists, nor can you communicate with them. You're seeing companies like Twitch make impressive moves into this space; MixCloud is also fostering direct relationships with curators. There's going to be more of that in 2021. Fans want to express their love to their artists directly, not via a platform.</p><p><strong>Finally, what's in store for the Los Angeles music tech world in 2021?</strong></p><p>EB: <a href="https://dot.la/music-startups-2647008629.html" target="_self">In L.A. we're seeing a wave of media and technology startups</a> that will continue to disrupt and drive change in the industry. The high activity levels across fundraising and M&A also seems set to continue, as new players enter the market and incumbents focus on future-proofing their business models in such a fast-evolving landscape. There are few more exciting places to be right now.</p><p>WP: I'm not a native of Los Angeles, (as much as I want to move there), but what always strikes me about the city is the diversity of its people: Little Tokyo, K-Town, Tehrangeles, even one or two fellow Scots. Yet what I still don't see is media serving these expat populations. This is a universal problem and it leaves money on the table. I'd be hopeful that we'll see a new startup solve for curating to the diaspora in 2021. </p><p><em>This interview has been edited for brevity and clarity.</em><br/></p>From Your Site Articles
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The Chinese majority-owned Tencent Music Entertainment is acquiring a minority stake in the L.A.-based virtual concerts company Wave, giving the startup a door into the country's state-controlled internet.
Terms of the deal weren't disclosed but the agreement will allow Wave concerts to be distributed on TME's platforms, including QQ Music, Kugou Music, Kuwo Music and WeSing, that operate within China's "Great Firewall." The two companies will also collaborate on developing shows for TME Live, TME's livestreaming platform the company launched in March.
<p>Tencent, TME's behemoth majority parent company, came under fire earlier this year when the Trump administration issued an <a href="https://www.whitehouse.gov/presidential-actions/executive-order-addressing-threat-posed-wechat/" rel="noopener noreferrer" target="_blank">executive order</a> to ban WeChat, its messaging app, in the U.S. Much like the parallel TikTok ban, that order <a href="https://www.theverge.com/2020/10/23/21531154/judge-denies-trump-administration-ban-wechat-tencent-china" rel="noopener noreferrer" target="_blank">has not amounted to much</a>. </p><p>Tencent is one of China's state-owned enterprises. The deal comes as Chinese authorities appear to be showing small signs that they could <a href="https://www.bloomberg.com/news/articles/2020-10-12/china-s-quiet-experiment-to-let-millions-roam-the-real-internet?sref=4Kf8RwDw" rel="noopener noreferrer" target="_blank">ease some of the restrictions on long-banned foreign sites</a>. </p><p>For Wave, which renders artists into avatars for real-time performance and fan interaction in imaginative digital settings, the deal not only gives it – and the artists who work with the company – access to what can be a hard-to-reach market, but also the monetization expertise of TME. </p><p>In the third quarter this year, <a href="https://ir.tencentmusic.com/2020-11-10-Tencent-Music-Entertainment-Group-Announces-Third-Quarter-2020-Unaudited-Financial-Results" rel="noopener noreferrer" target="_blank">about 70% of TME's revenue came from "social entertainment services"</a> such as virtual tipping and digital gifts. Those are tools that Wave already uses to an extent but which have been slower to take off in the West compared to the Asian markets, where such consumer behavior is far more ingrained. Wave's new partner may help to accelerate their use, at a time when <a href="https://dot.la/music-startups-2647008629.html" target="_self">artists are particularly hungry for more revenue</a>. </p><p>Wave launched five years ago as a VR-only company but has since made its shows available on social media platforms including Twitch, YouTube and TikTok, in addition to gaming consoles and headsets. The company <a href="https://dot.la/wave-virtual-concerts-2646166627.html" target="_self">raised a $30 million Series B round</a> in June. It has orchestrated over 50 shows for artists, including John Legend and The Weeknd, whose <a href="https://dot.la/the-weeknds-concert-on-besieged-tiktok-2646923010.html" target="_self">TikTok performance in August</a> attracted over 2 million unique viewers. </p><p>TME is publicly traded on the New York Stock Exchange. In addition to Wave it also owns stakes in Universal Music Group, Warner Music Group and Spotify. </p><p>---</p><p><em>Sam Blake primarily covers entertainment and media for dot.LA. Find him on Twitter @hisamblake and email him at samblake@dot.LA</em><br/></p>
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