OK, I really don't "get" this one.
Honda spending 'millions' on YouTube music channel
In a move sure to be closely watched, Honda said Wednesday it is committing millions of dollars to create its own YouTube music channel featuring recorded performances from dozens of live events and concerts.
"We're going to get into the content business," says Tom Peyton, assistant vice president of advertising and marketing for American Honda.
Honda is teaming with concert promotors Live Nation, radio giant Clear Channel Media and Entertainment, Sean "Diddy" Combs Revolt, Vevo and YouTube in the initiative.
It will be called Honda Stage.
Automakers have sponsored concerts or performer's tours for years. Ford, for instance, has had deep ties to the Fox network's American Idol. But Honda says Honda Stage goes way beyond. The goal is create a music channel that is continually playing hot hits from live performances and exclusive online content.
"Rather than hanging a banner at a concert, we looked the Vans Warped Tour and said 'What if we do that in the auto space?'" says Peyton. Instead of just posting ads to someone else's video, he says "e think we could get even more out of that ad dollar if it hass a significant tie-in with the emotional content that's accompanying our ad."
Though its highly ambitious, the effort is aimed in the end at selling cars to younger drivers. Honda has a slew of new models aimed at younger buyers on the way. It plans to start by promoting the new version of its Fit small car, then its new small, inexpensive crossover, the HRV.
Honda says music for its new channel will come from a number of sources.
Performers will put on concerts at the Honda Stage at the iHeartRadio Theater L.A. that it says will be promoted by Clear Channel on its radio stations.
Live Nation will put on several concerts across the country.
There will also be a Honda Stage at major events like Austin City Limits in Texas and the Governors Ball in New York.
Honda will continue its Civic Tour, now in its 13th year.
The Honda stage at the Revolt Studios Hollywood in Los Angeles will be broadcast on Revolt television.
Peyton notes that American Express sponsored concert tours, but that he's unaware of any other companies that have put together anything as encompassing as Honda Stage. He says it's costing "millions and millions," but declined to be more specific.
Honda Stage results from an effort to try to find new ways to promote its cars. "Just spending dollar in the ttraditional way is not as effective as it used to be," Peyton says. "We think the whole industry is at a point of transition."