Kadoink, a startup that allows musicians and fans to share music-related content over mobile phones, on Monday announced a deal with Atlantic Records to host a mobile fan club for singer Jason Mraz.
The deal underscores the ongoing effort by the major music labels to drive sales of digital downloads and merchandise through the mobile marketplace.
Atlantic's parent Warner Music Group has been very aggressive on the mobile front making a variety of deals particularly in Asia in an effort to tap the mobile market.
"Mobile is in many ways a new frontier for the labels because their target market is using mobile phones increasingly to access entertainment content, so they are trying to use that resource for the benefit of their business," said Roland Deal, vice president of marketing and co-founder of Kadoink.
Fans can join Kadoink's mobile fan list to receive updates, behind-the-scenes information, messages from the artist and music from the upcoming release of Mr. Mraz's album “We Sing. We Dance. We Steal Things."
Fans who sign up for the mobile list either online or via text message will also be able to listen to the album's first single "I'm Yours" and forward it to friends. The album will be available in national retail outlets on May 20.
There are two financial pieces to the deal between Atlantic Records and Kadoink. One part involves an interactive communications service provided by Kadoink. The other involves shared ad revenue generated by the communication between the artists and fans and among fans.
Mr. Deal did not disclose what Kadoink was making on the service part of the arrangement but said that his company will handle the advertising network.
"We are still in the process of building a network of targeted text and and audio based advertising delivered to our users as they engage with their communities and artists," Mr. Deal said.
San Francisco-based Kadoink will attempt to attract advertisers interested in mobile users between the ages of 16 and 29.
"This is a matter of aligning you marketing campaigns with where your market so I believe you will see much more music industry marketing via SMS and mobile phones," said Michael Goodman, an analyst with Yankee Group.
Kadoink plans to extend its reach past music and into the worlds of sports, comedy, and other forms of entertainment.