Hug a Pug: A virtual world lesson for the real world music industry

This is a post about a remarkable pop song that you've probably never heard of, unless you have kids under the age of 10 who are familiar with an online kids-oriented virtual world called Webkinz World. The song is Hug A Pug. It has legions of young fans who know the lyrics and the dance moves, and play it repeatedly at home. I conservatively estimate that it has been played millions of times since it was released last November, without any radio or cable TV exposure or touring. I think the song offers a lesson on how the music industry can approach content partnerships in the years to come.

Hug a Pug (see video below) is a catchy, danceable number that's under two and a half minutes long. It also has an accompanying animation featuring Webkinz characters. I've tried to find the names of the talented artists who wrote and performed it, but to no avail -- the credit and copyright is given to Ganz, the privately held Canadian company which launched the stuffed animals called Webkinz and the accompanying virtual world in 2005. Judging by the fact that the other monthly music videos are by no-name songwriters penning music and lyrics based on the lives of stuffed animals, my guess is Ganz probably shelled out a relatively small amount of money for the unknowns to write and record Hug a Pug and the other songs on spec, in exchange for most or all rights to the music.

There's an animated video of Hug A Pug on YouTube (see below) but you won't find it on any radio playlist, CD store, or iTunes. Most people have heard it when logged onto Webkinz World, where it is a featured song of the month for November 2009. I don't know how many kids are currently registered to use Webkinz World, but 18 months ago it had over 7 million users, according to Oxford Analytica. You can't miss the song, as it's featured prominently on the site. Many young users watch it over and over again -- it's very catchy, and it also has its own dance moves, which encourage lots of practice in front of the computer screen as the video plays. This leads me to believe it's been seen by at least a few million people, and probably played at least five million times.

Another interesting thing about the song is you can't buy it anywhere. It's not for sale. It's a freebie thrown into the Webkinz World mix, which includes lots of online games (copies of Battleship, Connect Four, word games, etc.) as well as a place where kids can dress up the online versions of their real-world stuffed animals and decorate their Webkinz' rooms.

Why spend money to produce a song, if it's not for sale, and eats up lots of IT resources to host and stream? My theory is the song is intended to boost engagement by encouraging return visits to the online world, which is one of only two places it can be played (the other is YouTube). This not only leads to sales of "pets of the month," but also indirectly builds loyalty to the virtual world and additional purchases of the real-world stuffed animals and other merchandise offered by Ganz. Most Webkinz cost between $10 and $20 on Amazon (see ad at right for the current US$ price for the Webkinz pug), but the company has expanded into lower-cost items for existing customers (clothes, charms, etc.) as well as more expensive toys. A Webkinz "Zumbuddy" might cost anywhere from $25 to $40, but lets users unlock a secret part of Webkinz World where there are more activities to play. Getting users more engaged in the world, and not getting bored of old attractions, is the key to keeping them coming back and spending more money. It's a strategy I've seen for many other virtual worlds and MMORPGs, such as World of Warcraft, where new expansion packs and campaigns are released every year or two.

While some people in the music industry may chuckle at Webkinz World and the idea of writing music for 8-year-olds, the fact of the matter is Ganz has a minor hit on its hands (check out some of the hundreds of comments under the YouTube video). Struggling record labels know that getting a hit and connecting with niche audiences is no easy feat. There might even be an opportunity for them to leverage virtual worlds to give their own artists or musicians some extra visibility ("Miley Cyrus sings the Webkinz World June 2010 song of the month!"), work out additional merchandising arrangements in the real/virtual world ("Slash's hat for your pug!"), or take on tasks relating to commissioning appropriate songs and establishing in-world radio stations with other exclusive material that can help virtual world producers keep people online.

There are also some additional opportunities for Ganz and the musicians. Why not sell Hug A Pug or another popular song, "Mustache Louie," on iTunes? Or, sell a disc of monthly hits or B-sides by the same artists? I am sure there are a lot of 9-year-olds -- and even some of their parents -- who want to hear these songs on their iPods.

Watch the video below, or leave comments in the field at the bottom of the post. If you know the artist who wrote and performed "Hug a Pug," let us know!

Video: Hug a pug



Sources and research: Ganz corporate website, Webkinz World, YouTube, CNet, Oxford Analytica

Related posts by Ian Lamont:

• OK Go's YouTube problem highlights the music industry's cash struggles
• Shut out of Webkinz World
• A music fan's data-driven dedications
• The business of media: The newsosaur speaketh
• Webkinz problems? Doesn't surprise me
• MTV's Virtual Laguna Beach taps into online socializing trend
• MTV2 melds music and gaming with Video Mods