<b> Bold Interactive Inc.

The entertainment industry is notorious for poor relations with its most loyal customers. And nowhere is that more evident than MTV.

Sunday’s live broadcast of the Video Music Awards was a complete trainwreck. And it’s not Britney’s fault. The program was unfocused, split among several Las Vegas hotel suites and a lackluster mainstage. I’m not going to go into all the disastrous details (there were many), but MTV didn’t take care of its artists or its audience.

Justin Timberlake vocalized the desire of millions when he urged MTV to play more videos. The obvious argument is that music videos must not be a profitable model. But when was the last time you heard someone say “I really wish MTV would stop playing music videos”?

I’m not surprised that Kanye West was left feeling like promoting his music on MTV is a waste of his time. The channel barely has any music-related programming, instead filling the schedule with superficial reality dramas about So Cal teens.

This has created a cycle of diminishing the value of music videos in the industry.

My brother, who has worked on several music videos, informed me that budgets are being cut for videos because they’re not seen as a very strong marketing tool anymore. Consumers view them on small screens on their iPods or laptops as opposed to TV. This has resulted in a lessened desire on the part of music companies to budget a big production.

But this thinking is a demonstration of the continued resistance of record labels to embrace the future of the music industry. Yes, they can cut their budgets because web programming is significantly less expensive, but writing off music videos altogether is a mistake.

In fact, the entertainment industry in general has difficulties catering to its audience, and rewarding and supporting its brand evangelists.

Recently, I paid $29.95 for my daughter to join the Miley Cyrus fan club. The reason I signed her up was to have access to pre-sale concert tickets, which I assumed would be some of the best seats in the house. This morning, my husband tried to buy pre-sale concert tickets for our daughter and myself (I was at a client meeting). But none of the tickets were close to the stage. So I’m taking my chances when they go on sale to the general public. My daughter doesn’t even use the fan club site, which has usability issues as it’s completely done in Flash. So there’s $30 down the drain.

Later this morning, my husband was visiting the USA Network web site, watching outtakes from Psych, one of our favorite shows. But before watching the actual clip, he has to sit through advertisements - about the USA Network. It’s kind of like walking into McDonald’s and having to watch their commercials before ordering. When a customer is sold - stop selling!

Thankfully, the internet is a powerful tool in the hands of talented people. More and more, we are seeing those who might be ignored by corporate entertainment conglomerates get their shot in front of millions of people who haven’t been given what they really, really want.

Next time there’s “nothing on TV”, try Revver, Metacafe, Veoh, YouTube, or MySpace and discover your next favorite performer.

Technorati Tags: MTV, music videos, entertainment, miley cyrus, psych, USA network, marketing