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February 09, 2005
Pressing Issues in the Music Industry Today (or How I Learned to Adapt and Make Lots of Money!)
One of the most pressing issues in the music industry today is how to adapt to the new world order that revolves around the Internet, digital downloads, CD-burning, file-sharing and ever present industry-wide paranoia of anticipated lowered profits.
Taken in perspective, much if not all of the paranoia is unwarranted. As record labels and artists adapt to the new reality of content-on-demand and file sharing, new business models and marketing strategies emerge that retain, reclaim or re-inflame once soggy prospects, now hopeful, profit projections. CD sales are rising, in fact US CD sales rose by 2.3% in 2004 at a time when digital downloads were at an all time high.
What can this mean? Could it be that “shared” music and ripped-CDs have become marketing tools unto themselves? Nod, nod; wink, wink. Music marketing wunderkind "Skippy" sitting at the board of directors table of virtually any big label still does not get it. What was, and in many cases still is, perceived, as "the enemy" is in fact a marketing tool waiting to be used.
Free music downloads and managed file sharing begets sales. In some cases lots and lots of sales. At the very minimum they serve as inexpensive (free!) and often effective promotions. Music marketing execs and accountants made decry lost profits. What they need to do is weigh bloated, multi-million dollar advertising budgets against the reality and efficiency of the grass-root digital music phenomena.
Advice to "Skippy": The demographics are not what they were in the 90s. It’s time to move into the new millennium and the digital age. If you are having trouble adapting or you still seethe with anger with each free digital download, then remember the old saw: keep your friends close and your enemies closer.
More on this topic soon…
Posted by BIGBAER at February 9, 2005 02:27 PM
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