Posted by Streaming Music | Posted in Online Music | Posted on 27-09-2009
The turn of the century brought many new technology to the world and with that it brought the music industry a whole lot of problems. To deal with declining sales and continuous losses, record labels are locating new ways of raising resources by focusing on divergent aspects of their business such as On-line marketing and consumer feedback rather than basing everything on compact disc sales.
Historically, record labels have based everything on CD sales. The idea of MySpace.com Music is innovative as they realized that they need to move into a new area of business. The Internet and the ease of illegal file sharing have long broken the business to consumer relationship. Rather than fighting against the trend, the industry has decided to take advantage of the simple accessibility of the Internet to move to the B to B model of marketing. MySpace.com is a very large social networking web site with over 120 million users who go On-line al most everyday to check on friend updates and music. The new MySpace.com Music has already made millionaire deals with McDonald’s and Toyota Motors who want to advertise on the web site since so many users check on artist’s updates constant ly.
As mentioned, the business to consumer relationship broke down several years back when many people began downloading music from the Internet rather than paying for compact disc’s. Record Labels accused these users of theft and many cases have led to trials. In order to create a new relationship, record labels are focusing on consumer feelings to elevate profits. The accessibility to videos, podcasts, music and games via Internet makes it possible for consumers to create a more personal relationship with their preferred artists. Rapper T.I. began sending videos in which he talks to his listeners about what he is currently working on. Other artists let listeners ask them questions, which they will reply to via private or public messages on the web.
Whether these strategies will work or not is uncertain, but at least the industry is innovating. Actually, they’re trying to innovate. It’s a reality that most of these innovations are started from garages and build all the way to multi-billion dollar operations. Now,how is it possible that the record companies with billions of dollars of sources cannot get a handle on innovation?
Innovation has always been directly proportionate with differ. The traditional business model of the music industry and their unwillingness to differ has caused them to lose their competitive edge in the market, thus forfeiting billions of dollars to innovations such as Itunes. Therefore, the music industry has partnered with MySpace to make a better worth proposition for the consumer offer ing them a means of communication, social interaction and alternate forms of music media such as ring tones and pod casts. Itunes have established this worth proposition for the consumer by offer ing them music previews of their favorite performers and purchase of their most favorite tunes instead of the whole album. The music industry is additionally trying to follow in the footsteps of the movie industry by assertively promoting merchandising. These endeavors are too late as the 21st Century market still proves to us that going against a trend is al most always unprofitable for businesses. The music industry must focus on their current operations and allocate their resources to creating new innovations for distributing their music to the masses rather than being followers of past- favorite technologies and trends. Only then, they will be able to succeed competing against rival technology businesses and recover some of the profits they have lost in the past decade.
We can’t deny the truth that Internet Marketing plays a very large role in leveraging innovation. It offers the means of broad casting your message to millions of users and consumers with the click of a button. All you need to know is how to click.