Category: The turn of the century brought a lot of new technology to the world and with that it brought the music business 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 varying aspects of their business such as On-line marketing and consumer feedback rather than basing everything on CD sales.
Historically, record labels have based everything on CD sales. The idea of MySpace 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 is a very big social networking web site with over 120 million users who go Web al the majority everyday to check on friend updates and music. The new MySpace 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 individuals 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 establish a new relationship, record labels are focusing on consumer emotions to increase profits. The accessibility to videos, podcasts, music and games via Internet makes it possible for consumers to establish a more individual relationship with their preferred artists. Rapper T.I. began sending videos in which he talks to his audiences about what he is currently working on. Other artists let audiences 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. So,how is it possible that the record businesses with billions of dollars of resources can’t get a handle on innovation?
Innovation has always been directly proportionate with change. The traditional business model of the music industry and their unwillingness to change 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.com 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 likewise trying to follow in the footsteps of the movie industry by aggressively promoting merchandising. The resolutions are too late as the 21st Century market still proves to us that going against a trend is al most always unprofitable for organizations. 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 organizations and recover some of the profits they have lost in the past decade.
We cannot deny the truth that Web Marketing plays a large role in leveraging innovation. It offers the means of wide casting your message to millions of users and consumers with the click of a button. All you need to know is how to click.
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