Category: 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 money by focusing on varying aspects of their business such as Internet 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 Web 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 easy accessibility of the Web to move to the B to B model of marketing. MySpace is a very large social networking website with over 120 million users who go Online 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 website since so a lot of users check on artist’s updates unending ly.
As mentioned, the business to consumer relationship broke down a few years back when a lot of individuals began downloading music from the Internet rather than paying for CD’s. Record Labels accused these users of theft and a lot of cases have led to trials. In order to create a new relationship, record labels are focusing on consumer emotions to promote profits. The accessibility to videos, podcasts, music and games via Internet makes it possible for consumers to create a more individual relationship with their preferred artists. Rapper T.I. began sending videos in which he talks to his fans about what he is currently working on. Other artists let fans 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 resources can’t get a handle on innovation?
Innovation has always been directly proportionate with vary. The traditional business model of the music industry and their unwillingness to vary 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 preferred musicians and purchase of their the majority preferred songs instead of the whole album. The music industry is additionally trying to follow in the footsteps of the movie industry by energeticly promoting merchandising. These endeavors are too late as the 21st Century market still proves to us that going against a trend is al the majority 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- preferred 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 cannot deny the truth that Web Marketing plays a very big role in leveraging innovation. It provides 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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