According to Forrester Research…
In 1999 total revenue from music sales and licensing was $14.6 BILLION DOLLARS.
By 2009 total revenue from music sales and licensing was $6.3 BILLION DOLLARS
In ten years time from 1999 to 2009 total revenue shrank 43.2%
Current Situation: Optimistic
The IFPI digital music report 2013 makes 3 interesting points…
1.) “Global recorded music revenues up 0.3 per cent, boosted by downloads, subscription and other channelDigital revenues up 9 per cent, with major music services now open in more than 100 markets”
2.) “Digital revenues up 9 per cent, with major music services now open in more than 100 markets”
3.) “Music is helping fuel the digital economy, but barriers to growth need to be addressed”
The IFPI digital music report sheds some insightful light into the current health of the music industry. Global recorded revenues are up .3 per cent! That’s right, GROWTH. Before 2013, the last year that the music industry saw growth in sales was 1999. Since 1999 up until now, industry sales have plummeted. It’s not rocket science. The music industry pulled a profit this year simply because of digital music purchases and music subscriptions. CD sales, like every year since 1999, declined an additional 5% for 2012 while digital sales rose 9%.
So I hope by this time that you’ve noticed the trend. The digital sale of music is the future. Hypothetically speaking, the meteorite that crashed into the CD sales in 1998 will finally kill off every CD sale by 2019. That’s right you heard it here first, the sale of music CD’s will become a novelty by 2019. This fate is certain.
I’m quite pleased that the numbers for 2012 are pointing in the right direction for the music industry, however, we’ve got a long ways to go and we need to strive, as marketers and musicians, to make this upward curve in digital music sales as steep as we can year after year. This can all be made possible with proper e-marketing techniques and kickass music.
Don’t worry, you can count on the music being kickass, that leaves the whole industry in the hands of marketers. Marketers totally blew it selling CD’s after 1999. The marketing mix for CD’s was so screwed up during that time. 12 track albums were selling for as much as 19.99! That’s ludicrous, and it brings me to my next point. Marketers must convince consumers that there is value in buying a digital album or single because there is an alternative, digital music piracy. When a consumer is faced with making a decision between stealing a free album or purchasing one that’s over priced the consumer will most likely not purchase the album and pirate it online. There are laws in place to punish music piracy, but let’s get real here, these laws only deter piracy an insignificant amount. Without a doubt, the future of music rests solely in the hands of marketers.
How the 3 P’s of marketing should be implemented into the marketing industry:
Product: There are hundreds of thousands of artists worldwide. In a perfect world every musician would get the same amount of exposure and the invisible hand would take care of the rest, however, the world aint perfect. Marketers will be faced with the decision of choosing bands that they feel will generate the most revenue and market them the most. In doing so, market trends must be closely monitored and evaluated.
Placement: Any marketer will tell you that placement is vital. Marketers will define optimum target markets and market the music directly to that target in the most efficient and effective manner as possible. Market research and advertisement is expensive and budgets are finite. The selling of digital music makes it possible for marketers to target music fans in any area around the world where there is an internet connection.
Promotion: Most of the budget towards marketing music should go towards e-marketing. Marketing over the internet will not only be cost effective, but it will also be the most efficient way to reach potential clients around the globe. When I feel the need to bring out my heavy side sometimes I’ll throw the German supergroup Rammstein up in the tape deck. E-marketing of bands such as Rammstein keep me and users alike posted on what they’re up to.
Price: Simple, don’t get greedy and set the price where demand meets supply aka the equilibrium price and the music industry will maximize profits!
Conclusion: Be aware, the music industry is back on the come up! Support your favorite bands and don’t steal music!!!!!!!!