Friday, November 28, 2014

The New Music Industry: Technology is the Culprit


Today’s music industry is quite different than it was ten or twenty years ago. There was a time when artists were recognized by album sales; there was a time when fans were eager to purchase new and upcoming CDs from their favorite artist or band, and if you were lucky you may even find a free pass for a concert. Now, CD sales have drastically declined because the demand for CDs is at an all-time low. While record sales of major industry artists remain somewhat steady, the numbers are not even close to what they have been in the past. We can blame this on one thing, technology.

 In today’s market, the largest music retailer in the world is now digital. Such nuances as the Internet and iTunes have created new windows to the music industry. With today’s consumer being less patient, but having a need for stellar customer service, being able to download a CD at the touch of a button is simply more convenient. Why go to the store or “camp out” for the new CD, when you can purchase it from your app store at the touch of a button? Lorri Francis, General Manager of Double Door, a concert hall and nightclub stated, “The music industry has changed completely. Labels don’t exist and everything is on the web. If you want something you can just download it.”

This drastic change of how people consume their music not only affects the people of the music industry and consumers, but also the individuals responsible for getting the messages to the consumers (e.g., new artist, new releases, and artist appearances). Whether you’re a marketer in the music industry or not, the message is the same. Marketers must evolve, not with their customers but ahead of them. We must ask ourselves a hard question: Are my products or services still relevant? If it’s not, CHANGE! If your customer is going to your competitor, CHANGE!

Think about this…if the music industry has changed so drastically over the past two decades, what will happen tomorrow? What will you do to stay ahead of your competitors?



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