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The Future of Music Marketing?
Posted by Rowan Wilkinson on April 13, 2009
The music industry is dramatically changing: The increase in penetration of broadband has brought with it a new way to consume and discover music. Sales of CDs are rapidly decreasing and illegal downloading and file sharing has devalued music for an entire generation of youth. The digitalization of music has resulted in the fragmentation of the mass audience causing the age of the top 40 to come to an end. Traditional marketing channels have been bypassed taking the power away from the middlemen and the major record labels leaving a direct communication conduit between the music artist and the music listener.
The sale of music has moved into a new era. This is an era where consumers can choose between paying for their music or getting it for free. No longer can major labels dictate who should be listened to and no longer can they place their survival in the hands of record sales. A paradigm shift has begun and a new model of music marketing must be introduced to accommodate these social and economic changes.
Seth Godin, a ‘thought leader’ in the world of marketing has strong views on the way the music industry should go. He argues that a change to the existing business model is a necessity. He proposes a shift in focus from trying to generate the greatest number of music sales, to cultivating and nurturing relationships with communities of fans to drive sales through concerts, merchandise and souvenirs. Godin places a lot of emphasis on the idea of communities, which he calls ‘tribes’. The fragmentation of the mass audience has meant the creation of millions of ‘tribes’ which form around a common love for a certain artist or type of music. Godin suggests that instead of pushing music onto the mass audience, music should be presented to communities who already have a passion for similar music.
The key to Godin’s proposed model is the forging of solid, two-way relationships between the artist and the fans and the building of interactive communities. I think Godin is on to something here. If so, does it mean that the future of music marketing lies in PR2.0 and social media driven relationship marketing? I would love to hear peoples views on this one.
Check out this fascinating interview with Godin for Music Business Radio, here.
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April 14th, 2009 at 10:04 am
Very interesting point. I liked the interview with Seth Godin and I think he’s right with his view. Having the opportunity to get music digital opened the doors for everyone to become a successful band and takes the power from major record organisations. Small and large music “brands” can learn from each other, as all of them have to deal with the current state.
I guess that the music industry must adopt to change and technology progress like any other industry. There are many new opportunities in the Web 2.0. and it’s just about changing the mindset and find a way to success by using what is given, rather than sticking to “the old methods”.
April 21st, 2009 at 3:03 pm
The idea of musical tribes is exciting isn’t it
The fans have always been out there, but now many organise and interact around online networks so they’re easier to reach.
I love his example of the greatful dead – the ultimate musical tribe. It’s ambitious to think artists can create that kind of dedication when theres so much music to choose from but its certainly a good thing to aim for.