The Future of Music Marketing?
Posted by Rowan Wilkinson on 13th April 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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