Blog Post 8

Sorry this took so long, but here is my outline for the final paper. Enjoy.

I. Introduction
A. While the music industry has a history of failing to recognize customer insights, the time is right for a change – a new business model focused around the consumer.

II. What Customers Really Want
A. Convenience
1. Easy to find new music
2. Easy to transfer and listen to music
3. Easy to explore music beyond listening to it
B. Relationships
1. Least amount of middle men between costumer and artists
2. Feeling of closeness to artist
3. Music as a culture

III. The Old Model
A. Revenue
1. Album sales – primary source
2. Radio play – getting the word out
3. Merchandise – branding the band
B. Marketing Strategies
1. Television – Ed Sullivan and on
2. Movies – Hard Day’s Night, Shaft, etc
3. Fan clubs – mailings, memberships
4. Music stores – displays, specials, cover art
C. Decline and extinction
1. Album sales – steady shrinking
2. Album concept – falling out
3. Record Giants – going in and out of business, suits versus people

IV. Key Failures
A. Keeping up with technology
1. Cassettes, CDs, mp3s – slow adaptation
2. Online music services – iTunes, problems with adapting
3. DRM – restrictive measures on purchased material
B. Napster
1. Customers want new outlet – companies fail to recognize
2. Ignoring new demand – pushing out new opportunity
3. Criminalizing the customer base – lawsuits, effects on consumers
C. Public Relations
1. Monopolies – Clear Channel
2. Formula for music - deemed commercially successful
3. Payola – corruptive business practices

V. The New Model
A. iTunes
1. Pricing - $0.99 for every song
2. Recommendations – connecting users to new music
3. Ease of use – anyone can install, anyone can use
B. MySpace, Facebook, etc
1. DIY marketing – what makes MySpace successful
2. New measures – selling music on social networking sites
3. Social networking – implications for marketers
C. Touring
1. Sponsored tours – Rock Band, MTVU, etc
2. Revenue – the new source
3. Festivals and showcases – central place for discovering music
D. Creative marketing
1. Album release promotions –limited editions, in-store performances
2. Grassroots – flyering, postering, listening stations, etc
3. Radiohead effect – offering music alternatively, costs, revenue
4. Websites – news, games, interactivity
E. Television, Movies, Gaming
1. Licensing – using in other media and entertainment
2. Garden State effect – Grey’s Anatomy, OC, embracing the culture
3. Cameos – artists featured in acting roles
F. Diversifying your business
1. Artists branching out – establishing music as a brand, 50 Cent
2. Clothing, products – more outlets for creativity

VI. Combating piracy
A. Why RIAA failed
B. Can’t stop piracy
C. Must use new models to establish new value

VII. Conclusion
A. The business is slowly taking new measures to make the customer’s needs a priority, and one can expect to see a lot more creative ideas to make money in the music business. The result is a more profitable industry and a better product for consumers.