From today’s Digital Music News: Are Music Consumers Stepping On Us? That was the question posed on Thursday by NPD analyst Russ Crupnick at Digital Music Forum East in Manhattan. “Consumers are flipping us the bird,” Crupnick declared while trotting through slide-after-slide of distressing data. Exhibit A? Crupnick listed a litany of concessions and pro-consumer offers from this industry over the past ten years — all of which have produced few substantive revenue returns. These include: ubiquity disaggregation fragmentation liberal licensing disabled DRM disinflation “These are great things we’ve done for consumers, but what have they done for us?” Crupnick posed. Well, the answer is very little, and Crupnick’s stats proved it. Over the past 5 years alone, Crupnick noted that the population of buying music fans declined by 20 million, and per-capita spending has dropped by 40 percent. Meanwhile, just 5 percent of US consumers are using subscription services, including free trials. “We’re being too liberal,” the analyst continued. “We need to demand more from consumers.” But there’s a funny twist: among the buyers that remain, a majority are only buying CDs. In fact, Crupnick noted that 55% of paying music fans are solely purchasing CDs, down from 80% percent in 2006. Just last week at New Music Seminar in Los Angeles, Tommy Silverman reported that two-thirds of all album purchases are physical. And what about the superfan, won’t that save us? Well, Crupnick popped that balloon quickly by noting that superfans are also buying less. But, their percentage of overall purchases is increasing as more…
February 25th, 2011No Comments, Ideas, Music Industry, Strategy & Marketing, by Eric Jensen.
February 16th, 2011No Comments, Music, Music Industry, Strategy & Marketing, by Eric Jensen.
I have been using Apple’s products since the 512K Macintosh. I have immense respect for the company’s user-focused product management and business models. However, once in awhile they go too far and do something stupid. Apple’s new subscription licensing policy could seriously impact subscription music services, an important developing market. The same is true with the continued market leadership of the iPad. If media companies part ways with Apple on this, everyone loses. Maybe my next phone will be an Android after all… Apple’s New Subscription Model Is Evil — Gizmodo Rhapsody CEO Blasts Apple — hypebot New Apple App Rules Could Kill Subscription Music — hypebot
February 9th, 2011No Comments, Music Industry, Strategy & Marketing, by Eric Jensen.
On February 8, 2011 The California Copyright Conference hosted a panel discussing the current state and future possibilities of the Latin music market, organized and co-moderated by Eric Palmquest — Director, Disney Music Publishing and Marissa Lopez, Associate Director, Latin Writer/Publisher Relations at BMI. The panel featured: Richard Bull — President of The Sixth House, a management company with touring, label, licensing, publishing, and corporate marketing arms.Tomas Cookman — CEO, Nacional Records & Cookman International, and founder of the Latin Alternative Music Conference.Yvonne Drazan — Creative Director, peermusicNir Seroussi — VP, Marketing and A&R, Sony Music LatinKike Santander — Multi Grammy Award winning songwriter and producer, Chairman of the Latin Academy of Recording Arts and Sciences (LARAS) and CEO of Santander Records. Marissa Lopez (whose career began as a Latin radio DJ) kicked off the festivities with a mix of regional and Latin music styles. Although the topic of the panel was the decline in Latin music sales, particularly in digital, the panelist were uniformly upbeat and excited about the wide open future for Latin music. Richard Bull and Tomas Cookman have had strong successes with synch licensing and developing strategic partnerships with other companies both inside and outside of the music industry. The Sixth House’s partnership with peermusic has been particularly rewarding for both parties. A common theme was the need to exchange services and develop diverse partnerships. Each situation is unique in today’s marketplace. Cookman: “There is no right or wrong answer. If it works for you, it works for you.” Panelists agreed on the need…
February 9th, 2011No Comments, Music Industry, by Eric Jensen.
A thought provoking post from the Rethink Music blog. The barriers to creating a global music licensing registry are substantial in and of themselves. As consumer behavior shifts away from ownership to an “anytime, anywhere” access model, accurate, streamlined licensing will be key to a great music experience for the public as well as solid monetization for creators. What do you think?Rethink Music