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Music Industry 2006: Stuck? PowerPoint PPT Presentation

Music Industry 2006: Stuck?. David Stiebel MAS.111 May 5, 2006. Overview. The Problem Market Need Available Tools My work. Music Industry in Trouble.

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Music Industry 2006: Stuck?

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Music industry 2006 stuck

Music Industry 2006: Stuck?

David Stiebel

MAS.111

May 5, 2006


Overview

Overview

  • The Problem

  • Market Need

  • Available Tools

  • My work


Music industry in trouble

Music Industry in Trouble

“The fact is that all traditional media companies are facing the same core problem: viewers and advertisers are steadily migrating toward new media. 

Allof the media companies are now ‘on the defensive,’ trying to prove that there's still growth opportunity in their businesses, and desperately trying to find ways to get some positive momentum going in their stock price.”

Lex Suvanto, SVP at Abernathy MacGregor


The problem

The Problem

  • The music industry does not know which songs will be successful and which will fail


Market need

Market Need

  • Today, Artist and Repertoire (A&R) at major record labels has a success rate of 10%

    • [source: Recording Industry Association of America (RIAA)]

  • The record industry improves their bottom line by taking 90% of all CD releases, and throwing them in the trash


  • Market research

    Market Research

    • RIAA says that major labels spend $13.5 billion annually on marketing and distribution [M&D]

    • HBS study suggests that A&R applies same M&D budget for successes and failures

    • The industry wastes over $12 billion on M&D for unprofitable CDs (i.e. 90% of 13.5B)


    Available tools

    Available Tools

    • There are several tools available that major labels can use to get a leg up


    Subjective data

    Subjective Data

    • Focus groups/radio call-outs

      • Pro: Asking directly, gathers demographics

      • Con: Measures music taste in captivity

    • Disk Jockey Review

      • Pro: Experienced opinion

      • Con: Easily swayed opinion


    Objective data

    Objective Data

    • Peer-to-Peer searches/file offerings

      • Pro: Tracks what people are looking for

      • Con: Not necessarily what people will buy

    • Music Purchase Records

      • Pro: Reports what’s hot and what’s not

      • Con: Reports after budget is spent


    What am i doing

    What am I doing?

    • PeerReviewMusic.com

      • A new approach for the music industry

    • Market Research Executive

      • Gather information about the current market and our competitors

    • Patent Searches


    Top notch experience

    Top Notch Experience


    Latest news

    Latest News

    • MIT$50$100K Semi-Finalists

    • Winners announced Thursday, May 18

      • 7:00 - 9:00 PM

      • Kresge


    Thank you

    Thank you


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