MusicDish e-Journal - January 17, 2018
MusicDish Advertising Network
» HOME » INSIDER SCOOP » CAREER TIPS » MUSIC SPOTLIGHT » MUSICDISH*CHINA
» INDUSTRY INTERVIEWS » NEWS BEAT » DIGITAL SKOOL » OPEN REVIEW » MUSICDISH EDELWEISS
Search MusicDish e-Journal (Advanced)
Subscribe To MusicDish e-Journal
About | Contact | Advertise | RSS | Submit Article | Submit News | Artist Development | Premium PR Distribution
Mi2N | MusicDish*China | MusicDish Network | MusicDishTV | Urban Music News Network

Digital Distribution Predicted to Take it's Toll on the Industry, but will Benefit in the Long-run
By Daina Kazmaier
(more articles from this author)
2000-10-18
Comment | Email | Print | RSS

The new wave of digital media - streaming technology - is destined to seriously disrupt the music industry according to a NARM/Emerald Solutions Study. But it has the potential to be an asset to the business as a whole if companies can keep a hold on their traditional aspects and convince consumers to invest in the digital media through value propositions. This new study, entitled "Creating Industry Value From Digital Music Distribution," was conducted by Emerald Solutions for the National Association of Recording Merchandisers (NARM).

NARM commissioned Emerald Solutions, which was formerly the Alliance Consulting Group, to study the effects of digital music in the music distribution channel and evaluate strategic options by simulating competition and assuming customer needs. Business strategies were then cited for the various industry segments. The recommendations were based on interviews with individuals involved in the industry, published secondary research, and Emerald's past experience working with other industries facing similar disruptive innovations.

"Entertainment retailing is currently facing one of the most significant challenges in its history. The Internet presents artists, labels, wholesalers, and retailers with a tremendous opportunity to innovate products and create powerful new marketing and distribution engines, which will result in more personalized relationships with consumers," stated NARM President Pamela Horovitz. "But meeting these challenges will have a dramatic impact on industry structure."

"Assuming piracy is contained and technology issues resolved, the overall impact of digital distribution appears to be positive," stated Michael Norkus, President and Founder of Emerald Solutions' Strategy Group. "Although some cannibalization is likely occurring among certain consumer groups, there are benefits through greater exposure and points of purchase. In the final analysis, some industry segments will be better positioned to succeed than others, and while incumbents certainly have the experience, resources and relationships to win, they may lose out to new entrants if they don't give consumers what they want."

Norkus also stated that "As a sampling medium, file sharing seems to increase consumer exposure to music while downloads offer a new alternative for storing, transferring, and listening to music. But we see streaming as presenting the greatest concern for industry incumbents, especially the retail segment, because it provides a new opportunity to listen-on-demand without the constraints of physical ownership."

The analysis done by Emerald Solutions was based on three technologies at the heart of the distribution: shift-file sharing, downloading, and streaming. The report offers a few key findings. Predictions include the following: CD and digital music sales will co-exist for the time being. However, digital distribution will gain on CD sales over time. Digital distribution also offers significant revenue growth opportunities through targeted promotions, innovative product price configurations, and more opportunities to buy music.

Consumer's needs differ greatly in digital distribution than that of the physical world, and although costs per transaction may decrease, new customer and technology support costs could be significant. The new costumer service requirements may favor larger industry participants. Due to the co-existing business models (physical equivalent, agent retailing, subscriptions, and "free music"), and multiple business strategies, and the fact that no individual industry segment is likely to provide the consumer with a total solution, it will be vital for participants to forge partnerships with other industry participants to strengthen their positions.

Linkography

NARM - www.narm.com
Emerald Solutions - www.emeraldsolutions.com

Related MusicDish e-Journal Articles:
» The Digital Economy: How Digital Goods are Reshaping the Rules of Commerce - Introduction (2000-11-01)
» Story of a Revolution: Napster & the Music Industry (2000-09-06)

Related News from Mi2N:
» NARM/Emerald Solutions Study Says Digital Distribution Will Be Highly Disruptive But Ultimately Benefit Music Industry


Home » News Beat » Digital Distribution Predicted to Take it's Toll on the Industry, but will Benefit in the Long-run
Permalink:http://www.musicdish.com/mag/?id=2144
Email |Print |Comment |RSS

back | top


MusicDish Advertising Network

News Beat

» Mixcloud Taps Gracenote for Advanced Music Recognition

» Copyright Royalty Board Increases Sirius XM Royalty Rate

» Live Entertainment Specialists Headliner Launch Premium Artist Booking Service

» Nordic & British Musicians' Unions' Joint Statement on Sexism in the Music Industry

» Women Make An Impact On The 2018 MPG Awards Shortlist

News Beat Directory



» [2017-12-25] MusicDish*China Presents 'Savage Guitarist' Todd Clouser In Beijing; As Part Of His #YouTheBrave Asia Tour That Includes 8 Shows Across Japan, Todd Will Be Giving Solo Shows At Laifu Livehouse On 12/27 And Temple Bar On 12/28

» [2017-12-20] Mixcloud Taps Gracenote For Advanced Music Recognition; Next-generation Audio Fingerprinting Helps Mixcloud Identify And Catalog Copyrighted Music Within User-generated Content

» [2017-12-18] Copyright Royalty Board Increases Sirius XM Royalty Rate; Judges Announce Royalty Rates And Terms For Satellite Audio Radio Services (SDARS) And Preexisting Subscription Services

» [2017-12-06] Lithuanian Band Grabs Bronze At The Silk Road Indie Music Festival 2017; Antikvariniai Kašpirovskio Dantys Competed With Bands From Belgium, Sweden, Armenia, Germany, Japan, South Africa, India, Norway, Poland, Italy And The UK As Well As China

» [2017-12-06] Live Entertainment Specialists Headliner Launch Premium Artist Booking Service; A Fully-managed Service That Simplifies The Process Of Booking Renowned Artists And Performers For Occasional Event Planners, Agencies And Brands

» [2017-11-27] Voice-Controlled Speakers & The Music We Listen Too; Music Is A Major Part Of The Way Amazon Echo And Google Home Owners Interact With Their Devices

» [2017-11-21] Nordic & British Musicians' Unions' Joint Statement On Sexism In The Music Industry; Discussions On The Issue Of Gender Inequality, Sexism And Sexual Harassment, The Scale Of Which Had Been Highlighted By The Recent #metoo Campaign

» [2017-11-13] Women Make An Impact On The 2018 MPG Awards Shortlist; Nearly A Quarter Of Those Named This Year Are Female, Proving That Music Production Is No Longer A Bastion For The Boys

» [2017-11-13] The Nashville Musicians Sound Healthcare Plan Rolls Out; Sound Healthcare & Financial Announced The Formation Of A True Group Health Insurance Policy Plan For Musicians And Industry Professionals

» [2017-11-09] Streaming & Listening Diversity - Spotify Case Study; Will Artists Have An Easier Time Finding An Audience, Or Will Streaming Focus Global Attention On A Small Number Of Stars?

» [2017-11-09] Two-Sides Of Copyright Finance: Sound Royalties & Kobalt; Sound Royalties Unearths Millions In Undistributed Royalties While Kobalt Launches Fund To Invest In Music Copyright

» [2017-11-08] Career Moves: ROLI, Live Nation Sweden, Music Glue, BBR Music Group, Warner/Chappell Music Spain & Blue Night Soundscapes; ROLI Chief Creative Officer, Live Nation Sweden Managing Directors, Music Glue Global Head Of Business Development, BBR Music Group VP Of International, Warner/Chappell Music Spain Managing Director And Blue Night Director Of Music Clearance
MusicDish Advertising Network

follow MusicDish on
Follow MusicDish on Twitter

Mi2N Music PR

The International Music Consulting Firm GINGIO Hosts Events At NAMM And Grammy Weeks

MarilynMusic Places Five New Songs With Altino Music

Award Winning Singer/Songwriter Craymo Releases December Rain (Carol Of Love) To Radio

For Folk's Sake Premieres Katie Garibaldi's 'Unhappy Holiday' Honky Tonk Music Video

GuitarPlayer.com Debuts Claymation Music Video For 'Star In The East' By Katie Garibaldi

Veteran Recording Artist Jerri BoKeno Rekindles Holiday Jewel "This Christmas"

The Ed Sheeran Of The Hare Krishna World: Meet Cyril Wohrer



Websites: Mi2N | MusicDish*China | MusicDish Network | MusicDishTV | Urban Music News Network
Services: Submit Article | Submit News | Submit Video | Artist Development | Premium PR Distribution

Copyright © 1997-2018 MusicDish LLC., all rights reserved.
About MusicDish e-Journal | Contact Us | Advertise | RSS | Internships