musicdistributing

with new media technologies

learning outcomes• Describe the current state of the music industry from an

industrial perspective.

• Outline and discuss how digital distribution has impact on the music industry.

• Analyse how new media technologies has impacted on the marketing of music.

• Discuss whether or not new media technologies offer opportunities for viable DIY music distribution/marketing for truly independent record labels and unsigned artists.

intro to music distribution

What is a music distributor?

Music distributors are a

vital conduit in getting physical

and digital music products from

record label into the brick-and-

mortar and virtual retail Environment

(Macy 2009: 230)

Record Label

Retailer

Retailer

Retailer

Record Label Distributor

Retailer

Retailer

Retailer

The Role of a Music Distributor

• The sale of music (taking orders, soliciting deals, assisting label in setting goals).

• The distribution of music (physical warehousing of music, shipping to retailers, inventory management systems).

• The marketing of music (implementing the artist’s plan, devising a strategy, adding any synergistic elements)

(see Macy, 2009:234)

major labelsWarner Music

GroupUniversal Music

Group Sony

Publishing

Record Labels

Manufacturing

Distribution

Music Conglomerate

vertical integration

EMI Group

independents

• in 2007 independents broke the 20% market share threshold• most major distributors have an ‘independent’ distributor• there are also independent distributors with no links to the

major labels• new production technologies also mean that independent

artists/labels can create music cheaply from basically a ‘home studio’

• with digital distribution, any label can connect with customers either directly via their own website or by getting their music on external sites, which is good for independents but independent labels STILL need to be able to get into the physical shops (which can be a problem)

(see Macy, 2009: 231)

digital distributionIFPI Digital Music Report 2011

• US$4.6 billion – trade value of the digital music market worldwide• 6% – growth of global digital music revenues in 2010• 29% –global revenues from digital channels for record companies• 16.5% – proportion of internet users purchasing digital music in the US

Music Distributor

Physical Outlet (Stores)

Online Outlets (Websites)

External Sites (iTunes)

Own site (direct sales)

discussion topicInterview with Jun Mhoon

• What are the main points that Mhoon makes?

• How does Mhoon suggest that new technologies are impacting on music production?

• How does Mhoon view digital music distribution?

• What does Mhoon suggest is happening to the whole media landscape? What concept does this link to?

new media marketingThe internet can be used to:

1. Build brand awareness2. Reach a large number of people3. Learn more about the artist

(Hutchinson, 2010: 300)

Websites Social Networking

Viral Marketing

• Consumers can learn more about the artist

• Consumers can buy music and other associated products

• Content can include photographs, biography, latest news, membership to ‘fan clubs’, e-store, and so on (see Hutchinson, 2010: 308-310).

• Social networking sites are increasingly providing music-based features, such as when MySpace teamed up with SNOCAP to offer digital music sales, and are now offering e-commerce services through MySpace Music (Hutchinson, 2010: 317).

• Connect directly with fans (e.g. Tweeting on Twitter).

• Publicityadvisor.com describes viral marketing as a new buzzword for the oldest form of marketing in the world: referral, or word of mouth, which they update to “word of mouse”

• This is all about ‘spreading the word’ – sharing pages on Facebook, retweeting links on Twitter and so on.

• “tell-a-friend”…is a form of viral marketing. Viral marketing is “any strategy that encourages people to pass along a marketing message to others, creating the potential for exponential growth in the message’s exposure and influence” (Wilson, 2000).

(Hutchinson, 2010: 319)

Spreadable Media:

“refers to an emerging hybrid model, where a mix of top-down and bottom-up forces determine how material is shared across and among cultures in far more participatory (and messier) ways”

(Ford, Green and Jenkins, 2011, Internet)

DIY? can it work? Do new media technologies provide ways for ‘real’ independent record labels or unsigned artists to get their music to consumers?

Does the Internet and social media offer a viable way for artists to self- promote and self-distribute their music?

What potential downfalls might there be to using a DIY approach to music distribution?

referencesAmy Macy (2009) ‘Music Distribution and Retail’ in Hepworth-Sawyer, Russ (ed.) From Demo to Delivery: The Process of Production, Burlington: Focal Press (chapter ten).

Tom Hutchinson (2010) ‘New Media Marketing’ in Allen, Paul, Tom Hutchison and Amy Macy (eds.) Record label marketing, Burlington, MA: Focal Press.

Ford, Sam, Joshua Green and Henry Jenkins (2011) ‘Spreadable Media: Creating Meaning and Value in a Networked Culture’ in The Future of Film: A Tribeca Film Blog, 26th September 2011, <http://www.tribecafilm.com/tribecaonline/future-of-film/Spreadable-Media-Creating-Meaning-and-Value-in-a-Networked-Culture.html>, accessed 21/11/2011.

IFPI Digital Music Report (2011) <http://www.ifpi.org/content/library/DMR2011.pdf>, accessed 04/05/2012.