New Music Markets

Table of Contents

1. Introduction

2. The State of Affairs

• 2.1. Where Is the Recorded Music Market Today?
• 2.2. A Transition Phase
  • 2.2.1. Singles over Albums
  • 2.2.2. What Comes After iTunes?

3. The New Distributors

• 3.1. Generalists
• 3.2. Specialists in Promoting Back Catalogs
• 3.3. Mid-Tail Distributors
• 3.4. Free Content Distributors
• 3.5. Telcos

4. Marketing and Product Innovations

• 4.1. Marketing Innovations
  • 4.1.1. Creating Value for New Releases
  • 4.1.2. Using Community Networks: A Must in Music Promotion
  • 4.1.3. Targeting the Fan Base Better
  • 4.1.4. From DRM to CRM
• 4.2. Product Innovations
  • 4.2.1. Improving Sound Quality
  • 4.2.2. Distributing Music Legally via P2P Networks
  • 4.2.3. Delinearizing Music

5. Is Direct Distribution Possible?

• 5.1. Innovating Physical Distribution
  • 5.1.1. Starbucks Creates Synergy between its Customers and Music Distribution
  • 5.1.2. Exclusivity Agreements with Major Distributors and Retail Stores
  • 5.1.3. Covermounts in Newspapers
• 5.2. Circumventing Record Labels for Online Distribution
  • 5.2.1. Directly from Artist to Listener
  • 5.2.2. Turning to an Aggregator
  • 5.2.3. Partnering with a Radio Station

6. Pricing Models

• 6.1. A-la-Carte Purchasing
• 6.2. Subscription Services
• 6.3. Paying for a Service
• 6.4. Free Music

7. Ad-Based Financing

• 7.1. Streaming and Downloads
  • 7.1.1. Maximizing the Audience
  • 7.1.2. Offering Targeted, Unobtrusive Advertising
  • 7.1.3. Increasing Advertising Exposure
• 7.2. Offering Music Via Marketing Operations
  • 7.2.1. Promoting a Service or Platform
  • 7.2.2. Music to Attract Customers
• 7.3. Partnering with Brands to Finance Creation and Distribution

8. Upstream Impact: Pre-Production and Production

• 8.1. Spotting New Talent
  • 8.1.1. Moving Away from Hard-Copy Demos
  • 8.1.2. Recruiting Talent on Social Networks
• 8.2. The Democratization of Production
  • 8.2.1. Self-Production for a Few Thousand Dollars
  • 8.2.2. Community Production

9. Impact on Record Label Activities

• 9.1. The Change in Cost Structure Favors Record Labels (Impact on Recording)
• 9.2. New Sources of Revenue
  • 9.2.1. Rights Management: From Publishing to Licensing
• 9.3. Reorganizing the Industry around Live Performances?

10. Global Music Market Forecast for 2011

11. Conclusion: Towards a New Musical Equilibrium

Index of Tables and Figures

• Table 1. Internet music radio listening hours and advertising investments
• Table 2. Album and single market share in digital music sales in 2006
• Table 3. Sources and total amounts of royalties received by MCPS-PRS Alliance
• Table 4. Download rates on fnacmusic
• Table 5. Download rates on eMusic
• Table 6. Napster' s and Rhapsody' s rates
• Table 7. Monthly rates for mobile offerings
• Table 8. Summary of pricing models
• Table 9. Market forecast assumptions
• Table 10. 2007-2011 forecast for the end music market

• Figure 1. The global music market - 2007
• Figure 2. Global recorded music market (1997-2007)
• Figure 3. Traffic on YouTube and MySpace
• Figure 4. Digital and physical markets 2004-2007
• Figure 5. iPod cumulative sales
• Figure 6. Breakdown of the price of a CD
• Figure 7. Breakdown of the price of a download
• Figure 8. Breakdown of rights collected by Universal Music, by source
• Figure 9. Market of the 100 biggest concerts in the U.S.
• Figure 10. Portion of revenues from tours for the 10 artists with the highest performance earnings in 2006
• Figure 11. The Live Nation strategy
• Figure 12. Comparison of CD sales and online music revenues, world
• Figure 13. Breakdown of the end global music market