Major Labels

Forrester Study Offers Plan To Save Music Industry

Forrester release chart

A Summary & Commentary – Forrester Research has released an aggressive road map of changes that analyst Mark Mulligan says are "necessary to save the music industry from the current Media Meltdown it finds itself in.  The CD is dying, the 99 cent download model clearly isn’t enough (nor is live), and ad supported and subsidized models all have much distance to go". 

"a continual artist-fan relationship"

The challenge is to make people willing to pay for music again and Forrester suggests that part of the answer is an staggered release schedule (illustrated above).  But that's just the beginning; the core music product needs a complete overhaul: "The album has been with us for exactly 100 years and… has remained largely unchanged… (Instead) releases can become part of a continual artist-fan relationship with artists delivering a steady stream of creative output".

Value-added content in the form of back stage footage, covers, remixes, mobile apps etc. Now "…content should no longer be seen as a way of selling albums and gigs, but as an end in itself".

The 4 Cs of Digital Content:

Content, Convenience, Cost and Community.

All music industry innovation must be based around the 4C's according to Forrester.

Commentary:  Most of the Forrester plan to save the music industry is based on proven marketing concepts and sales techniques (value-added, the 4 C's) that were suggested years ago by Seth Godin and many other consumer marketers. These problems and their solutions are not unique to the music industry. But Mulligan and company are right; the big labels have done little more than flirt with them.

A full embrace is what's needed to shape the new music industry and proof that it can work is everywhere.  Indie music marketers from Trent Reznor to Topspin are testimonies to the power of listening to the community of fans and offering value added content and a variety of costs.  Imogene Heap, Amanda Palmer, Jill Sobule and Jonathan Coulton each offer their own unique glimpses into the power of community. 

The next actions needed are clear.  If the old music industry does not take them; the new music industry will.

Bruce Houghton on 09/09/2009 in Major Labels | Permalink | Comments (9)
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9 Comments

  1. The problem with all of these “solutions” is they don’t do anything for artist development which is the backbone of the music industry. People fail to realize that a major issue facing music right now is the inability for new artists to reach a high level. These solutions are fine and good for artists who are already financially ok, but how do you make money while developing an artist?
    I think the only label that seems to have figured that out is probably Epitaph/Anti – they seem to be breaking artists from the ground up and doing pretty well as of late…

  2. Really, bruno? Yuu’re going to copy and paste two sentences from the only other comment left here and then plug your blog, which is totally unrelated to the subject matter?
    WOW.
    Anyways, I agree with you Mark. One thing that I don’t think gets talked about enough is gatekeepers. New acts need something, or someone to get behind them and give them a break with either an opening slot for a few dates on a tour, a TV or Ad placement, or some radio play.
    Just like how it “used to be” people still need to be seeking gatekeepers. The great thing is that there are more of them now than ever before. They’re not all just A&R people anymore, because you can “break” without a label today.

  3. I think the Forrester model isn’t revolutionary enough. It’s still trying to massage what is currently happening in music.
    I’ve long felt that in this day and age, when people expect to get recorded music for free, and when most live music shows are too expensive or not family-friendly enough for working families, local gatherings (e.g., free outdoor concerts, music in schools and churches, house concerts) are where it is all headed.
    And I just saw this today. It’s not about music per se. But it’s about bringing back block parties. It’s the same spirit I am talking about.
    http://switchboard.nrdc.org/blogs/kbenfield/block_parties_minifestivals_of.html

  4. My comment above appears to be disappearing on the right margin. Maybe a problem with the long url I posted. I’ll try it again without the link (which still works in the above comment).
    _________________
    I think the Forrester model isn’t revolutionary enough. It’s still trying to massage what is currently happening in music.
    I’ve long felt that in this day and age, when people expect to get recorded music for free, and when most live music shows are too expensive or not family-friendly enough for working families, local gatherings (e.g., free outdoor concerts, music in schools and churches, house concerts) are where it is all headed.
    And I just saw this today. It’s not about music per se. But it’s about bringing back block parties. It’s the same spirit I am talking about.

  5. I don’t think this plan is revolutionary enough either. The industry needs something that will create a listening environment that is fun to use, viral, effortless for the users, and profitable for the artists. I have this solution and it’s called Beat-Play. It’s a combination of a streaming radio player, a music specialized social network similar to facebook, viral playlists, a virtual music store, the ad revenue model, and the first ever auction for music or pieces of music. We will also provide many other tools and benefits including truly utilizing “pirating” to gain ad revenues. We also create many more revenue streams for the artists. It’s free to use and risk free. We promote artists for free using our revolutionary and innovative tools which have never been seen before in the industry. Beta testing starts this fall. Learn more about us at MusicWithoutLabels.com and sign up!
    It’s about time someone did this right..
    -Dante Cullari Founder and President, Beat-Play

  9. I agree with Suzanne. This is not revolutionary enough. Btw, does the last column, “Free to Air” seem a lot like another media outlet know as radio? If this is what they are suggestion as “necessary to save the music industry from the current Media Meltdown” then the industry is hosed.
    Dave Lopez – Mixing and Mastering Specialist
    Cr@zyEye Music Services
    Marketing Music Online

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