Marketing Guru Seth Godin has some great morsels to share here
I hope this will be widely read in the music industry as Seth is a very smart guy, all around.
Here are some high-lights that I just want to cut & paste here, since they are pretty much 100% congruent with my views:
"The music business had a spectacular run alongside the baby boomers.
Starting with the Beatles and Dylan, they just kept minting money. The
co-incidence of expanding purchasing power of teens along with the
birth of rock, the invention of the transistor and changing social
mores meant a long, long growth curve. As a result, the music business built huge systems. They created
top-heavy organizations, dedicated superstores, a loss-leader touring
industry, extraordinarily high profit margins, MTV and more. It was a
well-greased system, but the key question: why did it deserve to last
forever? It didn’t. Yours doesn’t either."
"Copy protection in a digital age is a pipe dream. If the product you make becomes digital, expect that the product you make will be copied…Most items of value derive that value from scarcity. Digital changes that, and you can derive value from ubiquity now. The solution isn’t to somehow try to become obscure, to get your
song off the (digital) radio. The solution is to change your business. You used to sell plastic and vinyl. Now, you can sell interactivity and souvenirs." Interactivity can’t be copied.
"Permission is the asset of the future…The ability (not the right, but the
privilege) of delivering anticipated, personal and relevant messages to
people who want to get them. For ten years, the music business has been
steadfastly avoiding this opportunity. The opportunity of digital distribution is this: When you can distribute something digitally, for free, it will
spread (if it’s good). If it spreads, you can use it as a vehicle to
allow people to come back to you and register, to sign up, to give you
permission to interact and to keep them in the loop. Many authors (I’m on that list) have managed to build an entire
career around this idea. So have management consultants and yes,
insurance salespeople. Not by viewing the spread of digital artifacts
as an inconvenient tactic, but as the core of their new businesses."
"Whenever possible, sell subscriptions. Few businesses can
successfully sell subscriptions (magazines being the very best
example), but when you can, the whole world changes. HBO, for example,
is able to spend its money making shows for its viewers rather than
working to find viewers for every show. The biggest opportunity for the music business is to combine
permission with subscription. The possibilities are endless. And I know
it’s hard to believe, but the good old days are yet to happen…"
Great stuff, Seth.
Readers: buy his books, They rock.
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