This CHART tells you all you need to know: The Death Of The Music Industry

chart of the day, music industry 1973-2009, feb 2011

CHART OF THE DAY: The Death Of The Music Industry

This stunning chart needs to be put in some context to understand the true nature of the upheaval facing what I like to call the “Dinomedia”:

1) Forget About Buying Music Online – People Don’t Even Want To STEAL Music!

2) FREE can actually work, with a little creativity: “How Girl Talk mashes up the Music Biz”.

3) Sony’s new “idea” to launch a me-too Music subscription service priced the way they are proposing is 1) Doomed, and 2) fails to take the reality of the above chart into account:

“Sony believes its huge userbase and retail presence can help its subscription music service succeed where countless similar services have failed.

The Basic tier of service — which will cost $3.99 per month in the U.S. — gives users a set of curated music channels with the ability to fast-forward and rate songs. That’s very similar to what users can get for free from Pandora and countless other Internet radio stations, as well as the free music channels on digital cable TV systems.

The Premium tier — $9.99 per month in the U.S. — is the same price as countless other subscription services (Rhapsody, MOG, Rdio, Microsoft’s Zune Pass, and so on) but doesn’t have any mobile story [yet].”

Their retail presence?! Really? That is exactly the portion of the music business that is dying completely. I thought Denial was usually one of the earlier stages of the “5 Stages of Grief” model…

Why can’t they understand that they have next to NO PRICING POWER left? (Again: Many cannot be bothered to STEAL their product anymore…).

That they are much better off gaining whatever Attention Pie/eyeballs/earballs they can for their music ecosystem (and make further back-end sales there later on, similar to what ONE LONE, yet innovative DJ is able to do)?

For example, what if Sony were to do something bold, and price the “Premium” subscription at $1/month, no contract. That would put it in the complete impulse purchase, don’t-need-to-think, will-likely-never-cancel-for-any-reason category.

What if they could thereby garner 100 Million users, who would be spending about $1.2 Billion, in other words…about 20% of what still is left of the global music industry?!

At that price, could they get 200 Million users? One would hope so. Given that Apple is expecting to sell 40M+ iPad tablet computers costing $499 and up this year alone…

Wake up, #Dinomedia, before it is forever too late…

This SiliconAlleyInsider Sub Headline Reveals Why You Must Move The Freeline

Stop Whining About How Elitist And Expensive TED Is [Just Because] You Didn’t Get Invited
Feb. 15, 2010, 9:17 AM

>> Too bad you missed it! Larry Page gave everyone a free Nexus One.


via Silicon Alley Insider.

(Minor edit for colorful language.)

What is amazing about this (the subhead sentence after the headline), is not what it says about TED, but what it says about the future of content creation, and the question of charging for it.

Yes, Larry Page is a multi-billionaire who gave away free Nexus Ones created by his Fortune 500 (currently ranked #150) company, Google, to other well-to-do folks who were able to afford to pay $6,000 for the exclusive TED Talks experience. In doing so, he is following word of mouth (WOM) marketing model 101, of getting your product into the hands of key influencers, and hopefully winning them over, and getting them to evangelize your product.

But aside from all of that, he is showing what the future really holds: With ever cheaper reading & communication devices such as the Nexus One, it will become increasingly common to give those away to users, JUST to have SOME influence over what content (and thereby advertisements) they consume.

In essence, such a give-away represents A PAYMENT of the consumer for consuming content on the “gifters” platform. That is how important it is to get some, any slice of the attention pie. The getting of some of which implies that you will have opportunities down the road to do business with the “giftee” in the form of offers (ads or otherwise) that can be embedded with the content.

Note that it is taking for granted that a lot of content itself cannot be charged for. Why? …

Continue reading “This SiliconAlleyInsider Sub Headline Reveals Why You Must Move The Freeline”

Round-up of recent *Quick Hits* Business Mindhacks on Posterous as predicted by my recent post on “Why Creating A New Habit Is So Hard”, I haven’t quite been entirely able to lay off of the “Quick Hits” posts to Posterous.

Still working on modifying that habit to posting here instead… :)

Since we wouldn’t want you to miss anything important, these were the most recent offerings:

Read and profit. Feel free to share.