Music Industry

With the high competitiveness and globalization, all products and services are going into a process of commodification. Companies are offering products and services in a very similar price range in a market that they need to find ways of seduction or mobilization of their audiences. I am not talking just about lower prices, promotions, establish loyalty programs, invest resources in research & innovation and other strategies they been using , they need to make the consumers feel delighted with the new invention/innovation in order to mobilize them.

Given the example of the digital music industry distribution, we saw that the record labels were left beyond. Now we can say they have two major challenges: be frequently updated with the market evolution and be capable to attract consumers in order to facilitate access and customer demands of music. The other one is their battle against piracy, most common ones are illegal downloads and file sharing.

While doing a more deeply research in the music industry I found this article titled “Piracy continues to cripple music industry as sales fall 10%” written in January of 2010. The author gives us some interesting and recent data about the music industry around the world. Another controversial topic covered in this article is the reason why the sales are falling during the last decade, with the record labels blaming the piracy and in the other hand the critics accusing them of failing to keep up with changing consumer demands also arguing that new services such as download stores, streaming sites and subscription offers were responsible for these numbers.

The link;
http://www.guardian.co.uk/business/2010/jan/21/music-industry-piracy-hits-sales