Industry 4.

0 and classical music marketing

1. What is industry 4.0?

Industry 4.0 (the fourth industrial revolution) is the ongoing automation of traditional
manufacturing and industrial practices, using modern smart technology. On a broader scale,
M2M machine-to-machine communication and IoT the internet of things is integrated for
increased automation, improved communication and self-monitoring, and production of smart
machines that can analyze and diagnose issues without the need for human intervention.

Industry 4.0 offers a more comprehensive, interlinked, and holistic approach to manufacturing. It
connects physical with digital and allows for better collaboration and access across departments,
partners, sellers, products, and people. Also, empowers business owners to better control and
understand every aspect of their operation, and allows them to leverage instant data to boost
productivity, improve processes, and drive growth.

German engineer and economist Klaus Martin Schwab is first introduced Industry 4.0, which
includes in this fourth era technologies that combine hardware, software, biology, and
emphasized advances in communication and connectivity.

The Fourth Industrial Revolution consists

of many components when looking
closely into our society and current digital
trends. To understand how extensive
these components are, here are some
contributing digital technologies as
shown in the graphic:
Mainly these technologies can be
summarized into four major
components, defining the term “Industry
4.0” or “smart factory”
 Cyber-physical systems
 IoT- Internet of things
 On-demand availability of
computer system resources
 Cognitive computing
 2. The relation between Industry 4.0 and classical music marketing

Industry 4.0 has brought much efficiency and productivity effects in every sector, even in the
music industry. In this essay, I am going to talk about how radically changing classical music
business, with a particular emphasis on marketing, has been affected by Industry 4.0.
Technology has been exploited by the classical music industry and there are a number of
different models that show classical music organizations copying the pop music industry by
embracing the advantages of trading over the internet. Online business has pervaded all areas of
the classical music profession, from live performance to recording, and from music management
to retail.

The Internet of things is a more productive and efficient way in the classical music sector. We
listen and watch all kinds of music via the internet in our everyday life and wherever we are. The
use of digital trade combined with a pop marketing way to increase mass media promotion is
now a whole part of the classical business. Definitely, pop marketing was a tool that enabled
classical music to achieve non-traditional markets, internet development has encouraged the
classical field to adapt to a new environment. Musicians themselves are using the web as a tool
for selling recordings, concert tickets, and merchandise as well as social networking.

There have been some great innovative works conducted by music organizations using the
internet as part of their business cycle. Bands, orchestras, and other artists used to use traditional
marketing ways to sell their CDs and albums such as using the banner on the outside. Nowadays,
they are selling over the internet website, disc boxes and iTunes, etc. For example, violinist
Tasmin Little introduced her new recording on the artist’s website, which is good marketing,
contains links to a range of music organizations and media outlets. The site also extended an
invitation to burn the CD free of charge. The figure for downloading was half a million and this
is a prototype of how a professional classical musician has embraced technological developments
in order to market themselves more effectively, following the pop procedure, and communicating
with existing fans, and attracting new audiences.

The growth of classical music is dependent on how e-tailers are forging new business models of
operating in the classical area. Digital revenues are increasing around the world. In 2019, global
recorded music revenues posted a growth of 8.2. This was the fifth consecutive year of global
growth. Revenues increased in many markets and in nine of the global top 1 markets. Digital
revenues have increased steadily over the past few years and streaming revenues alone now
account for more than half 56.1% of the global recorded music market after increasing by 22.9%.
Global recorded music revenues by segment 2019:

Further developments of the internet of things include Facebook & the music market joining
Research in Motion (RIM) and Google in the music market. Whilst RIM launched its own
Blackberry Messenger for music (BBM Music service). Facebook not only lets European users
connect to their Spotify accounts but in October launched the ‘Music dashboard.’ This will allow
users to stream music, passively seeing what friends are listening to while browsing the news
feed. The link to Spotify (the successful streaming service that now has ad-free subscription
options) recently announced a new relationship with Facebook-all Spotify’s users’ listening
habits are to be automatically pushed through onto their news feed unless the user has indicated a
private listening option.
Managing Director of the Barbican Centre in London, John Tusa states that ‘audiences are
increasingly fractured, disaggregated and self-aware’ then dramatic awareness of the classical
music consumer and how to market to them as they become more diverse and open to a wider
competition is a crucial part of the business. Finally, classical music has developed into a
product-orientated service. Musicians and consumers have become more independent of the
industry itself through advances in new technology, as well as the industry developing its
business model through wider-focused marketing tools.
3. Internet and mobile phone
When smartphones have first launched, mobile applications have positioned in the same way.
We all know that a modern marketing efficient approach is the internet, where we can get all the
information by using our mobile phone, laptop, and notebook, etc. Now we go more into how the
internet and mobile phones are helping in the classical music industry, how using them
efficiently in the marketing of classical music. The wider penetration of the first 2.5G network in
1995 and later the 3G in 2002 and especially the 4G in 2010 has freed smartphone users from all
wires thus creating a possibility for a truly mobile environment. These are the first wireless
networks with high enough data rates and wide enough bandwidth for advanced mobile services
and online applications to function properly without wireless. These technical developments and
all the ones that followed them set the stage for the mobile marketing paradigm to emerge.

In classical music, the development of technology has often been seen as a worry and
competitor. However, it was also realized early on that digitalization can be used as an
advantage. It has been recognized that easier access to the arts via digital environments
encourages people to attend live events also in person, and this has knowingly been used to
lower the threshold to attendance. A good example of this is live streaming concerts and events.
A live stream can deliver at least to some extent, the excitement of live music at any time and to
any place where a device and internet connection is present and is often offered free of charge. It
seems that experiencing a concert via a stream also encourages people who have not attended
before to cross the threshold of the concert hall.

As mobile networks, devices, and technology, in general, have taken huge leaps and integrated
into our lives, marketing paradigms have followed right behind. Mobile Marketing is broadly
defined as including advertising, apps, messaging, e-commerce, and CRM on all mobile devices
including smartphones and tablets. In Mongolia, messaging mobile marketing has developed in
the classical music field. We collect our customer’s phone numbers and try to give more
information about performances, concerts, and tickets over the mobile phone. Mobile marketing
could be something as simple as advertising or giving out promotional perks on social media
platforms at a given time for people in a given area, but it can also take much more complex
forms. Customer support and feedback channel is one example. Mobile marketing is a separation
from traditional marketing (print is a good example) usually two or even multi-way
communication between the brand and its customers, allowing the consumer to comment and
question live, creating a possibility for real conversation, engagement, and deeper relationships
between a brand and a consumer.

A mobile application or app is what turns a mobile smartphone from a mere phone to a “Swiss
army knife” of everyday life. The phone’s built-in app-store offers access to a myriad of readily
downloadable applications for a plethora of different uses: playing games, navigating, listening
to music, time management, connecting to social media, and so on. Mobile applications can offer
interactivity and engagement within any wanted time and place, and this potential for context-
awareness makes them a great tool in marketing.

Mobile applications have vast possibilities in marketing and audience development. However,
using applications in classical music marketing or as a means of developing audience
engagement is fairly new. As Crawford mentions, there is not much academic research on
classical music audiences and the use of new technologies done thus far. Also one of the biggest
barriers distinguished for mobile applications to overcome is an affective constraint to avoid the
risk of losing one’s privacy and security. The discomfort of sharing one’s personal information
with an unknown party can make a difference in whether or not one is willing to download an
application. Privacy legislation has indeed been dragging behind technology’s development. To
overcome this hurdle, the application provider must be able to convey trust, which can be done
for example by offering opt-ins within the application.

As music and arts are by nature intangible, and although they get added tangibility from live
performances taking place in physical environments performed by real people, the core product,
in the end, is very abstract and essentially produced in the listener’s mind. Creating an app that
would turn that experience more tangible and help you process the experience can certainly
support audience development’s goals of enhancing and deepening the art event.

Nowadays, most of the classical music organizations create their mobile application to reach the
audiences fast and to have a relationship for the long-term such as German contemporary music
festival, Berlin Philharmonic orchestra, and Royal philharmonic orchestra, etc. Also, music
recording companies launch their mobile applications to sell their products using technology. For
music recording companies, they can evaluate their albums, songs, and performances then offer a
price for listeners. Whereas classical music organizations try to register their customers, to
communicate, to give discounts, to send information, and to sell concert tickets. A mobile
application is the easiest way to use for customers to buy tickets, get information, invite friends,
send gift tickets and the most important thing is secured. Some classical music organizations
upload their played performances to motivate audiences for free.

In all of these rather different examples, we see a connecting feature: almost all of them can be
used both on an online desktop computer and on a separately built mobile application. For the
app to be truly purposeful, it needs to bring some added value; not just act as an extension for a
website.

4. Summary
In classical music marketing most effectively influenced industry 4.0 is the Internet of things.
We are selling 85% percent of the tickets over the internet around the world, supporting and
motivating audiences, advertising, selling recorded music, connecting with audiences and
listening to their opinion, our advantages, and disadvantages, etc. Even not using the internet,
people are able to listen to music by downloading on the mobile application. By collecting our
consumer’s big data, classical music performing organizations are able to develop a database for
their audience to keep them in tune with audience attendance patterns, changes in their
preferences, trends, and any unmet needs they might have. This is crucial for the development of
long-term relationships which will keep an audience loyal for life. There is great potential for
growth, especially with the baby boomers who are well fit in the traditional market segment for
classical music. However, some steps must be taken to ensure this growth. Classical music is as
alive as ever; it's only requirement is a constantly renewable audience.

On the mobile application, all the music and songs are categorized, therefore it matches
consumers' wants, needs, and demands. The Internet has become the fastest, growing, cheap
platform and involves a broader range of people than traditional marketing. Therefore, even in
our music industry, industry 4.0 has affected in a good way and influenced effectively and
productivity.
Date: 2020 / November / 28 Name: Zoljargal Ulziibadrakh
Institute: Faculty of Economics, University of Debrecen
References:
Adrian, Smith (2018), “How Not to Market Classical Music”, The Marketing of Orchestral
Concerts is becoming increasingly whimsical and condescending in an attempt to make classical
music more accessible, but audiences deserve more respect.
Angela Besana and Annamaria Esposito. 2018. Economics and Marketing and Performances of
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Elias G.Rizkallah. April, 2009. A non-classical marketing approach for classical music
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HyunHee Park. June 2010. Communicating with Audiences: The Strategic Marketing of Music
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Marius Carboni. 2012. The classical music industry and the Future that Digital innovations can
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Management, vol 29.
Petra Piiroinen. March 2019. Possibilities of mobile marketing in classical music audience
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Victoria Gosling, Garry Crawford and Gaynor Bagnall. November 2014. Branded app
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Websites:
https://en.wikipedia.org/wiki/Fourth_Industrial_Revolution
https://www.epicor.com/en/resource-center/articles/what-is-industry-4-0/