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Aarti Jadhav Bhavna Panchal Jagruti Patil Kanchan Ginlol Pallavi Pawar Varsha Bopte

Roll No. 16 37 39 13 40 05 Submitted To: Amar Bhosale Sir.

Executive Summary
It mainly concentrates the number of challenges that music industry is facing like strong competition, piracy, changing delivery format, increase in cost pressure, demand in primadonnas & changing customer needs. The music industry is in a state flux at the moment. Long term success stories for music industry are increasingly difficult to develop. The ‘Big Four’ major labels has marketing clout to invest heavily in their acts, providing them with expensive videos.

A Peer to Peer network allows user to share their music libraries with other net users which has diminished bargaining power of large retailer, it is a cheaper distribution medium than traditional form. However, as with most new channels or technology, catalogue shopping never surpassed regular high-street shopping, internet shopping likewise, and ‘video never really killed the radio star’… but will the Internet kill the record store?

STRENGTH:  Music has now become cheaper than the traditional era.  Easy access to the music via internet has created large market for music industries.  Advance technology has impleted like ipods, mp3 player, mobile ringtones etc.


It has benefited small scale music industry to promote their music through peer to peer network. Digitalization has reduced cost as well as space required for strong music files. Large number of music are available for free of cost at various websites. Upcoming bands has influenced the younger generation about their creation.


It provides platform for the newcomers to enhance their talent towards large platform at very low cost.

WEAKNESS:  Loss for the music companies due to piracy, illegal downloading of original music.  Artist & musicians have loosed their part of income due to illegal music distribution.  It harms legal authority like copywriter, patents of the music industry.  Great loss to the record stores.


Traditional music is at the edge of diminishing. Increased in corruption due to breaking of laws.

OPPORTUNITIES:  Music company can offer music in terms of online radio, mobile message clips, video clips, games, sound track to increase potential revenue sources.  The copy write law should be more strict.  Companies can launch their own music website & distribute their digital music at lower cost.

Company should concentrate not only on single albums but should contain a mixture of albums. Companies must adopt the new technology like greater internet access, telecommunication, infrastructure broadband technology etc.

THREATS:  Internet is becoming a big threat to the music industry.  Traditional music retailers are getting more competition with multiple channels of distribution emerging due to internet & large super market chain.  Access to grey market has being increased rapidly.  Peer to peer network is becoming competitor to original music industry.

Macro forces affecting the music industry Are:
The industry is facing a number of Challenges that it has to address such as  Strong competition.  Piracy.  Changing delivery format.

Discuss the micro & macro forces that are affecting the music industry?

Increase in cost pressure. Demanding primadonnas. Changing customer needs. illegal download of songs.

Micro forces affecting the music industry

Choosing internet as a option for music download. Industry is creating “Radio Payola" playing music station for playing companies music on their play list to make their song hit. Increase the number of websites which are selling the music free of cost such as Amazon. COM &

Based on this analysis, what strategic options would you recommend for both music publishers and music retailers in the current marketing environment?

Following are the strategies that would be Helpful:  Music retailer should sell the music at lower cost & should provide some portion of their revenue to the music publishers.  Create anti piracy awareness among the youth.  Provide music in various format’like mp3,mp4,wav.  They should tie up with various digital device making companies like apple ipod, mp3 player etc.

They should provide various caller tunes & ring tones at lower cost to service providers of the mobile company. They should sponsor the various music reality shows, bands, fashion show etc.

Discuss the advantages and disadvantages associated with online distribution from a music label’s perspective.

Advantages are:

Music labels such as Sony BMG,Universal music, Warner music can give great competition to peer to peer network by launching their own music websites. Increase in revenue & customer satisfaction can create more variety of music like game soundtrack,ringtones, callertunes,mobile message clips, video clips.

Getting opportunity to compete globally.

They are re-evaluating their entire traditional model by developing digital music strategy.

Disadvantages are:

Due to piracy they are not able to receive their part of store. Copy write owner are not getting their share due to mp3 format which doesn’t have inbuilt copy write protection. Old business method of selling albums are not able to service in such a large digital market. There is decrease in the level of profit in the music industry due to rip & burn process, free download, peer to peer network etc.


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