The document discusses how the music industry has adapted to changes in technology over time. It notes that the pace of change is accelerating, with new formats and ways of consuming music constantly emerging. The music industry has survived disruptions through formats like vinyl, cassettes, CDs, and now streaming. Streaming revenue and access models are increasingly how musicians make money, rather than one-time sales. New opportunities exist in live events, branding partnerships, and monetizing music used in other media. India is a growing market for streaming as smartphone use increases there.

1. Adapting to change
Lloyd Mathias
June 12, 2018

2. Change is the
only constant
The pace of change,
obsolescence and renewal is
accelerating ……Two-thirds of
what we consume today was not
invented twenty-five years ago.
We had vinyl, then cassettes,
then CDs, then digital
downloads, now streaming,
what’s next?’

3. Change
confronts
most
industries
The pressure of change confronts some of the world’s
most established industries. How do successful businesses
evolve and turn threat into opportunity?
Newspapers
Taxi Business
Book Stores & Libraries
Physical Travel Agencies

4. Change in the
Music
Industry.
The reach of the internet and low cost data have
transformed the music industry – from music
creation and recording to distribution and
monetization.
In this rising digital economy, music has survived
wave after wave of disruption- sometimes
bruised but still soldiering along.
The latest wave – artists propelling their own
career outside of traditional label environments –
thanks to new technology.
People are making albums on their PC’s that
sound as good as studio albums from the 1960′s

5. Key Questions
to confront
Is adaptation or disruption the
secret to longevity?
Is your portfolio fit for the
future or fashioned only on the
past?
Does this uncertainty present
an opportunity to carve out
new & profitable models?

6. Music in India
India recently surpassed the U.S. as the
world’s second-largest smartphone market
with over 300 million smart phone users
expected to reach 450 million users by 2020
Coupled with the world cheapest data,
mobiles are bringing over 6 million people in
India onto streaming services every month
Piracy is still a rampant, with over half of
internet users accessing unlicensed
services.

7. The
Challenges
While piracy is big, simply blaming users
for their unwillingness to pay for music is
a misreading of the market.
There is spending power and consumers
are paying mobile and cable bills and for
video subscriptions.
Need to engage directly with these new
listeners through access models &
cheaper plans, and once wooed into this
free world work to upsell

8. The
Future
A decade ago monetizing music was mostly
about CD sales & Publishing Royalties
Today, monetizing music is no longer about
convincing fans to purchase something
The outcome of a shift from a sales model
to an access model is that you don’t get
paid once anymore – you get paid forever.
MaaS - Music as a Service.
Going forward, a majority of revenues for
music rights will be from micro payments

9. New
Opportunities
Ownership is old news. Today it is the social
aspect of music. You make money when fans
share |add to playlists| use music to make videos
Live Events & Experiential Marketing
Getting revenues out of use in films, Tv shows,
commercials and video games
Partnering with consumer brands

10. Music & Building
Brands
Sound has the
power to evoke
imagery, moods,
memories and
stir emotions

11. Brands &
Music
Music is a universal language
and a huge passion point.
Music collaborations help
brands strike a chord with fans.
The emotional connection that
music brings can be stronger
and faster than most other
techniques at a brands disposal

12. Pepsi
Defining a generation using Music

14. Bacardi
Building it into the core of the brand DNA

17. Levi’s
Building its ethos on the popular music of its time

19. HP Lounge
HP launched a streaming service to encourage
millennials to buying laptops. Using a FREE
music service to appeal to millennials.
Partnered with UMG to make HP PC’s the
preferred choice among millennials. This
campaign was tailored to capture young
consumers’ hearts through their ears
The music streaming service ‘HP Lounge’, is
available free when consumers purchase a new
laptop. HP placed music at the forefront of its
brand setting itself apart from other PC makers

21. Thank You