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Marketing the Wider Music Industries: A
Contemporary Exploration of Strategies, Methods
and New Directions in the Post-Pirating Age
Luke Roberts - 201064526
September 2015
Dissertation submitted in partial fulfilment for the degree of
Master of Science in Consumer Marketing – University of Liverpool
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Abstract
How do you sell something you can steal for free, and additionally, steal from the
comfort of your own home? Well, you increase its ease of access, boost the overall
quality, reduce the original cost, and shrink obtainment aggravation. This is essentially
how the music industry has had to tackle the problem of piracy in the last decade.
Piracy, very much like traditional music sales – is becoming a thing of the past.
However, the music industry did not merely defeat the delinquency; instead, it had to
surrender to the widespread accessibility of mass music libraries – both legal and
illegal. Resultantly, new enterprising ways have been created to bring populations back
to legality, and to begin the process of making revenue elsewhere – aside from the
income made from album and track sales, like in times before. It is the marketing of
differing assets that has enabled the continuation of profit across the multiple music
industries, thus allowing the music business to live on.
This dissertation conveys a state-of-the-art exploration of the shifting music industries
and further examines the relationship these activities have with modern marketing
strategy; the text will correspondingly examine the current state of the market. The
investigation will not only identify case examples and apply them to existing literature
theory, but the research provided may also be used as reference points for future
academic use, exploiting the 2015 state of the market – arguably, at one of the most
important times in its existence. The project uses only secondary data, of both
qualitative and quantitative types, to portray these relationships from a modern and up-
to-date perspective. The study is a mixed-methods approach.
Overall, the text demonstrates reoccurring marketing directions, through implemented
strategic examples, of how the music industries generate maximum profit post-piracy.
The text also conveys how the interlinked marketing and sales methods target
consumers in various, new and interesting ways through artists of variable popularity –
predominantly online. Nonetheless, it is to be reminded that these methods may rapidly
become obsolete and ineffective in years to come. However, this is always expected
and is considered the foremost limitation when researching such an ever-changing
marketplace; such a constantly developing and technologically centred, fluctuating
environment. To conclude, the dissertation provides a snapshot of marketing’s
relationship with the multiple music industries of 2015, and finally, hints at what to
expect in future years.
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Attestation
I understand the nature of plagiarism, and I am aware of the University of Liverpool’s
policy on this.
Signature: Date: 10/09/2015
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Acknowledgements
Notable thanks are given to my family and friends during the time of writing – their love,
support, mentoring and interest has made the project’s workload more manageable,
and resultantly enjoyable.
Additionally, appreciations to the staff at the University of Liverpool – in particular at the
Management School; from the day-brightening and uproarious café staff, to the
inspiring, knowledgeable and work-provoking teachers. Most of all, I would like to send
my sincerest gratitude to Julia Hodgson, my dissertation supervisor – thank you for your
welcoming, thoughtful and enthusiastic guidance.
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Table of Contents
Abstract.......................................................................................................................... 3
Attestation...................................................................................................................... 4
Acknowledgements ....................................................................................................... 5
Table of Contents .......................................................................................................... 6
List of Figures ................................................................................................................ 7
List of Tables ................................................................................................................. 8
1 Introduction .............................................................................................................. 9
1.1 The Post-Piracy Age ......................................................................................... 9
1.2 Scope and Objectives ..................................................................................... 12
1.3 Research Design............................................................................................. 13
1.4 Achievements.................................................................................................. 13
1.5 Overview of Dissertation ................................................................................. 14
2 Review of the Relevant Literature ......................................................................... 15
2.1 Outline ............................................................................................................. 15
2.2 The Wider Music Industries: A Context for Study........................................... 15
2.3 Music Streaming Services .............................................................................. 17
2.4 Live Music........................................................................................................ 19
2.5 Merchandise.................................................................................................... 21
2.6 Artists as Brands ............................................................................................. 22
2.7 Social Media and Viral Marketing ................................................................... 24
2.8 Conclusive Gaps in Research Literature ........................................................ 26
3 Exploratory Research Methodology...................................................................... 27
3.1 Overview.......................................................................................................... 27
3.2 Design and Analysis........................................................................................ 27
3.3 Statement of Possible Outcomes ................................................................... 30
3.4 Ethical Considerations .................................................................................... 31
4 The Current State of The Market: Key Trends in 2015......................................... 32
5 Music Streaming Services: Data Platforms for Bespoke Strategy ....................... 36
6 Live Music: A Live Nation ...................................................................................... 45
7 Merchandise: The Beats Go On............................................................................ 50
8 Artists as Brands: Born this Way?......................................................................... 55
9 Social Media and Viral Marketing: A Backstage Pass.......................................... 59
10 Conclusion ........................................................................................................... 64
10.1 Summary ....................................................................................................... 64
10.2 Evaluation...................................................................................................... 65
10.3 Limitations of Study....................................................................................... 67
10.4 Future Research............................................................................................ 67
Reference List.............................................................................................................. 69
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List of Figures
Figure 1 – Conceptual Layout ......................................................................................13
Figure 2 – Research Overview.....................................................................................27
Figure 3 - Global revenue of the music industry from 2002 to 2014 ...........................32
Figure 4 – Streaming Growth 2009-2014.....................................................................33
Figure 5 - Internet Radio Advertisement Revenue Prediction.....................................34
Figure 6 - Earnings by musicians, singers, composers, songwriters and lyricists......35
Figure 7 – Closed loop marketing strategy ..................................................................37
Figure 8 – Global Live Music vs. Recorded Music Revenues.....................................45
Figure 9 – UK Festival Ticket Inflation .........................................................................46
Figure 10 – Traditional Live Music Model ....................................................................48
Figure 11 – A 2015 Music Merchandising Model ........................................................51
Figure 12 – Lil’ Wayne – Product Placement...............................................................52
Figure 13 – Beady Eye Promotional Photograph/Pretty Green Advertisement ..........54
Figure 14 – Successful Artist Rebranding Branding....................................................57
Figure 15 – Framework of music industry entities .......................................................60
Figure 16 – Viral Ed Sheeran Video ............................................................................61
Figure 17 – In-venue Mobile Usage and Activities ......................................................62
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List of Tables
Table 1 – A Taxonomy of Streaming Service Data Collection ....................................39
Table 2 – Top 3 Naming Rights Deals in American Venues .......................................47
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1 Introduction
1.1 The Post-Piracy Age
The music industry suffered devastating effects since the dawn of file sharing and
piracy. In the early 2000s not only did stealing music become a guiltless normality
amongst once loyal consumers, illegal downloading swiftly progressed into a simple
task even the most technologically illiterate user could complete. The music industry
had a fight on its hands: the business was attacked by a globally connected theft
network, and it did not consist of prize criminals; rather, guilt-free music fans who were
more than willing to purchase recorded material in previous years.
In 1999, the file-sharing website Napster became one of the most clicked icons on
Windows desktops around the world. From 2004 through 2009, approximately 30 billion
songs were illegally downloaded on file-sharing networks (RIAA, 2015); and in 2011,
96% of all online music downloads were illegal (Go-Gulf, 2011). According to the
Institute of Policy Innovation, at its peak, piracy resulted in $12.5 billion of economic
losses within the music industry; with more than 70,000 lost jobs and $2 billion in lost
wages to workers – this in the American marketplace alone. The increase in illegal
downloads paired healthily with the rise of the iPod and portable mp3 player. Mobile
music took over like never before and in 2007, apple announced they had sold 100
million iPods. Each of these devices containing an average of $800 worth of pirated
music. It seemed there was no easier, nor a more convenient time to steal music, and
with the problem so large-scale, it emerged worthless to invest time and money into
extensive criminal conviction. Established artists, such as Radiohead, were even
releasing albums online for free; surrendering to the piracy world - an unthinkable
business decision, some five years prior.
Piracy reigned supreme for many years, diminishing the music industry’s profit by
billions and claiming the jobs of thousands. In today’s post-music piracy environment,
however, it is naïve to think that piracy was simply beaten through law changes,
enforcement, or a public a ‘change of heart’. It became apparent that consumers were
never going to pay for music again like they had done in the past; new directions,
methods and strategies had to be realised through the innovation of technology. In
other words, the future of the marketplace had to be predicted. Interestingly, the music
companies, publishers or artists themselves did not initiate this movement; but rather
smaller tech- based start-ups. These smaller companies, many now bought out by
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industry giants, began to utilise ‘the cloud’ in the form of streaming entire music libraries
and catalogues online. ‘the cloud’ refers to the practice of using a network of remote
servers hosted on the Internet to store, manage, and process data, rather than a local
server or a personal computer. These companies acted upon the prevalent growth of
high-speed internet access; and more extensive, popular music libraries were uploaded
online, instantly becoming accessible anywhere. Hard-drive space and downloading
became unnecessary. Within twelve months, downloading and pirating became a
nuisance, old fashioned and backward amid digital music users.
In 2014, less than 1% of people under 30 years old claimed that file-sharing was their
main source of obtaining music (Ingham, 2015). The pirates, now in the minority, were
destabilised due to the progressive alternatives in music playback. These new
platforms were not only preferred, but also legal. Today, with very few law-breakers
pirating music, criminal conviction is still deemed futile; even with offenders being easily
located due to technology progression. Through increased education, many
organisations hope for a voluntary change of habit amongst minority file-sharers. New
warnings, as part of a new scheme implemented between internet service providers
(ISPs) and the industry bodies (representing content copyright holders) have recently
been introduced to teach the public about online piracy downfalls and the mammoth
harmful affects it has had on the music industry in the past. Regular warnings are sent
repeatedly to individuals suspected of large-scale online music theft. Nonetheless, if
these warnings are ignored no further action is taken (Vincent, 2014).
Despite the popularity of cloud music, the birth of streaming did not come without its
downfalls; services such as We7 and Spotify were repeatedly caught amongst legal
battles with irate music publishers and continually shamed, mounting losses year on
year. Spotify recorded an operating loss of £119m in 2014 compared to £65.7m in
2013, while its net loss nearly trebled from £40.3m in 2013 to £117m in 2014 (Dredge,
2015). Indeed, the majority of the former pirates’ behaviour had been re-shaped with
legal returning to normality, but it was now time to explore how these streaming
platforms could make up for past and increasing loss of profits. Cloud music had to
quickly become the new birthplace of music marketing. In exchange for free music
plays, the industry learnt that listeners would tolerate advertisements, related and
unrelated to music itself. Through the streaming services, promoters and marketers
could easily target a distinct demographic of listeners; the industry could make money
through listening once more. However, it was the marketing of other products, through
the music, which was generating the majority of the revenue – not the music itself.
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Merchandise, concert tickets, DVDs and subscription benefits, for example. Music still
remained practically worthless, nevertheless; it had become a footpath to cash; a
platform and catalyst for profit. In 2014, YouTube (the popular video sharing website)
turned more music-focused with owners Google clamping down on copyrighted
material and encouraging music publishers to use the website to release new music.
Consequently, YouTube instigated a dramatic surge in adverts across online media
whilst implementing an entirely new marketing and advertising policy – much to the
frustration of the website’s users. Despite the changes, the YouTube-users remained
loyal. Additionally, with the 2015 launches of Apple Music and Amazon’s Prime Music,
the years ahead could provide further changes in the ever-shifting, unpredictable
markets.
It is clear that the music industry can no longer be seen as a collective, with many
researchers and academics claiming what was once the traditional music industry no
longer exists. Tangible music alone no longer equals profit. It is apparent in 2015, that
it is the multi-marketable music industries, as a collective, that make up what is today
witnessed as the modern music industries. These contain subdivisions such as: artist
branding, music licensing and merchandising. These alternative aspects of the
industries have resultantly grown into an important greater than ever before. Live
music, for example, used to exist predominantly to promote and encourage the
purchasing of music. Conversely, live music today exists to generate mass profits
through its showcasing alone. Subsequently, the live marketplace has seen a rise in
large-scale music venues, arena tours and rising ticket prices. It is the marketing of the
‘wider modern music industries’, across a multitude of operations and endeavours,
which has allowed the music business to live on. It is the marketing strategies placed
across the wider industries that this project will explore.
The study of the music industries is not a uniform endeavour; and modern music
marketing is at the helm of all forward thinking progressions in the 2015 marketplace.
There are many and varied approaches that yield valid, interesting and important
understandings about those industries, their cultural and economic impacts, and their
affects on the lives of those who work and interact within them (Anderton, Dubber and
James, 2012). The vast impact the music industries have upon the global economy and
cultural activity proves justice for the research delivered; it is a global issue and one
worthy of study within a marketing field of research.
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When investigating the music industries academically and critically, understanding the
organisational structure of a particular business (or of more than one), can offer critical
insights into how that industry works, and provide useful knowledge in terms of practical
applications. Within the field of marketing, utilising case studies using the knowledge
for future implementation of strategy can prove vital. For example, determining
repeatable procedures for music business success (or systems and approaches to be
avoided), identifying problems within the structure and linkages of an organisation, or
simply generating new knowledge about the ways that music organisations can and do
work, can provide clues as to how they might potentially do so more profitably. In the
turbulent 2015 market, the need to predict the future of the industries could ultimately
ensure its safety in years to come (Anderton, Dubber and James, 2012).
1.2 Scope and Objectives
Overall, the project aims to:
 Analyse a vast array of relevant secondary data from modern and primarily up-
to-date publications, both academic and non-academic, through a mixed
methods approach.
 Use the data to apply the relevant case examples to applicable and insightful
academic theory within a clear categorisation.
 Provide clear and concise illustrations of how the music marketplace utilises the
other endeavours of the industry, since the demise of profit from recorded
music.
 Identify, analyse and sub-divide the main methods and the most profitable
strategies, in which the wider music industries utilise to generate income in
2015.
 Critique and understand the relationship these new industry directions have with
marketing strategy.
 Evaluate the findings, expose the limitations and predict future directions in the
relevant music markets.
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1.3 Research Design
The design of this research project is sequential in nature. Research will be exploratory
using existing secondary qualitative and quantitative data with a holistic design (Yin,
1985). The dissertation project will follow the model displayed in figure one.
Figure 1 – Conceptual Layout
1.4 Achievements
This dissertation conveys a state-of-the-art exploration of the shifting wider music
industries and further examines the relationship these activities have with modern
marketing strategy and new profitable directions. The text correspondingly examines
the current state of the market.
The writing moreover demonstrates reoccurring marketing directions, through
implemented strategic examples, of how the music industries generate maximum profit
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in the post-piracy age. The text conveys how the interlinked marketing and sales
methods target consumers in various, new and interesting approaches through artists
of variable popularity – predominantly online. The findings are repeatedly compared to,
and applied to an array of modern academic literature.
1.5 Overview of Dissertation
The project commences with a review of the relevant literature; with many of the texts
from the fields of marketing and popular music studies. Continuing, the text analyses
the current state of the music market as well as identifying and analysing the position
marketing contains across the wider musical marketplace. The study’s literature review
and main chapters are divided into the following themes of study:
 Music Streaming: Big data in marketing strategy is explored, specially focused
on Spotify as the industry leader.
 Live Music: Examining the increase of ticket prices and the benefits naming
rights have on brands in live performance spaces.
 Merchandising: Arguing the requirement to address merchandising in 2015 as
a fundamental part of the retail and fashion sectors.
 Social Media and Viral Marketing: Identifying how social media is best used by
artists, connecting with fans and consumers on personal levels.
Finally, the research is evaluated and concluded in the closing chapter; future market
directions are also predicted across the studied industries. The text exploits the
project’s limitations of research before proposing possible directions for potential study
within similar frameworks.
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2 Review of the Relevant Literature
2.1 Outline
The purpose of the literature review is to convey the research and findings that have
already been conducted in the field. The review will provide a regulated indication of
the most pertinent contributions to the research in relation to academic, professional
and practical literature. It will also highlight the key subject areas, within the project,
that will be most relevant to interrogate further – improving and adding further context
in new findings. It is vital this process must be completed thoroughly as this will remove
the need to rediscover and convey pre-existing knowledge that has already been
reported (Fisher, 2004). The following research will be segmented using a two-tier
approach, thus encompassing a clear thematic and systematic process. The review will
be divided into eight themes: the first providing the contextual relevance ‘The Wider
Music Industries’, the proceeding five subchapters containing a direct relation to the
later dissertation chapters 5-10. Music streaming services, live music, merchandise,
artists as brands and social media and viral marketing as these subchapters. The
closing chapter summarises the overall gaps in literature.
2.2 The Wider Music Industries: A Context for Study
The study of business within Popular Music academia is a field that is relatively new to
the scholastic environment, and a field that unjustly still contests elitist, adverse views.
It would seem that the word ‘popular’ naturally follows a somewhat ‘educational eye
roll’ yet, the high-art verses low-art battle seems unequivocally irrelevant when the
depths of the field become apparent to those who allow countenance and deeper
exposure.
The term ‘industry’, as the singular, is rarely used to describe the music business in
2015. Many academics and researchers are in agreement that the somewhat old
fashioned phrases ‘the record industry’, later becoming ‘the music industry’ no longer
accurately depict the vast array of activities and processes the wider music industries
now represent. Mulligan (2015) states that the ‘recorded music product’ is what drives
the larger and wider music industries; with only 18% of the industries’ market sales
stemming from distribution of recorded music. Wall (2013) reiterates this interpretation
claiming:
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‘There is a tendency, when discussing music, to talk about the
organisations as a single ‘music industry’, and to use this term
interchangeably with the term ‘record industry’. This is largely because
recorded music is still central with the economics of popular music.
However, we need a way to understand this central role without
underplaying the importance of the other ways people make money out
of music. Live music, publishing, retail, promotions, and even music
teaching and the design of music technology, are important to the
production of music. You therefore find that the term ‘music industries’
should be the term most often used. Talking about the music industries
ensures we can remain aware that, even though the record has a
central place in popular music, other activities and institutions and
industries are still very important’ (Wall, 2013, p.97).
Similarly, in Understanding the Music Industries, Anderton, Dubber and James (2013)
argue how the traditional representations of the music industry have to be questioned
in order for it to be critiqued accurately. The text claims that the traditional music
industry’s flow model, the notion of music being crafted, published and sold, began to
be disrupted since the digitalization of the music industry in the 1980s; thus beginning
its transformation into the plural term. In chapter one, ‘Studying the Music Industries’,
the authors’ contest how an interdisciplinary study approach to the wider music
industries often work hand-in-hand and continually allow a better understanding of the
music business and its links with the economy and social culture. This text provides
key insight to the inner mechanisms of the hierarchical assembly of the music
industries, with the writing intensely scrutinising musicians’ contractual rights. However,
minute investigation of streaming services within the text (notably found in chapter 5 –
‘From Walkman to iPhone) show how quickly popular music texts can become out-
dated. However, the information on music distribution is redundant just two years after
its publication, as previously stated, a trend in an ever-changing industry.
Jones (2012) and Talbot (2002) additionally provide well-defined frameworks and
descriptions of the wider music industries. Cloonan (2015) in Popular Music and the
State discuss how the powers have shifted across an array of differing organisations
within a political perspective. Continuing, the text explains the decline of multinational
recording companies, and the accompanying rise of promotion firms such as Live
Nation, exemplifying global shifts in infrastructure, profits and power. The text contains
four highly relevant themes which provide a basis for the study. They are: the changing
role of states and industries in popular music activity; assessment of the central
challenges facing smaller nations competing within larger, global music-media markets;
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comparative analysis of music policies and debates between nations (and also between
organisations and popular music sectors); analysis of where and why the state
intervenes in popular music activity; and how (and whether) music fits within the 'turn
to culture' in policy-making over the last twenty years (Cloonan, 2015). The text, on the
whole, exposes the extreme power the music business clutches across popular culture.
The modern evidence provided is eye-opening and considered essential reading within
the field.
Despite this, it is naive to think that all recently published texts refer to the term
‘industries’ in its wider context. Many academic journals and books still provide useful
and up-to-date frameworks of study, despite the use of the somewhat out-dated term.
2.3 Music Streaming Services
The rise of music streaming services has been prominent across a multitude of
academic studies; yet, the study of its relationship with marketing strategy was found
to be a more specialised and lesser-explored area of research. Marketing texts that
survey the use of trend-inspired marketing strategy, as well as the collection of big-
data, can provide a good context in which music streaming services can be studied
within. In general, comparable marketing strategy can be utilised across a multitude of
industries. It is to be noted that the majority of the material discovered relating to
bespoke streaming marketing strategy was found predominantly within service
marketing -themed texts.
Tschmuck (2012) argues how the processes and structures of the music industries
have been altered by the on-going digital revolution and further explores the birth and
initial financial failure of streaming services. He claims that is was ‘access to music’ that
the consumer craved, and that personally ‘owning’ music became unimportant;
something the industries should have predicted earlier. Additionally, Tschmuck also
investigates how modern marketing strategies can function within online digital music;
however, it does not offer a further intensive exploration. ‘Digitalisation revolutionises
not only the distribution of music but also all other aspects in the value-added network
of the music industry’ (Tschmuck, 2012, p.193). Frost and Strauss (2009), Esgate and
Liberman (2014) and Hoffman and Bateson (2001), like Tschmuck, all use streaming
services as a means of case study within the marketing literature. However; as stated
– further interrogation on the topic remains absent across the texts.
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In contrast, the Handbook for Service Marketing Research (Chung and Wedel, 2014)
directly addresses the marketing strategy in ad-based streaming services and is one of
few texts to directly link the strategy to previously studied and recognised marketing
theory: the closed-loop approach.
‘We can see that closed-loop marketing (CLM) is emerging as a major
strategic option. There has been an increase in the popularity of this
approach in online and mobile applications. CLM comprises a cycle in
which customer information is continuously collected and updated, and
advanced analytics are used to forecast customer behaviour and
redesign and personalize products, services and marketing effort in
short cycles’ (Chung and Wedel, 2014, p.398)
Hutchison, Allen and Macy’s publication Record Label Marketing focuses on the online
music environments, as well as depicting relations digital advertising has with
marketing mix theory. Based on American statistics, the text demonstrates the
utilisation of trends discovered within genre, purchasing and format. The marketing
strategy is created and tailored through analysed demographics, listening habits and
the geographical locations of the users of the ad-based streaming services. The text
highlights the importance of approaches in music marketing strategy, echoing the
‘Forecast of Future Trends’ theory in Drucker’s early writings (1973). The text contains
no comparison of the researched inclinations to real-life campaigns as case studies;
neither does the text explore the financials of the strategies. Finally, the text neglects
to explore the wider impact the marketing directions have on other sectors across the
industries.
Jeffery, in Data Driven Marketing (2010) contends the prominence of data driven
campaigning in modern strategic planning. The text includes practical methods that can
be used by marketers in the development of their own plans. He disputes how the 20%
of businesses that utilise data within their marketing strategy are the ‘leaders’ amongst
markets. Jeffery provides case examples, yet none are related to the music industry.
Despite this lack of music-related examples, a critical review would suggest his
argument is entirely positive - completely in favour of the use of data in modern
marketing, just like companies such as Spotify and Pandora use these techniques in
their marketing approaches.
Fulgoni’s article ‘Big Data: Friend or Foe of Digital Advertising?’ (2013) provides a
contrast. This article highlights the use of collected data within the digital sphere and
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focuses on real-life impacts of trend-inspired markeing strategy. It offers a balanced
view of research-based marketing, arguing how the use of such data, in real-time
market analysis can correspondingly become a hindrance. She contends that the
processed information can force marketing managers to make rash decisions due to
data’s ‘ease of access’ and ‘automated analysis’. The publication neglects to mention
music-related findings, however; but it does focus on the aspect of ‘brand’, to be
covered in a later sub-chapter 2.7.
2.4 Live Music
On the whole, the marketing of live music is one of the lesser-explored topics amid the
pre-existing literature mentioned within the chapter. Gamble and Gilmore (2013)
directly link the modern live music environment with structured co-creational marketing
strategies. Featured in the European Journal of Marketing the writers discover that the
co-creational marketing strategy can be divided into five typologies when relating to the
live music industries. Providing relatable case examples, the factual studies are not
only discussed, but also contextualised within the identified typologies, providing
informative and theoretical conceptual background.
Smilansky (2009) encompasses live music marketing within her studies – relating to
experiential marketing and brand experience. Not only is publicising technique
discussed within the live settings, suggestions are offered on how experiential
technique can enhance the marketing strategy of artists. She later claims that
‘experiential marketing is made up of live brand experiences– two way communications
between consumers and brands which are designed to bring brand personalities to life;
experiential marketing therefore fits in with the current marketing climate’ (Smilansky,
2009, p.69). Despite offering interesting insight into these methods, no further research
or proof of success-rate is offered within the text – or others published after 2009.
Esgate and Lieberman in their chapter ‘Live Music’ correspondingly study the
importance of marketing within live music contexts, however, they evaluate the power
already established. Unlike Smilansky, their chapter distinctly focuses on boosting
publicity of the up- and- coming musicians, seeking to raise their public profile. Other
writers such as Lathrop (2013), Bennett and Waksman (2015) and Wikström (2013)
provide further contextual analysis and interpretation relating to the relationship the live
sector holds within modern music marketing.
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In 2010, Ticketmaster and Live Nation merged to form Live Nation Entertainment
(known today as Live Nation), a global industry powerhouse and producer of live music
concerts. Currently, Live Nation stands as the major player in the live music industry
sector, with many musical superstars signing ‘360’ contracts with the global
organisation. As Live Nation is such a prominent company in across the modern
industries, it is important to explore literature that will not only offer factual insight into
the organisation, but also provide an interrogation of its culture, portraying the global
effects and ethical outcomes the consequential actions may have.
Before the Live Nation Entertainment and Ticketmaster merge in 2008, Martin Russ
analysed, and correctly predicted the imminent and relatively precipitous growth of the
live music marketing, its need for greater promotion. His article, ‘Live and Kicking’ in
the Marketing Journal states ‘With the record business all but collapsed, concerts are
now at the centre of the music industry's marketing machine. And Live Nation, a
company run by Canadians, is poised to dominate’ (Russ, 2008). Not only does Russ
explore the new market directions; but he also reconnoitres the rise of the ‘360’
contracts, subdividing his article into: touring, ticketing, fan clubs, recorded music,
clothing and licensing and endorsements.
In an unofficial response to Russ’ predictions; Baron and Budnick released ‘Ticket
Masters: The Rise of the Concert Industry and How the Public Got Scalped’ in 2012.
This text offers a ‘clear, comprehensive look at a murky business’. The publication not
only researches the wider affect of Live Nation (chapter 11), but also exploits market
secrets, revealing marketing ploys in the live music industries. The authors explore
what they title ‘consumer traps’ such as ‘fan-club benefits’ and ‘priority ticket sales’. It
is of importance to note that the most up-to-date information found relating to Live
Nation is usually contained within non-academic sources; the majority of writings
vilifying the greed and domination of the company. The lack of academic research
relating to Live Nation, arguably an industry-changing company, gives the dissertation
project a further justification of study – as well as possible scope for further individual
research topics.
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2.5 Merchandise
The music merchandising industry has always had to compete against the aggressive,
persistent unofficial and cheaper ‘fan-merch’ backlash. For a fraction of the official
product price, unendorsed (both legal and illegal) goods are sold online, in market stalls
and outside live music venues across the world. Despite this, the merchandise industry
still remains one of the highest-earners across the wider industries and its importance
has notably risen in in recent years, thus making this sector a popular discussion across
academia. Nevertheless, merchandising is far more than simply band t-shirts and
posters, as this sub-chapter discovers.
For this topic, is it deemed appropriate to explore academic texts from other fields that
may not directly link to the music sphere. Through surveying diverse forms of literature,
particularly focusing on the entertainment industry, this will provide a comprehensive
review of merchandising’s context within marketing. Ogdena, Ogdenb and Longc
(2011) provide a historic landscape documenting the birth of merchandise in music
marketing. In addition, the paper demonstrates the rapid changes occurring, driven on
by innovative advances in technology. Other notable works which provide similar
frameworks, although slightly out-dated, include Parker (2004), Crandall and Vega
(2006) and King (2009).
Sparrow (2006) in Music Distribution and the Internet: A Legal Guide for the Music
Business, notably in chapter six, provides a legal perspective on the markeing of
merchandise. Sparrow delivers an understanding of how the law applies, and how to
frame, price and deliver their services in a way that ensures their protection under law.
Later chapters explore the significance of merchandising in terms of generic artist
promotion; using Nirvana as a case study. He writes: ‘The same age demographic
tends to be those who purchase music singles and albums and, as fans of particular
artists, have a demand for merchandise which promotes the artist (Sparrow, 2006,
p.78).
Safir’s (2013) text Marketing and Merchandising for Musicians provides a good how- to
guide to marketing artist merchandise within the modern music industries. Safir, a
veteran composer, producer, and engineer provides information needed when crafting
a promotional strategy in an attempt to enhance profit margins through other
commercial sectors. Specifically in Chapter 8, the information identifies the importance
of branding and its relationship with selling merchandise. Continuing, the chapter also
converses promotion in relation to marketing strategy – with the significance of the
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online world heavily emphasised. This text demonstrates large contrasts to Pakinkis
(2012), to be discussed in the next paragraph. Safir views merchandising in its
traditional form – predominantly as artist memorabilia or music-related products. It
could be argued that Safir’s text holds a slightly more out-dated view of the modern
merchandising market.
Pakinkis (2012) in ‘Hands on the Merchandise’ focuses on the increasing significance
of merchandising in the music industries across Great Britain. The research principally
focuses on the benefits of musicians and labels. An interview with chief executive officer
Barry Drinkwater of Global Merchandising Services exposes the profitability of
merchandising, and further provides information of how great an impact merchandising
has upon artists’ incomes. The article continues to suggest how musicians have begun
to somewhat move away from distinctly artist-relatable products and progressed into
the generalised retail sectors; further stating that some artists are currently attempting
to leave the retail landscape and move entirely into the fashion sphere. Pakinkis is
fundamentally asking- that due to astute marketing technique, can we even tell what
merchandise is anymore?
Texts that provide clear and helpful examples of merchandising marketing strategy, yet
are not directly relate to the music industries, include: Lamb, Hair and McDaniel (2009),
Bhalla and Anuraag S (2010) and Kunz (2010). Although not directly linked to the wider
exploration, the information still provides good background theory to be distinguished
when constructing later chapters of the project.
2.6 Artists as Brands
Since the birth of popular music in mainstream environments managers and industry
associates have used branding to increase profit, ensuring that the artists they market
are ‘products’ in their own right across the musical and retail marketplaces. Within
academia, this topic and the processes involved have been well documented through
popular musical eras – from the fifties to present day. In 2003, Lieb argues that
somewhat tangible ‘music’ can be, at times secondary in modern marketing strategy.
Lieb compares modern music branding to traditional consumer environments. For
example: Lieb contests that just as customers pay more for Coca-Cola (than a store’s
own brand), customers are also willing to pay more for known ‘artistic brands’. She
continues to argue that brand value, which essentially quantifies brand equity, indicates
the financial value of a musical brand (Lieb, 2013).
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Artist Management for the Music Business, by Allen (2014) provides the most up-to-
date perspective on contemporary artist branding. Allen stresses the importance of the
manager in the wider music industries, claiming that ‘the manager, more than ever, is
at the centre of an artist’s career – making far more decisions that the artists
themselves’. The book offers a wide range of case studies and industry lessons as
Allen provides a focused look and real-life personal insight at managing artists’ careers
in past years. Chapter 8, ‘The Artist as a Business’ provides imperative material in
regards to the brand management and its role within the marketing of an artist. With a
specific focus on target-market strategy, Allen proposes the key factors when
attempting to connect to artists’ fans through what he calls ‘commercial activity’:
understanding target market, defining an artist’s target market, viewing market
segments and branding through image. Similar, yet more out-dated reviews of this topic
include works by: Schroeder, Salzer-Mörling and Askegaard (2006) and Christian
(2011).
Blackwell and Stephan (2004) exploit the implementation of strategies that notable
bands have used to transform ‘customers’ into fans thus creating deep, emotional
connections – equalling profit. The authors argue that many companies, outside of the
musical sphere, can learn lessons from the extreme success from the branding
musicians around the world. They contest that companies should be urged to ‘shake,
rattle n’ roll’ the corporate traditional marketing branding mind-set (Blackwell and
Stephan, 2004). They refer to successful musicians, such as Elton John and Madonna,
as ‘modern architects of branding’.
Such is the depth of this subject; many authors take distinct approaches – focusing the
study within a smaller framework. Lang (2010) highlights the extreme importance of
branding within target markets, recognising the trends within artistic branding often hold
with young adults. The text explores popular music culture, corporate branding and the
mediated cultural practices of youth. ‘Contemporary theories of marketing and branding
are brought together with critical and cultural accounts of mediated social life. The book
explores the distinctive concerns and debates of these different perspectives and the
lively interface between them (Lang, 2010). Through an ethnographic study, chapter
five specifically relates to young people, artistic branding and co-creational marketing
strategy. The text argues that the modern brand images are habitually results of youth
movements – the young people themselves creating the brand through the fashion
trends of the time.
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Similar research is found in Lieb (2013) however; a bespoke focus on gender is
witnessed in this writing. The theoretical framework of sociology, mass communication
and gender in marketing theory is mostly explored. Lieb argues that the media has
learned to prioritise sexual attractiveness over talent as they fight a crowded field for
movie deals, magazine covers, and fashion lines - let alone record deals. The focus on
the female pop star's body, as her core asset, has therefore resigned many women to
being ‘short term brands’ positioned to earn as much money as possible before burning
out or aging ungracefully (Lieb, 2013). This somewhat feminist lens on this study proves
highly relevant in the current marketplace with the rise of feminist voicing prominent in
2015 western social culture.
Most recently, Davies and Slater (2015) in ‘Unpacking celebrity brands through unpaid
market communications’ interrogate the uncontrollable angle associated with the
somewhat unwanted and press-induced branding through marketing communications.
Despite the text not connecting to musical artists exclusively, any publications that
relate to the aspect of ‘celebrity’ are deemed highly relevant. In the western celebrity-
obsessed world, the notion of witnessing musical artists as celebrities, in their own right,
is vital in order to form a modern state-of-the-art framework of study (in other words,
celebrity pop culture). Davies and Slater question if celebrities themselves now have to
take on the brand marketer’s role and further argue that despite the plentiful literature
on celebrity appeal, the impact of involuntary connotations remains underexplored.
Addressing this gap, the article critiques the media’s involuntary messages,
documenting the effects these actions take: ‘The transformation effect that new media
offers for celebrity is growing’ (Davies and Slater, 2015). Other relevant works
associated with celebrity branding include texts by Dwivedi, Johnson and McDonald
(2015) and (Silva et al., 2015).
2.7 Social Media and Viral Marketing
To survey the literature within this field, it is essential to realise that the study of
prevailing celebrity culture, within non-music related research, is not only required, but
also vital to demonstrate a clear review of this sub-topic. It has also been determined
that after examining the extensive works available, academic journals provided by far
the best modern viewpoint. This is due to the faster ‘writing to publication time’, thus
enabling prevailing research perspectives and analysis.
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‘Viral marketing through social media networks enabled artists to directly communicate
with their fanbases’ (Tschmuck, 2012). A new dawn of marketing strategy has prevailed
through the development of technology, as Tschmuck explains in his writings. The
practice of artists endorsing, promoting and advertising (via their own social media
accounts) has become a normality and necessity across the music industries and
indeed, the celebrity cultural web. Authors such as: Noor Al-Deen and Hendricks
(2012), Tiago and Veríssimo (2014) and Veeck and Hoger (2014) provide overviews of
social media’s links with modern marketing strategy exhibiting how its use has become
an integral part of the ‘contemporary classroom of advertising and public relations’. The
mentioned texts survey the impact of word of mouth (WOM) and electronic word of
mouth (EWOM) within a marketing context. Overall, the publications demonstrate
primary qualitative and quantitative research findings, showcasing the extreme
importance and impact of social media in modern environments.
‘The Use of Social Media for Artist Marketing: Music Industry Perspectives and
Consumer Motivations’ by Lankinen and Mäntymäki (2013) addresses consumer
interaction across social media usage. The writings are distinctly related to the modern
music industries. Although the text neglects to apply former examples to contemporary
theory, the investigation does offer suggestions (through proven hypothesises findings)
aiming to enhance companies’ social media efforts. The research found that there are
five key motives, in which social media usage can relate to consumer commercial
activity. They are: ease of access to content, a sense of affinity, participation, interaction
and social identity.
This research has been furthered by Zhu and Chen (2015) in ‘Social media and human
need satisfaction: Implications for social media marketing’. Mirroring the views of
Lankinen and Mäntymäki; the authors state that in order for social media and viral
marketing to be effective, the social media marketing efforts need to be congruent and
aligned with the different needs of the targeted social media users. Their research
presents a modern typology of current social media services using the following
categories: relationship, self-media, collaboration, and creative outlet, describing how
each social media opening caters to basic human needs, providing implications for
social media marketing based on the need-congruence lens. Aaker (2015) additionally
explores this topic focussing on brand to consumer ‘digital relationships’.
In contrast, the writings of Kaplan and Haenlein (2012) focus on one popular artist,
Britney Spears, in an attempt to understand and communicate the success and need
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for the markeing managers’ focus on social media. In ‘The Britney Spears universe:
Social media and viral marketing at its best’, the authors review what they believe to be
the textbook example of social and viral markeing online. Specifically, the text analyses
the single launch ‘Hold It Against Me’ and the affiliated album Femme Fatale in early
2011. The interplay of postings on Twitter, YouTube, and Facebook - combined with
comments on her webpage, BritneySpears.com - can be seen as a prime example
of social media usage to support new product introductions (Kaplan and Haenlein,
2012). Despite demonstrating an intense analytical approach to the study, its relevance
can still be utilised qualitatively to demonstrate social marketing’s prominence. Further
divergence is shown in Sisario’s 2013 writings. This particular text examines the
marketing of Beyoncé Knowles' self-titled album Beyoncé. The argument exploits the
singer's use of stealth marketing techniques, rather than typical use of social media
platforms found in the usual online campaigns.
2.8 The Reoccurring Gaps in Research Literature
The majority of the knowledge gaps arise from the authors’ time of writing – not through
a lack of wider research. In other words, the marketplace progresses so quickly, is it
found that journals and texts soon become outdated, and in some cases irrelevant -
extremely hastily. The writings no longer being applicable to contexts found in the
present day marketplaces
Additionally, many of the mentioned texts failed to predict or conjecture the future of
the industries, with the writings too frequently focusing on past events and backward
operations. For this dissertation project to be justifiably progressive, the text must focus
on cutting-edge directions; the advances left relatively unexplored by pre-existing
academia and furthermore unproven in real-world frameworks.
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3 Exploratory Research Methodology
3.1 Overview
The research provides an exploration of secondary applied research to survey the
current state of the wider music industries in 2015, with a focus upon the marketing of
other endeavors – since the demise of recorded music’s profit generation. Using a
mixed-methods approach, the quantitative data will provide a justification and backing
for the exposed qualitative findings – giving the research a profound context through
real-life case examples. Through the comparison of the findings with academic
material, exploration of the marketing of the wider music industries can be conveyed
throughout. It is vital the information gathered, analysed, and critiqued is as new and
as recently published as possible. The information explored can then be evaluated as
a conclusion on the current market state can be argued. This allows possible
predictions to be made regarding the future of the wider music industries, as well as
proposing where the next big changes could perhaps be witnessed; this in relation to
the marketing of even newer directions as part of an industry which is continually
promoting and utilising the most profitable tools across the marketplace.
Figure 2 – Research Overview
3.2 Design and Analysis
In order to complete the objectives, the research time period must first be considered
when constructing the methodology. I, the investigator, would argue that the
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demonstration of findings would be better conveyed through the use of secondary
research – as this project attempts illustrate across the 2015 state of the market. The
research proposes an analysis of market trends and modern directions, in relation to
the strategic, practical and academic marketing theory. Therefore, the use of pre-
existing data would make for more accurate results. The most frequent application of
secondary data in marketing research is to gain familiarity and to establish a context
for wider and new research (Patzer, 1995). With time-restraints and a restricted budget,
it is essential to use secondary methods, as opposed to conducting primary research.
Dale’s writing on the use of secondary quantitative research significantly applies to this
proposed task; she contests that this strand of research should intensely focus on the
analysis of data collected by other researchers, often for a different purpose. She
continues to communicate the benefits of this research, arguing that secondary
analysis of high-quality data can provide extremely cost-effective results, claiming:
‘projects with limited funding can reap the benefits of a large investment for very little
additional cost. The time-consuming and expensive processes of planning and
conducting a survey, and cleaning and documenting the data are avoided entirely’
(Dale, 2004). Considering the limitation of time and cost to this project, Dale’s
arguments justify this specific research methodology.
Overall, the research will predominantly use secondary quantitative and qualitative data
in tandem. Quantitative data is typically based on the collection and investigation of
statistics – applicable to the research aims. Large amounts of new data are to be
examined with these trends and findings to be compared to theory and qualitative
findings; hence making this text a mixed method research project. During the research
process, it is expected that most of the quantitative secondary data, based on the new
market directions and marketing strategy may not necessarily come from academic
sources. Therefore, the reports, charts and market figures are to be explored with the
forthcoming view that they will be applied to academic works and practical settings/case
examples. It is vital to focus on the statistical publications that have not been altered
for other research purposes. This way only accurate documentation can be used;
statistical data must be raw. The qualitative research will help adopt an understanding
of the wider music industries and will help convey the image of the 2015 market through
a more human and social approach. ‘Qualitative research uses methods such as
participant observation, or case studies which result in a narrative, descriptive account
of a setting or practice’ (Parkinson and Drislane, 2011).
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This approach does not arise without some limitation. The used quantitative research
methods may be structured and obtain large samples, however they are not often
explanatory and can lack depth. The findings are principally numerical, so it is crucial a
social context and knowledge base is attached to this. There are sizeable differences
between qualitative and quantitative methods; both can be combined in an attempt to
amplify the benefits within the research as well as providing an explanation for each
other. Creswell states that there is more scope for a mixed method approach in works,
claiming that it ‘…adds complexity to a design and uses the advantages of both the
qualitative and the quantitative paradigms. Moreover, the overall design perhaps best
mirrors the research process of working back and forth between an inductive and
deductive model of thinking in a research study’ (Creswell, 2013). As Creswell states,
the mixed methods process would be suitable and most appropriate to the research
study, due to timescale and the previously stated limitations. Secondary research,
however, despite its advantages, does create limitations too. Housden (2007) argues
that secondary data, which is not directly related to the research question, can
sometimes be forced through temptation to fit the exploration. Additionally, data may
not be comparable, completely available or was gathered for a particular purpose – in
an unrelated field of study. Therefore, it is important to evaluate the data before its use.
Important points to be considered when evaluating the secondary data in this project:
 Who published the study, and who gathered the information?
 For what purpose was the data collected?
 When was the data assembled?
 How was the information collected, organised and portrayed?
 How reliable and raw is the data?
 Can the data be compared?
Certain qualitative approaches must be taken in order for a comparison to be drawn to
the statistical information. Specific campaigns will be researched through the qualitative
researched methods, yet it is important to highlight that this information will still remain
secondary. The use of Qualitative research, linking statistics to the real-life marketing
strategies will provide broader versions of theory than simply a relation between the
variables (Silverman, 2006). The qualitative research method of secondary data
analysis includes all documents that can be read - advertisements included. It is
important to focus on documents that have not been altered for research purposes;
only precise documentation can be used. This abridged mixed-method research
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approach is demonstrated in figure 2. The research has been divided into distinct
categories to best show the most prominent methods of marketing in the wider music
industries, therefore, during research, the information collected must be grouped
similarly. The sub-categories are: streaming services, live music, merchandise, artists
as brands; and social media and viral marketing.
So – this task is an exploration. The methodology must first address the acquisition of
the data that has already been published. Then, I the researcher must attach this
information into the agreed categories and apply it to found theory and 2015 market
contexts. Sales figures and company balance sheets and accounts are annually
published; the Internet will provide sources of data search for the task. Since this
information has already been published by large-scale companies, there is no need to
question its reliability or sample and re-organise data discovered. This information must
be referenced extremely accurately when used within this research project.
The study of specific marketing theory is a more academic investigation, again primarily
using the Internet, as published journal articles hold the most up-to-date academic
information for this unique market review. The secondary sources available in the
University Library, both online and offline will additionally add to the foundation of my
academic knowledge base. Lastly, news articles and images are all accessible online
and will also be surveyed, as well as later critiqued if found appropriate. Only the most
up-to-date information on the subject will be deemed relevant.
3.3 Statement of Possible Outcomes
The text hopes to provide a window into marketing’s relationship with the wider music
industries in 2015. The project aims to expose reoccurring marketing directions,
through implemented strategic examples, showing how the music industries generate
maximum profit in the post-piracy age. The text conveys how the interlinked marketing
and sales methods target consumers in various new and interesting ways through
artists of variable popularity, predominantly online. The findings found will be repeatedly
compared to, and applied to an array of modern academic literature. Nonetheless,
conveyed methods may rapidly become obsolete and ineffective in years to come, as
is expected.
Through this applied research and analysis, the information found will uncover and
suggest how profit could be made in the future marketplace. This could include a
dramatic rise in subscription content across the industry, more profound product in
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personal online material and a possible fight-back against music streaming industry
giants – furthering wars between creatives and distributors. For example, could artists
allow the streaming of music from their own individual websites or applications take
over, cutting out middleman all together? This would surely allow for greater profit
through a complete choice of advertising strategy; as well as marketing their own
endeavours further (such as merchandise and live performances) – with complete and
total control.
3.4 Ethical Considerations
The project will abide by the Liverpool University’s Management School academic
ethical framework and raises no foreseeable risk, however, a renewed use of data
requires consent and is not always made clear. The research will be transparent
regarding the study’s purpose, methods and findings. It will also base conclusions on
the full range and complexity of the evidence gathered from the fieldwork through the
avoidance of manipulating pre-conceived theories. The project must additionally
respect the intellectual property rights of applicants through the University publishing
research. The researcher must ask the question ‘Who owns the data?’ when applying
it to their own works.
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4 The Current State of the Market: Key Trends in 2015
In order to contextualise the subsequent chapters, it is important to bear in mind the
state of the market at the time of writing. This chapter will highlight the key statistical
information, which holds substantial relevance when attempting to depict an accurate
portrayal of the purchasing trends, consumer motives and the growth and decline of
markets across the wider music industries. Firstly, it is important to understand that the
music industries are still experiencing an overall movement of financial decline, be it
gradually diminishing.
Figure 3 - Global revenue of the music industry from 2002 to 2014 in billion U.S. dollars
(Statista, 2014)
An estimated 41 million people paid for music subscription services in 2014, five times
the level of the eight million people in 2010. These subscriptions are part of an
increasingly diverse mix of industry revenue streams. Returns from music subscription
platforms (including free-to-consumer and paid-for tiers) grew by 39.0 % in 2014 and
are growing consistently across all major markets (IFPI, 2014).
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Figure 4 – Streaming Growth 2009-2014 (IFPI, 2015)
Online Subscription services, as part of the progressive revenue stream movement, are
increasing in terms of industry importance and profit gain. Income generated from the
streaming services, both subscription and free ‘ad-based’, grew by 39.0 % in 2014.
Global brands, such as Spotify, continue to expand their cliental worldwide despite new
entrants into the streaming market. The notable launches include:
 Google launched its online/offline music video subscription service – Music Key,
as part of YouTube, in late 2014.
 Apple Music was launched late June 2015. Free for the first three months -
$9.99 after trial. A reported 11 million users by early August, with only 21%
leaving the service after initial use.
 Amazon Prime Music - part of the overall Amazon Prime subscription benefit
package (streaming video and next-day parcel delivery, for example) - a $99.00
per annum service. Launched June 2015.
The growing subscription model is leading to more payment for music by consumers,
many of whom appear to be shifting from pirate services to a licensed music
environment – ensuring artists and right holders receive royalties. The number of
paying subscribers to subscription services rose to 41 million in 2014, up from just eight
million in 2010’ (IFPI, 2015). This has therefore allowed the wider music industries, in
particular the record companies, to adapt marketing and profit-based models, which
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increasingly stress the significance of music access, not ownership. The industry now
derives 32% of its digital revenues from subscription and ad-supported streaming
services, up from 27% in 2013. There has been comparable growth in the Internet radio
markets, and in-turn, an expansion in marketing revenue from these ad-centered
streams.
Figure 5 - Internet Radio Advertisement Revenue Prediction (BIA, 2015)
In general, the industry is becoming less reliant on the sales of physical formats, with
the sector’s share of revenues declining from 60% in 2011 to 46 percent in 2014 (ibid.)
Revenue from performance rights stemming from media broadcasting, personalised
streaming, and live music performance witnessed a substantial growth, with
performance entitlements soaring by 8.3% to just under $1 billion worldwide. Revenue
from music advertising also grew by an average of 6.4%, with substantial of growth
over 20% across Europe. Continually in the live division, 2014 had a prosperous year
- the most successful tours by artists’ One Direction and Fleetwood Mac, generating
profits of $107.7 and $92 million respectively. This has led to not only dramatic
increases in revenue, but also a 28% increase in staff employment and a 4% export
rise in the live sector (UK Music, 2014).
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Figure 6 - Earnings by musicians, singers, composers, songwriters and lyricists as percentage
of total earnings by category (UK Music, 2014)
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5 Music Streaming Services: Data Platforms for
Bespoke Strategy
‘Everything that came before no longer really applies’ said Will Hope, Spotify’s head of
label relations, at the CMU1
’s ‘Music Marketing Is Broken: Let’s Fix It’ conference, May
2015. Speaking in Brighton, Hope reiterated the need to explore new marketing
approaches as the older ‘industry’ in his own words, is too incomparable to times prior.
The strategies exposed through streaming in recent years have been a learning
process, continually changing and exploring new methodologies as the market
progresses. Nonetheless, Spotify, recently announced its advert revenues growth - up
380% in the first quarter of 2015, compared to the same period the previous year.
Juniper Research predicts that adverts on music streaming services are set to make
$780 million in 2015 (Netimperative, 2015). Different methodologies exercising audio,
video, pop-ups, and banner e-advertising have all been explored and are used across
the distribution platforms.
Data is at the helm of strategic progression. Data makes all digital experiences more
personal through the analysis of the users’ every move; thus allowing programmes to
service content that better fits with consumer needs. Features such as songs that fit
personal taste, advertisements that are better aligned with what consumers want to buy
at the very moment are all based on what we are listening to (McIntyre, 2015). Methods
of traditional advertising have become out-dated, in league with their platforms.
Advertising stratagems on television, in magazines and on analogue radio were
comparable to the way streaming services first constructed their own strategies.
Services such as Spotify, Pandora and We7, during their early years, did not take
advantage of the real-time data they could receive in order to create bespoke strategy,
however, thanks to the growing importance of data and its advancements through its
deployment, these strategies have become imperative in 2015. This chapter will
demonstrate the strategies that have been explored in recent years, as well as
investigating the new routes streaming services take – attempting to target consumers
in ways never used in the mainstream before.
The consumer need to be continuously connected to the Internet has allowed
advertisements to be extremely time specific; targeting demographics as well as
utilising geographical data. All streaming services employ an array of technologies that
1
Complete Music Update, better known as CMU, a music news service and website aimed at people
working in the UK music business and music media.
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automate buying and deploy appropriate media placement. Although these data-driven,
automated techniques are old news in the online environment, their use in internet radio
and music streaming is still relatively fledgling and could have considerable impact on
the industry, where ad-buying is still largely manual (Davis, 2015). Fully automated
closed loop marketing strategy (FACLM) is therefore, the major strategic option –
allowing for the most beneficial and useable gathering of data. FACLM works within a
cycle process; consumer information is continuously collected and update in real-time.
The data can therefore be used to forecast the consumer behaviour and a personal,
bespoke; short-term marketing strategy can be formed. In other words the cycle can
measure, predict and act. This process also provides records of success; the cycle
continually monitoring its own performance allowing for further strategic development
of the system.
Figure 7 – Closed loop marketing strategy (Huang and R. Rust, ed.., 2014)
It could be argued that US based streaming company Pandora is not utilising this cycle
progressively, neglecting the use of FACLM, placing advertisements only by means of
basic demographics. In contrast, Spotify announced (in mid-2015) that brands would
be able to target consumers based on their real-time moods and current activity. Spotify
allows users to listen to pre-compiled playlists for a multitude of occasions and
situations. What may first seem to be an experience-enhancing feature is in fact a key
marketing strategy. It is important to note that not just the audio advertisements
generate revenue – the placement of lesser-established artists in promoted playlists
could additionally promote new material. For example, a record company could
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hypothetically pay large sums for an artist to feature in playlists, sandwiched between
established music.
‘On Spotify, there are hundreds of playlists marked for those exercising,
studying, getting ready to go out, or for those feeling the sharp pangs of
heartbreak. Music is an emotional driver for action, and if companies can
pitch the right thing at the right time—popcorn for those listening to
famous movie songs or perhaps an online course to students needing
background noise for studying—they might be able to make a sale down
the line’ (McIntyre, 2015).
Spotify’s new directions work alongside pre-existing strategies such as cross-platform
retargeting and sequential messaging; these approaches allow brands to track users
across their different devices as well as play a series of connected adverts in sequence
to a user (Davis, 2015). The attentiveness of audio advertisements has proven to be
justified, as advert-consumer engagement has risen in the past year; proving far more
successful than display and banner advertisement. Furthermore, audio advertisements
receive the second highest return on investment per advert, outperforming all mediums
except television (RAB, 2015).
Spotify’s pioneering market strategy is predominantly due to the developments of The
Echo Nest. The Somerville (Massachusetts) music intelligence company provides
information regarding music taste amongst listeners (Collins, 2014). The Echo Nest
has gathered data in this way for 34 million tracks by more than 2 million artists.
Internally, the ever-growing database is referred to simply as ‘the knowledge’ (Walker,
2012). Spotify first utilised ‘the knowledge’ in 2009, when it launched its automatic
playlist generation feature. Nowadays, since Spotify acquired the company in 2014 for
an undisclosed fee, they can be on the cutting-edge of music marketing – utilising the
extensive, real-time collection of useful data from its 75 million and growing number of
users. Spotify acquiring The Echo Nest additionally allows the company to gain control
over technology that underpins its rivals’ offerings, which is a tenuous line to walk, at
best, when entire ecosystems depend on the products involved (Etherington, 2014).
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Table 1 encompasses how music streaming services can collect data, and in-turn, use
it within a FACLM strategic framework, enhancing their marketing strategy. It is the
deployment of this data that the wider industries should be recommending, as services
continue to create bespoke marketing systems through the distribution and playback of
music.
Table 1 – A Taxonomy of Streaming Service Data Collection and Utilisation for Marketing
Strategy
Data
Type
Acquisition Utilisation Examples
Age
When creating a
streaming service
membership, the date-
of-birth must be entered
in order for an account
to be created.
Age can be used to
target specific
advertisements and
specific target markets.
Additionally, music,
which may appeal to
distinct generations, can
be suggested upon the
user. Birthday
promotions are also
used.
Film and TV is regularly advertised
on streaming services, offering
links to trailers, streaming links and
even cinema tickets. Knowing the
age of the listener allows that the
advertising window is aimed at the
correct target-age. It would be a
waste to advertise adult-rated
releases to consumers who are not
of age to legally view the content.
Age can also be used to market
specific products, which relate to
the distinct age demographics. For
example: toys for children, acne
cream for teenagers, cars for
adults, and so on.
Cookies
The small pieces of
information that are
automatically
downloaded when
visiting Web sites;
visiting a single site can
result in the
downloading of multiple
cookies, from different
sources.
Internet Cookies can
provide information to
the streaming service,
allowing adverts to be
targeted based on past
internet page history.
Using cookies, streaming services
– through ‘adchoice’ – can
advertise certain consumer wants
and needs. For example, a
consumer may have been
searching the web for flights to New
York City. The streaming audio
adverts can then be used to
promote cheap flights from various
companies, additionally offering
promotions as means of
temptation.
Date
The playback software
contains an internal
calendar.
Noting the importance of
the date in the
marketing allows for
time-specific
advertisements, relevant
to the period of year,
and distinct day.
Different seasons and times of year
are key factors across marketing
strategies. Using the date,
advertisements can not only be
seasonally appropriate (Christmas
based for example), but also
publicise upcoming events to
listeners such as music festivals
and in-store sales.
- 40 -
FrequencyofUse The software can track
how long the
programme, application
or website is used for;
as well as registering
the date and time of its
usage.
Registering how often a
user uses a service
allows marketing
strategy to allow further
personalisation within
advertisements; it also
allows promotions to be
generated for users who
no longer use the
service.
‘Welcome back’ or ‘We have
missed you’ messages can be
applied within advertisements to
either encourage further use or
entice back previous consumers.
This personalisation can be used
through direct marketing (e-mails)
and even within the audio
advertisements themselves.
Gender
When creating a
streaming service
membership, the gender
must be entered in order
for an account to be
created.
Gender registration can
be used to target
gender-specific
advertisements to users.
Certain products, generally, fit the
needs of a specific gender. For
males, advertisers often
stereotypically aim certain products
and services based on masculinity.
Male healthcare products, such as
Lynx deodorant, would only be
targeted at users of this sex; this
due to male consumers making up
the vast majority of its customer-
base.
GenrePreference/Taste
Genre can be collected
in a multitude of ways.
Some services will ask
new users what kind of
music they like to listen
to – a survey for
example. Other services
may ask a user for a set
number of artists they
like to hear. Alternately,
services can predict
music taste
automatically based on
personal listen trends.
A streaming service that
contains an
understanding of a
user’s taste can
resultantly market other
products and music that
may be of interest to the
user, based on their
stated or gathered
tastes.
A listener may continually listen to
a pop/blues artist – such as John
Mayer. The streaming service can
not only offer similar listening
suggestions, such as Jonny Lang,
but also market products that may
appeal to fans of this genre. For
example, concert or festival tickets.
HobbiesandInterests
This information can be
collected by registering
‘click-bait’ statistics; the
individual history of ad-
engagement can be
recorded.
Information regarding
personal interests can
be used to target
specific advertisements
to users.
A consumer may interact highly
with sporting advertisements,
therefore within the marketing
strategy – the consumer may
receive more and more sporting
commercials, as it will raise the
user-engagement rate of the
promotions. Lesser-interacted
adverts can therefore be
diminished upon the user.
Language
When creating a
streaming service
membership, a
preferred language must
be entered in order for
an account to be
created. This can also
be detected
automatically based on
location.
Selecting a preferred
language allows for the
advertisements to be in
the correct language of
the user, despite their
geographical location.
Scenario: An English speaking user
may travel to China for a month.
Despite being exposed to much
advertising, many of the
advertisements will be in languages
which may not be understood by
the user. Knowing the mother
tongue of a user, within a streaming
service context, allows all
promotions to remain understood
and therefore, useful – wherever
the user is in the world.
- 41 -
ListeningHabits Services can
automatically track how
often users ‘skip’ tracks,
understanding their
habitual listening
consistencies
Identifying these factors
allow marketers to
understand a user’s
attention span; allowing
for length-specific
advertisements to be
aimed at an individual.
A consumer who often ‘skips’
tracks with inpatient and abrupt
characteristics will react more
successfully to smaller audio
advertisements – rather than fewer,
but longer sound bites sandwiched
within the music. In other words,
the marketing strategy can be
tailored to the attention span of a
user.
Location
An active internet
connection will provide a
precise location of the
user’s whereabouts. Of
high importance in
mobile streaming - GPS
is chiefly used through
integrated location
services.
Using the location of a
user can be utilised
when trying to make a
user attend a specific
geographical site, event
or place. Strategies can
also be implemented
with elements of locality
– site specific to a user.
Local events can be aimed at a
consumer; this may include in-store
sales, festivals, concerts, location-
specific events and local business.
Similar to how local radio can reach
out geographically to the
consumers of relevance, this
strategy is mirrored within the
streaming services too.
Mood
Services can predict the
mood of a user through
the search and utilising
of complied playlists;
formed for differing
scenarios.
Through mood analysis,
strategies can aim
specific products or
services at a user, which
may relate to their
current mood in real-
time.
If a listener is streaming a playlist
titled ‘Friday Night Feeling’,
advertisers can market products
that may have an impact on the
consumer at that very moment. For
the playlist in question, alcoholic
beverages may be advertised
within the songs. Alternatively a
playlist called ‘Keep Fit Freak’ -
fitness drinks, gym memberships
and sportswear will be advertised.
Occupation
When creating a
streaming service
membership, often the
industry the individual
works within is entered
in order for an account
to be created.
Noting the occupation of
a user can allow for
specific advertisements
to be tailored to a
listener. An estimated
income of an individual
is an example of how
this factor could affect
the advertisements they
receive.
For a user who works in corporate
finance, a high-end car brand may
be advertised, such as Audi. A
brand that typically relates to
occupation. For someone who
states their profession as ‘stay at
home parent’ – family cars may for
the basis of vehicle advertisements.
For users in low-income
occupations, ‘first time buyer’ deals
or cheaper car promotions will be
the best means of advertisement.
PlatformandDevice
Depending on what
platform you use the
streaming service upon,
all accounts are linked
across the multiple
devices through cross-
platform retargeting and
sequential messaging
techniques.
Knowing what platform
the user is using to
listen to the music on
allows for
advertisements to be
specific to the distinct
device.
If a consumer is streaming on a
Samsung device, other Samsung
products or accessories relating to
the device may be marketed at a
user. Alternatively, a more
aggressive approach may be taken
– with rival companies offering
benefits – trying to lure consumers
away from their current devices.
E.g. Apple may promote the
benefits of an iPhone over a
Samsung Galaxy device.
- 42 -
Playlists Services can keep
tracks of saved playlists
providing further
personalised listening
trend data.
A streaming service that
contains an
understanding of a
user’s music taste can
resultantly market other
products and music that
may be of interest to the
user, based on their
saved playlists.
Fan merchandise, tickets and
relatable products and services can
be targeted at consumers. For
users who save predominately
‘Jazz’ playlists – artists such as
Herbie Hancock and festivals such
as ‘The Big Chill’ will specifically
relate to the distinct user.
SavedTracks
Services can keep track
of saved singles and
albums providing further
personalised listening
trend data.
A streaming service that
contains an
understanding of a
user’s music taste can
resultantly market other
products and music that
may be of interest to the
user, based on their
saved tracks.
Saving particular tracks an allow
insight into taste. Albums of interest
may be marketed at specific users
who like certain tracks from an
album – yet have left the rest of the
album relatively unexplored.
Speed
Mobile devices can use
GPS tracking to
measure locations at
two different points in
time; allowing for speed
to be calculated.
Knowing the speed of a
user can help identify
the current action of an
individual; exercising,
driving or traveling, for
example
When driving, advertising
marketing cheap petrol, coffee,
drive through food outlets, vehicles
promotions may be of appeal to a
user. When jogging, sportswear,
bottled water or gym memberships
will be affective.
Survey
Some streaming
advertisements will
require a survey
response in order for a
track to be played
subsequently.
Survey results can not
only be sold externally
to big data companies,
but results also give
direct answers to
questions marketers
may want to ask to
enhance the bespoke
strategy.
A survey may ask ‘How do you
travel to work?’ – knowing this
response will allow advertisements
to become even more specific. For
example, if the answer was public
transport- weekly/monthly bus
tickets may be advertised.
Alternately, deals promoting new
cars or parking promotions may be
affective too.
Time
The playback software
contains an internal
clock.
Advertisements are able
to be time specific thus,
allowing for a more
effective market
targeting.
Advertising in the morning will be
very different to the evening. On
Monday morning, breakfast
products could be at the centre of
marketing material. On a Sunday
morning, perhaps a chain
restaurant that is currently
promoting a ‘British Sunday Roast’,
may find it best to advertise at this
precise moment.
- 43 -
SocialMedia
When creating a
streaming service
membership, personal
social media accounts
can be linked to the
users account.
When linking social
media accounts to
streaming services, not
only can the services
promote the platform
through automatically
posting content to users
social media, the
services also have
access to an individual’s
social media activity.
This provides and
insight into users
interests, and additional
personal information –
such as social
calendars.
If a user ‘follows’ or ‘likes’ a pop
icon – such as pop group One
Direction – advertisements can
precisely relate to the artist,
promoting their music,
merchandise, tours or even
fragrance. This hopes to increase
the user-interaction rate of adverts
across the streaming platforms.
Streaming services can also post
onto social media accounts on
behalf of users too. This may state
a live, real-time ‘What I’m listening
to’ stats, as well as showcasing the
user’s taste of music. Users can
also share songs with friends over
social media, promoting music and
the streaming services in tandem.
E-mail
When creating a
streaming service
membership, an e-mail
address must be
entered in order for an
account to be created.
Having a registered e-
mail address allows for
a point of contact with
the user. Direct
marketing can be used
with this information.
Promotions may be sent directly to
a user, for example – ‘Share with 5
friends to receive a free gift’. This
would encourage a user to get their
peers to also use the streaming
service – for their own personal
benefit.
Phone
When creating a
streaming service
membership, a phone
number must be entered
in order for an account
to be created.
A phone number
provides not only
geographical;
information, but
additionally allows for a
further direct marketing
outreach through SMS.
Although considered irritating, text
messages could be sent to devices
to advertise products and benefits.
For example, priority concert tickets
– the use of this within text
messaging context can create a
sense of direct response and
urgency with a user; this may be
affective and result in quick
purchasing action.
Ad-Interest
This information can be
collected by registering
‘click-bait’ statistics; the
individual history of ad-
engagement can be
recorded.
This information allows
the streaming services
to discover how best
individual users react to
certain type of
advertisements – with
distinct qualities and
attributes.
A user may consistently react to
healthcare advertisements,
therefore – through a bespoke
strategy, more healthcare products
are aimed at the user creating a
higher rate of advertisement-
interaction.
InternetHistory
Cross-service accounts
allow data from internet
history to be saved and
used across a
company’s multiple
online activities.
Using interest history,
streaming services can
learn a lot about the
individual user. Products
and services can be
aimed at the user based
on their web activity.
Using web history, streaming
services – through adchoice – can
advertise certain consumer wants
and needs. For example, a
consumer may have been
searching the web for a new mobile
tablet. The streaming audio adverts
can then be used to promote
tablets from various companies,
additionally offering promotions as
a means of temptation of purchase.
- 44 -
Despite the evident benefits of these strategies, the application of target-based
marketing does raise questions of ethics and privacy. For example, it could be deemed
unethical to target dating websites adverts at those listening to ‘break-up’ playlists
(Davis, 2015). Alternatively, is it moral to target energy drinks at students listening to
‘study’ playlists. It could be argued that the use of temptation, now referred to as ‘click
bait’ in the online world, have always been present in the advertising sphere and its
placement in audio advertisements is no different to its use in previous strategies. It
can be debated that for companies to collect and store such vast amounts of private
information for profit, is morally wrong, however this is a separate discursive research
topic.
Conclusively, it seems that adverts in free music streaming platforms are remaining
prominent for the foreseeable future. Audio commercials are the norm now, but as
these platforms become more advanced, video may take over, and targeting may
become even more specific, both of which should help the industry bring in more much-
needed revenue (McIntyre, 2015). However, with new ad-free subscription services
recently launched (Apple Music, YouTube Music Key and Amazon Prime Music), it
seems the industry giants are trying to force users into the advertisement free realm,
preferring users pay monthly fees.
Only time will tell how successful these new platforms will be, and if audio
advertisements remain prominent in years to come. Despite the developments, one
factor can be guaranteed: the companies will continue to collect personal data and
utilise it for profit in any way possible – even if it is not seemingly apparent to the
consumer. Today’s most successful companies have a data-driven focus on the
customer. These companies use big data to understand their consumers, which in turn,
gives a better understanding of prospects – ensuring their survival (Glass and Callahan,
2015).
- 45 -
6 Live Music: A Live Nation
The live music sector, in 2014, collected more revenue than recorded music. ‘While the
booking agents will bring out the champagne, label executives must be weeping into
their drinks’ (Michaels, 2009).
Figure 8 – Global Live Music vs. Recorded Music Revenues (PricewaterhouseCoopers, 2015)
This progression was not a simple matter of natural trend or coincidence. Live music is
one thing that pirates could never recreate, and it seems the music industries realised
that, consequently beginning to capitalise the live sector – creating shows and tours
that could be marketed like never before. Live music no longer exists to promote the
sales of recorded music, like it did in times before. Recorded music now acts as the
modern platform, forming the basis to promote live showcases. The music industries
are in a constant state of change.
It is apparent that not only are more people attending concerts, but those attending are
willing to pay outrageous prices for the chance to see their favourite artist perform. Total
attendance at UK music events topped 21 million in 2014 – a 23% increase over three
years. Concerts attracted 17.5 million fans during the 12-month period, with a further
3.5 million going to festivals, generating £1 billion in direct and indirect spending for the
UK economy alone (Hanley, 2015). The 2015 pricing of concert tickets has been one
of immense industry-wide discussion, with many fans voicing concerns over rocketing
costs. However, it seems that the love for live music is blind – fans are prepared to pay
whatever the concert promoters wish to charge. Madonna famously stated in 2012:
‘Start saving your pennies now. People spend $300 on crazy things all the time, things
- 46 -
like handbags. So work all year, scrape the money together and come to my show. I'm
worth it.' Consumers obeyed - Madonna’s world tour sold out.
In June 2013, Barbara Streisand performed at the O2 Arena in London – charging
£450 for the top band of tickets. Nevertheless, the general consensus across the
industries is that consumers do not mind paying large sums for ‘once in a lifetime’
events. In 2015, it is deemed typical that musical legends, such as Eric Clapton, and
Stevie Wonder, charge high-end prices when on tour. Still, let us not forget the target
audience of these artists: the majority being middle-aged, with higher allowances to
spend on recreational activities than younger individuals. Today, it seems apparent that
the artists’ themselves seem very live-focused, showing a strong contrast to years prior.
The 2015 live industry is now a direct source of profit – and this money motivating
progression has shaped how often artists perform. This movement entirely inspired by
revenue, and arguably not the ‘love of performing’. The continual rise of ticket pricing,
against inflation, is also evident in the live music festival sector, as figure 9 depicts.
Figure 9 – UK Festival Ticket Inflation (The Guardian, 2015)
The growth of the live music markets has also been aided by the worldwide increase in
arenas and live venues; many subsidised by government funding with local economies
reaping the benefits from its mass attendance. The majority of these arenas are
additionally associated with sponsors through naming rights, with both the venues and
sponsors reaping the benefits of the deals. Overall, the marketing within live music has
increased its worth alongside performance upsurge – with mass amounts of profit made
in advertising. In the UK alone, naming right examples include: The O2 Arena, Liverpool
Echo Arena, The O2 Academies (formally Carling) and the Manchester Phones 4 U
Arena (formally the Manchester Evening News Arena), to name but a few - ‘World
brands seek global communication platforms’ (Cornwell, 2014, p. 119). From a
- 47 -
marketing perspective, naming rights create great exposure for brands, as stadium and
arena names appear in all aspects of advertising: on concert tickets, social media posts,
amid word of mouth exchange and vast signage exposure. In the US, naming right
deals run supreme; the top three deals are exploited in table 2.
Table 2 – Top 3 Naming Rights Deals in American Venues (Esgate and Lieberman, 2013)
Bal and Boucher (2011) state that the sponsorship of a venue can be used to increase
brand consideration and maximise market share. They discovered that O2 customers
that were rewarded and prioritised at London’s O2 arena witnessed an overwhelming
experience, improving their overall brand loyalty through relational marketing
strategies. In 2009, the O2 became the world’s busiest live music venue. O2 managed,
only a few years after the start of its sponsorship, to translate a consistent increase in
brand consideration into actual behaviour (acquisition, loyalty and mobile usage). In
other words, consistent with its nascent company targets, through this sponsorship, O2
managed to build upon their highly considered brand-image while additionally securing
immediate and lasting revenues.
The O2 sponsorship assisted the mobile network to increase its base of pre-pay
customers and post-pay customers by 20% and 10%, respectively. Moreover, O2’s
market share in the UK increased from 24% in June 2005 to 28% in November 2010;
O2 also increased its subscribers in 2008 with 1.4 million new customers - over half of
the total net increase during the previous year. Overall, O2 company revenues
increased by 30% (from £3.3bn to £4.3bn) between June 2005 and November 2010
(Bal and Boucher, 2011). It is the success of these marketing activities which have
allowed the live music sectors to excel across the wider music industries; contributing
to its extreme growth, and subsequent profit increase.
Another factor that has contributed to the rise of live music is the progression and
change of the traditional model (see figure 10), the live music becoming increasingly
monopolised by larger companies, controlling all aspects of the model. Most notably,
Live Nation.
- 48 -
Figure 10 - Traditional Live Music Model – No Longer Relevant? (Barclays Capital, 2009)
Live nation has consolidated the live music environment, bringing all of the major
aspects within one platform by governing and owning: concerts, ticketing,
sponsorships, artists, 360 deals and venues. Taking control of all aspects of the
traditional model has allowed for a complete manipulation of the market; none more so
than in the marketing department. With 60 million people attending Live Nation concerts
in 2014, and a further 130 million holding online accounts, Live Nation’s marketing
strategy can be aimed at an immense demographic. Its customer database provides
vast amounts of Big Data for marketers, including: names, addresses, locations, tastes,
and credit card numbers. As a result, Live Nation’s advertising revenue has increased
by 10% each year, since 2010.
This data is being harvested both by Live Nation and its customers.
The information garnered about ticket purchasers from Internet sales
can facilitate the development of targeted and thus less costly
marketing strategies. Data is used to help a variety of parties —
artists, venues and brand sponsors — to be as knowledgeable as
possible about the live event fan base. That enables them to be as
relevant and targeted as possible with their communications, offers
campaigns and programs, mobile and social strategies, and ideally
across all of their marketing and fan interaction’ (Punchcard, 2015).
- 49 -
To recapitulate, all signs point toward continued growth in the live music sector, with
the remaining focused on providing value through increased pricing and more
impressive performances. With ongoing expansion in new international markets,
modern artists are selling tickets across varied genres while veterans remain
consistent. Additionally, new-media marketing tools are moving the needle in
quantifiable ways (Waddel, 2013).
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age
Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age

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Marketing the Wider Music Industries - A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age

  • 1. Marketing the Wider Music Industries: A Contemporary Exploration of Strategies, Methods and New Directions in the Post-Pirating Age Luke Roberts - 201064526 September 2015 Dissertation submitted in partial fulfilment for the degree of Master of Science in Consumer Marketing – University of Liverpool
  • 3. - 3 - Abstract How do you sell something you can steal for free, and additionally, steal from the comfort of your own home? Well, you increase its ease of access, boost the overall quality, reduce the original cost, and shrink obtainment aggravation. This is essentially how the music industry has had to tackle the problem of piracy in the last decade. Piracy, very much like traditional music sales – is becoming a thing of the past. However, the music industry did not merely defeat the delinquency; instead, it had to surrender to the widespread accessibility of mass music libraries – both legal and illegal. Resultantly, new enterprising ways have been created to bring populations back to legality, and to begin the process of making revenue elsewhere – aside from the income made from album and track sales, like in times before. It is the marketing of differing assets that has enabled the continuation of profit across the multiple music industries, thus allowing the music business to live on. This dissertation conveys a state-of-the-art exploration of the shifting music industries and further examines the relationship these activities have with modern marketing strategy; the text will correspondingly examine the current state of the market. The investigation will not only identify case examples and apply them to existing literature theory, but the research provided may also be used as reference points for future academic use, exploiting the 2015 state of the market – arguably, at one of the most important times in its existence. The project uses only secondary data, of both qualitative and quantitative types, to portray these relationships from a modern and up- to-date perspective. The study is a mixed-methods approach. Overall, the text demonstrates reoccurring marketing directions, through implemented strategic examples, of how the music industries generate maximum profit post-piracy. The text also conveys how the interlinked marketing and sales methods target consumers in various, new and interesting ways through artists of variable popularity – predominantly online. Nonetheless, it is to be reminded that these methods may rapidly become obsolete and ineffective in years to come. However, this is always expected and is considered the foremost limitation when researching such an ever-changing marketplace; such a constantly developing and technologically centred, fluctuating environment. To conclude, the dissertation provides a snapshot of marketing’s relationship with the multiple music industries of 2015, and finally, hints at what to expect in future years.
  • 4. - 4 - Attestation I understand the nature of plagiarism, and I am aware of the University of Liverpool’s policy on this. Signature: Date: 10/09/2015
  • 5. - 5 - Acknowledgements Notable thanks are given to my family and friends during the time of writing – their love, support, mentoring and interest has made the project’s workload more manageable, and resultantly enjoyable. Additionally, appreciations to the staff at the University of Liverpool – in particular at the Management School; from the day-brightening and uproarious café staff, to the inspiring, knowledgeable and work-provoking teachers. Most of all, I would like to send my sincerest gratitude to Julia Hodgson, my dissertation supervisor – thank you for your welcoming, thoughtful and enthusiastic guidance.
  • 6. - 6 - Table of Contents Abstract.......................................................................................................................... 3 Attestation...................................................................................................................... 4 Acknowledgements ....................................................................................................... 5 Table of Contents .......................................................................................................... 6 List of Figures ................................................................................................................ 7 List of Tables ................................................................................................................. 8 1 Introduction .............................................................................................................. 9 1.1 The Post-Piracy Age ......................................................................................... 9 1.2 Scope and Objectives ..................................................................................... 12 1.3 Research Design............................................................................................. 13 1.4 Achievements.................................................................................................. 13 1.5 Overview of Dissertation ................................................................................. 14 2 Review of the Relevant Literature ......................................................................... 15 2.1 Outline ............................................................................................................. 15 2.2 The Wider Music Industries: A Context for Study........................................... 15 2.3 Music Streaming Services .............................................................................. 17 2.4 Live Music........................................................................................................ 19 2.5 Merchandise.................................................................................................... 21 2.6 Artists as Brands ............................................................................................. 22 2.7 Social Media and Viral Marketing ................................................................... 24 2.8 Conclusive Gaps in Research Literature ........................................................ 26 3 Exploratory Research Methodology...................................................................... 27 3.1 Overview.......................................................................................................... 27 3.2 Design and Analysis........................................................................................ 27 3.3 Statement of Possible Outcomes ................................................................... 30 3.4 Ethical Considerations .................................................................................... 31 4 The Current State of The Market: Key Trends in 2015......................................... 32 5 Music Streaming Services: Data Platforms for Bespoke Strategy ....................... 36 6 Live Music: A Live Nation ...................................................................................... 45 7 Merchandise: The Beats Go On............................................................................ 50 8 Artists as Brands: Born this Way?......................................................................... 55 9 Social Media and Viral Marketing: A Backstage Pass.......................................... 59 10 Conclusion ........................................................................................................... 64 10.1 Summary ....................................................................................................... 64 10.2 Evaluation...................................................................................................... 65 10.3 Limitations of Study....................................................................................... 67 10.4 Future Research............................................................................................ 67 Reference List.............................................................................................................. 69
  • 7. - 7 - List of Figures Figure 1 – Conceptual Layout ......................................................................................13 Figure 2 – Research Overview.....................................................................................27 Figure 3 - Global revenue of the music industry from 2002 to 2014 ...........................32 Figure 4 – Streaming Growth 2009-2014.....................................................................33 Figure 5 - Internet Radio Advertisement Revenue Prediction.....................................34 Figure 6 - Earnings by musicians, singers, composers, songwriters and lyricists......35 Figure 7 – Closed loop marketing strategy ..................................................................37 Figure 8 – Global Live Music vs. Recorded Music Revenues.....................................45 Figure 9 – UK Festival Ticket Inflation .........................................................................46 Figure 10 – Traditional Live Music Model ....................................................................48 Figure 11 – A 2015 Music Merchandising Model ........................................................51 Figure 12 – Lil’ Wayne – Product Placement...............................................................52 Figure 13 – Beady Eye Promotional Photograph/Pretty Green Advertisement ..........54 Figure 14 – Successful Artist Rebranding Branding....................................................57 Figure 15 – Framework of music industry entities .......................................................60 Figure 16 – Viral Ed Sheeran Video ............................................................................61 Figure 17 – In-venue Mobile Usage and Activities ......................................................62
  • 8. - 8 - List of Tables Table 1 – A Taxonomy of Streaming Service Data Collection ....................................39 Table 2 – Top 3 Naming Rights Deals in American Venues .......................................47
  • 9. - 9 - 1 Introduction 1.1 The Post-Piracy Age The music industry suffered devastating effects since the dawn of file sharing and piracy. In the early 2000s not only did stealing music become a guiltless normality amongst once loyal consumers, illegal downloading swiftly progressed into a simple task even the most technologically illiterate user could complete. The music industry had a fight on its hands: the business was attacked by a globally connected theft network, and it did not consist of prize criminals; rather, guilt-free music fans who were more than willing to purchase recorded material in previous years. In 1999, the file-sharing website Napster became one of the most clicked icons on Windows desktops around the world. From 2004 through 2009, approximately 30 billion songs were illegally downloaded on file-sharing networks (RIAA, 2015); and in 2011, 96% of all online music downloads were illegal (Go-Gulf, 2011). According to the Institute of Policy Innovation, at its peak, piracy resulted in $12.5 billion of economic losses within the music industry; with more than 70,000 lost jobs and $2 billion in lost wages to workers – this in the American marketplace alone. The increase in illegal downloads paired healthily with the rise of the iPod and portable mp3 player. Mobile music took over like never before and in 2007, apple announced they had sold 100 million iPods. Each of these devices containing an average of $800 worth of pirated music. It seemed there was no easier, nor a more convenient time to steal music, and with the problem so large-scale, it emerged worthless to invest time and money into extensive criminal conviction. Established artists, such as Radiohead, were even releasing albums online for free; surrendering to the piracy world - an unthinkable business decision, some five years prior. Piracy reigned supreme for many years, diminishing the music industry’s profit by billions and claiming the jobs of thousands. In today’s post-music piracy environment, however, it is naïve to think that piracy was simply beaten through law changes, enforcement, or a public a ‘change of heart’. It became apparent that consumers were never going to pay for music again like they had done in the past; new directions, methods and strategies had to be realised through the innovation of technology. In other words, the future of the marketplace had to be predicted. Interestingly, the music companies, publishers or artists themselves did not initiate this movement; but rather smaller tech- based start-ups. These smaller companies, many now bought out by
  • 10. - 10 - industry giants, began to utilise ‘the cloud’ in the form of streaming entire music libraries and catalogues online. ‘the cloud’ refers to the practice of using a network of remote servers hosted on the Internet to store, manage, and process data, rather than a local server or a personal computer. These companies acted upon the prevalent growth of high-speed internet access; and more extensive, popular music libraries were uploaded online, instantly becoming accessible anywhere. Hard-drive space and downloading became unnecessary. Within twelve months, downloading and pirating became a nuisance, old fashioned and backward amid digital music users. In 2014, less than 1% of people under 30 years old claimed that file-sharing was their main source of obtaining music (Ingham, 2015). The pirates, now in the minority, were destabilised due to the progressive alternatives in music playback. These new platforms were not only preferred, but also legal. Today, with very few law-breakers pirating music, criminal conviction is still deemed futile; even with offenders being easily located due to technology progression. Through increased education, many organisations hope for a voluntary change of habit amongst minority file-sharers. New warnings, as part of a new scheme implemented between internet service providers (ISPs) and the industry bodies (representing content copyright holders) have recently been introduced to teach the public about online piracy downfalls and the mammoth harmful affects it has had on the music industry in the past. Regular warnings are sent repeatedly to individuals suspected of large-scale online music theft. Nonetheless, if these warnings are ignored no further action is taken (Vincent, 2014). Despite the popularity of cloud music, the birth of streaming did not come without its downfalls; services such as We7 and Spotify were repeatedly caught amongst legal battles with irate music publishers and continually shamed, mounting losses year on year. Spotify recorded an operating loss of £119m in 2014 compared to £65.7m in 2013, while its net loss nearly trebled from £40.3m in 2013 to £117m in 2014 (Dredge, 2015). Indeed, the majority of the former pirates’ behaviour had been re-shaped with legal returning to normality, but it was now time to explore how these streaming platforms could make up for past and increasing loss of profits. Cloud music had to quickly become the new birthplace of music marketing. In exchange for free music plays, the industry learnt that listeners would tolerate advertisements, related and unrelated to music itself. Through the streaming services, promoters and marketers could easily target a distinct demographic of listeners; the industry could make money through listening once more. However, it was the marketing of other products, through the music, which was generating the majority of the revenue – not the music itself.
  • 11. - 11 - Merchandise, concert tickets, DVDs and subscription benefits, for example. Music still remained practically worthless, nevertheless; it had become a footpath to cash; a platform and catalyst for profit. In 2014, YouTube (the popular video sharing website) turned more music-focused with owners Google clamping down on copyrighted material and encouraging music publishers to use the website to release new music. Consequently, YouTube instigated a dramatic surge in adverts across online media whilst implementing an entirely new marketing and advertising policy – much to the frustration of the website’s users. Despite the changes, the YouTube-users remained loyal. Additionally, with the 2015 launches of Apple Music and Amazon’s Prime Music, the years ahead could provide further changes in the ever-shifting, unpredictable markets. It is clear that the music industry can no longer be seen as a collective, with many researchers and academics claiming what was once the traditional music industry no longer exists. Tangible music alone no longer equals profit. It is apparent in 2015, that it is the multi-marketable music industries, as a collective, that make up what is today witnessed as the modern music industries. These contain subdivisions such as: artist branding, music licensing and merchandising. These alternative aspects of the industries have resultantly grown into an important greater than ever before. Live music, for example, used to exist predominantly to promote and encourage the purchasing of music. Conversely, live music today exists to generate mass profits through its showcasing alone. Subsequently, the live marketplace has seen a rise in large-scale music venues, arena tours and rising ticket prices. It is the marketing of the ‘wider modern music industries’, across a multitude of operations and endeavours, which has allowed the music business to live on. It is the marketing strategies placed across the wider industries that this project will explore. The study of the music industries is not a uniform endeavour; and modern music marketing is at the helm of all forward thinking progressions in the 2015 marketplace. There are many and varied approaches that yield valid, interesting and important understandings about those industries, their cultural and economic impacts, and their affects on the lives of those who work and interact within them (Anderton, Dubber and James, 2012). The vast impact the music industries have upon the global economy and cultural activity proves justice for the research delivered; it is a global issue and one worthy of study within a marketing field of research.
  • 12. - 12 - When investigating the music industries academically and critically, understanding the organisational structure of a particular business (or of more than one), can offer critical insights into how that industry works, and provide useful knowledge in terms of practical applications. Within the field of marketing, utilising case studies using the knowledge for future implementation of strategy can prove vital. For example, determining repeatable procedures for music business success (or systems and approaches to be avoided), identifying problems within the structure and linkages of an organisation, or simply generating new knowledge about the ways that music organisations can and do work, can provide clues as to how they might potentially do so more profitably. In the turbulent 2015 market, the need to predict the future of the industries could ultimately ensure its safety in years to come (Anderton, Dubber and James, 2012). 1.2 Scope and Objectives Overall, the project aims to:  Analyse a vast array of relevant secondary data from modern and primarily up- to-date publications, both academic and non-academic, through a mixed methods approach.  Use the data to apply the relevant case examples to applicable and insightful academic theory within a clear categorisation.  Provide clear and concise illustrations of how the music marketplace utilises the other endeavours of the industry, since the demise of profit from recorded music.  Identify, analyse and sub-divide the main methods and the most profitable strategies, in which the wider music industries utilise to generate income in 2015.  Critique and understand the relationship these new industry directions have with marketing strategy.  Evaluate the findings, expose the limitations and predict future directions in the relevant music markets.
  • 13. - 13 - 1.3 Research Design The design of this research project is sequential in nature. Research will be exploratory using existing secondary qualitative and quantitative data with a holistic design (Yin, 1985). The dissertation project will follow the model displayed in figure one. Figure 1 – Conceptual Layout 1.4 Achievements This dissertation conveys a state-of-the-art exploration of the shifting wider music industries and further examines the relationship these activities have with modern marketing strategy and new profitable directions. The text correspondingly examines the current state of the market. The writing moreover demonstrates reoccurring marketing directions, through implemented strategic examples, of how the music industries generate maximum profit
  • 14. - 14 - in the post-piracy age. The text conveys how the interlinked marketing and sales methods target consumers in various, new and interesting approaches through artists of variable popularity – predominantly online. The findings are repeatedly compared to, and applied to an array of modern academic literature. 1.5 Overview of Dissertation The project commences with a review of the relevant literature; with many of the texts from the fields of marketing and popular music studies. Continuing, the text analyses the current state of the music market as well as identifying and analysing the position marketing contains across the wider musical marketplace. The study’s literature review and main chapters are divided into the following themes of study:  Music Streaming: Big data in marketing strategy is explored, specially focused on Spotify as the industry leader.  Live Music: Examining the increase of ticket prices and the benefits naming rights have on brands in live performance spaces.  Merchandising: Arguing the requirement to address merchandising in 2015 as a fundamental part of the retail and fashion sectors.  Social Media and Viral Marketing: Identifying how social media is best used by artists, connecting with fans and consumers on personal levels. Finally, the research is evaluated and concluded in the closing chapter; future market directions are also predicted across the studied industries. The text exploits the project’s limitations of research before proposing possible directions for potential study within similar frameworks.
  • 15. - 15 - 2 Review of the Relevant Literature 2.1 Outline The purpose of the literature review is to convey the research and findings that have already been conducted in the field. The review will provide a regulated indication of the most pertinent contributions to the research in relation to academic, professional and practical literature. It will also highlight the key subject areas, within the project, that will be most relevant to interrogate further – improving and adding further context in new findings. It is vital this process must be completed thoroughly as this will remove the need to rediscover and convey pre-existing knowledge that has already been reported (Fisher, 2004). The following research will be segmented using a two-tier approach, thus encompassing a clear thematic and systematic process. The review will be divided into eight themes: the first providing the contextual relevance ‘The Wider Music Industries’, the proceeding five subchapters containing a direct relation to the later dissertation chapters 5-10. Music streaming services, live music, merchandise, artists as brands and social media and viral marketing as these subchapters. The closing chapter summarises the overall gaps in literature. 2.2 The Wider Music Industries: A Context for Study The study of business within Popular Music academia is a field that is relatively new to the scholastic environment, and a field that unjustly still contests elitist, adverse views. It would seem that the word ‘popular’ naturally follows a somewhat ‘educational eye roll’ yet, the high-art verses low-art battle seems unequivocally irrelevant when the depths of the field become apparent to those who allow countenance and deeper exposure. The term ‘industry’, as the singular, is rarely used to describe the music business in 2015. Many academics and researchers are in agreement that the somewhat old fashioned phrases ‘the record industry’, later becoming ‘the music industry’ no longer accurately depict the vast array of activities and processes the wider music industries now represent. Mulligan (2015) states that the ‘recorded music product’ is what drives the larger and wider music industries; with only 18% of the industries’ market sales stemming from distribution of recorded music. Wall (2013) reiterates this interpretation claiming:
  • 16. - 16 - ‘There is a tendency, when discussing music, to talk about the organisations as a single ‘music industry’, and to use this term interchangeably with the term ‘record industry’. This is largely because recorded music is still central with the economics of popular music. However, we need a way to understand this central role without underplaying the importance of the other ways people make money out of music. Live music, publishing, retail, promotions, and even music teaching and the design of music technology, are important to the production of music. You therefore find that the term ‘music industries’ should be the term most often used. Talking about the music industries ensures we can remain aware that, even though the record has a central place in popular music, other activities and institutions and industries are still very important’ (Wall, 2013, p.97). Similarly, in Understanding the Music Industries, Anderton, Dubber and James (2013) argue how the traditional representations of the music industry have to be questioned in order for it to be critiqued accurately. The text claims that the traditional music industry’s flow model, the notion of music being crafted, published and sold, began to be disrupted since the digitalization of the music industry in the 1980s; thus beginning its transformation into the plural term. In chapter one, ‘Studying the Music Industries’, the authors’ contest how an interdisciplinary study approach to the wider music industries often work hand-in-hand and continually allow a better understanding of the music business and its links with the economy and social culture. This text provides key insight to the inner mechanisms of the hierarchical assembly of the music industries, with the writing intensely scrutinising musicians’ contractual rights. However, minute investigation of streaming services within the text (notably found in chapter 5 – ‘From Walkman to iPhone) show how quickly popular music texts can become out- dated. However, the information on music distribution is redundant just two years after its publication, as previously stated, a trend in an ever-changing industry. Jones (2012) and Talbot (2002) additionally provide well-defined frameworks and descriptions of the wider music industries. Cloonan (2015) in Popular Music and the State discuss how the powers have shifted across an array of differing organisations within a political perspective. Continuing, the text explains the decline of multinational recording companies, and the accompanying rise of promotion firms such as Live Nation, exemplifying global shifts in infrastructure, profits and power. The text contains four highly relevant themes which provide a basis for the study. They are: the changing role of states and industries in popular music activity; assessment of the central challenges facing smaller nations competing within larger, global music-media markets;
  • 17. - 17 - comparative analysis of music policies and debates between nations (and also between organisations and popular music sectors); analysis of where and why the state intervenes in popular music activity; and how (and whether) music fits within the 'turn to culture' in policy-making over the last twenty years (Cloonan, 2015). The text, on the whole, exposes the extreme power the music business clutches across popular culture. The modern evidence provided is eye-opening and considered essential reading within the field. Despite this, it is naive to think that all recently published texts refer to the term ‘industries’ in its wider context. Many academic journals and books still provide useful and up-to-date frameworks of study, despite the use of the somewhat out-dated term. 2.3 Music Streaming Services The rise of music streaming services has been prominent across a multitude of academic studies; yet, the study of its relationship with marketing strategy was found to be a more specialised and lesser-explored area of research. Marketing texts that survey the use of trend-inspired marketing strategy, as well as the collection of big- data, can provide a good context in which music streaming services can be studied within. In general, comparable marketing strategy can be utilised across a multitude of industries. It is to be noted that the majority of the material discovered relating to bespoke streaming marketing strategy was found predominantly within service marketing -themed texts. Tschmuck (2012) argues how the processes and structures of the music industries have been altered by the on-going digital revolution and further explores the birth and initial financial failure of streaming services. He claims that is was ‘access to music’ that the consumer craved, and that personally ‘owning’ music became unimportant; something the industries should have predicted earlier. Additionally, Tschmuck also investigates how modern marketing strategies can function within online digital music; however, it does not offer a further intensive exploration. ‘Digitalisation revolutionises not only the distribution of music but also all other aspects in the value-added network of the music industry’ (Tschmuck, 2012, p.193). Frost and Strauss (2009), Esgate and Liberman (2014) and Hoffman and Bateson (2001), like Tschmuck, all use streaming services as a means of case study within the marketing literature. However; as stated – further interrogation on the topic remains absent across the texts.
  • 18. - 18 - In contrast, the Handbook for Service Marketing Research (Chung and Wedel, 2014) directly addresses the marketing strategy in ad-based streaming services and is one of few texts to directly link the strategy to previously studied and recognised marketing theory: the closed-loop approach. ‘We can see that closed-loop marketing (CLM) is emerging as a major strategic option. There has been an increase in the popularity of this approach in online and mobile applications. CLM comprises a cycle in which customer information is continuously collected and updated, and advanced analytics are used to forecast customer behaviour and redesign and personalize products, services and marketing effort in short cycles’ (Chung and Wedel, 2014, p.398) Hutchison, Allen and Macy’s publication Record Label Marketing focuses on the online music environments, as well as depicting relations digital advertising has with marketing mix theory. Based on American statistics, the text demonstrates the utilisation of trends discovered within genre, purchasing and format. The marketing strategy is created and tailored through analysed demographics, listening habits and the geographical locations of the users of the ad-based streaming services. The text highlights the importance of approaches in music marketing strategy, echoing the ‘Forecast of Future Trends’ theory in Drucker’s early writings (1973). The text contains no comparison of the researched inclinations to real-life campaigns as case studies; neither does the text explore the financials of the strategies. Finally, the text neglects to explore the wider impact the marketing directions have on other sectors across the industries. Jeffery, in Data Driven Marketing (2010) contends the prominence of data driven campaigning in modern strategic planning. The text includes practical methods that can be used by marketers in the development of their own plans. He disputes how the 20% of businesses that utilise data within their marketing strategy are the ‘leaders’ amongst markets. Jeffery provides case examples, yet none are related to the music industry. Despite this lack of music-related examples, a critical review would suggest his argument is entirely positive - completely in favour of the use of data in modern marketing, just like companies such as Spotify and Pandora use these techniques in their marketing approaches. Fulgoni’s article ‘Big Data: Friend or Foe of Digital Advertising?’ (2013) provides a contrast. This article highlights the use of collected data within the digital sphere and
  • 19. - 19 - focuses on real-life impacts of trend-inspired markeing strategy. It offers a balanced view of research-based marketing, arguing how the use of such data, in real-time market analysis can correspondingly become a hindrance. She contends that the processed information can force marketing managers to make rash decisions due to data’s ‘ease of access’ and ‘automated analysis’. The publication neglects to mention music-related findings, however; but it does focus on the aspect of ‘brand’, to be covered in a later sub-chapter 2.7. 2.4 Live Music On the whole, the marketing of live music is one of the lesser-explored topics amid the pre-existing literature mentioned within the chapter. Gamble and Gilmore (2013) directly link the modern live music environment with structured co-creational marketing strategies. Featured in the European Journal of Marketing the writers discover that the co-creational marketing strategy can be divided into five typologies when relating to the live music industries. Providing relatable case examples, the factual studies are not only discussed, but also contextualised within the identified typologies, providing informative and theoretical conceptual background. Smilansky (2009) encompasses live music marketing within her studies – relating to experiential marketing and brand experience. Not only is publicising technique discussed within the live settings, suggestions are offered on how experiential technique can enhance the marketing strategy of artists. She later claims that ‘experiential marketing is made up of live brand experiences– two way communications between consumers and brands which are designed to bring brand personalities to life; experiential marketing therefore fits in with the current marketing climate’ (Smilansky, 2009, p.69). Despite offering interesting insight into these methods, no further research or proof of success-rate is offered within the text – or others published after 2009. Esgate and Lieberman in their chapter ‘Live Music’ correspondingly study the importance of marketing within live music contexts, however, they evaluate the power already established. Unlike Smilansky, their chapter distinctly focuses on boosting publicity of the up- and- coming musicians, seeking to raise their public profile. Other writers such as Lathrop (2013), Bennett and Waksman (2015) and Wikström (2013) provide further contextual analysis and interpretation relating to the relationship the live sector holds within modern music marketing.
  • 20. - 20 - In 2010, Ticketmaster and Live Nation merged to form Live Nation Entertainment (known today as Live Nation), a global industry powerhouse and producer of live music concerts. Currently, Live Nation stands as the major player in the live music industry sector, with many musical superstars signing ‘360’ contracts with the global organisation. As Live Nation is such a prominent company in across the modern industries, it is important to explore literature that will not only offer factual insight into the organisation, but also provide an interrogation of its culture, portraying the global effects and ethical outcomes the consequential actions may have. Before the Live Nation Entertainment and Ticketmaster merge in 2008, Martin Russ analysed, and correctly predicted the imminent and relatively precipitous growth of the live music marketing, its need for greater promotion. His article, ‘Live and Kicking’ in the Marketing Journal states ‘With the record business all but collapsed, concerts are now at the centre of the music industry's marketing machine. And Live Nation, a company run by Canadians, is poised to dominate’ (Russ, 2008). Not only does Russ explore the new market directions; but he also reconnoitres the rise of the ‘360’ contracts, subdividing his article into: touring, ticketing, fan clubs, recorded music, clothing and licensing and endorsements. In an unofficial response to Russ’ predictions; Baron and Budnick released ‘Ticket Masters: The Rise of the Concert Industry and How the Public Got Scalped’ in 2012. This text offers a ‘clear, comprehensive look at a murky business’. The publication not only researches the wider affect of Live Nation (chapter 11), but also exploits market secrets, revealing marketing ploys in the live music industries. The authors explore what they title ‘consumer traps’ such as ‘fan-club benefits’ and ‘priority ticket sales’. It is of importance to note that the most up-to-date information found relating to Live Nation is usually contained within non-academic sources; the majority of writings vilifying the greed and domination of the company. The lack of academic research relating to Live Nation, arguably an industry-changing company, gives the dissertation project a further justification of study – as well as possible scope for further individual research topics.
  • 21. - 21 - 2.5 Merchandise The music merchandising industry has always had to compete against the aggressive, persistent unofficial and cheaper ‘fan-merch’ backlash. For a fraction of the official product price, unendorsed (both legal and illegal) goods are sold online, in market stalls and outside live music venues across the world. Despite this, the merchandise industry still remains one of the highest-earners across the wider industries and its importance has notably risen in in recent years, thus making this sector a popular discussion across academia. Nevertheless, merchandising is far more than simply band t-shirts and posters, as this sub-chapter discovers. For this topic, is it deemed appropriate to explore academic texts from other fields that may not directly link to the music sphere. Through surveying diverse forms of literature, particularly focusing on the entertainment industry, this will provide a comprehensive review of merchandising’s context within marketing. Ogdena, Ogdenb and Longc (2011) provide a historic landscape documenting the birth of merchandise in music marketing. In addition, the paper demonstrates the rapid changes occurring, driven on by innovative advances in technology. Other notable works which provide similar frameworks, although slightly out-dated, include Parker (2004), Crandall and Vega (2006) and King (2009). Sparrow (2006) in Music Distribution and the Internet: A Legal Guide for the Music Business, notably in chapter six, provides a legal perspective on the markeing of merchandise. Sparrow delivers an understanding of how the law applies, and how to frame, price and deliver their services in a way that ensures their protection under law. Later chapters explore the significance of merchandising in terms of generic artist promotion; using Nirvana as a case study. He writes: ‘The same age demographic tends to be those who purchase music singles and albums and, as fans of particular artists, have a demand for merchandise which promotes the artist (Sparrow, 2006, p.78). Safir’s (2013) text Marketing and Merchandising for Musicians provides a good how- to guide to marketing artist merchandise within the modern music industries. Safir, a veteran composer, producer, and engineer provides information needed when crafting a promotional strategy in an attempt to enhance profit margins through other commercial sectors. Specifically in Chapter 8, the information identifies the importance of branding and its relationship with selling merchandise. Continuing, the chapter also converses promotion in relation to marketing strategy – with the significance of the
  • 22. - 22 - online world heavily emphasised. This text demonstrates large contrasts to Pakinkis (2012), to be discussed in the next paragraph. Safir views merchandising in its traditional form – predominantly as artist memorabilia or music-related products. It could be argued that Safir’s text holds a slightly more out-dated view of the modern merchandising market. Pakinkis (2012) in ‘Hands on the Merchandise’ focuses on the increasing significance of merchandising in the music industries across Great Britain. The research principally focuses on the benefits of musicians and labels. An interview with chief executive officer Barry Drinkwater of Global Merchandising Services exposes the profitability of merchandising, and further provides information of how great an impact merchandising has upon artists’ incomes. The article continues to suggest how musicians have begun to somewhat move away from distinctly artist-relatable products and progressed into the generalised retail sectors; further stating that some artists are currently attempting to leave the retail landscape and move entirely into the fashion sphere. Pakinkis is fundamentally asking- that due to astute marketing technique, can we even tell what merchandise is anymore? Texts that provide clear and helpful examples of merchandising marketing strategy, yet are not directly relate to the music industries, include: Lamb, Hair and McDaniel (2009), Bhalla and Anuraag S (2010) and Kunz (2010). Although not directly linked to the wider exploration, the information still provides good background theory to be distinguished when constructing later chapters of the project. 2.6 Artists as Brands Since the birth of popular music in mainstream environments managers and industry associates have used branding to increase profit, ensuring that the artists they market are ‘products’ in their own right across the musical and retail marketplaces. Within academia, this topic and the processes involved have been well documented through popular musical eras – from the fifties to present day. In 2003, Lieb argues that somewhat tangible ‘music’ can be, at times secondary in modern marketing strategy. Lieb compares modern music branding to traditional consumer environments. For example: Lieb contests that just as customers pay more for Coca-Cola (than a store’s own brand), customers are also willing to pay more for known ‘artistic brands’. She continues to argue that brand value, which essentially quantifies brand equity, indicates the financial value of a musical brand (Lieb, 2013).
  • 23. - 23 - Artist Management for the Music Business, by Allen (2014) provides the most up-to- date perspective on contemporary artist branding. Allen stresses the importance of the manager in the wider music industries, claiming that ‘the manager, more than ever, is at the centre of an artist’s career – making far more decisions that the artists themselves’. The book offers a wide range of case studies and industry lessons as Allen provides a focused look and real-life personal insight at managing artists’ careers in past years. Chapter 8, ‘The Artist as a Business’ provides imperative material in regards to the brand management and its role within the marketing of an artist. With a specific focus on target-market strategy, Allen proposes the key factors when attempting to connect to artists’ fans through what he calls ‘commercial activity’: understanding target market, defining an artist’s target market, viewing market segments and branding through image. Similar, yet more out-dated reviews of this topic include works by: Schroeder, Salzer-Mörling and Askegaard (2006) and Christian (2011). Blackwell and Stephan (2004) exploit the implementation of strategies that notable bands have used to transform ‘customers’ into fans thus creating deep, emotional connections – equalling profit. The authors argue that many companies, outside of the musical sphere, can learn lessons from the extreme success from the branding musicians around the world. They contest that companies should be urged to ‘shake, rattle n’ roll’ the corporate traditional marketing branding mind-set (Blackwell and Stephan, 2004). They refer to successful musicians, such as Elton John and Madonna, as ‘modern architects of branding’. Such is the depth of this subject; many authors take distinct approaches – focusing the study within a smaller framework. Lang (2010) highlights the extreme importance of branding within target markets, recognising the trends within artistic branding often hold with young adults. The text explores popular music culture, corporate branding and the mediated cultural practices of youth. ‘Contemporary theories of marketing and branding are brought together with critical and cultural accounts of mediated social life. The book explores the distinctive concerns and debates of these different perspectives and the lively interface between them (Lang, 2010). Through an ethnographic study, chapter five specifically relates to young people, artistic branding and co-creational marketing strategy. The text argues that the modern brand images are habitually results of youth movements – the young people themselves creating the brand through the fashion trends of the time.
  • 24. - 24 - Similar research is found in Lieb (2013) however; a bespoke focus on gender is witnessed in this writing. The theoretical framework of sociology, mass communication and gender in marketing theory is mostly explored. Lieb argues that the media has learned to prioritise sexual attractiveness over talent as they fight a crowded field for movie deals, magazine covers, and fashion lines - let alone record deals. The focus on the female pop star's body, as her core asset, has therefore resigned many women to being ‘short term brands’ positioned to earn as much money as possible before burning out or aging ungracefully (Lieb, 2013). This somewhat feminist lens on this study proves highly relevant in the current marketplace with the rise of feminist voicing prominent in 2015 western social culture. Most recently, Davies and Slater (2015) in ‘Unpacking celebrity brands through unpaid market communications’ interrogate the uncontrollable angle associated with the somewhat unwanted and press-induced branding through marketing communications. Despite the text not connecting to musical artists exclusively, any publications that relate to the aspect of ‘celebrity’ are deemed highly relevant. In the western celebrity- obsessed world, the notion of witnessing musical artists as celebrities, in their own right, is vital in order to form a modern state-of-the-art framework of study (in other words, celebrity pop culture). Davies and Slater question if celebrities themselves now have to take on the brand marketer’s role and further argue that despite the plentiful literature on celebrity appeal, the impact of involuntary connotations remains underexplored. Addressing this gap, the article critiques the media’s involuntary messages, documenting the effects these actions take: ‘The transformation effect that new media offers for celebrity is growing’ (Davies and Slater, 2015). Other relevant works associated with celebrity branding include texts by Dwivedi, Johnson and McDonald (2015) and (Silva et al., 2015). 2.7 Social Media and Viral Marketing To survey the literature within this field, it is essential to realise that the study of prevailing celebrity culture, within non-music related research, is not only required, but also vital to demonstrate a clear review of this sub-topic. It has also been determined that after examining the extensive works available, academic journals provided by far the best modern viewpoint. This is due to the faster ‘writing to publication time’, thus enabling prevailing research perspectives and analysis.
  • 25. - 25 - ‘Viral marketing through social media networks enabled artists to directly communicate with their fanbases’ (Tschmuck, 2012). A new dawn of marketing strategy has prevailed through the development of technology, as Tschmuck explains in his writings. The practice of artists endorsing, promoting and advertising (via their own social media accounts) has become a normality and necessity across the music industries and indeed, the celebrity cultural web. Authors such as: Noor Al-Deen and Hendricks (2012), Tiago and Veríssimo (2014) and Veeck and Hoger (2014) provide overviews of social media’s links with modern marketing strategy exhibiting how its use has become an integral part of the ‘contemporary classroom of advertising and public relations’. The mentioned texts survey the impact of word of mouth (WOM) and electronic word of mouth (EWOM) within a marketing context. Overall, the publications demonstrate primary qualitative and quantitative research findings, showcasing the extreme importance and impact of social media in modern environments. ‘The Use of Social Media for Artist Marketing: Music Industry Perspectives and Consumer Motivations’ by Lankinen and Mäntymäki (2013) addresses consumer interaction across social media usage. The writings are distinctly related to the modern music industries. Although the text neglects to apply former examples to contemporary theory, the investigation does offer suggestions (through proven hypothesises findings) aiming to enhance companies’ social media efforts. The research found that there are five key motives, in which social media usage can relate to consumer commercial activity. They are: ease of access to content, a sense of affinity, participation, interaction and social identity. This research has been furthered by Zhu and Chen (2015) in ‘Social media and human need satisfaction: Implications for social media marketing’. Mirroring the views of Lankinen and Mäntymäki; the authors state that in order for social media and viral marketing to be effective, the social media marketing efforts need to be congruent and aligned with the different needs of the targeted social media users. Their research presents a modern typology of current social media services using the following categories: relationship, self-media, collaboration, and creative outlet, describing how each social media opening caters to basic human needs, providing implications for social media marketing based on the need-congruence lens. Aaker (2015) additionally explores this topic focussing on brand to consumer ‘digital relationships’. In contrast, the writings of Kaplan and Haenlein (2012) focus on one popular artist, Britney Spears, in an attempt to understand and communicate the success and need
  • 26. - 26 - for the markeing managers’ focus on social media. In ‘The Britney Spears universe: Social media and viral marketing at its best’, the authors review what they believe to be the textbook example of social and viral markeing online. Specifically, the text analyses the single launch ‘Hold It Against Me’ and the affiliated album Femme Fatale in early 2011. The interplay of postings on Twitter, YouTube, and Facebook - combined with comments on her webpage, BritneySpears.com - can be seen as a prime example of social media usage to support new product introductions (Kaplan and Haenlein, 2012). Despite demonstrating an intense analytical approach to the study, its relevance can still be utilised qualitatively to demonstrate social marketing’s prominence. Further divergence is shown in Sisario’s 2013 writings. This particular text examines the marketing of Beyoncé Knowles' self-titled album Beyoncé. The argument exploits the singer's use of stealth marketing techniques, rather than typical use of social media platforms found in the usual online campaigns. 2.8 The Reoccurring Gaps in Research Literature The majority of the knowledge gaps arise from the authors’ time of writing – not through a lack of wider research. In other words, the marketplace progresses so quickly, is it found that journals and texts soon become outdated, and in some cases irrelevant - extremely hastily. The writings no longer being applicable to contexts found in the present day marketplaces Additionally, many of the mentioned texts failed to predict or conjecture the future of the industries, with the writings too frequently focusing on past events and backward operations. For this dissertation project to be justifiably progressive, the text must focus on cutting-edge directions; the advances left relatively unexplored by pre-existing academia and furthermore unproven in real-world frameworks.
  • 27. - 27 - 3 Exploratory Research Methodology 3.1 Overview The research provides an exploration of secondary applied research to survey the current state of the wider music industries in 2015, with a focus upon the marketing of other endeavors – since the demise of recorded music’s profit generation. Using a mixed-methods approach, the quantitative data will provide a justification and backing for the exposed qualitative findings – giving the research a profound context through real-life case examples. Through the comparison of the findings with academic material, exploration of the marketing of the wider music industries can be conveyed throughout. It is vital the information gathered, analysed, and critiqued is as new and as recently published as possible. The information explored can then be evaluated as a conclusion on the current market state can be argued. This allows possible predictions to be made regarding the future of the wider music industries, as well as proposing where the next big changes could perhaps be witnessed; this in relation to the marketing of even newer directions as part of an industry which is continually promoting and utilising the most profitable tools across the marketplace. Figure 2 – Research Overview 3.2 Design and Analysis In order to complete the objectives, the research time period must first be considered when constructing the methodology. I, the investigator, would argue that the
  • 28. - 28 - demonstration of findings would be better conveyed through the use of secondary research – as this project attempts illustrate across the 2015 state of the market. The research proposes an analysis of market trends and modern directions, in relation to the strategic, practical and academic marketing theory. Therefore, the use of pre- existing data would make for more accurate results. The most frequent application of secondary data in marketing research is to gain familiarity and to establish a context for wider and new research (Patzer, 1995). With time-restraints and a restricted budget, it is essential to use secondary methods, as opposed to conducting primary research. Dale’s writing on the use of secondary quantitative research significantly applies to this proposed task; she contests that this strand of research should intensely focus on the analysis of data collected by other researchers, often for a different purpose. She continues to communicate the benefits of this research, arguing that secondary analysis of high-quality data can provide extremely cost-effective results, claiming: ‘projects with limited funding can reap the benefits of a large investment for very little additional cost. The time-consuming and expensive processes of planning and conducting a survey, and cleaning and documenting the data are avoided entirely’ (Dale, 2004). Considering the limitation of time and cost to this project, Dale’s arguments justify this specific research methodology. Overall, the research will predominantly use secondary quantitative and qualitative data in tandem. Quantitative data is typically based on the collection and investigation of statistics – applicable to the research aims. Large amounts of new data are to be examined with these trends and findings to be compared to theory and qualitative findings; hence making this text a mixed method research project. During the research process, it is expected that most of the quantitative secondary data, based on the new market directions and marketing strategy may not necessarily come from academic sources. Therefore, the reports, charts and market figures are to be explored with the forthcoming view that they will be applied to academic works and practical settings/case examples. It is vital to focus on the statistical publications that have not been altered for other research purposes. This way only accurate documentation can be used; statistical data must be raw. The qualitative research will help adopt an understanding of the wider music industries and will help convey the image of the 2015 market through a more human and social approach. ‘Qualitative research uses methods such as participant observation, or case studies which result in a narrative, descriptive account of a setting or practice’ (Parkinson and Drislane, 2011).
  • 29. - 29 - This approach does not arise without some limitation. The used quantitative research methods may be structured and obtain large samples, however they are not often explanatory and can lack depth. The findings are principally numerical, so it is crucial a social context and knowledge base is attached to this. There are sizeable differences between qualitative and quantitative methods; both can be combined in an attempt to amplify the benefits within the research as well as providing an explanation for each other. Creswell states that there is more scope for a mixed method approach in works, claiming that it ‘…adds complexity to a design and uses the advantages of both the qualitative and the quantitative paradigms. Moreover, the overall design perhaps best mirrors the research process of working back and forth between an inductive and deductive model of thinking in a research study’ (Creswell, 2013). As Creswell states, the mixed methods process would be suitable and most appropriate to the research study, due to timescale and the previously stated limitations. Secondary research, however, despite its advantages, does create limitations too. Housden (2007) argues that secondary data, which is not directly related to the research question, can sometimes be forced through temptation to fit the exploration. Additionally, data may not be comparable, completely available or was gathered for a particular purpose – in an unrelated field of study. Therefore, it is important to evaluate the data before its use. Important points to be considered when evaluating the secondary data in this project:  Who published the study, and who gathered the information?  For what purpose was the data collected?  When was the data assembled?  How was the information collected, organised and portrayed?  How reliable and raw is the data?  Can the data be compared? Certain qualitative approaches must be taken in order for a comparison to be drawn to the statistical information. Specific campaigns will be researched through the qualitative researched methods, yet it is important to highlight that this information will still remain secondary. The use of Qualitative research, linking statistics to the real-life marketing strategies will provide broader versions of theory than simply a relation between the variables (Silverman, 2006). The qualitative research method of secondary data analysis includes all documents that can be read - advertisements included. It is important to focus on documents that have not been altered for research purposes; only precise documentation can be used. This abridged mixed-method research
  • 30. - 30 - approach is demonstrated in figure 2. The research has been divided into distinct categories to best show the most prominent methods of marketing in the wider music industries, therefore, during research, the information collected must be grouped similarly. The sub-categories are: streaming services, live music, merchandise, artists as brands; and social media and viral marketing. So – this task is an exploration. The methodology must first address the acquisition of the data that has already been published. Then, I the researcher must attach this information into the agreed categories and apply it to found theory and 2015 market contexts. Sales figures and company balance sheets and accounts are annually published; the Internet will provide sources of data search for the task. Since this information has already been published by large-scale companies, there is no need to question its reliability or sample and re-organise data discovered. This information must be referenced extremely accurately when used within this research project. The study of specific marketing theory is a more academic investigation, again primarily using the Internet, as published journal articles hold the most up-to-date academic information for this unique market review. The secondary sources available in the University Library, both online and offline will additionally add to the foundation of my academic knowledge base. Lastly, news articles and images are all accessible online and will also be surveyed, as well as later critiqued if found appropriate. Only the most up-to-date information on the subject will be deemed relevant. 3.3 Statement of Possible Outcomes The text hopes to provide a window into marketing’s relationship with the wider music industries in 2015. The project aims to expose reoccurring marketing directions, through implemented strategic examples, showing how the music industries generate maximum profit in the post-piracy age. The text conveys how the interlinked marketing and sales methods target consumers in various new and interesting ways through artists of variable popularity, predominantly online. The findings found will be repeatedly compared to, and applied to an array of modern academic literature. Nonetheless, conveyed methods may rapidly become obsolete and ineffective in years to come, as is expected. Through this applied research and analysis, the information found will uncover and suggest how profit could be made in the future marketplace. This could include a dramatic rise in subscription content across the industry, more profound product in
  • 31. - 31 - personal online material and a possible fight-back against music streaming industry giants – furthering wars between creatives and distributors. For example, could artists allow the streaming of music from their own individual websites or applications take over, cutting out middleman all together? This would surely allow for greater profit through a complete choice of advertising strategy; as well as marketing their own endeavours further (such as merchandise and live performances) – with complete and total control. 3.4 Ethical Considerations The project will abide by the Liverpool University’s Management School academic ethical framework and raises no foreseeable risk, however, a renewed use of data requires consent and is not always made clear. The research will be transparent regarding the study’s purpose, methods and findings. It will also base conclusions on the full range and complexity of the evidence gathered from the fieldwork through the avoidance of manipulating pre-conceived theories. The project must additionally respect the intellectual property rights of applicants through the University publishing research. The researcher must ask the question ‘Who owns the data?’ when applying it to their own works.
  • 32. - 32 - 4 The Current State of the Market: Key Trends in 2015 In order to contextualise the subsequent chapters, it is important to bear in mind the state of the market at the time of writing. This chapter will highlight the key statistical information, which holds substantial relevance when attempting to depict an accurate portrayal of the purchasing trends, consumer motives and the growth and decline of markets across the wider music industries. Firstly, it is important to understand that the music industries are still experiencing an overall movement of financial decline, be it gradually diminishing. Figure 3 - Global revenue of the music industry from 2002 to 2014 in billion U.S. dollars (Statista, 2014) An estimated 41 million people paid for music subscription services in 2014, five times the level of the eight million people in 2010. These subscriptions are part of an increasingly diverse mix of industry revenue streams. Returns from music subscription platforms (including free-to-consumer and paid-for tiers) grew by 39.0 % in 2014 and are growing consistently across all major markets (IFPI, 2014).
  • 33. - 33 - Figure 4 – Streaming Growth 2009-2014 (IFPI, 2015) Online Subscription services, as part of the progressive revenue stream movement, are increasing in terms of industry importance and profit gain. Income generated from the streaming services, both subscription and free ‘ad-based’, grew by 39.0 % in 2014. Global brands, such as Spotify, continue to expand their cliental worldwide despite new entrants into the streaming market. The notable launches include:  Google launched its online/offline music video subscription service – Music Key, as part of YouTube, in late 2014.  Apple Music was launched late June 2015. Free for the first three months - $9.99 after trial. A reported 11 million users by early August, with only 21% leaving the service after initial use.  Amazon Prime Music - part of the overall Amazon Prime subscription benefit package (streaming video and next-day parcel delivery, for example) - a $99.00 per annum service. Launched June 2015. The growing subscription model is leading to more payment for music by consumers, many of whom appear to be shifting from pirate services to a licensed music environment – ensuring artists and right holders receive royalties. The number of paying subscribers to subscription services rose to 41 million in 2014, up from just eight million in 2010’ (IFPI, 2015). This has therefore allowed the wider music industries, in particular the record companies, to adapt marketing and profit-based models, which
  • 34. - 34 - increasingly stress the significance of music access, not ownership. The industry now derives 32% of its digital revenues from subscription and ad-supported streaming services, up from 27% in 2013. There has been comparable growth in the Internet radio markets, and in-turn, an expansion in marketing revenue from these ad-centered streams. Figure 5 - Internet Radio Advertisement Revenue Prediction (BIA, 2015) In general, the industry is becoming less reliant on the sales of physical formats, with the sector’s share of revenues declining from 60% in 2011 to 46 percent in 2014 (ibid.) Revenue from performance rights stemming from media broadcasting, personalised streaming, and live music performance witnessed a substantial growth, with performance entitlements soaring by 8.3% to just under $1 billion worldwide. Revenue from music advertising also grew by an average of 6.4%, with substantial of growth over 20% across Europe. Continually in the live division, 2014 had a prosperous year - the most successful tours by artists’ One Direction and Fleetwood Mac, generating profits of $107.7 and $92 million respectively. This has led to not only dramatic increases in revenue, but also a 28% increase in staff employment and a 4% export rise in the live sector (UK Music, 2014).
  • 35. - 35 - Figure 6 - Earnings by musicians, singers, composers, songwriters and lyricists as percentage of total earnings by category (UK Music, 2014)
  • 36. - 36 - 5 Music Streaming Services: Data Platforms for Bespoke Strategy ‘Everything that came before no longer really applies’ said Will Hope, Spotify’s head of label relations, at the CMU1 ’s ‘Music Marketing Is Broken: Let’s Fix It’ conference, May 2015. Speaking in Brighton, Hope reiterated the need to explore new marketing approaches as the older ‘industry’ in his own words, is too incomparable to times prior. The strategies exposed through streaming in recent years have been a learning process, continually changing and exploring new methodologies as the market progresses. Nonetheless, Spotify, recently announced its advert revenues growth - up 380% in the first quarter of 2015, compared to the same period the previous year. Juniper Research predicts that adverts on music streaming services are set to make $780 million in 2015 (Netimperative, 2015). Different methodologies exercising audio, video, pop-ups, and banner e-advertising have all been explored and are used across the distribution platforms. Data is at the helm of strategic progression. Data makes all digital experiences more personal through the analysis of the users’ every move; thus allowing programmes to service content that better fits with consumer needs. Features such as songs that fit personal taste, advertisements that are better aligned with what consumers want to buy at the very moment are all based on what we are listening to (McIntyre, 2015). Methods of traditional advertising have become out-dated, in league with their platforms. Advertising stratagems on television, in magazines and on analogue radio were comparable to the way streaming services first constructed their own strategies. Services such as Spotify, Pandora and We7, during their early years, did not take advantage of the real-time data they could receive in order to create bespoke strategy, however, thanks to the growing importance of data and its advancements through its deployment, these strategies have become imperative in 2015. This chapter will demonstrate the strategies that have been explored in recent years, as well as investigating the new routes streaming services take – attempting to target consumers in ways never used in the mainstream before. The consumer need to be continuously connected to the Internet has allowed advertisements to be extremely time specific; targeting demographics as well as utilising geographical data. All streaming services employ an array of technologies that 1 Complete Music Update, better known as CMU, a music news service and website aimed at people working in the UK music business and music media.
  • 37. - 37 - automate buying and deploy appropriate media placement. Although these data-driven, automated techniques are old news in the online environment, their use in internet radio and music streaming is still relatively fledgling and could have considerable impact on the industry, where ad-buying is still largely manual (Davis, 2015). Fully automated closed loop marketing strategy (FACLM) is therefore, the major strategic option – allowing for the most beneficial and useable gathering of data. FACLM works within a cycle process; consumer information is continuously collected and update in real-time. The data can therefore be used to forecast the consumer behaviour and a personal, bespoke; short-term marketing strategy can be formed. In other words the cycle can measure, predict and act. This process also provides records of success; the cycle continually monitoring its own performance allowing for further strategic development of the system. Figure 7 – Closed loop marketing strategy (Huang and R. Rust, ed.., 2014) It could be argued that US based streaming company Pandora is not utilising this cycle progressively, neglecting the use of FACLM, placing advertisements only by means of basic demographics. In contrast, Spotify announced (in mid-2015) that brands would be able to target consumers based on their real-time moods and current activity. Spotify allows users to listen to pre-compiled playlists for a multitude of occasions and situations. What may first seem to be an experience-enhancing feature is in fact a key marketing strategy. It is important to note that not just the audio advertisements generate revenue – the placement of lesser-established artists in promoted playlists could additionally promote new material. For example, a record company could
  • 38. - 38 - hypothetically pay large sums for an artist to feature in playlists, sandwiched between established music. ‘On Spotify, there are hundreds of playlists marked for those exercising, studying, getting ready to go out, or for those feeling the sharp pangs of heartbreak. Music is an emotional driver for action, and if companies can pitch the right thing at the right time—popcorn for those listening to famous movie songs or perhaps an online course to students needing background noise for studying—they might be able to make a sale down the line’ (McIntyre, 2015). Spotify’s new directions work alongside pre-existing strategies such as cross-platform retargeting and sequential messaging; these approaches allow brands to track users across their different devices as well as play a series of connected adverts in sequence to a user (Davis, 2015). The attentiveness of audio advertisements has proven to be justified, as advert-consumer engagement has risen in the past year; proving far more successful than display and banner advertisement. Furthermore, audio advertisements receive the second highest return on investment per advert, outperforming all mediums except television (RAB, 2015). Spotify’s pioneering market strategy is predominantly due to the developments of The Echo Nest. The Somerville (Massachusetts) music intelligence company provides information regarding music taste amongst listeners (Collins, 2014). The Echo Nest has gathered data in this way for 34 million tracks by more than 2 million artists. Internally, the ever-growing database is referred to simply as ‘the knowledge’ (Walker, 2012). Spotify first utilised ‘the knowledge’ in 2009, when it launched its automatic playlist generation feature. Nowadays, since Spotify acquired the company in 2014 for an undisclosed fee, they can be on the cutting-edge of music marketing – utilising the extensive, real-time collection of useful data from its 75 million and growing number of users. Spotify acquiring The Echo Nest additionally allows the company to gain control over technology that underpins its rivals’ offerings, which is a tenuous line to walk, at best, when entire ecosystems depend on the products involved (Etherington, 2014).
  • 39. - 39 - Table 1 encompasses how music streaming services can collect data, and in-turn, use it within a FACLM strategic framework, enhancing their marketing strategy. It is the deployment of this data that the wider industries should be recommending, as services continue to create bespoke marketing systems through the distribution and playback of music. Table 1 – A Taxonomy of Streaming Service Data Collection and Utilisation for Marketing Strategy Data Type Acquisition Utilisation Examples Age When creating a streaming service membership, the date- of-birth must be entered in order for an account to be created. Age can be used to target specific advertisements and specific target markets. Additionally, music, which may appeal to distinct generations, can be suggested upon the user. Birthday promotions are also used. Film and TV is regularly advertised on streaming services, offering links to trailers, streaming links and even cinema tickets. Knowing the age of the listener allows that the advertising window is aimed at the correct target-age. It would be a waste to advertise adult-rated releases to consumers who are not of age to legally view the content. Age can also be used to market specific products, which relate to the distinct age demographics. For example: toys for children, acne cream for teenagers, cars for adults, and so on. Cookies The small pieces of information that are automatically downloaded when visiting Web sites; visiting a single site can result in the downloading of multiple cookies, from different sources. Internet Cookies can provide information to the streaming service, allowing adverts to be targeted based on past internet page history. Using cookies, streaming services – through ‘adchoice’ – can advertise certain consumer wants and needs. For example, a consumer may have been searching the web for flights to New York City. The streaming audio adverts can then be used to promote cheap flights from various companies, additionally offering promotions as means of temptation. Date The playback software contains an internal calendar. Noting the importance of the date in the marketing allows for time-specific advertisements, relevant to the period of year, and distinct day. Different seasons and times of year are key factors across marketing strategies. Using the date, advertisements can not only be seasonally appropriate (Christmas based for example), but also publicise upcoming events to listeners such as music festivals and in-store sales.
  • 40. - 40 - FrequencyofUse The software can track how long the programme, application or website is used for; as well as registering the date and time of its usage. Registering how often a user uses a service allows marketing strategy to allow further personalisation within advertisements; it also allows promotions to be generated for users who no longer use the service. ‘Welcome back’ or ‘We have missed you’ messages can be applied within advertisements to either encourage further use or entice back previous consumers. This personalisation can be used through direct marketing (e-mails) and even within the audio advertisements themselves. Gender When creating a streaming service membership, the gender must be entered in order for an account to be created. Gender registration can be used to target gender-specific advertisements to users. Certain products, generally, fit the needs of a specific gender. For males, advertisers often stereotypically aim certain products and services based on masculinity. Male healthcare products, such as Lynx deodorant, would only be targeted at users of this sex; this due to male consumers making up the vast majority of its customer- base. GenrePreference/Taste Genre can be collected in a multitude of ways. Some services will ask new users what kind of music they like to listen to – a survey for example. Other services may ask a user for a set number of artists they like to hear. Alternately, services can predict music taste automatically based on personal listen trends. A streaming service that contains an understanding of a user’s taste can resultantly market other products and music that may be of interest to the user, based on their stated or gathered tastes. A listener may continually listen to a pop/blues artist – such as John Mayer. The streaming service can not only offer similar listening suggestions, such as Jonny Lang, but also market products that may appeal to fans of this genre. For example, concert or festival tickets. HobbiesandInterests This information can be collected by registering ‘click-bait’ statistics; the individual history of ad- engagement can be recorded. Information regarding personal interests can be used to target specific advertisements to users. A consumer may interact highly with sporting advertisements, therefore within the marketing strategy – the consumer may receive more and more sporting commercials, as it will raise the user-engagement rate of the promotions. Lesser-interacted adverts can therefore be diminished upon the user. Language When creating a streaming service membership, a preferred language must be entered in order for an account to be created. This can also be detected automatically based on location. Selecting a preferred language allows for the advertisements to be in the correct language of the user, despite their geographical location. Scenario: An English speaking user may travel to China for a month. Despite being exposed to much advertising, many of the advertisements will be in languages which may not be understood by the user. Knowing the mother tongue of a user, within a streaming service context, allows all promotions to remain understood and therefore, useful – wherever the user is in the world.
  • 41. - 41 - ListeningHabits Services can automatically track how often users ‘skip’ tracks, understanding their habitual listening consistencies Identifying these factors allow marketers to understand a user’s attention span; allowing for length-specific advertisements to be aimed at an individual. A consumer who often ‘skips’ tracks with inpatient and abrupt characteristics will react more successfully to smaller audio advertisements – rather than fewer, but longer sound bites sandwiched within the music. In other words, the marketing strategy can be tailored to the attention span of a user. Location An active internet connection will provide a precise location of the user’s whereabouts. Of high importance in mobile streaming - GPS is chiefly used through integrated location services. Using the location of a user can be utilised when trying to make a user attend a specific geographical site, event or place. Strategies can also be implemented with elements of locality – site specific to a user. Local events can be aimed at a consumer; this may include in-store sales, festivals, concerts, location- specific events and local business. Similar to how local radio can reach out geographically to the consumers of relevance, this strategy is mirrored within the streaming services too. Mood Services can predict the mood of a user through the search and utilising of complied playlists; formed for differing scenarios. Through mood analysis, strategies can aim specific products or services at a user, which may relate to their current mood in real- time. If a listener is streaming a playlist titled ‘Friday Night Feeling’, advertisers can market products that may have an impact on the consumer at that very moment. For the playlist in question, alcoholic beverages may be advertised within the songs. Alternatively a playlist called ‘Keep Fit Freak’ - fitness drinks, gym memberships and sportswear will be advertised. Occupation When creating a streaming service membership, often the industry the individual works within is entered in order for an account to be created. Noting the occupation of a user can allow for specific advertisements to be tailored to a listener. An estimated income of an individual is an example of how this factor could affect the advertisements they receive. For a user who works in corporate finance, a high-end car brand may be advertised, such as Audi. A brand that typically relates to occupation. For someone who states their profession as ‘stay at home parent’ – family cars may for the basis of vehicle advertisements. For users in low-income occupations, ‘first time buyer’ deals or cheaper car promotions will be the best means of advertisement. PlatformandDevice Depending on what platform you use the streaming service upon, all accounts are linked across the multiple devices through cross- platform retargeting and sequential messaging techniques. Knowing what platform the user is using to listen to the music on allows for advertisements to be specific to the distinct device. If a consumer is streaming on a Samsung device, other Samsung products or accessories relating to the device may be marketed at a user. Alternatively, a more aggressive approach may be taken – with rival companies offering benefits – trying to lure consumers away from their current devices. E.g. Apple may promote the benefits of an iPhone over a Samsung Galaxy device.
  • 42. - 42 - Playlists Services can keep tracks of saved playlists providing further personalised listening trend data. A streaming service that contains an understanding of a user’s music taste can resultantly market other products and music that may be of interest to the user, based on their saved playlists. Fan merchandise, tickets and relatable products and services can be targeted at consumers. For users who save predominately ‘Jazz’ playlists – artists such as Herbie Hancock and festivals such as ‘The Big Chill’ will specifically relate to the distinct user. SavedTracks Services can keep track of saved singles and albums providing further personalised listening trend data. A streaming service that contains an understanding of a user’s music taste can resultantly market other products and music that may be of interest to the user, based on their saved tracks. Saving particular tracks an allow insight into taste. Albums of interest may be marketed at specific users who like certain tracks from an album – yet have left the rest of the album relatively unexplored. Speed Mobile devices can use GPS tracking to measure locations at two different points in time; allowing for speed to be calculated. Knowing the speed of a user can help identify the current action of an individual; exercising, driving or traveling, for example When driving, advertising marketing cheap petrol, coffee, drive through food outlets, vehicles promotions may be of appeal to a user. When jogging, sportswear, bottled water or gym memberships will be affective. Survey Some streaming advertisements will require a survey response in order for a track to be played subsequently. Survey results can not only be sold externally to big data companies, but results also give direct answers to questions marketers may want to ask to enhance the bespoke strategy. A survey may ask ‘How do you travel to work?’ – knowing this response will allow advertisements to become even more specific. For example, if the answer was public transport- weekly/monthly bus tickets may be advertised. Alternately, deals promoting new cars or parking promotions may be affective too. Time The playback software contains an internal clock. Advertisements are able to be time specific thus, allowing for a more effective market targeting. Advertising in the morning will be very different to the evening. On Monday morning, breakfast products could be at the centre of marketing material. On a Sunday morning, perhaps a chain restaurant that is currently promoting a ‘British Sunday Roast’, may find it best to advertise at this precise moment.
  • 43. - 43 - SocialMedia When creating a streaming service membership, personal social media accounts can be linked to the users account. When linking social media accounts to streaming services, not only can the services promote the platform through automatically posting content to users social media, the services also have access to an individual’s social media activity. This provides and insight into users interests, and additional personal information – such as social calendars. If a user ‘follows’ or ‘likes’ a pop icon – such as pop group One Direction – advertisements can precisely relate to the artist, promoting their music, merchandise, tours or even fragrance. This hopes to increase the user-interaction rate of adverts across the streaming platforms. Streaming services can also post onto social media accounts on behalf of users too. This may state a live, real-time ‘What I’m listening to’ stats, as well as showcasing the user’s taste of music. Users can also share songs with friends over social media, promoting music and the streaming services in tandem. E-mail When creating a streaming service membership, an e-mail address must be entered in order for an account to be created. Having a registered e- mail address allows for a point of contact with the user. Direct marketing can be used with this information. Promotions may be sent directly to a user, for example – ‘Share with 5 friends to receive a free gift’. This would encourage a user to get their peers to also use the streaming service – for their own personal benefit. Phone When creating a streaming service membership, a phone number must be entered in order for an account to be created. A phone number provides not only geographical; information, but additionally allows for a further direct marketing outreach through SMS. Although considered irritating, text messages could be sent to devices to advertise products and benefits. For example, priority concert tickets – the use of this within text messaging context can create a sense of direct response and urgency with a user; this may be affective and result in quick purchasing action. Ad-Interest This information can be collected by registering ‘click-bait’ statistics; the individual history of ad- engagement can be recorded. This information allows the streaming services to discover how best individual users react to certain type of advertisements – with distinct qualities and attributes. A user may consistently react to healthcare advertisements, therefore – through a bespoke strategy, more healthcare products are aimed at the user creating a higher rate of advertisement- interaction. InternetHistory Cross-service accounts allow data from internet history to be saved and used across a company’s multiple online activities. Using interest history, streaming services can learn a lot about the individual user. Products and services can be aimed at the user based on their web activity. Using web history, streaming services – through adchoice – can advertise certain consumer wants and needs. For example, a consumer may have been searching the web for a new mobile tablet. The streaming audio adverts can then be used to promote tablets from various companies, additionally offering promotions as a means of temptation of purchase.
  • 44. - 44 - Despite the evident benefits of these strategies, the application of target-based marketing does raise questions of ethics and privacy. For example, it could be deemed unethical to target dating websites adverts at those listening to ‘break-up’ playlists (Davis, 2015). Alternatively, is it moral to target energy drinks at students listening to ‘study’ playlists. It could be argued that the use of temptation, now referred to as ‘click bait’ in the online world, have always been present in the advertising sphere and its placement in audio advertisements is no different to its use in previous strategies. It can be debated that for companies to collect and store such vast amounts of private information for profit, is morally wrong, however this is a separate discursive research topic. Conclusively, it seems that adverts in free music streaming platforms are remaining prominent for the foreseeable future. Audio commercials are the norm now, but as these platforms become more advanced, video may take over, and targeting may become even more specific, both of which should help the industry bring in more much- needed revenue (McIntyre, 2015). However, with new ad-free subscription services recently launched (Apple Music, YouTube Music Key and Amazon Prime Music), it seems the industry giants are trying to force users into the advertisement free realm, preferring users pay monthly fees. Only time will tell how successful these new platforms will be, and if audio advertisements remain prominent in years to come. Despite the developments, one factor can be guaranteed: the companies will continue to collect personal data and utilise it for profit in any way possible – even if it is not seemingly apparent to the consumer. Today’s most successful companies have a data-driven focus on the customer. These companies use big data to understand their consumers, which in turn, gives a better understanding of prospects – ensuring their survival (Glass and Callahan, 2015).
  • 45. - 45 - 6 Live Music: A Live Nation The live music sector, in 2014, collected more revenue than recorded music. ‘While the booking agents will bring out the champagne, label executives must be weeping into their drinks’ (Michaels, 2009). Figure 8 – Global Live Music vs. Recorded Music Revenues (PricewaterhouseCoopers, 2015) This progression was not a simple matter of natural trend or coincidence. Live music is one thing that pirates could never recreate, and it seems the music industries realised that, consequently beginning to capitalise the live sector – creating shows and tours that could be marketed like never before. Live music no longer exists to promote the sales of recorded music, like it did in times before. Recorded music now acts as the modern platform, forming the basis to promote live showcases. The music industries are in a constant state of change. It is apparent that not only are more people attending concerts, but those attending are willing to pay outrageous prices for the chance to see their favourite artist perform. Total attendance at UK music events topped 21 million in 2014 – a 23% increase over three years. Concerts attracted 17.5 million fans during the 12-month period, with a further 3.5 million going to festivals, generating £1 billion in direct and indirect spending for the UK economy alone (Hanley, 2015). The 2015 pricing of concert tickets has been one of immense industry-wide discussion, with many fans voicing concerns over rocketing costs. However, it seems that the love for live music is blind – fans are prepared to pay whatever the concert promoters wish to charge. Madonna famously stated in 2012: ‘Start saving your pennies now. People spend $300 on crazy things all the time, things
  • 46. - 46 - like handbags. So work all year, scrape the money together and come to my show. I'm worth it.' Consumers obeyed - Madonna’s world tour sold out. In June 2013, Barbara Streisand performed at the O2 Arena in London – charging £450 for the top band of tickets. Nevertheless, the general consensus across the industries is that consumers do not mind paying large sums for ‘once in a lifetime’ events. In 2015, it is deemed typical that musical legends, such as Eric Clapton, and Stevie Wonder, charge high-end prices when on tour. Still, let us not forget the target audience of these artists: the majority being middle-aged, with higher allowances to spend on recreational activities than younger individuals. Today, it seems apparent that the artists’ themselves seem very live-focused, showing a strong contrast to years prior. The 2015 live industry is now a direct source of profit – and this money motivating progression has shaped how often artists perform. This movement entirely inspired by revenue, and arguably not the ‘love of performing’. The continual rise of ticket pricing, against inflation, is also evident in the live music festival sector, as figure 9 depicts. Figure 9 – UK Festival Ticket Inflation (The Guardian, 2015) The growth of the live music markets has also been aided by the worldwide increase in arenas and live venues; many subsidised by government funding with local economies reaping the benefits from its mass attendance. The majority of these arenas are additionally associated with sponsors through naming rights, with both the venues and sponsors reaping the benefits of the deals. Overall, the marketing within live music has increased its worth alongside performance upsurge – with mass amounts of profit made in advertising. In the UK alone, naming right examples include: The O2 Arena, Liverpool Echo Arena, The O2 Academies (formally Carling) and the Manchester Phones 4 U Arena (formally the Manchester Evening News Arena), to name but a few - ‘World brands seek global communication platforms’ (Cornwell, 2014, p. 119). From a
  • 47. - 47 - marketing perspective, naming rights create great exposure for brands, as stadium and arena names appear in all aspects of advertising: on concert tickets, social media posts, amid word of mouth exchange and vast signage exposure. In the US, naming right deals run supreme; the top three deals are exploited in table 2. Table 2 – Top 3 Naming Rights Deals in American Venues (Esgate and Lieberman, 2013) Bal and Boucher (2011) state that the sponsorship of a venue can be used to increase brand consideration and maximise market share. They discovered that O2 customers that were rewarded and prioritised at London’s O2 arena witnessed an overwhelming experience, improving their overall brand loyalty through relational marketing strategies. In 2009, the O2 became the world’s busiest live music venue. O2 managed, only a few years after the start of its sponsorship, to translate a consistent increase in brand consideration into actual behaviour (acquisition, loyalty and mobile usage). In other words, consistent with its nascent company targets, through this sponsorship, O2 managed to build upon their highly considered brand-image while additionally securing immediate and lasting revenues. The O2 sponsorship assisted the mobile network to increase its base of pre-pay customers and post-pay customers by 20% and 10%, respectively. Moreover, O2’s market share in the UK increased from 24% in June 2005 to 28% in November 2010; O2 also increased its subscribers in 2008 with 1.4 million new customers - over half of the total net increase during the previous year. Overall, O2 company revenues increased by 30% (from £3.3bn to £4.3bn) between June 2005 and November 2010 (Bal and Boucher, 2011). It is the success of these marketing activities which have allowed the live music sectors to excel across the wider music industries; contributing to its extreme growth, and subsequent profit increase. Another factor that has contributed to the rise of live music is the progression and change of the traditional model (see figure 10), the live music becoming increasingly monopolised by larger companies, controlling all aspects of the model. Most notably, Live Nation.
  • 48. - 48 - Figure 10 - Traditional Live Music Model – No Longer Relevant? (Barclays Capital, 2009) Live nation has consolidated the live music environment, bringing all of the major aspects within one platform by governing and owning: concerts, ticketing, sponsorships, artists, 360 deals and venues. Taking control of all aspects of the traditional model has allowed for a complete manipulation of the market; none more so than in the marketing department. With 60 million people attending Live Nation concerts in 2014, and a further 130 million holding online accounts, Live Nation’s marketing strategy can be aimed at an immense demographic. Its customer database provides vast amounts of Big Data for marketers, including: names, addresses, locations, tastes, and credit card numbers. As a result, Live Nation’s advertising revenue has increased by 10% each year, since 2010. This data is being harvested both by Live Nation and its customers. The information garnered about ticket purchasers from Internet sales can facilitate the development of targeted and thus less costly marketing strategies. Data is used to help a variety of parties — artists, venues and brand sponsors — to be as knowledgeable as possible about the live event fan base. That enables them to be as relevant and targeted as possible with their communications, offers campaigns and programs, mobile and social strategies, and ideally across all of their marketing and fan interaction’ (Punchcard, 2015).
  • 49. - 49 - To recapitulate, all signs point toward continued growth in the live music sector, with the remaining focused on providing value through increased pricing and more impressive performances. With ongoing expansion in new international markets, modern artists are selling tickets across varied genres while veterans remain consistent. Additionally, new-media marketing tools are moving the needle in quantifiable ways (Waddel, 2013).