Sample+proposal

TO: Proximity Music Team FROM: SUBJECT: Proposal for Product Placement and Endorsement by Artists DATE: April 7, 2010

The music industry has been anticipating the decline in digital music sales for the last decade. From iTunes to Rhapsody, with the relative ease consumers have to download music, paying for music to Generation-Y is akin to 'throwing money away.' A new business strategy needs to be developed to make profit for the artists as well as the music labels behind them. I propose to write a report on the effect product placement in musician's music videos and concerts could have in replacing the revenue lost from illegal downloading.


 * Need**

Illegal downloading has changed the market in digital media for the worst in terms of making profit and the only places that are fairing are those overseas where internet piracy is taken more seriously than in the U.S. It is important to remember the following regarding the changing market of digital media:


 * Music has been shown to influence trends in culture and fashion throughout the years in the form of fashion (from jewelry to name brand clothes) and technology (watches, cars, television, etc.).
 * Digital media is becoming easier to obtain without paying for it in the U.S. In other countries, government intervention has stricter policies against illegal downloading, causing digital media sales as well as CDs sales to be higher than in places with little restrictions.
 * Advertising agencies are having a difficult time with so much technology available to a consumer that does not want to spend even 15-30 seconds to hear about a product, and they choose many times to close or fast-forward past the ad to get to their entertainment.
 * Product placement has been used in television, movies, and music for years and it is time the music industry embraces its ability to advertise and reach a consumer that now has the option to bypass ads online and on television with relative ease.

If music videos and concerts that promote the artist's songs or videos can also promote Coca-Cola or Virgin Mobile, then the target audience is reached and influenced to buy a product used by artists they admire. Generation-Y may not be likely to buy digital media but they are likely to buy detergent, shop at certain stores, and eat certain foods. These markets can be a resource for the music industry to tap into as other companies have to reach Generation-Y as well. Basically, by exploiting other markets that are in the same situation that the music industry is in, the music industry can make profit from those companies instead of Generation-Y.


 * Topics**

The proposed report: "From Cell Phones to Mayonnaise: Product Placement as a Revenue Generator" will deal with the following topics:
 * The decline of digital media sales and it's effect on the entertainment industry globally
 * Product placement in movies and television
 * Product placement in music videos and its effect upon culture
 * The advertising market and its need for new avenues of ad transmission


 * Sources**

The following items are key resources for this report. Information is still being collected on the history of Ad placement in music videos and concerts.

Advertising Age. (2010.) //How Miracle Whip, Plenty of Fish Tapped Lady Gaga's Telephone//. Retrieved April 6, 2010, from [].

Hamp and York describe the effects of gratuitous product placement has had for companies that were featured in Lady Gaga's music video, "Telephone". Companies that were featured have had major sales increases since the video premiered.

As We Zoom Past Commercials, Ads Go to Movies. (2009, June 25). //States News Service.// Retrieved April 6, 2010 from Lexis/Nexis Academic Database. The author examines the effect of consumer’s ability to past ads has had in sales of products. The author then explains recent product placements in movies and how it has affected their companies’ revenue given the release of the movies they were featured in.

Singing a Different Tune. (2009, November 14.) //The Economist.// Retrieved April 6, 2010 from Lexis/Nexis Academic Database. The author examines different methods the music industry has taken to curb illegal downloading in different countries. The author also admits that it is believed that illegal downloading accounts for 95% of all downloaded items online. The author also hints at a similar business model of packaging digital media with other items to make sales.

Free but Legal. (2009, August 1.) //The Economist.// Retrieve April 6, 2010 from Lexis/Nexis Academic Database. The author examines successful methods of selling digital media in other countries outside of the U.S. and Britain. It is still possible to sell CDs and digital media where there are places with government sanctions, an the authors analyzes how ‘Spotify’, a media-streaming software, has done so even in a market where 95% of downloads are illegal.

En Breve. (2010, January 30.) Billbord.com. Retrieved April 6, 2010 from Lexis/Nexis Academic Database. The author examines the long battle it has taken the Spanish government to intervene and to help put an end to illegal downloading.

O: Proximity Video Team FROM: DATE: April 05, 2010 SUBJECT: Proposal for report on cable companies providing online content

The line between live broadcast television and online video content has become blurred in recent years. Viewers realize that they do not need to be sitting in front of a television to watch their favorite television show or movie. In addition to how video content is being absorbed, viewers have the option to view programs on demand whenever they choose. I propose to write a report on how major cable companies like Comcast compete with non-cable providers of video content like Netflix and Fancast.com.

Providers of video entertainment now provide options for its viewers. Some cable companies have provided their customers with online access to its content.
 * Need**
 * Comcast customers have online access to the same content they have through their television by via Fancast.com.
 * By watching programs on demand or after it has been recorded, many commercials are eliminated or can be avoided by fast-forwarding through them.
 * High definition content is slowly becoming a priority for Gen-Y.

Premium video content is increasingly being delivered through the Internet, giving Gen-Y many different ways to access TV shows and movies. As a result broadcast TV audiences are being fragmented and the movie industry can no longer assume that box office revenues alone will pay for the production of new movies. We need to determine how Gen-Y currently watches premium video and which broadband technologies they prefer. This information will allow us to advise Proximity clients on how best to target Gen-Y using ads associated with premium content.

The proposed report “The impact of online based content” will cover the following topics:
 * Topics**
 * The convenience of watching content online vs. the quality of watching content on a high-definition television.
 * The integration of online content provided by cable television companies
 * The increasing popularity of On-Demand program viewing options

The report will also contain links to sources where viewers can have access to a near limitless library of online video content.


 * Sources**

Frommer, Dan. "Why Comcast Has To Worry About Hulu." //Business Insider//. 04 May 2009. Web. 08 Apr. 2010. <[]>.

Frommer reports that "More than 40% of U.S. households under age 35 watch Internet video //on their TVs// at least once a month, according to research firm In-Stat." This statistic illustrates that a large portion of Gen-Y uses services like NetFlix to download movies and TV shows to their TV through devices such as a PlayStation 3, Nintendo Wii, or XBox. Frommer also also offers possible remedies for cable companies like Comcast to remain competitive with non-cable video content providers like NetFlix.

Pegoraro, Rob. "Even with Comcast's Fancast Xfinity Web Site, 'TV Everywhere' Still Isn't." //Washington Post//. 28 Mar. 2010. Web. 04 Apr. 2010. <[]>.

Pegoraro reports on the concept of "TV Everywhere." According to Pegoraro, this concept refers "channels and providers work together to provide online access to shows and movies -- but only to people who already pay for conventional, offline viewing on televisions." Comcast customers who do not have access to their home television can still watch the same content they would be able to at home. As long as they have access to a high speed internet connection, they can log into Fancast.com and watch any TV shows or movies which they would be able to view at home.

In addition, Pegoraro also references potential customers that would pay less to only have the same access to Fancast as comcast customers without actually paying for cable television for their home. These customers simply prefer to receive video content almost exclusively online. Pegoraro explains, "My experience suggests that's technically possible, but Comcast doesn't seem interested in poaching customers from competitors that way."

Hartwell, Sharalyn. "Consumer Electronics Show Is a Generation Y Playground." //Examiner//. 06 Jan. 2010. Web. 04 Apr. 2010. <[]>.

Hartwell reports on this year's Consumer Electronics Show in Las Vegas. She directly correlates the progression of web-enabled devices capable of downloading video content to a high definition television, and the attraction of such devises to Gen-Y. She also references the ability for Gen-Y to use these devices to access social networking sites. "CES 2010 is also buzzing once again about streaming audio and video content from the Internet to your TV. There’s been talk for years, but the Internet video set-up boxes are getting big attention this year. They are basically a small piece of hardware you hook up to your TV and then can do everything--stream media, get Netflix directly, use Facebook or Twitter--basically rolling all your favorite gadgets into one. The Roku HD-XR and D-Link Boxee box are just two getting some chatter. It’s just a matter of time before that is the must-have gadget for all Gen Y’ers."