Jones+T+Final+Report+Proposal

Jones T

To: Proximity Music Team From: Travis Jones Date: April 26, 2010 Subject: Saving the Music Industry

Illegal downloading has become a staple in the lives of Gen-Y. Most people in Gen-Y illegally download music and do not think twice about it, as it generally accepted within the culture. Record companies and the RIAA have fought long expensive "wars" against illegal downloading with little to no success. The music industry as a whole is failing largely as a result of illegal downloading as CD sales have plummeted. The recording industry must realize that file sharing is not going anywhere and must work with the system in order to save their industry. This report will address potential solutions to the problems facing the music industry.


 * Need**

With illegal downloading now taking over as the primary means of people obtaining their music, the music industry must adjust their business strategy. The only way for record companies to stay in business is to adopt new business strategies aimed towards taking advantage of illegal downloading. Some bands have already thought of clever ways to sell their albums, most notably Radiohead and their "pay what you want" strategy. It is imperative to look closely at possible strategies that the music industry can use to remain relevant.


 * Product placement to make up for lost revenue
 * Make music a service rather than a product
 * Lower the price of music both physical and online, or offer low priced subscription service. The music industry will make more money by cutting prices than they will with people illegally downloading music because it costs too much.
 * Pay what you want-Radiohead experienced great success by allowing consumers to pay what they want (or nothing at all) for their album //In Rainbows//.
 * Create incentives for people to purchase music such as rewards points that can go toward merchandise, concert tickets, ect
 * Allow people to preview full albums or songs for free before purchase as people are reluctant to purchase something if they will not like it

These proposals could realistically save the music industry. Illegal downloading will not go away but if the music industry accepts that and looks for creative ways to sell their product they still compete with illegal downloading. Incentives and allowing people to pay what they want for music are initiatives the music industry can adopt right now and they would be highly successful.


 * Topics**

The report "Making Music Relevant Again: Saving the Music Industry" will cover the following topics:


 * The effect of illegal downloading on the music industry
 * Different proposals that would allow the music industry to compete with illegal downloading
 * Product placement to increase revenue
 * Trends in illegal downloading


 * Sources**

Agrawal, Mohit. "Business Models to Fight Music Piracy." //Telecom Circle.// 21 Feb. 2010. Web. 21 Apr. 2010. <[]>

Buskirk, Eliot V. "Music Industry Gurus’ Five Point Plan to Save Their Business | Listening Post." //Wired News//. 15 May 2008. Web. 15 May 2010. .

O'Hear, Steve. "Music Industry: Five Alternative Business Models | Last100." //Last100.com | Tracking the Digital Lifestyle//. 11 Oct. 2007. Web. 14 May 2010. .

Shannon, Victoria. "Could Social Networking Sites save the Music Industry?" //The New York Times//. Web. 16 May 2010. .