“To everything there is a season, turn, turn, turn,” the everlasting song of The Byrds, perhaps echoes in the halls of the music industry. In today’s world, there is more music available than before, yet, people are not listening to it on CDs but they are listening via other channels. Calling it a problem of choice would be saying that this trend is undesirable. Nevertheless, the internet has reared its ugly head causing the sales of CDs, tapes or records decline by around 40% in Britain alone, since 2001. One of the biggest drops took place in Japan that is considered one of the biggest CD markets; fell by 6% in 2008 and around 24% in 2009.
Online companies are laughing all the way to the bank. Sites like Apple iTunes and others are raking in astounding sales ensuring the steady oblivion of CD sales.
Can there be a silver lining for music business owners:
For music business owners who facilitate artists, consumers and partners around the world. Undoubtedly, the vision of the company expands beyond reaching out to customers with a refocused business model to move from a traditional music company to a rights management company. In other words, companies need to manage the Life Time Value of the Artists which determine the sales through-
• Discovery: Ensuring that digital music services can dramatically broaden their reach.
• Connection: Developing a music demand amongst fans with a unique set of capabilities
What’s the end result?
Companies like HCLTech (www.hcltech.com) delivered solutions in optimizing music companies’ transformation. This meant ensuring that initiatives were achieved such as supply chain, royalties, master data and rights, finance, artist launch and insight work streams. Overall, companies achieved a saving of 25-30% in all operations, 57.5% FTE and a complete set of productivity gains across five years. All this was achieved with the Managed Services Model or MaSCo that ensured reduced IT density, cost predictability, reduced cost and overall improved digital music distribution.
The article has been written by Experts at HCL Technologies.