[Music on the Internet, or more reason for bandwidth:]
<<<NEW YORK--(ENTERTAINMENT WIRE)--June 17, 1997--The Internet will
dramatically change the music industry over the next decade,
according to a new report from researcher Jupiter Communications.
Anticipating a shift over time that matches what MTV and the CD
heralded in the 80s, Jupiter believes a wide range of music industry
business models will be reinvented. While changes will not be
immediate in shifting the multibillion dollar retail business, the
ability to micromarket and to enact closer and more dynamic ties
between audience and artists will be swift.
"For the music industry, the Internet is a blender that will
shatter and enmesh the compartmentalized mini-industries that are
dominated by traditional, typecast players," Gene DeRose, CEO of
Jupiter Communications said. "Today, the business and logistical
dynamics of concert tours, TV and Radio stations, and record sales
are entirely separate. Over time, the Internet will render as
artificial the distinctions between performance, broadcast and
distribution. This will have dramatic implications."
Although tiny today, by 2002, online sales of prerecorded music
will total $1.6 billion, or 7.5 percent of the overall music market,
according to the report. The book-length study, prepared by Jupiter's
Consumer Content Group and delivered to its Strategic Planning
Services clients, details the advertising and merchandising
opportunities that will be made possible by the growth of the Web,
but warns against aggregation and large label branding.
"In the music industry, the artist is the brand, not the record label," Mark Mooradian, Jupiter's Group Director, Consumer Content, said. "Labels have been aggressive at moving to the Web, but they are consciously struggling to assert their role as promoters and
distributors. Nonetheless, whether cost savings for traditional
players or primary revenue streams for startups, netcasting, online
retail and (eventually) digital distribution will be a shot in the
arm for an industry whose growth is slowing."
MUSIC INDUSTRY AND THE INTERNET: New Strategies for Retail,
Marketing and Distribution sells for $995. To order call
800-773-4545 or 212-780-6060, or visit Jupiter's Web site at
jup.com. |
