The recording industry has become a big fat lazy bully. Instead of addressing the desires of the consumer by embracing and enhancing the new distribution technology of P2P (Peer 2 Peer) file sharing, they have decided to attack the consumer. They now run the risk of alienating and losing customers instead of gaining and retaining customers.
The labels need to be a little creative and engage in new marketing techniques instead of attacking the consumer. They need to rethink their marketing plan, business models and pricing models. They need to address the needs and wants of the consumer and become the consumers advocate and champion instead of their adversary.
Here are some suggestions for the record labels to help resolve the whole P2P issue:
Purchasing Incentives
Why not give incentives to those people who ARE purchasing CDs? Include coupons, sweepstakes, or prizes. What about being a little creative and increase the value proposition of purchasing a CD.
Loyal Customer Incentives
What about generating customer loyalty to a label, or artist? Purchase 5 CD’s from a specific label, provide proof of purchase and receive merchandise or concert tickets, or discounts. How about a subscription based model. Subscribe to a label and receive incentives. Purchase more CD’s and receive incentives. Incentives could be concert tickets, backstage passes, music gear, etc, etc.
Cross sell
With a membership/subscription model, labels could cross sell other artists and give incentives to loyal customers to hear fresh talent first.
Alliances and cross marketing with media companies
What about giving consumers the ability to buy a new MP3 player loaded with new and emerging artists? What about selling Flash memory cards loaded with songs from a specific album?
The recording industry should also take a hard look at why people turn to p2p filesharing:
•It’s easy and convenient
•It’s free
•It satisfies the desire to hear new music from artists
•It gives almost instant access to a vast variety of artists and genres
•CD’s are too expensive
•Consumers want choice of tracks because they don’t want to buy a CD which only has 2 songs they like
•CD’s are a dying medium?
They should also examine what are the negative aspects of P2P:
•The sound quality is not always the best
•Download time can sometimes be long
•There is no standard for MP3 titles, data, and sound quality
Of course, this is all just my opinion.