Apparently no one buys CDs but how are artists still logging album sales?
The majority of music these days is consumed via streaming on services like Spotify and Apple Music. The concept of going into a store to buy a CD seems antiquated but some people still do it that way. Beyonce, one of the biggest female artists, sold more than 650,000 units in her first week of her seminal album, Lemonade, according to Billboard magazine, known as the music industry’s Bible.
- Of the 650,000+ units sold first week, 485,000 were pure album sales
- 25% of the sales of Lemonade in the first were streams
- 75% were pure album sales
What does pure album sales mean?
It means that someone actually went out and purchased an album whether they purchased the full album from iTunes, Amazon or they went to the local store and bought the CD.
How is the music industry even succeeding convincing people to purchase songs if they are available for free on YouTube?
Here is where you see the magic of how the music industry literally forces sales. Record labels are changing up their marketing by including some of the following strategies that you can implement in your business:
- Focus on PR and publicity – Whether it is a publicity stunt or not, you will always find your favourite singers involved in something around the time they want to release an album. What you should take away from this is you need to promote the hell out of your business if you want it to succeed. It doesn’t matter if you are running a B2C business or a B2B brand, you have to promote. Market and promote your business further by creating an excellent website. You can get awesome hosting here.
- Increased focus on their private life – Fans today want to know every single detail about their favourite singers. Labels know this and they are implicit in the exploitation of their private lives by feeding information to the media. The lesson to learn here is to share more about how your business is being built and how your transparency offers clients something new
- Branding musicians: Have you noticed how some of your favourite rappers almost stop becoming people and almost everything they do is because they have been productised? This is because music industry executives want to sell as much product as possible. They know forcing someone to buy a CD is difficult or even to download a song due to the fact so much music is offered for free. This is why the focus on celebrity perfumes, makeup lines, and clothing brands has grown. ‘What you should take away from this is that the company that you are building needs to act like a brand. Anything you do to build your startup should have branding baked into it.
The music industry is succeeding by focusing on creating hype, building brands, and creating products around musicians and artists. This is how they are able to squeeze out sales from an industry whose key product (music) can be found online for free.
Moral of the story
The music industry aggressive focus on streaming and album sales shows that the power of branding should never ever be forgotten in business. If you can brand your business successfully, there are many avenues to generate revenue.