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Marketplace Research Chapter Fifteen
Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners
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Start Thinking . . . How are the music charts (Top 100, Billboard 200, etc.) compiled? Who compiles this information? In what ways does market research impact the music industry? Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners
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Chapter Goals Become knowledgeable about record market research and how this research is used. Learn about the record charts—how they are compiled and their impact. Identify record market segments through analysis of stylistic preferences and the science of demographics. Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners
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Understanding the Consumer
In previous decades song + artist = music sales radio stations = label’s most relevant “customer” Technology changed old ways market research became more sophisticated new distribution technologies Music consumer research categories: sales surveys measuring unit sales consumer attitude research reports custom research Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners
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Research Topics The Charts
Lists of most popular music Billboard publishes most quoted charts Most music categories have their own chart Hot Digital Songs chart monitors download sales Started measuring streaming play in 2012 Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners
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Research Topics Demographics
Characteristics of consumers = yardstick for analyzing the marketplace Enables efficient targeting of music buyers mind-shift from traditional mass-market approach Trick is to understand consumers and their behavior minimizes marketing and distribution waste Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners
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Research Topics Demographics
[Insert Figure 15.1] Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners
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Research Topics Record Categorization
Easier to sell something when it has been categorized Categories constantly change with new trends Crossover recordings Public cares about sound, not type Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners
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Research Topics Record Categorization
[Insert Table 15.1] Note: Crossover titles may be counted in more than one genre. Includes 2011 physical albums and their digital equivalents. Source: Derived from Nielsen SoundScan and Christian SoundScan POS unit sales. Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners
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Research Topics Stylistic Preferences
Music in a state of constant development and change Artists need to transcend trends Sometimes shifts in the musical climate are too dramatic for artists to successfully navigate Bobby Darrin and the Four Seasons after Beatlemania Poison and Warrant after Nirvana Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners
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Research Topics Research Revolution
Music consumption in new media Monitoring of Web surfers DIY artists can now monitor their fan base College students as an audience segment Price versus value Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners
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Data Sources Nielsen’s Broadcast Data System
Monitors broadcasts Recognizes songs and commercials Tracks music on terrestrial radio, satellite radio, network, Internet radio, and TV Detects actual airplay Prevents false airplay reports although not beyond manipulation Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners
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Data Sources Mediabase 24/7
From Clear Channel Logs airplay Ranks music popularity Provides subscribers with analytic tools to understand data Provides other programming elements Consumer testing site: Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners
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Data Sources Mediaguide
Catalogs music on commercial, non-commercial, and Internet radio Verifies that radio commercials actually run ASCAP uses Mediaguide to more accurately apportion royalties Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners
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Data Sources Music Xray
Analyzes acoustic patterns and amasses feedback from listeners online Assembles responses to music from online consumers and industry professionals Produces numerical snapshot comparing new songs to past hits Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners
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Data Sources Next Big Sound
Founded by college grads in 2008 and funded by venture capitalists Mines online data regarding consumer activity and buzz for music and sales Helps identify strengths, weaknesses, shifts in the marketplace, comparisons to peers and benchmarks Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners
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Data Sources NPD Group Provides consumer information on industries within media/entertainment Pays attention to consumer activity at POS Interviews customers to discover attitudes Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners
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Data Sources RingScan A Nielsen service
Compiles mobile ringtone sales data Gathers data from U.S. mobile carriers, aggregators, and other mobile entertainment retailers Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners
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Data Sources SoundScan
Owned by Nielsen Tabulates unit sales of recorded music physical products and downloads Sales tabulations offered on a subscription basis Old system before SoundScan: sales figures estimated and returns not accounted for certain genres ignored in sales lists subject to manipulation Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners
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For Further Thought . . . Beyond sales of prerecorded music, what other, less obvious music activities can research illuminate? How can an understanding of consumer demographics improve the marketing of music? Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners
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