1. Part 5: The Recording Industry

2. Chapter 17

3. 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?

4. 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.

5. 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: 1. sales surveys measuring unit sales 2. consumer attitude research reports 3. custom research

6. Research Topics The Charts Lists of most popular music Billboard publishes most quoted charts Most music categories have their own chart

7. 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

8. Research Topics Demographics

9. Research Topics Record Categorization Primary genre initially assumed Crossover recordings Public does not care about categorization New categories find new markets to exploit

10. Research Topics Record Categorization

11. Research Topics Stylistic Preferences Music in a state of constant development and change Artists need to transcend trends Some trends are absorbed into culture rap

12. Research Topics Changing Research Topics Charts Demographics Stylistic preferences Music consumption in new media College students Price versus value

13. Data Sources Nielsen’s Broadcast Data System Monitors broadcasts Recognizes songs and commercials Detects actual airplay Prevents false airplay reports although not beyond manipulation

14. Data Sources Mediabase 24/7 Logs airplay Ranks music popularity Provides subscribers with analytic tools to understand data Provides other programming elements www.ratethemusic.com

15. Data Sources Mediaguide Catalogs music on commercial, non-commercial, and Internet radio Verifies that radio commercials actually run Generates charts ranking music popularity ASCAP uses Mediaguide to more accurately apportion royalties

16. Data Sources Music Xray Quantitatively analyzes new recordings evaluate marketplace appeal points out possible tweaks to improve sales potential Produces numerical snapshot comparing new songs to past hits

17. Data Sources NPD Group Provides consumer information on industries within media/entertainment Pays attention to consumer activity at POS Interviews customers to discover attitudes

18. Data Sources RingScan A Nielsen service Compiles mobile ringtone sales data

19. 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

20. Data Sources Web-Based Research Digital realm = fertile ground to stealthily track consumer activity Consumers operate over 1 billion Internet devices globally Audience tracking firms set up big consumer samples

21. For Further Thought... How has SoundScan changed the accuracy of reporting of unit sales of recorded music? Name six topics of music industry research. How can an understanding of consumer demographics improve the marketing of music?