Entries in value (7)
Music is valuable for triggering emotions and shaping our mood, but the market laws are different. There’s no silver bullet on how to add scarce value to a musical composition in order to make it marketable. There’s a yet unexplored territory though, and it lies in the power of perception. Brands resist commoditization by skillfully adding value to what they offer, changing people’s perception. In other words, enter Premium.
Recently, I received an email with two commonly asked questions about sponsorship that I’d like to address:
1) How much can you ask from a sponsor?
2) My project costs X dollars, should I mention that in my pitch?
Today had me thinking about two questions that i want to address with you… Is music less valuable than expertise and quality information? And is this why music cannot be sold for high prices?
Unfortunately, just knowing something, or having experienced something, doesn’t mean all that much. At least in terms of creating and adding value to peoples lives. Although there are many things that you can grasp and understand creatively and in the realms of your own thinking, this is NOT where the value comes from. With any content that you create, whether its an article, a book, a program, or a song… The value doesn’t come from your knowledge, the value is created by you speaking directly to an immediately recognizable issue/thought or feeling. With information products, you then of course uncover the solutions that you’ve found and explain how people can use them to improve some aspect of their lives or business.
Most people don’t care whether they own music downloads or not.
Of the more than 8 million people that are estimated to buy a Kindle this year, only a small fraction of them understand that the ebooks bought on the device are licensed – not owned – which means they can’t lend or sell their titles. By agreeing to Amazon’s terms of service, which they didn’t read, they’ve accepted these conditions. Soon, single ebook lending may be allowed on the Kindle, but users won’t be allowed to buy used ebooks.
The “first sale” doctrine indicates that consumers can sell their physical books, give them to a library, or do just about anything else. This legal principle covers CDs, DVDs, and videogames too. It enables the used marketplace and retailers like eBay and Amazon to exist and sell used titles. In the digital age, this concept is under fire. It’s no longer clear that consumers should be granted the same rights when they buy digital downloads.
You own an iPod and Kindle, but not the songs or books on them.
Peter Drucker stated, “Long-range planning is necessary precisely because we cannot forecast.” According to this statement, planning is essential to any enterprise so that the right decisions can be made when the environment changes. Music enterprises must be able to strategize and plan in order to create value for its customers. Strategizing and planning allows the enterprise to create its goals in its mission and vision for all levels of the hierarchy to strive for.
For example, Motown Records’ mission statement was, when it was first created, to “unite and bring people together through music.” A mission statement, as being part of planning, was created for Motown Records so that all artists, publishers, employees, and presidents of Motown Records would make decisions based on “uniting and bringing people together.” Knowledge of the goals and direction of the enterprise are necessary to know throughout the entire enterprise so that everyone knows what decisions are to be made and which are the right ones. Motown Records brought value to its customers that shared the same ideal in music: the desire to unite people. Planning the mission and vision statement encompasses all decision-making for music enterprises. After knowing the enterprise’s plan, any employee or superior would have to ask, “Does this decision align with our core values and work towards our vision as a music enterprise?” Customers will value an enterprise that is consistent with its plan to create that value for its customers.
Mainly, they’re unaware of the number of legal and alternative options to consume music that are available; they want to hear music and grow to like the songs before they buy them; or they don’t know the artist, either not well enough or at all, or don’t trust them, due to recent line-up or sound changes. Rebuilding that trust takes time and isn’t easy.
As well, fans file-share music when there’s too many hoops to jump through on an artist’s website or because the offer that the artist made, whether by price, package, or delivery, was terrible. Next, we looked at the role that the biases of digital technologies play into file-sharing—the different ranges of social behavior they promote in audiences.
We also tried to understand how choice overload can cause decision paralysis, leading fans to become overwhelmed. To cope, they take the path of least resistance, attempt to explore all of their options at once, and end up committing to no decision at all.
Lastly, we looked at how fans employ their own Internet law of economics when buying music and end up file-sharing it to mitigate the risk purchasing with an album they wouldn’t have otherwise bought. A number of motivations were intentionally left out of this analysis. Let us now explore some of the more common reasons why fans file-share:
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(Updated January 13, 2016)