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Evolving Music Marketing

Live Nation's 360 Deals Put Control Back in Musicians' Hands

— February 7, 2009 — Pop Culture
After a huge decline in CD sales partially due to illegal music downloads, musicians have released far fewer "records." Record companies and artists have been forced to start looking at marketing single-song downloads rather than put their efforts and money into recording and packaging CDs.

After legal battles with the record industry, Napster and Rhapsody became leaders in the single-song download model, followed by the likes of Apple's iTunes.

In 2007 Madonna signed a "360" deal with Live Nation, giving the young company exclusive rights to her all of her music-related ventures for one hefty lump sum. It wasn't long before other acts followed, including Shakira and U2, causing record company executives to stand up and take notice.

Now a potential merger between Live Nation and Ticketmaster could create a monster operation that could draw artists away from their labels, leaving the record labels holding their empty pockets in their hands.

The face of music is continuing to change, with more and more bands selling their CDs from their personal websites and social network sites like MySpace launching new careers in the music business every day. With such a wide variety of marketing possibilities, the playing field is becoming more level every day, and the record giants are no longer in control.
Trend Themes
1. Single-song Downloads - Record companies and artists are shifting their focus and money towards single-song downloads, creating opportunities for companies to develop innovative digital music marketing strategies.
2. 360 Deals - 360 deals, which provide companies with exclusive rights to an artist's music-related ventures in exchange for a lump sum, are becoming increasingly popular and disruptive to traditional record label contracts.
3. Direct-to-consumer Sales - More artists are selling their music directly to fans via personal websites and social media channels, presenting opportunities for companies to develop innovative direct-to-consumer marketing strategies.
Industry Implications
1. Digital Music - The rise of single-song downloads and direct-to-consumer sales is creating opportunities for digital music companies to disrupt the traditional record label industry.
2. Music Marketing - 360 deals and the shift towards digital music marketing strategies are creating opportunities for companies to disrupt the traditional record label marketing model.
3. Live Events - The potential merger between Live Nation and Ticketmaster is disrupting the live events industry and creating opportunities for companies to develop innovative concert marketing and ticketing strategies.
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