Solution of Nettwerk: Digital Marketing in the Music Industry

1. Nettwerk: Digital Marketing in the
Music Industry
Presented By:-
Payal Patel
Sai Kiran Mimani

2. Case Synopsis
• Change in buyer behavior
• Change in distribution system
Physical
records
Digital
Media
Vinyl
Records
Compact
Disk
Online
listening/downloads

3. Change in promotion medium
Webcasters Streaming Music
Disturbing to
Online Presence of Brand

4. Time line
1984
CD
Replaced
Vinyl
Record
1991
MP3
1999
Music Industry
Peak $14.5 Bn, &
Napster sale of
CD
2002
Shazam
and
Topsin
2006
Spotify
2007
Slacker
2008
Annual
sales of
CD, half to
that of
2000
2009
iTunes
&
Polyphonic

5. Case Facts
• Piracy softwares emerged – Napster
1999.
• Fall of CD’s sales in 2008
• Despite of digital retailing, 95% of
downloads were not paid in 2008.
• Decline of traditional platforms &
traditional marketing forms.

6. Case Facts
• US music industry took off in 1999 due to
replacement of vinyl records by CDs
• 2009 Piracy increased (Napster) and major
music labels declined from 8 to 4.
• 2009-Apple iTunes provided a solution of
digital retailing.
• Nettwerk was one of the larger independent
music labels, publishers, and management
firms in US since 1985.

7. Case Problems
1. How the brand will grow
individually with any big label
support?
2. How can we generate revenue for
the industry?
3. What products will work for the
new kind of buyers?

8. Inference
• Generating revenues from single track
will work as per Exhibit 2 & 3.
• Tours and advertisement music videos
for new artist introduction seems
promising.
• Using digital media space for
promoting the music has worked for
Nettwerk, staying ahead of time
basically.
• Advertisements and Synchronization
royalties became the new way of
raising revenues for artists.

9. Inference

10. Recommendation
1. Social Media – Promotion and Selling for individual
brands is the best way.
2. Solution to Music industry for generating revenue
• Tours
• Advertisments (Movies,TV and stores)
• Video games
• Ringtones
• Licenses of karoke songs
3. Single albums are most preferred with niche taste can
be the product that will be preferred.
4. More companies should attempt to develop iTunes
like platforms. Even artists can make apps in which they
upload songs and download for nominal value.

11. Merci Beaucoup