See why mobile not only allows fans access to richer music content, but also lets musicians and labels generate more revenue.
Ringtones, text-to-screen, and text alerts: these are the wireless media types we think of most when we think of music and artists engaging the mobile channel. Music represents the lion's share of mobile data revenue today, with artists and labels working to engage new digital channels in their marketing initiatives. They don't just use mobile, but all interactive media. Music videos, ads, and banners all drive loyal fans to music informational sites and venues.
Music provides an immediate ability to customize and entertain. Ringtones and ringback tones allow consumers to show the world their affinities and perhaps a bit of their personalities. Major brands know that integrating recording artists with their media campaigns targets a new brand of consumers.
iPods, iPhones... mobile devices are a big element of the conversation. Consumers can now record, mix, market, and distribute from their PCs. Artists have newfound opportunities to market their brands and gain access to consumers they never would have reached before. It's becoming harder to target broad audiences (the commonalities). The recording industry must instead reach smaller audiences with unique preferences. The grassroots are rising, and all players in the ecosystem -- from artist to supplier to consumer -- win.
Where does that leave mobile? Don't tell the consumer how to consume. Be everywhere where they are so they have the choice, not us. Mobile distribution through the consumer is key. Consumers and word-of-mouth (or P2P) marketing is emerging like never before.
The music market can create the best for consumers: the best price, the best opportunity, the best choice (catalogue), and the best experience. Artists are learning how to market themselves and reach consumers through the channels they use most and these channels are helping artists reach out on the consumers' terms.
Case in point: Mariah Carey's "Live in Las Vegas" concert was recently simulcast across mobile phones. The event was recorded in September and, a month later, was made available to approximately 200 international markets through hundreds of mobile and digital media partners. Consumers were offered a virtual ticket for $9.99 to watch the concert once, any time they wanted. Some concert promoters predict these virtual tickets might one day become far more profitable than physical tickets.
These new channels are also allowing underserved artists to find their audience. Bands and musicians are using all distribution forms of digital and physical marketing to get messages out before and after events. They are learning how to make fans a part of the benefit and a highly personal channel like a mobile phone is the ideal platform to do this. Fans become a distribution channel eager to share in the band's success.
Mobile presents an opportunity for fans to gain access to richer music content but also allows musicians and labels to generate more revenue through the emerging channel. The Asian mobile music market is also seeing rapid growth. With the fast disappearance of CDs, new music distribution models are springing up around Asia.
Mobile operators may soon become our music suppliers. Mobile operators in Korea have been the fastest to innovate and capture this market, leading to soaring mobile music sales. Korean mobile carriers, especially SK Telecom, view music streaming and downloading as a cash cow for data services.
Will consumers soon have unlimited access to free music on mobile devices? Some players will undoubtedly offer this model. But more than likely, we'll see an evolution into some free services and some paid services. Ultimately, it's putting choice and control in consumers' hands. We're in the early days of mobile advertising. Creating a set of tools the industry can deploy quickly is paramount.
Music is already available through mobile; ad-supported music is already available through mobile. The models and media channels are becoming more sophisticated, and industry models are evolving as we protect the interests of both artist and consumer.
Imagine you're watching a music video on your mobile device and at the end of the video you have the opportunity, through a single click experience, to buy the artist's T-shirts, CDs, live tracks not available through any other media, or event posters. It's everything you could possibly imagine, all through one multimedia device: your phone.
Rohit Dadwal is managing director, Asia Pacific, for the Mobile Marketing Association.