Tag Archives: music

Define the music business

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A music business is a business activity that gives users the satisfaction of their mind through services related to music and receives compensation.

As far as “music related services”, there are currently four types of products available. In other words, sound source, live (performance), goods, fan club (FC). The possibility of changing in the future is not zero, but in the present situation it may be considered that these four types.

By delivering these four services and products, users gain their minds. In other words, you get satisfied. There are various forms of fulfilling desires, such as being inspiring, communicating, and stress emanating. In any case, it is the basics of the music business that you get the money by getting the customer satisfied.

The music business is not CD sales. Although four types of services and products related to music were listed, this means that there are three services besides CD sales (sound source sales). However, unfortunately, it is still true that many people still think that “the music business is selling CDs”.

Certainly, about 20 years ago, the music industry was mainly selling CDs (that is, record companies), and the general idea was that live, goods and fan clubs were like extras. It is a feeling that it is a promotion and not a place to make money. It was the feeling that money was received from a record company.

But now that’s not the case.

The revenue structure of the music business is changing from relying on sound sources (CD sales) to emphasizing live, merchandise sales and fan club operations. The days when the recordings created and recorded in the studio had great value had passed by now. You should be aware of this as a premise. However, there is no loss of sound sources, but although the balance changes with the times, these four should not be lost, please think that it is a necessary thing.

Current Situation of Music Business in the World

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Yasuharu Nagura in Concert (Aichi, 2019), Japan [liveset]

 The center of the world’s political economy is still the United States. In particular, the Internet is an area that began with military technology in the United States, and has been widely spread as a national policy by the United States. Global rules for IT services can be said to be American rules. In the pop culture industry such as movies and music, the U.S. is the strongest field. When it comes to music and IT, it makes sense to check the situation in the United States. On the other hand, let’s know the situation of each country in Europe. How does France compete against the advancement of American culture? How are the Nordic countries attacking the American market? Understanding properly has hidden important tips for Japan. From now on, Japanese music will be sold in the world market.

Music users use 『stock』 and 『flow』 values ​​differently.

 Today, music users use 『stock』 and 『flow』 values ​​differently. Stock and flow are terms used in the financial industry. When applied to a general business, stock actually means holding things etc. Stock value means “value generated from holding”. On the other hand, the flow is always changing and not fixed like the flow of the river. Products and services can be divided into those that hold value and those that change. This stock value and flow value are sophisticated and difficult ideas, but when applied to the music business, it is easy to understand.

 Originally, music flowed momentarily and could not be possessed, and there was only flow value. The ability to confine and hold the music on records, cassette tapes, music CDs, etc. has created stock value. Users tend to find stock value in CD holding itself.

Then, think about the music delivery business. When buying a music CD, the user recognizes the stock value. On the other hand, some people may want to pay for the flow value that they only have to listen to music without finding a value in particular.

 The same music distribution service addresses the need to place music CDs as sound sources and support by holding music CDs of favorite artists. On the other hand, streaming on the Internet finds the value of flow at the moment the music flows. Even if you don’t own it, you can play your favorite songs when you like. The music is the music that you want to listen to at that time, and it is a way of thinking that you do not have to bother. It can be said that in the music industry, users have begun to use stock value and flow value properly.