creativity requires the courage to let go of certainties

In recent years, the global music industry has grown significantly, and is all set to touch the $38.8 billion mark by 2011. This growth can be attributed largely to the digital music sector of the world’s music market.

A closer look at the global music industry reveals some interesting contributors and some of its essential constituents including songwriters, composers, singers, record labels, manufacturers, producers, distributors and advertisers amongst others. Key players also include mobile network operators, mobile handset vendors and manufacturers of consumer electronic goods. This is in particular is expected to grow tremendously.

Overview

Current records show that CD sales account for 55% of the global music market revenues. This figure is believed to dwindle further below to 29% by the year 2011. However, this loss will be replaced by the booming demand for music publishing and live music. I could seriously write a whole article on that last sentence. I digress.

Trends show that mobile music and online music seem to be gaining popularity fast, even as the revenue generated from the sale of compact discs (CDs) continues to decline. The global music market has witnessed a sea of change with the advent of digital music.

Be it podcasting, sharing, playlisting, downloading or personalizing, consumers across the world have redefined the joy of listening to music. This has resulted in a digital revolution of sorts, compelling record companies to review their existing marketing strategies to appeal to their consumers.

Future Outlook

Globally, the market for digital music is riding a wave of success (currently pitched at $4.5 billion), and is expected to generate revenue worth $14.8 billion by 2011. Record companies continue to explore new avenues in the area of digital music services, thereby generating a considerable amount of profit from online sales based on partnership.

Social networking sites seem to hold a promising future by catering to a community of music fans worldwide. Such websites offer innovative ways of marketing music and selling albums, music videos and soundtracks.

Another source of revenue for record companies points towards advertising-supported services. More and more advertisers are shifting their focus from radio and television to online digital music services. Internet advertising in the global digital music sector is expected to surpass all traditional modes of advertising by the year 2010.

Portable players are also fueling the demand for music on a global platform. In the next few years, music subscription services will sweep across the portable-devices market, providing music lovers worldwide connectivity across billions of mobile phones.

As it goes from here, a few years from now, the world will be dancing to a new tune that ensures an endless stream of money ringing in the cash box.