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Evolve or Die: Music Industry Commentary, by Nathan Albee- Founder

The music industry has two options. Evolve, or Die. To me, it seems to be dieing faster than evolving…

Music is not going away. There will always be a need and demand for music. So what’s wrong with the industry? Why can’t it make money anymore?

Some will blame it on the downloads, yea this is old news right. We’ll there is a bigger issue than that. The music industries biggest threat is my hard drive, its my iPOD. Recently a friend of mine offered me 250 GIG of burned CDS on a drive.

Drive swapping is what will kill the industry, that is if it doesn’t evolve. Simple selling little round disks, isn’t going to make the money. So what is? That’s the big question right?

I’m going to tell you, right here…. Keep reading..

I’m 31, I hardly watch TV. I seldom listen to the radio, because its crap. I get my news from my laptop. I get my music from my friends, or from live events. I tune out the mass media world.. I don’t even own a home phone. Unless you count my cell phone. And I have a few of those. One for business, one for personal. If I don’t know you or don’t want to talk with you, you can’t reach me. All my bills are electronic. The mail that comes to me in my mail box is trashed or put on a desk to read 3 months later. I’m not kidding…

On my phone I don’t answer numbers that I don’t know. I don’t have a secretary, or gate keepers. Technology is my gate keeper. Just as companies use it to advertise more, I use it to hide more. And I am not alone. Just IM me, with my list of close friends we can group chat and we will tell you all about it. We’ll give you some music over IM while we are at it too.

If that doesn’t scare you. Or you don’t understand the implications. You are already dead.

I’m 31. Ask a 14 year old. And it gets worse. Face it, you’re a dinosaur in this world. And you and the music business as you know it is about to be extinct.

If you want to reach the new generation, or me. The trends point to only one direction. You have reach me when I want it. It has to be personal. You have to have a relationship with me that I value. And you have to offer something of value.

The realty is. I don’t buy CDS. I haven’t for years. My friends drive swap. So you are inevitably faced with a challenge you have no idea how to handle. You can’t just sell in “Best Buy” any more. If you do, you have to spend enormous amounts of money to promote you music. Then release. And wait about 2 days, and its electronic, it’s saturated, its being IM’ed all around the world, its being copied form one CD to another and its on that drive that someone just plugged into my mp3 player. You can’t stop it. And you have to see reality and start asking the right question.

How do we save an industry? We don't, we can't. The industry as you know it is DEAD.

It’s easy… It is all about fans. People will pay for exclusive treatment, for a relationship with someone. Look around, everyone is trying to get personal. Why? We are tuning out to mass advertising. Customer loyalty programs work. Look at some industries that use them, Air travel, hotels, car dealers, financial institutions, to just name a few.

Fan loyalty. You probably don’t even know who your customers are. Today you have to know who you sell music to. If you don’t know who your customers are, and you do not have a direct connection to these people you cannot be successful in the new world.

Think about what I am saying here. Do you know who bought your merchandise, CDs, Mp3’s . If you don’t your in trouble. If you do know, pat yourself on the back because you are way ahead of the game.

Think about 2 things?

1. What is your most personal communication device, and how often is it with you. (let me guess… It’s your cell phone)

2. What happens when that cell phone becomes your iPod/mp3 player You can make money on music again.

Imagine, if at every show, on every poster you have a mobile fan club. A customer loyalty program for your fans. You can connect with them, replace your street team. Dive concession or merchandise sales at venues, up sell music, sell access to private parties, share ring tones, and connect with these fans in a way that is personal, instant, and that has enormous value. And when that phones becomes your MP3 Player, you can sell it direct. If you can imagine doing that, then you are beginning to understand what HotLocalMusic can do for you.

This is not a quick fix. You have to start now, and persevere, to build your database of fans. You must design your own loyalty program that has value to fans. Give them things, coupons, news, access. Create a relationship where you know your customer and they know you.

We at HotLocalMusic are giving you the tools to create your customer loyalty programs and connect to your fans through their mobile phones. We took all the barriers out of creating your own mobile marketing and customer loyalty program. We took cost, technology, and expert knowledge out of the equation, so you can succeed. Get your loyalty program started today. Give us a call.

Get local, get personal, its big business.

Nathan Albee
Founder HotLocalMusic®