Tuesday, March 25, 2008

The 80’s 101 (cont-d): The internet and The Smiths

Due to popular CDJ member demand…we continue our 80’s series. Most people think of college students as embryonic drunkards. While this may be true, many college students are hard working –trendsetters. This is why they are typically used for case studies, scientific experiments and market research. The music industry and trend followers have now taken more notice of the college demographic due to “new media” and the increase in social networks. In regards to music, college students download new music more than any other demographic but more importantly, they find out about new music from the internet more than any other traditional media resource. (Contact us for specific data.) Although some consider various sources of the internet to be “new word of mouth”, the basic tenants of finding new music reside in the internet space – virally. Music is now cheaper to produce in large quantities and more websites are taking advantage of this trend and lowering prices to accommodate downloader – search opportunity costs. Freemium product pricing also helps. Ochoa and Corey show that decreased prices expand digital downloads and is expansionary for downstream and upstream businesses in the internet sector. Ochoa and Corey explain, “With digital pirates always improving their armaments, perhaps the best way to battle them is to join them by helping anyone who wants digital commodities to get them in a cheap and easy online format that makes piracy unattractive.” “Low price is more expensive than free, but many consumers will pay a small premium for legality, especially if the seller throws in greater convenience and service”. Facilitating this new trend are sites like www.facebook.com and www.myspace.com that will become more integral in spreading the internet word about new music. This is why the 80’s is hot again. The internet has allowed music to become an impulse item. If content is king, then distribution is queen……….Here is another 80’s classic from The Smiths which we call The Beatles 2.0…………..dp