A blog about music and its evolution in the online world.

Sunday, November 6, 2011

More Filipinos listening to songs, downloaded, uploaded music online

Listening to songs, music upload / download
increased in 2011
In the Digital Philippines 2011 Yahoo! - Nielsen Net Index report, Filipinos listening to songs in music websites is on the rise (45%). There is also an increase among users downloading and uploading music online from 2009 (25%) to 2011 (37%).

"Pa-copy naman... Pahingi ako niyan.. Send mo sa akin..."

I think the Internet has really change our attitude towards music. If you want to hear it and have a copy of it, you'll likely find someone who can send you one for free or there is a resource out there online where you can download it too. Another way is to record the audio out of those MTV and enjoy it.

Why is this so? Those who voraciously access local music entertainment content are in the 10 to 29 age group. A segment who likely did not grew up buying albums but liking singles instead.

Should they decide to purchase online, most accept payment through credit card or Paypal. A facility that is not necessarily accessible to this age group - so forget iTunes being a big at this time.

For the age group 30 and up, there is a lot of resource online already that fosters the music sharing culture. But for those who can afford, am sure they will still prefer to buy a copy online. I won't surprised though if that is less than 1% of the market.

Piracy overrated?

Industry losses due to piracy is estimated to be at 15 billion pesos. Around 10% to 15% of this is music piracy which is P1.5 to P2.2. billion a year. This is a combination for both foreign and local content - I assume.

As for the local music industry, I don't think the figures are high. In reality, how many new artists and albums gets released in the Philippines each year? How many Pinoys will really go out of their way to hunt down old music of their favorite Filipino artist?

Sometimes, you also don't need to download anymore. Just go to YouTube and watch / listen to your favorite artist online.

Selling Music Online and Marketing Royalty-Free Music

In reality though, purchasing music online is not a top priority of a user needs and wants. Therefore selling music these days needs to be marketed and given differently to the consumer - with fun and cool factor in. Some thoughts:

1. Buying an mp3 version of a music over the counter or a website. Simple as it may sound but it is too complicated to buy online music nowadays. Can I just purchase a specific song I like via a Multiply store? (seriously)

Encourage people to buy music online with more bang in the buck. This can be special privileges such as winning a concert ticket or freebies.

Make users feel proud supporters of online music. It can be a cool identity type, like being part of a community, and not the nagging one - "no to music piracy" usual slogan.

2. I have seen commercial establishments now investing in royalty-free music to avoid being run after by music associations for playing commercial music. A friend in the hotel industry pays a fixed sum every so often to a person who compiles royalty-free music, the good ones, that can be played in hotels.

I hope that person has a site online, whoever he is.

Have subscribed to podcast of various DJs giving their royalty-free house music mixes for free. Although not all gives the kind of sound you like.

For these instances, you need a Music Maven who can spot the good ones legally, pay for it (fee or donation), and give it to their clients.

I think some will be willing to pay a nominal fee just to receive that download link to get a weekly or monthly music fix.

Stop blaming the consumers

Instead of blaming the consumers, the music industry has to look at itself and see whether they are doing a good job of serving their customers. Whether they are able to adapt or not in these changing times.

I miss the old days when music outfits are independent or not owned by media networks. There was a vibrant and competitive market space then.

But when media networks start owning their own music recording outfits and radio stations, priority has shifted and focus given to their in-house artist and brands. It is like a monopoly of sorts.

Looking at my 2008 write-ups below, unfortunately, not much has change. I hope our new breed of entrepreneurs, ex-music artist or not, will give a solution that may not only apply to the Philippines but to other markets as well having the same predicament.

Previous write-ups: