Bad Boy Entertainment Competition
Now Viewing Bad Boy Entertainment's competition in: Music Production and Distribution (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
How does the company take advantage of new technologies? - For a new technology to be successful, support mechanisms must be in place that are designed specifically for that technology.
How does the studio take advantage of the Internet to reach customers? - As the number of specialty music stores has decreased, Web sites have become increasingly important retail outlets. Providing marketing materials tailored for Web sites can stimulate sales.
How does the studio promote new releases? - Studios sponsor tours by the artists; provide radio, TV, and Internet ads; and provide recordings and backgrounds to TV and radio DJs.
What are the company’s primary channels to market? - CDs are sold by studios through distributors and directly to large retailers.
What demographics does the company target? - Since music genres are often bought by specific age or ethnic groups, advertising is aimed at the target groups.
How does the company market to radio and TV stations? - While paying DJs and TV hosts to play specific music is illegal (“payola”), studios can promote their labels, releases, and tours through paid advertising and generally distribute courtesy copies of the releases to broadcasters.
Competitive Landscape
Demand is driven by consumer spending. The profitability of individual companies depends on discovering and promoting new musical talent and generating revenue from the company’s asset base of recordings and publications. Large companies have advantages in marketing and distribution. Smaller companies, referred to as Indies, compete by focusing on artists within local markets or music genres. The industry is capital-intensive: average annual revenue per employee is about $475,000.
Full Industry Overview For Music Production and Distribution
Business Challenges
CRITICAL ISSUES
Declining Revenue - Sales of music via legitimate CDs and downloads have been declining for years because of the pervasiveness of illegal copying. The music industry estimates that for every legal download from iTunes, as many as 100 tracks are illegally swapped on peer-to-peer networks. As many as 35 percent of CDs sold are believed to be illegal copies.
Distribution of Small Labels - The shift from specialty music stores to high-volume discount chains makes gaining shelf space harder for small labels. The demise of Tower Records and Musicland has decreased the number of outlets offering large selections of music that can be browsed by customers, forcing many smaller labels to depend on Internet distribution. Digital distribution sites, such as iTunes, tend to offer more favorable distribution terms to major studios with large catalogs of songs.
Industries Where Bad Boy Entertainment Competes
- Media
- Music(primary)
- Business Services
- Advertising & Marketing
- Leisure
- Retail
