This week I have been teaching undergraduate and post graduate students about marketing, the use of research and how it helps businesses to idenfity, anticipate and satisfy customer demand. Doing some reading around the topic in preparation for these sessions I have come across evidence of a changing consumer and an unchanging supplier or retailer.
The best example is how the music industry despite all best efforts has failed to kill online downloads to protect the sale of CDs, DVDs and Vinyl products while also failing to capitalise what is clear a change in consumer behaviour within thier target market. What music retailers like HMV have failed to realise is that physical music product such as CDs, DVDs, and Vinyl are not compatible with their main customers’ lifestyles, just ask people aged between 16 and 35. The people also known as the dotcom generation prefer to have it all in a palm size box, by all I mean 10000 songs in an ipod or whichever other brand gives them that capability. As long as the music industry doesn’t accept this and offer free music while creating other means to make money through that provision of free music or other music related acrtivities like live shows, there will always fight a loosing battle with their customers.
Free music?! yes free music, it is already free to most of the consumers anyway so there is no need to pretend that it is a new concept because it is not. Their marketing teams must now work out how to make money giving consumers free products and services, GOOGLE already do this so it is also not a new concept but it requires new thinking.
Next to be hit by this new consumer behaviour of free online consumption is TV, Satelite and Cable. Already, research has found that within the 16-35 age group fewer and fewer customers are signing up to TV content contracts with companies like SKY, Virgin and Cable and Wireless. The same goes for the American and Canadian markets, the new business is drying up fast from these consumer who can now watch pretty much any programm they like online for free. The question here is how do they avoid the pit that music fell into? Is it viable for TV programme providers to make money of free provision of thier products and services? Probably not because the nature of the product is that there are few alternative for the consumption of the product unlike music which has the capability to offer better exprience as a live performance compared to the MP3 version. Comedies could offer live recording and charge people to sit in on the live recording but films are doomed.
It might take 12 years like it has for music but the end will come as long as technology continues to develop fast internet accessiblity, greater variety of access points and technology.

