Sponsored Video Streaming: How the Music Industry is Coping

In the last post in this series, I made mention of Napster and the parallel issues the music industry has faced. They've had the benefit (?) of beginning these battles much earlier, with Metallica making noise in 2000, and thus have already gone through many growing pains to reach some degree of maturity. I recall a time when even though I knew it was wrong, there was no way I was going to pay when I could get it for free...and yet here I am, with nearly $100 in  purchased songs and episodes in my iTunes library. 

The industry as a whole has found a number of ways to cope. First, strong partnerships with online music stores like iTunes gave consumers the opportunity to get their music the same way they've become accustomed to while still supporting the artists and labels financially. Second, they focused on the sales opportunities of merchandise and concert tickets instead of relying on disc sales. And third, and definitely most difficult, they changed their mindset. The industry listened to what their consumers wanted and they made it work for both of them, looking for how it could work to their advantage:

Myspace became a place to support artists and get the word out, while informing fans and soon-to-be-fans about upcoming shows and giving them the chance to purchase merchandise instantly. Download sites offered bonus songs for free when consumers signed up. Sites popped up like Daytrotter to let you hear live performances from artists to get hooked, then drive you to buy the full CDs. Pandora streamed free music, purchased from the label, and suggested to consumers who in turn can go buy the tracks. And the industry keeps moving forward, using apps and other new technology to continue giving consumers what they want without compromising sales.

So now the question is, how can the video entertainment industry learn from these lessons? They've already begun with providing episodes for sale on iTunes, investing in video technology on mp3 players, and supporting themselves with ad revenue, but what new revenue streams can they find? 

RELATED UPDATE- I felt like watching some TV this afternoon but there was absolutely nothing worth watching, so when I found that TRL was on, I decided to go with the throwback--I was in middle school when it first came out. I switched over and discovered that today's show is the second to last episode EVER. Besides the fact that TRL has totally changed over the years, do you think being able to find the videos online are part of why the show has lost traction?

UPDATE 2.0: Just found this post by Ed Cotton--great thoughts on some of the same stuff. Love the quote from Techcrunch about the music itself being the marketing.