MANG2008

RESEARCH
PROPOSAL
Exploring How Music Branding Is Changing in The Digital Era,
Where YouTube Is the Main Source of Digital Music

Student ID: 27050521

Word count: 1210 (excluding references)

1 INTRODUCTION

1.1 Purpose of the study

The purpose of this study is to assess how the digital shift has affected branding in the
music industry. The report will then evaluate the changes and explore why its
implementation is a necessary tool for survival in the current conditions. The aim of this
report is to explain how the 'shift to digital has led to a rising importance in music
branding as the music industry aims to adapt and respond to the digital obstacles.

1.2 Context of study

With the increase in technology and the development of the internet, the music industry
has faced many problems and changes in its distribution and marketing (Macy, 2016). In
terms of distribution, digital music (via streaming or mp3) is now the preferred choice,
consequently leading to a major decline in the demand for music records and CDs
(Jentetics, 2014). This has subsequently led to the closure of music retailers (such as
HMV), with digital downloads and illegal downloads being the main cause (Rogers,
2013). When assessing the music industry, it is important to understand that the music
artists provide the service/product (which is the music). It is also important to
understand that the development of technology and the internet has given artists
freedom to market their music without the use of a record label (Gallagher, 2013). For
example, artists can now use YouTube and ITunes to gain recognition and generate
profit. The digital shift has therefore meant that record labels are not as influential as
they once were and has cost the industry billions (Short, 2014). This report will interest
its readers as it aims to explore how the music industry has responded to a problem that
is almost impossible for them to thrive from. The report will assess the digital change
and discover how record labels have innovated their music branding to adapt to the
digital nature of the market and maximize revenue

In the digital age, the availability of music is more accessible than ever. Streaming sites
(such as YouTube) and new technologies (such as Spotify) have become increasingly
popular as they allow users to listen to what they want, when they want (US Telecom,
2016). Internet streaming has considerably changed the the traditional artist/label
model and has consequently changed what methods record labels use to brand artists
(Rogers, 2013). For example, music brands have now used YouTube to endorse/display
their artists music videos. The technological era has placed the music industry into a
digital coma which if ignored, could cause the death of it.

2 LITERATURE REVIEW

2.1 Introduction

In this literature review, key theoretical ideas and relevant business themes will be
identified. These include branding, brand equity, licensing and digital marketing
2.2 Branding/Brand equity

Branding is a marketing strategy which offers a source of value creation and is relevant
in this study as it helps record labels differentiate their artists in a current market which
is oversaturated (Sisario, 2016). Strong branding results in strong loyalty, satisfied
consumer needs and can help record labels compete with illegal download sites (Macy,
2016). The Lovemark theory is also relevant as music provides emotional satisfaction.
According to Roberts (2004), this theory can help strengthen the emotional bond
between the brand and consumer.

2.3 Licensing

Licensing is a legal tool which is enforced to protect owned products and requires
permission for its access. Licensing means that Advertisers, TV/Movie producers and
streaming sites require permission from the artist/record label to use it (Koehler, 2012).
This consequently allows record labels to profit from the digital market. However, the
profit generated is significantly lower than before the digital era.

2.4 Digital marketing

Digital marketing allows individuals/businesses to market products using technology

and is primarily exploited on the internet. The recent digital shift has led to an increase
in digital marketing campaigns and digital platforms are now incorporated in most
modern businesses (Chaffey, 2014). Due to a late response, the music industry and its
labels have suffered from a major decrease in demand because of music piracy and
online streaming in the digital market (Authors Society, 2012).
2.2 Research questions

1. What is music branding, why is it important and why is it needed?

2. How has the digital market affected music branding and how has the music
industry responded to it?
3. Why is music branding becoming increasingly important in this current digital
era?
4. How have online streaming services (such as YouTube) affected music
branding?

3 RESEARCH METHODOLOGY

3.1 Focus Groups

Focus groups (of roughly 6 people) will be conducted to extract relevant first-hand
information on consumer behavior and will consequently define the problem in greater
detail. The focus group will be questioned on matters such as their general attitudes (to
music), the decision making process (in terms of purchasing), brand recognition and
brand association.

3.2 In-depth interviews

In-depth interviews will be conducted to refine and gain a deeper insight into the
subject. Interviews from Artists (most likely unsigned), music managers and journalists
would be ideal as they are likely to provide information which is more accurate, useful
and relevant to the research. These interviews aim to obtain information on how
successful digital music branding can been achieved and how artists/managers/labels
are adapting to the digital shift.
4 RESEARCH PLANNING

4.1 Timetable

Mont Topics Sample

h s

1 - Refine question (If needed) N/A

- Research music industry, music branding, digital
marketing and digital streaming
- Introduction

2 - Literature Review N/A

- Research illegal music and its impact
- Research and evaluate the impact of online music
platforms/streaming (YouTube)

3 - Literature Review N/A

- Research Music branding and licensing
- Include business concepts such as Porters 5 forces
and STEEPLE

4 - Conduct focus group 3+

- Draft results and analysiss

5 - Conduct interviews 3+
- Draft results and analysiss

6 - Interpret/Evaluate results N/A

- Link them to research
- Analyze/form conclusions

7 - Discussion N/A
- Relate findings to literature and the questions
focused on
- Also use secondary research

8 - Conclusion N/A
- Possibly add recommendations/further
 improvements/solutions

9 - Improve all work in terms of grammar and structure N/A

(e.g. contents page)
- Add visual aids to the report

10 - Add all relevant appendixes N/A

- Include all references

5 ISSUES

5.1 Research Methodology

There may be problems when conducting in-depth interviews as it is difficult to contact

and receive detailed feedback from musicians, managers and record labels. This
research is one of the most important components in the report and will result in a major
flaw if excluded. It is also difficult to access reliable qualitative information (from
secondary data) which is specific to the research.

6 Networking

6.1 Feedback

The title of this report was refined by defining personal interests and researching
common topics and problems in the field. The main interest was the music industry and
the main field was marketing. The interest and field were then operationalized (through
discussion) to generate a focused research project. In discussions with colleagues and
lecturers, the topics of branding, music piracy and music streaming were brought up.
These topics were then combined/used to form a research project which focuses a
specific marketing concept (branding) with a specific matter in the music industry (the
shift to digital).
7 REFERENCES

1. Macy, A., Rolston, C., Allen, P. and Hutchison, T. (2016) Record label marketing.
2. Chaffey, D., Ellis-Chadwick, F., Isaac, H., Volle, P. and Mercanti-Guerin, M.
(2014). Marketing digital. Montreuil: Pearson.
3. Rogers, J. (n.d.). The death and life of the music industry in the digital age.
4. Koehler, C. (2012). Importance of Music Licensing. [online] Musicgoat.com.
Available at: http://musicgoat.com/importance-of-music-licensing [Accessed 13
May 2016].
5. Author Societies. (2012). [online] Available at:
http://www.authorsocieties.eu/uploads/Modules/Library/the_online_music_market
_in_europe.pdf [Accessed 13 May 2016].
6. Jentetics, K. (2014). [online] Word Press. Available at:
https://musicbusinessresearch.files.wordpress.com/2012/06/13-jentetics-kinga-
the-strategic-integration-of-music-branding.pdf [Accessed 13 May 2016].
7. US Telecom. (2016). [online] Available at: https://www.ustelecom.org/blog/music-
industry-shifts-streaming-trend [Accessed 13 May 2016].
8. Short, K. (2014). [online] Available at:
http://www.huffingtonpost.com/2014/08/22/music-industry-shift-
gif_n_5697945.html [Accessed 13 May 2016].
9. Sisario, B. (2016). [online] NY Times. Available at: 1.
http://www.nytimes.com/2016/03/25/business/media/music-sales-remain-steady-
but-lucrative-cd-sales-decline.html?_r=0 [Accessed 13 May 2016].
10. Gallagher, D. (2013). The effect of digital on the music industry | Organic. [online]
Organic. Available at: https://theorganicagency.com/blog/effect-digital-social-
media-music-industry/ [Accessed 13 May 2016].