Devoted to online marketing, viral marketing, and web marketing

A recent article I wrote on my show business site talks about how the music industry will start growing again as they adapt to the decreasing value of the CD as a revenue generator.

It reminded me of two things we occasionally talk about here. First, how the movie industry doesn't make money on its theatrical releases, but makes it on the DVD releases afterward.

Second, the music CD is now going the same route, as music managers are saying that they are starting to think of it as more of a loss leader and marketing tool than something they will make money on. They think of in terms of something that will help promote concerts, move merchandise and brand the artists. It's more of an expense than a moneymaker.

The growth in the industry will come from "live concert industry and the licensing of music for public performances, commercials, TV shows, films and video games," said an emarketer report.

Because so many that read this blog are in many different industries, it's impossible to attempt to apply this to specific businesses. But consider the thought processes of the insiders of the music industry. They are acknowledging the end of the CD as a revenue stream. But instead of it being dead, they're looking at it now as a great tool to market to what is really going to be the products that make money in the future.

Maybe some of us are experiencing the death of products or services we've had going for a while. It's possible that we could use them now in similar ways that the music industry is starting to think and use the CD: as a marketing tool. I've even seen recently where online products that were the cream of the crop seven years ago are now being given away free. You know they're going to be pointing somehow to their newest offerings.

Think in terms of the overall emphasis that will change the music industry and bring back growth, which is in licensing their products. Are there things your product or service offer that could be extended and licensed to other businesses and marketers?

If you have a great product but your competitors are undercutting you in a way that you can't make much money, this could also be a way to think of the product as a marketing expense and initiative, rather than something that makes a profit. Don't be too quick to throw away something that isn't doing what it used to do, or competitors may have caught up to you on; it could be worth more as an attention getter than its past purpose.

The movie and CD industry are great laboratories to learn how to adapt and do things. For the movie industry they're going through the pangs of change that the music industry has been for a long time. They don't have the specific answers that the music industry is starting to get, although they haven't fallen as far either though.

I think one of the new realities will be that many industries will start to lose money on initial products, but will start to make it up on what they thought were add-on sales. They will be discovered as the products that make the real money in our businesses. Look for and identify those products within your business, or you may find out that you've been looking at the wrong area to make the most money. It could determine your online survival. The music industry has learned it the hard way.