BUS P3 MUSIC (Business growth and objectives in the music retail and distribution sector) Flashcards
(8 cards)
What is a key growth strategy used by Spotify in the music distribution sector?
Expanding into podcasts and exclusive audio content; in 2023, Spotify invested over $500 million in podcast acquisitions.
How has Universal Music Group pursued growth in the music retail and distribution sector?
By acquiring independent labels and expanding its global digital distribution, growing its market share to 31% worldwide in 2023.
What was a recent growth focus for HMV amid declining CD sales?
Increasing vinyl sales, which grew by 56% in the UK in 2023, and expanding live in-store events to attract foot traffic.
What is a common business objective in the music retail sector?
To increase market share through diversification, such as adding merchandise, live events, and online sales channels.
How do independent retailers like Rough Trade pursue growth?
By expanding physical store locations and strengthening online sales platforms to reach wider audiences.
How does Bandcamp’s business model support growth?
By enabling direct sales from artists to fans, allowing faster revenue growth for indie artists and platform commissions.
What challenge do music retailers face when growing their businesses?
Competition from streaming services reducing physical and digital download sales, forcing retailers to innovate or diversify.
What objective drives many global music distributors today?
Increasing digital revenue streams, with the global recorded music market growing 12.5% in 2023, mostly from streaming.
