Sunday, February 7, 2010

The beginning of the end of record stores

Berka (third from left) with American band Boys Like Girls at the launch of the new Nokia Comes With Music X6 phones.


THE music retail industry is changing. Once people who wanted to listen to their favourite artists would go to a music store and buy their album, in CD format.


But now, it's different. The new generation of youngsters would just go online get the songs they wanted. It's easeir that way and costs less or even free.


For these users, they were born in the Internet age and buying and getting things online have been what they do everyday.


For the industry, tuning to what the people need and like is vital, and Nokia has made a good start with its "Comes With Music" initiatives.


Knowing what its young users want, the gloabal phone vendor has bundled its latest phones, the X6, with songs offerings, for free.


According to the company's general manager, Singapore, Malaysia and Brunei Vlasta Berka, the new phone comes with Nokia's Comes With Music service, offering users unlimited access to million of tracks from a diverse catalogue of international and local artists.
"The service offers consumers a new way to discover and download music, revamping their entire digital music experience," he said at the launch of the phone in Kuala Lumpur recently.
The Nokia's music catalogue comprises a diverse range from all four major record labels, namely Sony Music, EMI Group, Warner Music Group, Universal as well as independent record labels.
With Comes With Music-enabled devices, users will have access to download and keep high-quality tracks on Ovi Music.


Currently, there are 3.5 million songs and growing worth RM80 million for download over the Comes With Music service for the next 12 months.
What Nokia is doing could help the industry fight music piracy as consumers can legitimately download songs from the correct source.


This way, music makers can be rewarded better over what they do. Hence, help fluorish the local music industry.


Besides that, partnership with the local music industry is important and Comes With Music provides great opportunity for local artists to get their music heard by fans locally and internationally.


Meanwhile, Recording Industry Malaysia (RIM)'s chairman and Universal Music Group International senior vice president, Asean, Sandy Monteiro said the service offered by Nokia will revive the slow music industry, in terms of CD sales.
Over the last 10 years, the music industry has dropped 50 percent worldwide. Ironically, he said although the music industry looks like a sinking industry, the consumption of music is higher than ever as people are now moving online to get their music.


Monteiro said in 2004, digital music download accounted for five percent of the industry sales, but last year, it had grown to 30 percent," he said, adding that in a few years' time digital downloads will over take CD sales.
Monteiro said local artists will benefit as they will get their share of royalty every time their song is downloaded.
Apparently, there is a mechanism that track the number of downloads, etc so that every artist will get what they deserve.