1. Terms of reference
This is preliminary report written by____, employd by the consultancy company X, with a purpose to evaluate the situation in the music retail industry and how it affects the client Helix Sounds. Additionally, the report is going to provide Helix with recommendations for their marketing strategy, based on the present situation in music industry.
2. Procedures
The report was made by a primary research. The information used is based on articles and Internet research; the findings are supported by electronic and printed sources.
3. Facts and findings
3.1 The music market
Over the last three years the sales of recorded music has fallen sharp. In June 2005 the physical music market worldwide had decreased 6.3% to 7.05 billion pounds in six months time, while the recorded music market fell 1.9% to 7.5 billion pounds. (C, Marriner. 4/10/05)
A total fall of 13% in the last six years clearly indicates the low profit margin in the music market today. (E, Smith. 27/9/05)
3.2 Downloading of music
The digital music business is a constantly growing market. The rapid growth resulted in an increase from 125 million
pounds to 449 million
pounds the first half of 2005. That makes digital music business account for 6% of the total record sales. Online sales of music can be downloaded through 350 legal outlets like Apple's iTunes Music Stores. (C, Marriner. 4/10/05)
3.2.1 Illegal downloading
The charing of downloaded Mp3 files between users on Internet, with no important matter of payment, is a big illegal market today. These actions are supported by websites as former Nap ...