Whilst business today is being implemented from one, three and five year business plans it is time to give vital consideration to the next 10 years and effective strategic planning. The shift of consumer focus is more than apparent in industry today and the way in which sales are made but with media related companies more needs to be done in order to build critical bridges with telecoms companies and channels.
Manufacturers of entertainment products need to be aware that the most significant challenges are ahead and if left unmanaged the possibility of loss of control will be through the ‘channels’ that are actively supplying and delivering the ‘purchase to consumers’. Such distribution channels will be critical for the survival of the music industry within the coming years and it will be highly appropriate for such companies to have a slice or the commercial action or at the very least an affiliation/sponsorship agreement of this sector.
This will inevitably save some organisations form being taken over and controlled by a somewhat silent competitor but the hard part will be to find the great mind of a visionary CEO that fully understands what this means to the music industry and why consideration ahead is essential.
An awful lot of focus is spent on product, place and promotion and rightly so but to the senior executives and directors a clear intention is required to acknowledge the shape of the things to come. New processes, management and strategic positioning of the new purchase channels could allow companies to gain significant competitive advantages. Short term focus has gained generous business results but this is not sustainable. The cold call is starting to ring loud from organisations outside of the competitor thinking box.
Telecommunications companies will see that they control the key distribution channel that media companies and customers are using globally. Digital is here and growing faster ever day and the physical elements are approaching the end of product lifecycle. Digital provides commercial elements to telecommunication companies that will be trying to plan robust business formats to ensure they are getting the best ‘profits and opportunities’ out of these over reliant markets.
The genius about all of it is (from the telecoms side) is that it WILL happen it is just a matter of timing now.
A guaranteed pay day ahead it seems?
So, what should be done now?
If music companies could buy/invest into a telecoms giant then that would be an incredibly smart move in order to avoid premium rate business charges and tariffs that could help build a sustainable business model. However as with most acquisitions and mergers there will be regulatory aspects that would need consideration (and probably a lot more than has already been given prior thought to at this time).
Getting ahead of the pack has always been the game in the business world but sometimes the curve ball up ahead is always the one to be most concerned about. Music and entertainment products are a desire, a want. Communications (Business and personal) are an absolute need.
Therefore in many aspects the ‘Comms’ model has already won the race and it will be up to music and media related companies to solve how much business they want to retain for their organisation or face the inevitable change of the new super race of telecoms breed that will be able to dictate critical decisions within the market.
What is most definitely clear, is that a strategic plan and action is needed now in order to limit damage in the years to come and provide the music industry with effective solutions in order for it to answer and respond to the social telephone.