In this second guest post, MXP4‘s CEO explains why he thinks interactive music is the way forwards.
The music industry is undeniably at a crossroads, and it’s hard to tell which route will lead to increased revenue. I see the path to growing sales as one requiring three basic steps. First, engage the fans. Second, use that fan engagement to push the message virally. Lastly, leverage that viral engagement to drive purchases of music and music-related products like concert tickets, fan gear and the like. Interactive music is an essential part of this path, and it can lead to a winning place for both fans and the music industry.
As I mentioned in our previous post, we believe that many fans, particularly hardcore fans most responsible for spreading music and driving sales, are as interested in being active with music as they are interested in listening to it. They don’t just want to play it, but play with it. These fans create new mashups, are passionate out remixes and are always on the lookout for new ways to directly engage with artists and other fans online.
The question becomes, can this desire to play with music and ability to more directly engage with it have a monetizable business benefit? After releasing a number of interactive albums and singles, we took a look at some metrics and here’s what we found:
- When delivered in an interactive bundle, users spend album-like time with music as opposed to single-like time. Our data showed fans played with an average of 2.6 tracks and used the album or single for an average of 9.1 minutes at a time. This demonstrates real potential for premium pricing and services for album-like offerings.
- Fans were not only engaged with the interactive music, but they were inclined to use the built in viral tools to pass the word along. Our data showed that 75% of the traffic to the interactive singles and albums online was of a viral origin.
- And, yes, interactive music leads to sales. Our recent tests showed that as much as 3% of the traffic clicked through to purchase the music.
This is just the tip of the iceberg – the interactive approach also allows marketers more time to send a message and merchandisers the ability to sell music related products and services right through the music app.
Of course, making existing music libraries interactive means making more use of the library of stems. Our next post will cover how interactive music is creating more value in the stems themselves.