Real Groovy v/s Digitization
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Transcript of Real Groovy v/s Digitization
Everyone had to buy music from a physical store.
Copying music was very difficult
With the digitalization of music, people could share files through Usenets.The net savvy consumer refused to pay for music.
Digital music became available for purchase online.
File sharing platforms became more accessible to the masses.
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79 89 99 2009
Physical Sales
Digital Sales
Worldwide music sales
Real Groovy must stock more complementary products like clothes, posters, magazines etc. to absorb overheads since only a few laggards and die hard fans buy CD’s and Tapes anymore.
Total Value 1980= $3100
Total Value Today= $0
digitalization is not all that bad. Music tastes are now broader than ever due to the easy access to music. Consumers want to dress and feel like the artists, thus accelerating the music related products industry. By altering their sales mix, Real Groovy can collect revenue from these new channels.
•Real Groovy-One of the only surviving specialist record stores.
•Vinyl is making a comeback on the clubbing scene.
•The clubbing scene is flourishing with the increasing disposable income.
•Real Groovy is the main TicketMaster outlet in NZ.
•Bands are increasingly touring and performing at concerts as it is their main source of income thanks to piracy.
•New stadiums like Vector Arena, attract big names and TicketMaster has exclusive rights to sell tickets for event held there.
The gaming industry is growing at an astonishing rate. Titles area constantly being developed for the constantly evolving gaming consoles like XBOX and PS. Since games aren’t easily copied or downloadable, consumers are willing to pay for them.
A typical gamer will probably buy the following when starting out, resulting in high revenue for the store. Once hooked he/she will proceed to buy game titles for $60 (avg.) each compared to $22 (avg.) for a music album.
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79 89 99 2009
Physical Sales
Digital Sales
Seeing as the trend is moving toward intangible digital sales, Real Groovy should look at joining the bandwagon and selling digital content in order to compete with Digirama and Itunes in NZ and provide downloadable content.
•Low Overheads
•No lag time between release date and date available
•Potentially unlimited copies available for purchase
•Easy to access
New hi-def video formats, like games are hard to copy and download. By adding more of these to their sales mix, Real Groovy will be able to stay at the crest of the technology wave thus maximizing profits in times of technological advancement.
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