The Situation Today
The Music industry is facing trying times, with the size of the market decreasing for nearly a decade and expected to continue to shrink during the near term. While digital music distribution is increasing substantially, its impact is more than offset by the decline of actual CD sales. Not only has the demand for digital music distribution increased, but also the demand for faster facilitators has risen. With better integration of technologies that assist companies in arriving at better music distribution digitally, the reach of digital music seems far and wide
Today, digital relationships have become critical. As retailers are crumbling, consumers are demanding value and convenience (any platform, anywhere). Currently, the needs of the hour are updated and easily accessible music solutions.
The big questions for the music industry now are, ‘How to re-create the energy generated at live performances on the digital platform? What kinds of new digital products and experiences need to be created for digital music distribution? How to make these products and experiences less expensive?’
In the Media and Entertainment industry, especially music companies, will create music based upon deep consumer insights, a broad-based talent discovery, creating talent-centric brands, exploiting the digital medium through new music offerings (subscription services, music cards, tier pricing, etc) and maximizing revenue for talent through multi-channel and new age music. According to reports, by 2020, 95% of the music would be sold online (mRetail, eRetail). Some of the new age business models emerging are:
- Artist 3600 Deals - End-to-end deals to receive rights to non-recording activities, such as entertainment rights, live touring, merchandising, etc contributing 30-40% of new revenue.
- Collective Intelligence & Distributed Marketing -Decentralized strategies and marketing to select the media mix split, where digital channel choices are made through a combination of end user preference and data analytics.
- Digital becomes the new Norm – Digital is the central driver of future revenue growth, consumer relationships and operating models & mediums such as
- Revitalized Catalogue
- Cloud-based Streaming,
- Evolution of New Channels (Artist networks, social networks, group listening, etc) and
- Freemium Model
HCL has a very high appreciation of the discontinuities in the music industry by working with 3 out of top 4 music companies worldwide, with over 7 years of experience in end-to-end business processes, and deep domain competencies. This, coupled with the necessary investment in labs, solutions/ frameworks, partnerships and industry experts, places HCL in the leadership quadrant. We help our customers to optimize their content management and digital music distribution strategy with our solutions and services and rich experience in implementing these solutions.
HCL offers IT Services including IT Consulting, Application Development & Maintenance, Packaged Solution Implementation, Product Engineering, Testing, Infrastructure services and BPO to create music IT integration. Apart from this, HCL offers domain-led services strengthened through industry relevant centers of excellence.
Core IT Service
- Application & Enterprise Application Services – A unique process-led approach to services covering application support, maintenance & development with bespoke and enterprise technologies like SAP, Oracle, Microsoft and Salesforce.com besides niche industry products like Documentum, SONY EROS, Flip Factory, Civolution, Signiant, Aspera, Endeca, SOLR, Artesia and Contraxx Read more
- Enterprise Transformation Services – Portfolio includes business consulting, IT consulting, application portfolio optimization, content management services, mainframe/ mid-range sustenance & migration, data warehouse, business intelligence, predictive analytics and independent verification & validation services Read more
- Engineering & Platform Services – Product & platform engineering services for digital supply chain optimization, content distribution platforms, eCommerce, mobility, consumer electronics and TV/ mobile/ social applications and production Read more
- Infrastructure Services – Industry leading services in remote infrastructure management, end user computing, data center management & consolidation, helpdesk/ service desk, application-operations and cloud computing Read more
- Business Services – Services spanning media process optimization services, video advertising quality assurance, customer care, subscription and billing management, service provisioning, direct marketing, social media analysis and external helpdesk, video services besides F&A and procurement & HR services Read more
- Next Generation User Experience – Next-gen experience like music sharing, artist websites, augmented reality, mash up, widgets, social media marketing, social referral applications and multi-channel commerce Read More
- Mobility services – Mobile applications like M-store, mobile audio platform, mobile commerce platform, mobile contextual advertising and enterprise applications Read More
- Digital Supply Chain Services – Marketing/ production digital platform unification, content distribution platforms, watermarking, anti-piracy and widgets Read More
- Unified Advertising Services - Multi-channel advertising, targeted advertising, partner self-service, real-time bidding, ad portal and multi-channel ad fulfillment Read More
- Predictive Analytics – Voice of customer, web & social analytics, personalization, Big data management, predictive analytics and artist analytics Read More
- Digital Marketing – Online matching, loyalty management, multi-variate testing, multi-channel marketing and campaign & promotion management
- CRM and personalization services – 360-degree customer view, campaign & personalization and social CRM Read More
Centers of Excellence
- Enterprise Content Management CoE – intelligence and automation to the creation, management, personalization and distribution of vast quantities and types of content
- UI/ Web 2.0 CoE – information architecture/ design consulting, web, applications, Mobile UI Architecture; work on the usability evaluation models & contextual innovation and creating end-to-end engineering services/ platform development on web 2.0 technology
- Mobility CoE – Developing mobile applications/ solution frameworks in various technologies/ platforms, delivering mobile solutions across various domains
- Digital Technologies – Multi-channel enablement for web, mobile, social media focusing on CMS, search, video, social media and analytics technologies in open source/ commercial product space. The key is on Microsoft, Sun, EMC, Alfersco, Drupal, Interwoven, Artesia, Adobe and Fast
- CRM/ Advertising Technologies – Multi-channel support, personalization, targeting, advertising platform leveraging salesforce.com, Microsoft Dynamics, IBM Unica and Omniture
- eCommerce CoE – eCommerce platform- product evaluation and technology consulting, information architecture consulting and solution frameworks ideating
- SOA/Middleware – A strong team of SMEs (SOA/ BPM Architects, Process/ Design engineers and Solution specialists) focusing on integration framework, SOA software reference architecture, Complex Event processing and IDM and EDI services in open source/ commercial product space
Some of our representative investments for the music industry include areas like multi-channel, mobility and socialytics.
- Customer Centricity, an Artificial Intelligence-based N=1 recommendation engine, case-based reasoning on anonymous/ logged-in user actions to personalize promotion, live events recommendation, artist launch, music promotion, sweeps, advertisement, product and content leading to 20-30% increase in sales Read more
- Mobile coupon application framework provides multi-platform coupon sourcing (NFC, QR Codes and Feeds) and redemption capabilities Read more
- MOaaSS, a fully-evolved video services on cloud, provides capabilities to set up WebTV or short form video channel, provides ingestion, trans-wrapping, transcoding, tagging, storage, search and delivery of video content. Also, include watermarking for anti-piracy and fully hosted on public cloud Read more
- Socialytics, a social sentiment analysis framework, uses semantic analysis of posts, ‘likes’ on social media, websites and blogs to perform sentimental analysis and personalization of products, advertisement, content and promotions Read more
- Artist 360°, aplatform, that enables the artist, artist manager and record label admin. to get a complete view of all the activities (music album, events, merchandize, movies, TV shows, etc) performed by the artist and track the financial aspects (royalty) related to the activities Read more
- CyberScan, a SaaS-based and anti-piracy-based service to detect IP infringement, monitoring and enforcement & distributed proxy network. The solution is relevant for industries such as studios, broadcasting, music, publishing, government, software companies, gaming and advertising
- Created a highly automated product master data system that enables creation and management of thousands of digital products and rights compliance for a $3 bn, multi-national music company
- Provided a multi-national music company end-to-end visibility into the applications spectrum, including recommendations for a global rights management platform to integrate with various financial and artist contract systems while saving the cost of having an expensive solutions costing $1.65 bn