usic Industry Fact Sheet

OVERVIEW
The music business is a significant piece of today’s global economy. It stands at the core of entertainment, cultural and leisure and continues to make its essential contribution to movies and TV programs. Consumers enjoy music entertainment through live experience, television and all other types of recorded music. Because music is so attractive and diverse, it is an ever-changing business due to the rapid growth of today’s technology.

MARKETING METHODS
Music industry programs are marketed in a variety of ways, including advertising, broad-casting, direct mail and voice messaging. These programs are utilized by a variety of sectors that include, radio, television, cable, film and retail. Although the industries may vary, they all share the same essential goal by increasing and sustaining market share.

SOME FACTS AND FIGURES
According to WetFeet.com, the music industry is big business in conjunction with the advertising industry. For instance, whoever owns the rights to songs used in big national ad campaigns stands a good chance of making even more than the record company or the artist.

Both online and physical music piracy continue to impact the music industry midway through 2002, with a comprehensive new survey of public practices providing the stron-gest evidence to date that illegal Internet downloading is displacing sales and helping explain a seven percent drop in CD shipments and a 69.9 percent increase in counterfeit/ pirate optical disc seizures, according to new analysis and data released today by the Recording Industry Association of America (RIAA).

Even without taking into account substantial improvements in product quality, the cost of recorded music to consumers has fallen dramatically since CDs were introduced in 1983. Between 1983 and 2001, the average retail price of a CD fell by 32%. Over this same period, consumer prices (measured by the CPI) rose 77.8%. If CD prices had risen at the same rate as the CPI over this period, the average retail price of a CD in 2001 would have been $38.23 instead of $14.64. While the price of CDs has fallen, the amount of music provided on a typical CD has increased substantially and enhanced CDs offer video enter-tainment in addition to music, according to the Recording Industry Association of America.

WHY MARKETOUCH MEDIA?
Through a proven system of voice messaging, MarkeTouch Media simulates personal interaction by personalizing and reinforcing your message, driving loyalty and increasing familiarity and trust like no other marketing tool. The revolutionary MarkeTouch Media system of voice messaging works to help you meet your acquisition and retention goals, cutting through the “noise level” with a proven, personalized, targeted approach. In addition, MarkeTouch Media’s IVR Lead Capturing builds excitement and viewer participa-tion for network through a sweepstakes or contest. This pioneering system develops a database for future marketing initiatives and subsidizes promotional opportunities.