Information Technology

The Music Industry Can Teach You A Lot About SaaS Marketing

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<p>The music industry has gone from selling $20 albums to $0.99 songs to now selling unlimited subscriptions for $9.99 per month. Eventually, all software is moving to the SaaS business model and music streaming services can be a good reference model going forward in at least the following 3 areas:</p><p>#1:&nbsp;<strong>&lsquo;All you can eat&rsquo; pricing is very attractive to customers and will eventually result in higher revenue.</strong>&nbsp;Apple iTunes made $1B in 3 years and $10B in 7 years by selling individual songs. Apple Music is generating more than $5B/Year in just 5 years after launch.&nbsp;</p><p>#2:&nbsp;<strong>App developers on the SaaS platform will find creative ways to generate more revenues.&nbsp;</strong>Artists get paid an average of $0.006/stream on music streaming services compared to $0.09/song download on iTunes. This has resulted in artists creating songs that are short-length and generate more streams. The average length of a song these days is 3 min 30 secs and lots of hit songs are less than 2 min 30 seconds long.&nbsp;</p><p>#3:&nbsp;<strong>Analytics can be used to generate a better customer experience and new revenue streams.</strong>&nbsp;Users can listen to new music and show their preferences by just skipping songs. Artists can collaborate on new songs based on their unique fan base and generate additional revenues. &lsquo;Old Town Road&rsquo; is a perfect example that captured both country and rap music audiences.</p><p><strong>Conclusion:</strong>&nbsp;SaaS vendors can borrow marketing strategies from the music industry to lead the change in their respective industries.</p><p>&nbsp;</p><p>&nbsp;</p>
KR Expert - Tarun Goyal