Though once considered separate entities, entertainment and
technology have been fused together in recent years due to
innovation and entrepreneurship. To address this fusion, several
corporate executives came together on campus last week to discuss
strategies on how to blend the advancements of technology with the
new and expanding entertainment markets.
On Nov. 4 and 5, the UCLA Anderson School of Management hosted
the Billboard Digital Entertainment Conference. During the event,
corporate executives and producers discussed the future of games,
music and television. Some of the companies present were AOL,
Yahoo, Sony, Microsoft, and HDNet.
The conference highlighted the importance of technology in the
entertainment industry since it has increased the variety of
services and choices for the consumer.
“This is the future and what the consumer wants,”
said Tamara Conniff, co-executive editor of Billboard.
High speed Internet is paving the way for the industry to expand
its offerings to consumers. Approximately 30 million homes use a
broadband connection in the United States, said Richard Wolpert,
chief strategy officer of Real Networks.
In addition, the Internet has changed the approach and attitude
that music executives have about the industry. It was “common
wisdom four to five years ago” that people would never want
to listen to music online, said David Goldberg, vice president of
Music at Yahoo.
But now Tom Meredith, CEO of the financial services firm P2P
Cash says, “We have a new generation of people living in
cyberspace.”
With the rise of music subscription services like Rhapsody and
one-time download stores such as Apple’s iTunes, the Internet
has revolutionized entertainment.
For music lovers wanting access to a large library, a
subscription service allows them to pay a flat rate each month and
have access to thousands of songs.
Those interested in having a smaller, more selective music
library may try a one-time download store where each song can be
purchased for about $1.
Music fans are using the Internet as an outlet to advance their
interests.
Almost 50 percent of people who use the Internet have visited a
music site in the past 30 days, said Bill Wilson, senior vice
president of AOL Entertainment. Wilson credits the numbers to
“the speed (with) which broadband is taking off.”
The Internet allows surfers to check out the latest music.
Whereas music videos were previously premiered on television
stations such as MTV, artists are now starting to premier their
albums and songs online.
“Music labels are looking to online first,” said
Chris Gorog, chairman and CEO of Roxio/Napster.
Musicians can now place content online for consumers to listen
to and watch. Using the Internet takes down traditional barriers to
entry, such as needing the support of a big label and money to
advertise. “You don’t need a big label to be a
success,” Meredith continued.
With the click of a mouse, someone can listen to clips of a
song, read about the artist, and purchase music. Executives
highlighted the importance of marketing to younger people.
“This isn’t going to be a mass market success until
we get kids on it,” Goldberg said.
The conference also discussed the role of online piracy in the
industry.
“The enemy is piracy. … This needs to be the most urgent
of priorities,” Gorog said.
About 82 percent of Napster’s users had previously used
illegal services, he said. The industry hopes with superior
products it can attract consumers to their legal services.