Not quite yet to abandon ship on traditional non-digital services and products.

I have been struggling with this last blog that will mark the end of my participation in the Full Sail University Masters of Science in Business Entertainment.  It is not for lack of things to talk about.  Quite the opposite.  It was more a question of having so much to say.  I find it much more easier to write multiple pages than a single page and near impossible to put it in a paragraph.  I am learning however. 

One of the major components of my Full Sail University experience is taking my theoretical inclinations into the sphere of real world experience.   I have since come across a rather interesting subject that began by reading Warner Brothers

Over the last few years, we’ve accomplished  a lot. Three years ago,

we put in place a strategy to become the premier global content company while simultaneously improving our returns. Since then, our businesses have remained  leaders in their respective industries, and in many cases we’ve gained share. At the same time, we’ve led the digital transition of the industries in which we operate. We’ve added $3.6 billion in annual revenues since 2009, growing even faster internationally  than we did in the United States; we’ve more than doubled our adjusted earnings per share (EPS) over the past three years as we grew adjusted operating income at a 12% compounded annual growth rate; and we’ve generated $8 billion in free cash flow, which enabled us to raise our dividend three times and buy back more than 20% of our outstanding stock (Source:  http://phx.corporate-ir.net/phoenix.zhtml?c=70972&p=irol-reportsannual).

Note the bolded section that uses the term ‘digital transition and the corresponding increase in sales of $3.6 billion.  Some analysts are suggesting over $15 billion dollars in sales projecting into 2015.  In this same report Warner Brothers also reports that it has significantly reduced while not abandoning it ‘vinyl’ or ‘hard CD/DVD’ product line.  This is evidenced by the company’s website that features an e-commerce page dedicated to said ‘vinyl’ sales (Source:  http://phx.corporate-ir.net/phoenix.zhtml?c=70972&p=irol-reportsannual). 

I’ve thought long and hard about this sort of information.  While FractureCreations has developed a specific marketing plan that makes optimum use of today’s technology including print-on-demand, CD/DVD download, and on-line workshop technology, it is equally clear to FractureCreations that the evidence suggests that the audience has not entirely given up on the ‘hard copy’ such as soft and hard cover books as well as physical CDs.  In point of fact there are actually markets where cassettes are still a viable product that generates sales.  The same sort of thinking applies to FractureCreations current plans to develop a series of workshops for emerging artists.  While employing on-line technology in order to create high accessibility as well as wealth of related material,  there is still the live performance element of a truly well-rounded career. 

The solution?  Balance that reflects a wide range of considerations of that might be metaphorically described as the ‘grey area that exists between black and white. ‘ 

Warner Brothers has realized that there are great savings that come with the digital phenomena.  They are also experiencing great challenges in their ‘advance to artists’ policy.  They have in fact noted that the digital sales have to degrees offset advance write-offs.  Obviously, their technological requirements along with technological and legal concerns about P2P or ‘piracy’ will most likely offset their download sales by significantly increasing their fixed costs over a sustained period-of-time.

Bottom line?  While the trends and hype accurately report an interesting trend towards the technological side of the publishing and entertainment industry, it is not quite the time to put to the side traditional distributing and marketing channels.