Strategy

MRC is extremely positive on the future for recorded music. In partnership with the labels we work with, we have evolved our strategy based around our own particular view of the music marketplace now and in the future.

1. Work With Quality Music: It may sound obvious but it’s the bedrock and cornerstone of what we do. Work with Quality music, the best in its arena, with a long-term appeal.
2. Prepare for "Digital Music Year Zero": DMY0 is an internal concept we use. We define it as the time when music digital revenues exceed those of physical music revenues.
3. Downloads are a Skirmish, The future is Mobile: There are 450 million PCs in the world. There are over 2.2 billion phones. Mobile phone adoption is growing at four times the rate as PC adoption. Over the next few years companies such as Nokia and Motorola will embed Ipod functionality in the bulk of mobile phones. Successful future business models will involve mobile marketing and sales techniques which embrace mobile platforms. For example push marketing, spontaneous purchase, viral distribution & mobile music recommendation engines.
4. Physical Is Great: Ours (and others) market research tells us that physical formats will be with us for a long time to come. Currently 70%+ of label revenues involve a physical sale somewhere in the chain.
5. Long Term Focus: As well as being (more or less) proponents of the overused & VC-buzzworded “long tail’ theory, We also take an extremely long term view of our artist partnerships, business cases and indeed overall business plan. We are happy to be building revenue streams that have little to do with the bright lights and often short lived glamour of "hits".
6. A Few Dollars a Month: Within 10 years we predict a few dollars on your phone or utility bill will buy you as much music as you want, on any deivce, at any time. We base our business around what we believe will be the eventual outcome of the only possible music business model.
7. Segmentation = Channels = Labels: Every day a new TV channel is created. Web 2.0 theories define a web of information built around a particular users specific interests. We believe music will follow the same pattern. The concept of the label, and how that becomes associated and aligned with an interest group is very important to us. Its very possible that in the future people will like 3 or 4 genres and styles of music as opposed to the board-brush / bit of everything they like now.
8. Use of Technology: The use of technology is so embedded inside the core of everything that we do that we almost considered it not even worthy of a mention on this key strategy page. Second only to our love of music, It pervades every aspect and avenue of what we are about as a record company. We believe these skills and the intellectual property we create will play a key role in the success of our company in years to come.