Expansion of marketing costs
The summer writing camp that produced Rihanna’s album of 11 songs with “Man Down” as the hit song cost quite a large sum of money. The profit outcome did not meet the high costs for production due to the failure of the song to become a hitmaker. The categories of expenses and their approximate amounts are as follows.
- Actual total song production fee for “man down” was as follows
- Studio Room overhead rental cost 18,000
- Writer costs were 15,000 us dollars
- The producer fee was 20,000 dollars
- Vocal production costs were 15,000 dollars for
- Song mixing cost 10,000 US dollars
Up to this level, the production process was complete, and the music is ready for the market. The highest costs were in marketing, with a value of 1000,000 US dollars.
The highest cost in the whole process of song production is marketing. The marketing costs cover costs for interviews across various channels in the country, billboard costs, commercials adverts, ads on iTunes.
The production firms usually feel it’s a necessary investment, but it is, however, a high risk. If a song fails to hit the market in the projected success, the firm counts losses investing a tremendously huge amount of money on indirect payment radio airtime is an unnecessary risk. The production firm should be able to cut this cost by using other platforms that are cheaper and music endorsements. This way, they will be prepared for the worst outcome in case the song fails to become a hit, as is the case of Rihanna’s “Man Down” summer song. The marketing cost should be within margins produces maximum success in direct relation to whatever is the market outcome.
The expansion of the budget on this cost has its pros and cons as well. However, the cons outweigh the pros. The music industry is a very competitive sector in the United States. Investing in radio airtime can help stay ahead of the competitors by buying favor with the radio hosts. On the other hand, purchase air airtime for music is considered unethical. Also, since there is no legal agreement binding the two parties, the radio hosts may decide to betray this bought trust and not meet their end of the bargain, this is so mainly because the payments are made in terms of monetary favors to the radio show host. The request for more airplay of the music is made as a return for ealrier luxury treatments. This can lead the production firm into huge losses due to the fact the monetary favors have to be done across several radio stations and many people.
In conclusion, the expansion of marketing costs has a higher risk of loss than minimizing market costs. A production label should not overrate its music before it reaches out to the audience. Marketing strategies should be in such a way that they can mitigate losses if the song fails to hit the market in the expected degree of success.