If you’ve ever been part of an
industry in the United States, more than likely your company has
representatives in a trade association. Trade associations are groups that
businesses form to collaborate an also support combined interests. Trade
associations have been known to exist in America since at least 1883, when the
American Seed Trade Association was founded by businesses in the seed trade. In
the music industry, there are two major trade associations. The most well known
one is the Recording Industry Association of America, which represents the
recording labels. The RIAA is mostly known by the general public for recently
fighting against piracy and handing down fines to people who have violated
copyright law per its modus operandi to do so. But while the RIAA gets all the
press, the music actually has a second trade association that works more
towards putting that music in the hands and ears of the fans.
That
association is the National Association of Recording Merchandisers. NARM began
as a coalition of wholesalers and retailers focused on physical sales. In 2002,
NARM expanded to include all aspects of the music business including digital
sales, mobile phone use, gaming, applications, merchandise, videos, and other
parts of the music industry. With a board of directors that includes
representatives from iTunes, Amazon.com, Microsoft, Target, Verizon Wireless,
and Spotify, it easy to see that NARM is a heavy hitter in entertainment.
According to press releases, NARM members control 85% of music sales in the
United States.
So what
does NARM do? The main thing NARM does is creating promotions and marketing for
recorded music first and foremost. Such programs have a “Gift The Gift ofMusic” campaign, which usually shows how music is a great gift for the
holidays. They also worked with the Rock and Roll Hall of Fame on the
Definitive 200, a list of albums selected to be the best by these two groups.
With the trend being buying older music, this is a great idea to promote older
records. Beyond that, they also hold free online seminars for members to help
people understand the music industry and bring ideas together. The also have an
annual conference on entertainment law and another one on digital startups. By
looking at these, it seems that NARM is an association that understands how
music in changing and wants to remain relevant rather than fade away. I like
that. I also feel like as a hopeful member of the music industry, it’s good to
have a trade association that feels like it wants new members.
I feel joining this trade
association would be helpful to me in that I can known what’s going on using
NARM’s massive release database so my clients will known when new albums are
coming out. I also feel it would help me see what technology is changing things
and maybe even get in the ground floor myself. Again, it also feels like they
want to expand and having that knowledge is also comforting.
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