{"id":24975,"date":"2015-02-06T14:05:54","date_gmt":"2015-02-06T19:05:54","guid":{"rendered":"https:\/\/biznews.fiu.edu\/?p=24975"},"modified":"2016-05-19T15:18:00","modified_gmt":"2016-05-19T19:18:00","slug":"sony-music-industry-executive-highlights-a-changing-landscape-and-self-awareness-gained-from-fius-professional-mba","status":"publish","type":"post","link":"https:\/\/biznews.fiu.edu\/2015\/02\/sony-music-industry-executive-highlights-a-changing-landscape-and-self-awareness-gained-from-fius-professional-mba\/","title":{"rendered":"Sony Music industry executive highlights a changing landscape and self-awareness gained from FIU\u2019s Professional MBA."},"content":{"rendered":"

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When the digital revolution dealt a strong blow to the music industry, forcing labels to change revenue streams, corporate structure and growth strategy, executives too had to rethink their roles and become experts in a new business model.<\/p>\n

\u201cWe\u2019ve been faced with transformation challenges crucial to maintain our profitability and market share,\u201d said Herb Payan, (PMBA \u201909 BS \u201986), senior vice president, digital business development at Sony Music Entertainment, at a forum showcasing the College of Business\u2019 MBA programs.<\/p>\n

FIU\u2019s Professional MBA program gave him the tools and business savvy to face this new reality head on. \u201cI learned to develop the brand awareness necessary to differentiate myself in my career and to set up the framework to compete in this global economy,\u201d said Payan.<\/p>\n

Why an MBA? \u201cAt conferences I was tired of looking at slides of colleagues that showed they had an MBA,\u201d he said with a laugh at the January 29 MBA Mixer at FIU Brickell.<\/p>\n

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The music industry had changed little in decades, buoyed by fans that purchased vinyl records and later graduated to cassettes and CDs to hear their favorite tunes, when suddenly it was rocked by the advent of widespread digital distribution of music.<\/p>\n

\u201cInternet piracy is the biggest challenge that an industry can face. We went from consumption of 10 tracks to consuming one song whenever you want and you didn\u2019t have to pay for 10 songs to get the one you like,\u201d said Payan. \u201cWe had to change our revenue stream.\u201d<\/p>\n

Change: a must for survival.<\/em><\/p>\n

At Sony Music, Payan oversees development of digital business and technology strategy in the Latin-Iberia Region – Spain, Portugal, Latin America, and the U.S. Hispanic market. He manages Sony Music\u2019s digital products\u2019 positioning, pricing, and advertising strategies, negotiating deals with Google, iTunes, Spotify, and YouTube, among others.<\/p>\n

\u201cThe streaming business, both audio and video, has impacted our revenue streams,\u201d said Payan, who has a Bachelor of Science in computer science. \u201cNow people aren\u2019t buying music a la carte and paying for one song, they\u2019re streaming music through services like Spotify for $9.99 per month.\u201d<\/p>\n

College of Business PMBA opened doors for career advancement.<\/em><\/p>\n

\u201cAs leader of the team, you have to set the rhythm and do it in a digital world,\u201d Payan insisted. \u201cWithout the MBA I was ill-equipped to do what I do today. I used to look at things in a very finite, narrow scope and now I have the ability to flow through obstacles, not get stuck in them.\u201d<\/p>\n

Since joining Sony Music in 1994, Payan has been director of information systems and technology, vice president of new media, and vice president of digital technology.<\/p>\n

As televisions, personal computers, cellular phones and tablets became game-changers for the music industry; advertising now has to stretch across text messaging, mobile apps, games, exclusive prizes, traditional outlets, and multimedia messaging (MMS).<\/p>\n

\u201cWe need a footprint in each of these screens because everyone is in two places at once,\u201d said Payan. \u201cAnd we have to accept that there\u2019s no going back.\u201d<\/p>\n