Music Industry Digital Communications
Peter McLelland – 1001849 In this essay, I intend to discuss several points regarding the state of the Music Industry and Digital Communications (MIDC). I will begin by explaining how Copyright is affected by technological developments, then I will go on to compare Digital and Physical Marketing and Distribution with a SWOT analysis to show my findings. I will then continue to describe how Corporations, Artists and Consumers have responded to changes in the digital music market, and I will conclude this essay by analysing Digital Music Legislation and its effectiveness for music businesses.
1 - How Copyright has been affected by Technological Developments Copyright is, in itself, a property right.
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of marketing your music (Social Media, YouTube)
You are able to purchase individual tracks rather than the full album/ EP
Weaknesses
Depending on your geographical location, download speeds can be rather slow
The sound quality of digital music files may be poor
You may lose all of your data if you do not back-up your purchases
Digital music purchases can take up a lot of storage space that could be used for more important documents/ programs
If you choose to email potential fans, they may disregard the email and delete it/ mark it as spam
Opportunities
The digital output is an easily accessible area for most in this generation
If a band or artist has their music online, it can be much easier (and cheaper) to access than looking/ buying the physical album/ EP
It makes sending band information to Promoters and Record Companies much quicker and easier
Social Media makes self-advertisement much easier than printing and handing out fliers
Threats
P2P networks are always active
Viruses are able to infiltrate your computer software via unreliable sources
People are capable of putting full albums onto YouTube, preventing the respected royalty payments being sent to the artist
Physical Distribution and Marketing
Strengths
By owning the physical product, if looked after properly, it can last for a very long time
You can offer limited edition extras (depending on the financial success of the band) such as wristbands, plectrums, t-shirts, or posters
You can receive limited edition
Technology is a huge part of our lives today. So much of what we do involves the use of the computer. Things that we never thought would be available to us over the computer are now there, so why not be able to download free music from your favorite artists? Artists as well as the record companies need to see the growth of technology as a good thing, and use it to their advantage so they do not miss out on the inevitable benefits.
The purpose of the copyright system has always been to promote creativity in society and protect the creators’ interests. In applying copyright laws to any creation, three basic guidelines apply. First is the fair return for a creators labor, second is “Fair Use” of the creators’ labor and finally the Progress of Science and useful Arts to further the public good. The application of these three guidelines in litigation for A&M Records, Inc. v. Napster, found that the rights of reproduction, and distribution had been violated, in effect upholding the copyrights of nineteen different music companies represented under A&M Records name, this ruling had protected the music industries interests. However it would seem that the publishing industry would not be so lucky, litigation in Authors’ Guild vs. Google ruled that Google’s actions constituted fair use. Under these two scenarios’ the copyright laws’ have, effectively, protected the rights of music artists’, protected the public’s right to “fair use” and sparked new opportunities for creative growth. However, lawmakers continue to struggle to define copyright boundaries between the public’s right of use and the creators right to profit from their efforts.
The ever-changing landscape of music distribution, due to constant advancements in technology, is sometimes hard to keep up with for artist, producer, and consumer alike. New editions of textbooks in Music Business classes are issued each year, and changes are made in the industry before the semester is even over. Because of this, it is vital for the industry to not only not only be aware of what is currently going happening, but also be able to foresee the direction that the music business is heading in. In this aspect, it seems that we are at a turning point where consumers and artists are taking
The internet has made it easier for music to be sold online. On our smartphones, we have the apple store and the play store where music is purchased and downloaded daily. It has also made it easier for people to download and share music files without paying for it. The Maverick Recording Co. v. Harper case highlights this issue.
Since April 2003, iTunes Music Store has permitted the consumer to purchase music and digital books over the Internet with success. By 2005 their shares increase significantly as a result of their tremendous success. Their product became a platform for the digital music business to explode into the industry it is today. This also made digital music affordable to the consumer who may have gone to illegal downloads in the past which in turn ensured that the music industry was getting paid for their product as well. The $0.99 cents per song download provided $0.70 cents to be paid to the record companies and the remainder ($0.29 cents) was Apple profit. By August 2005, some of the larger record companies felt that their product was
In the article “Internet Piracy Harms Artists”, Phil Gardson explains how internet piracy such as online music sharing and other forms of copyrighting music hurts hardworking singers and songwriters. He also asserts that it is imperative that Congress should in act a law against these types of crimes to help protect artists.
In 2000 the digital music was the next big thing in how consumers listen to music. The technological shift in music changed how the relationship is between the artists, recording companies, promoters and music stores on how they operate today. In the late 90’s and early 2000’s Peer-to-peer (P2P) networks allowed free exchange of music files with companies like Napster and Kazaa was a big step that allowed consumers to store large libraries of music. With the cost of hard drive space going down; it allowed for pocket-sized computers to store more information in a smaller space that open the door for apple to step in with the unveiling of the iPod and iTunes. These systems made it possible for storage and playback that gave consumers the
The "business side of music is struggling to generate enough revenue because of the new technology" ("How the Internet Changed Music."). "Most of the people who are part of making a record are paid in royalties, and anytime music changes hands without money being involved, those royalties can’t be paid—which is why so much has been done in recent years to try and reduce music piracy"("How The Internet Changed Music."). iTunes and Amazon has helped by offering cheap downloads for single songs, which allows the customer to only purchase songs they like rather than the entire album ("How the Internet Changed Music."). Spotify and Pandora, who offer either ad-based or paid subscription streaming of their music libraries, are Internet radio stations which have also helped with the piracy problem ("How The Internet Changed
Most music is available to listen to without necessarily requiring payment. Through websites like YouTube and SoundCloud, a fairly large amount of music is accessible. Alternatively, some people simply download the music from different sources. There has been some complaint that downloading the music from such sources is considered copyright piracy, but not much is done to combat the illegality of pirating music. Combined with the fact the any given person’s music taste can change in weeks, buying every song that they enjoy listening to can get extremely expensive. The executive vice president of the Warner Brothers Group, Paul Vidich said, “It is a challenge that we have got to
Since the iTunes music store was introduced on April 28, 2003, gross music sales have plummeted in the United States - from $11.8 billion in 2003 to $7.1 billion in 2012, according to the Recording Industry Association of America (Covert). Counterintuitively, during that time consumers were buying more music than ever. How is that possible? It 's because iTunes had made digital singles popular and was selling them cheap. This would change the music industry forever. In 2000, Americans bought 943 million CD albums (Covert), and digital sales didn’t even make a dent in comparison. But by 2007, those inexpensive singles overtook CDs by a wide margin, generating 819 million sales compared to just 500 million for the CD.
Despite relevant findings, many individuals are under the impression that digital media services, such as digital downloading and streaming have a positive impact on the Music industry for reasons including music
The internet is the one media that brings up the most controversy in bands spreading their music. Whether they promote it or not their music is downloaded for free on the internet. Most bands do not like that their music is downloaded for free, but they can’t do much to stop it. In a way downloading music for free could bring the musicians even more money. If a person likes one of the songs they downloaded off of the internet they may be inclined to buy the entire album or at least the single. After the person buys the latest album they may even buy earlier albums from the same artist if they like the music enough. The internet has
Introduction: Setting the trend for the future, the distribution and consumption of recorded music transformed dramatically with the launching of Apple’s iTunes in 2001. The proliferation of online music subscription services and other music sharing services exerted a great pressure on the conventional music distribution business model. Combined with this transformation, piracy of digital music had a profound impact on the whole industry. These worsening conditions in the market place for recorded music forced both established and upcoming new artists to experiment with new ways of selling their music.
When speaking economically, the digital music sector of the international music industry is undoubtably the most important sector in the industry. Within the last decade, music has seen cardinal changes in the way both major and independent labels distribute their products. An industry that once relied on Payola 's and mass distribution of physical records and CD 's now relies heavily on the power of the internet. The first instance of mass distribution of music through the internet was by the service Ritmoteca.com in 1998 [1]. Ritmoteca had a library of over 300,000 songs, offering individual songs for 99 cents each and albums for $9.99. After signing distribution deals with many major music labels such as Warner
In the midst of the United States’ “dot com bubble” (years 1997-2000), there was a surge in technology that brought about file sharing and digital downloads. Threatening the survival of the music industry and introducing a unique set of challenges for the industry to overcome. To remain relevant in the new global market of digital music online, the music industry would have to evolve and change with the introduction of each new facet technology had to offer. The introduction of digitally compressed music files, so easily attainable for a small fee or downloaded legally (pirated) for free, made the music industry reevaluate how to make a profit and protect copyrights. Social media created a visible opportunity for both consumers and artists to maintain digital relationships while providing a platform for consumers to follow and discover new musicians and bands, naturally, making the internet a promotional medium for artists. As the corner record shops closed to make way for virtual storefronts and instant downloads; the internet, digital downloading, and social media made an enormous impact on the music industry that has changed the way consumers purchase, source, listen to, and produce music today.