The Changing Nature of Music Industry

1287 WordsAug 8, 20136 Pages
BOX 1. 5 (3rd Edition) Case 1.1 (4th Edition) THE CHANGING NATURE OF THE MUSIC INDUSTRY One of the less visible but highly challenging aspects of the Internet is the impact it has had – and is having – on the entertainment business. This is particularly the case with music. At one level its impacts could be assumed to be confined to providing new ‘e-tailing’ channels through which you can obtain the latest CD of your preference – for example from Amazon.com or CD-Now or 100 other websites. These innovations increase the choice and tailoring of the music purchasing service and demonstrate some of the ‘richness/reach’ economic shifts of the new Internet game. But beneath this updating of essentially the same transaction lies a…show more content…
Journalism and related activities become increasingly open – now music reviews and other forms of commentary become possible via specialist user groups and channels on the Web, whereas before they were the province of a few magazine titles. Compiling popularity charts – and the related advertising – is also opened up as the medium switches from physical CDs and tapes distributed and sold via established channels to new media such as MP3 distributed via the Internet. As if this were not enough, the industry is also challenged from another source – the sharing of music between different people connected via the Internet. Although technically illegal this practice of sharing between people’s record collections has always taken place – but not on the scale which the Internet threatens to facilitate. Much of the established music industry is concerned with legal issues – how to protect copyright and how to ensure that royalties are paid in the right proportions to those who participate in production and distribution. But when people can share music in MP3 format and distribute it globally, the potential for policing the system and collecting royalties becomes extremely difficult to sustain It has been made much more so by another technological development – that of person-to-person
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