The Effects Of Digital Downloading On The Music Industry

Digitalisation is the process of converting information from traditional mediums into a digital platform. According to Mathew (2013) digitalization has created the new access to markets, helped facilitate better feedback for products and services, improve collaboration between businesses and has reduced entry barriers into the music industry. Myrthianos et al noted that the music industry has gone through ‘servitazation’ resulting in dramatic structural changes because of the rise of digital power (2016:182). Programs such as peer to peer file sharing and the internet, alongside the rise in social media, has significantly transformed the way the music industry conducts its operations. This essay will critically evaluate the impact digitalisation has had on the music industry. The argument has been laid out via the music industry model suggested by Leyshon (2001:60), this consists of; the creativity and reproduction of music, the distribution of music and the overall consumption of music. These three sections help highlight the functional interaction which overlaps between the artists, the recording company and music customers and consumers. There is no denying that the introduction of online platforms has greatly affected the music industry as shown from the data gathered by IFPI 2016 report that the global recorded music market has grown by 5.9% although this is nothing compared with the 40% of revenue decrease in the last 15 years. Wikström (2009:5) suggests that in

Digital piracy on music has been a majorly disputed affair for the last eighteen years, about whether or not it favors the musical artists or affects them in a negative fashion. One of the many sides of the Digital piracy controversy expounds that it benefits the artist(s) by giving them a great deal of exposure that they may not have received had they not downloaded it for free, which in turn makes for a very significant acquisition in terms of sales on their part.

In recent decades, the music industry as a whole has undergone transformative change. From the introduction of the compact disc, to the rise of iTunes and digital downloads, to the current emergence of streaming services, the way that artists produce music and deliver it to consumers has been radically altered in the past 20 years. As record labels’ stranglehold on the talent search and product distribution side of the music industry subsides, streaming services such as Spotify and Soundcloud have become the preeminent distributors of new music. Their emergence has had a negative financial impact on the artists that drive an industry that has for years been one of America’s largest. Services like Spotify and Soundcloud are erasing the role of record labels in the distribution process, assuming that role themselves while paying small royalty fees to artists and labels for the right to stream to large subscriber bases that typically make use of free memberships. Due to the small number of paid subscribers accessing these services, industry revenue has dropped below $7 billion per year for the first time since record keeping began in 1973 (Seidenberg/Podgers). However, record labels are beginning to reach agreements with these services, ensuring that the labels themselves will continue to profit, and leaving the musician to suffer. And while these services do offer outlets and avenues for new artists to be discovered, the

The evolution of digital music has created an obvious and drastic shift in the way consumers and producers view and use the music industry. The introduction of digitally compressed music files has made music so easily attainable to all for a small fee or to download illegally for free. This has made the music industry reevaluate how they are to make a profit off their art form. Social media websites have also created a visible demand from consumers for artists to maintain a consumer-artist digital relationship, making the Internet not only a promotional vehicle for artists, but also a necessity for profit. These new means of

3-4). While these statistics provide a look into the numerical growth of the streaming industry, it is also important to discuss the power that these streaming services have generated—over both the music industry and over established/aspiring artists. Subscriptions are on the rise, having increased significantly over the past ten years, but as is the amount of users streaming music on a free-trial or ad-supported basis—ultimately undercutting the music industry and artists alike. Blewett and Gollogly (2017) elaborate on this point, stating that, by the end of 2016, paid music streaming subscriptions drove a revenue growth of 60.4%—this growth more than offsetting a “20.5% decline in downloads” and a “7.6% decline in physical revenue” (Blewett & Gollogly, 2017, para. 4). Moreover, Borja and Dieringer (2016) explore the concept of streaming even further in their academic article, positing that the decline in paid digital downloads may be a direct result of streaming—as, music streaming can be perceived as a “complement” for music piracy, in which listeners can freely sample music to pirate later on (Borja & Dieringer, 2016, p. 1). The authors also suggest that streaming can provide a “venue for discovering and listening to new releases”; and after completing their 1052 surveys, conclude that streaming increased the likelihood of piracy by

The dawn of the internet brought forth a revolution that, by now, has seeped its way in the the very fibers of almost every human experience. Education has changed. Communication has changed. Entertainment has changed. Business has changed. Entire industries have been built, and destroyed, by the information age. The music industry, in particular, has felt both. With precursors of the Compact Disc (CD) and digital music formats, Shawn Fanning single handedly eviscerated the music industry. Napster, his peer to peer mass file sharing service, is what landed the fatal blow, and the industry has been bleeding out since.

In 2015, the UK market was represented by 22% of streaming music. 26.8 billion audio streams were streamed throughout the year of 2015 and although the UK don't count music videos as streams if it were to be added, the combined total would make an unbelievable peak of over 50 billion. Also in the year 2015, as streaming services became more popular the UK faced an increase of audio streaming by a whopping 82%. The consequences of the streaming audio sky-rocketing in recent years will affect artist hard worked income as physical album sales in 2015 were at 53.6 million sold, which made a decrease of 3.9 per cent on the year. Compared to 2014, which had a 7.9 percent decline, proposes that streaming music online can have a massive effect on the many ways you can buy music and the result it will have on it. UK Official Charts are playing it smart, as they know streaming is increasing day by day they have restricted user streaming to only stream a song 10 times for it to count as a sale. These rules changed in mid-2014 as every 100 streams will count as corresponding sale in the official chart which is released every Friday. Even one play of a song can affect the whole position of the Official Charts on click of a button who would’ve

No one can deny that technology is actively changing the music industry. Production, distribution and sales of music have been affected dramatically within the last 10 years along with artists, composers, and technicians. Most of the changes have been great for consumers, but vastly negative for professionals in the music industry, however a few artists have found ways to adapt to the changing atmosphere of digitally downloaded music and use it to their advantage. We’ve seen music change form from physical, tangible products like records and CD’s to electronic single tracks stored in an invisible cloud. Two major factors in this sudden revolution are online music stores (specifically iTunes) and file sharing websites that allow music to be downloaded illegally.

The music industry is an oligopoly. Since the late 1800’s people like Thomas Edison have been buying up patents in communication technology, forming monopolies, leading to a non-competitive entertainment industry. With only a handful of corporations controlling all aspects of acquisition, distribution and marketing of music, harsh business principles create an exploitative industry that takes the best of what artists have to offer and leaves many of them unable to support themselves. Beginning in the 1950’s with payola and white cover music and ultimately evolving into iTunes and Spotify, the music industry has grown into a billion dollar industry with far-reaching influence and control. Contracts rarely serve the artists’ best interest and many are left out to dry when their usefulness has expired.

Nowadays, teenagers are living constantly surrounded by technology. Even if the younger generation may not see it, technology has had an impact on different factors. The widespread use of digital technology in the music industry has allowed consumers to reproduce digital versions of copyrighted songs inexpensively, with the help of many software and websites. There has been an increase in digital copying activities and those are most of the time claimed responsible for producers’ loss in revenues. While some people claim that the increase of digital technology has killed the music industry, in fact it has lead to innovation and new ways of consuming and sharing music, such as

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.

Producers of musical content cannot undo the adverse effects that piracy has had on the industry. Because of the internet and the way individuals have manipulated it to obtain music, many people are unwilling to change their habits. Here lies the issue between the producer and the consumer. Acts like the Stop Online Piracy Act (SOPA) and PROTECT Intellectual Property Act (PIPA) work against the incentive of many consumers by telling them that they cannot do what maximizes their utility. Producers are thus working against the likings of the consumer. This is wrong.

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.

The evolution of the music industry follows the familiar pattern of digitization. Innovation began with the introduction of the vinyl record, transitioned from the cassette tape to the compact disc and landed us in an era of digital downloads. The emergence of music streaming services like Spotify has progressed the industry even further, giving consumers the ability to access music on demand using download-free online platforms. Spotify faces criticism from artists as a result of the overlap of creativity and commerce. They argue that business activities corrupt creativity, transforming it into a tool for profitability rather than an outlet for expression. Artists insist that Spotify deters album sales, favors established artists and fails to support them financially. However, Spotify was created for consumers. It delivers an accessible alternative to purchasing and downloading music. The interplay between creativity and commerce is changing the nature of the music industry. Spotify has adapted to this change, providing a platform that supports both artists and consumers. Through analysis of the market, artist’s revenue, record labels and consumers, I will argue that artists should accept the evolution of the industry and support Spotify.

Companies like Apple, have decided that it is best to get in with the downloading business. However, an end to the illegal downloading conflict remains to be realized. The RIAA and associated artists continue to wage war against illegal downloaders while computer savvy audiences persist in sharing music files online every day. While it is undoubtedly true that downloading music is a crime, it remains to be proven that it is wrong. Without establishing this principle, most downloader's are likely to continue the activity. Even with new, inexpensive and available means of downloading files, they can still be shared for free online. The rift must be repaired between music lovers who feel that they have been taken advantage of in the past and recording companies and artists who worry about their future livelihood.