The Effects Of Music On The Music Industry

The entertainment industry kept growing for years and as the business grew, the competition also increased. There has also been an increase in the sales of music online. Selling online made it cheaper for customers and as a result many preferred to buy them online rather than going to the stores and buying music. Secondly, there has been an increase in illegal digital downloading; young people tend to download music of various formats which are easily available from the internet. This has lead to

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

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 music industry is in a time of growth at this very moment. The environment for its growth has been increasing rapidly on many geographical boundaries and has been established through information technology and Internet. In this paper I will analyze how the music industry not only has been affected by Globalization as an economic institution but also that it has become a worldwide-globalized commodity. First, I will begin by analyzing how the music industry, though its consumption is not a necessity, it is affected by large economic factors and has become a large Music Market. Furthermore I will analyze how the music market has globalizing tendencies

In this article, Peterson and Berger show how the organization of the popular music industry affects the music that America hears.

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.

1.  According to the case, recorded music decreased and concert tickets increased from the years 2004 to 2007. According to research done by Nielsen SoundScan, recorded music sales declined by 9.5% in 2007 (A&M/Records,3). Additionally, the manufacture’s unit shipments and retail dollar value graph shows a decrease in physical CD album and CD single sales. By contrast, an increase in digital CD and album sales and the mobile and subscription base model had almost an insignificant increase, having no clear impact in the industry. However, by 2007 the trends in concert revenues in the United States had increased by almost 2 billion dollars. Consequently, almost all revenues were coming from concerts rather than physical album sales.

“Before the days of YouTube and the Internet, a band 's chances of striking it big depended on record companies. If a band was lucky enough to get a record deal, it gained access to a label 's vast resources and connections. The company paid for the band 's studio time, … and got its music played on the radio, reaching millions of record buying Americans” (Majerol, 1). Now, anyone with talent can post a video of themselves and become an internet sensation, only to then receive a deal with a label to continue growing their career. The issue is, with the Internet came digital downloading, and with the growing popularity of digital downloading came illegal downloading, known as Digital Piracy, which has affected the music industry greatly. This issue affects everyone involved in the Music Industry. From the small CD store owner to the Artist on stage, everyone has and continues to be affected by the growing popularity of digital downloading services. Artists, producers, and songwriters lose an estimated 12.5 Billion USD every year to illegal digital music services. Further, the economic impact from [digital downloading] is an estimated loss of 2+ Billion USD (Storrs, 1). This money affects the “little guys” in the industry and the average worker within the industry.

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.

When musicians produce albums, they want people to listen to the albums. There is not one specific way for a band or single musician to gain an audience and promote their music. Musicians use many different kinds of media to promote their music. They use visual media as well as strictly listening media. The radio, television, and the internet are all different types of media musicians use to promote their music.

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

Over the past decade, the use of CDs has been replaced with online streaming and retailing. This has eliminated much of the record companies revenues as they were used to making most of their profit off of distribution and promotion of physical copies of artists albums (Niemen). This has caused for a major shift and remodeling of major players in the music industries business models. Companies such Sony, Warner Music Group and Universal Music Group have started to completely rethink the way they conduct business (Forbes). In the past record labels were not only responsible for production, distribution and promotion of an artist and his/her music, but they also acted as a bank (Forbes), funding the artists tours and recording sessions. Recently, these music giants have been moving towards becoming more of a modular network organization. What this means is that they are less occupied with the nitty gritty, and more focused on what they do best which is distribution and promotion. This also allows for more freedom of creativity for the artist as well as fairer split of profits (Forbes). This adaption of new business models clearly shows the versatility of the music industry in adapting to new times and technologies.

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.

Digitalization, data compression, and the internet have affected the music industry significantly. These technologies have shifted the recording industries from hard-copy recordings to digital music distribution. This has made it easier for consumers to enter the music market through copying. Consumers have access to copying technology that allows them to obtain music without paying the record label. The situations clipped high in 1999 when Napster, a file-sharing service was launched. The service facilitated music file sharing on a wider scale. The consumers just download the music and transfer it to a digital music device. This has negatively affected the trade value of music sales, for instance in

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.