The Impact Of Digital Music On The Business Industry

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Music retail has been a thriving international industry for almost a century. And like most successful industries, it has experienced drastic developments in technology to ensure growth and success. From the invention of the phonograph in 1877, through the height of vinyl records in the 1970s and the shift to cassettes and compact discs in the eighties, consumers clung to the latest technologies, which made the purchase and ownership of recorded music increasingly simple. Through each of these developments, small retailers thrived as the center of the music retail industry with small territories and loyal customer bases. However, since the turn of the century the industry has taken a drastic technological turn. Digital music markets…show more content…
The unique methods of small retailers has given way to a niche market in which local music stores are able to remain a part of the music retail industry. In recent years, the rise of technology in the changing music retail industry has prompted small independent retailers to develop improved relations with local communities and create a unique and enriching experience for customers in increased efforts to remain relevant and profitable.
The advent and evolution of online music services has had profound effects on the entire music retail industry as it has changed the product and primary methods of commerce while also lowering revenue. The most popular and well-known of these services is iTunes, the digital music market of Apple. iTunes’ business was one of the first to bring large amounts of easily accessible music to the general public through digital means, revolutionizing music retail. Adrian Covert, of CNNMoney, discusses the prolific effects of iTunes on the music industry, stating, “Since the introduction the iTunes Music Store on April 28, 2003, music sales have plummeted in the United States -- from $11.8 billion in 2003 to $7.1 billion last year, according to the Recording Industry Association of America. When adjusted for inflation, revenue has been more than halved since Apple launched the iTunes Music Store” (Covert). The extreme decrease in
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