The Music Industry Of The Revolutionary Digital Age

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The recorded music industry is a major part of the media and entertainment industry that is responsible for creating, manufacturing, and distributing music. As technology has continued to advance rapidly, the music industry has become one of the most dynamic industries in decades, as well as the wildest among industry roller coasters. Listeners are now able to expand their music tastes and collect more music in virtual libraries than ever before, thanks to technological innovations that allow access to convenient outlets for music downloading, such as iTunes and Amazon. As music has evolved from being delivered on cassette tapes and CDs to mp3 files that can be downloaded directly onto computers and smartphones, record label companies are…show more content…
In fact, digital music has been a major contributor to the music industry’s revenue increase since its recent emergence. Subscriptions to online music services and online radios, such as Pandora and Spotify, have also assisted in raising the industry’s overall profits by over $200 million during the past 5 years (Degusta). Nonetheless, despite the overall transition to digital format, physical music sales still account for a substantial proportion of industry revenues in major markets. Physical formats account for more than half of all global revenues, while digital formats now account for 39% of total industry global revenues and a majority of revenues in 3 of the world’s top 10 markets (Smirke). Aside from the aforementioned factors, there are numerous others that are taken into account when determining the industry’s profitability as a whole. Some of the many various revenue streams include physical format or record sales, digital downloads, performance rights, and synchronization revenues. While profits from one variable may face a sharp increase, another may see a major decrease. For example, between 2003 and 2009, U.S. revenue for single downloads increased by over $1.2 billion and by nearly $0.8 billion for album downloads. On the other hand, during this 6-year time frame, CD sales in the United States dropped over $1.6 billion and cassette tape revenues practically reached zero by the end of 2009. Evidently, one of the most vital revenue streams of the industry
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