ipl-logo

The New Economics Of The Music Industry

716 Words3 Pages

Economics 2367
Ali Shaikh
October 31, 2014
The New Economics of the Music Industry

In view of the global economy’s current turbulence, music publishing has caught the eye of the financial world as an opportunity to acquire relatively certain long-term assets. The reason is simple. In most cases, well-known songwriters and their catalogs generate substantial income streams. With the start of the digital era, piracy has become an increasing concern for music artists, who earn their livings based upon the sales generated through their music. A counterforce against this illegal music downloading, have been cloud-streaming websites such as Spotify and Pandora Media, which have successfully increased U.S. digital music sales beyond CD and vinyl …show more content…

This fall can primarily be attributed to the era of “Napster,” a file sharing digital distribution channel, which boast an incredible accessibility to various forms of media. Before it was shut down in 2001, Napster had approximately 51 million users actively using the website for downloading purposes (BBC News, 2001). Following this detriment to the music recording industry, the music economy faced many hardships. The Recording Industry Association of America (RIAA) estimates that piracy costs the industry approximately $300,000,000 dollars (Moser on Music Copyright, 2006). As recently as 2012, however, proposals of Congressional bills such as the Stop Online Piracy Act (SOPA) and Protect IP Act (PIPA) claimed that online piracy costs the U.S. between “200 and 250 billion dollars per year and results in the loss of 750,000 American jobs”(http://freakonomics.com/2012/01/12/how-much-do-music-and-movie-piracy-really-hurt-the-u-s-economy/). Consumers learned to justify this illegal downloading because it seemingly had little-to-no effect on the musician’s luxurious lifestyle. Instead, with this increase in music pirating, musicians faced lower physical sales of their albums, and thereby receive a lowered portion of the total sales. When an album or song is sold, a portion must go to the composer, producer, and other important figures involved in the song development process, and …show more content…

More and more people are escaping persecution for illegal music downloading due to the high costs and high time investment required to bring criminals to justice. Instead, countries worldwide, such as Germany and Britain, have adopted “graduated response laws,” adopting a warning approach. For example, if a person is caught downloading music illegally for the first time, their Internet provider may begin to slow their Internet connection. If these actions should so continue, the person’s provider has the right to completely shut off their Internet

Show More
Related
764 Words | 4 Pages

The entertainment industry encompasses the composition, production, and marketing of music. The music industry has emerged as a dominant business and has maintained popularity by means of adapting alongside social movements, and representing different major classes of society. Music has been used by entertainers as a method of expression, and therefore often sheds light on prominent issues by illustrating relatable stories, or reactions to common problems. For example, The Drums, a modern Indie musical group, has composed the lyrics to the hit song “Money” to include imagery and repetition that work to expose the everyday struggle that impoverished Americans undergo.

Read More
308 Words | 2 Pages

Arguments, favors and oppositions Since Napster emerged, music sales in the U.S. have dropped 47 percent(RIAA,n.d.). However, Napster or any other music piracy is not to blame. In fact, music industry in 1980s and 90s was over-inflated(Swanson,2013). Artists receive a percentage of the music sales, and it is mostly between 12 and 14%(if you are a superstar, it can be 20%), after the deductions the retailer, the record company and the songwriter.

Read More
614 Words | 3 Pages

Advertisements help pay an artist’s bills which allows them to make more music. Commercials can also help pay for the costs for tours and artists can make an innumerable amount of money. Promotions can bring a more varied audience to a musician and can help bands gain popularity. By having more people listening to an artist’s music, a musician can be given a sense of reassurance to write more songs. Recently people are debating about whether advertisers should be allowed to use a musicians’ music.

Read More
447 Words | 2 Pages

Comparing the ARIA wholesale figures (2013 – figure 6 and 2014 – figure 7) from 2013 and 2014 shows the subscription services income has increased dramatically. Between 2012-2013 subscription services income increased by 413.81% and between 2013-2014 income increased by 111.26%. This shows how drastically streaming services became popular and that it can be predicted that income from subscriptions to streaming services will continue growing. The growth of the digital market and the shrinking of the physical market have left the Australian music industry trying to find ways to increase money as digital sales do not make as much money as physical sales.

Read More
572 Words | 3 Pages

Do you prefer to listen to music? Many of people do. The musicians sell their music and receive large sums of money. However, recently, there has been a large increase in popularity for music streaming services. To keep making money musicians have been required except endorsement deals from large corporations.

Read More
468 Words | 2 Pages

Success in the music business is a thing of wonders isn 't it? From the ongoing fame to having people looking up to you, it 's something really special. But things are making the music world different. Instead of people buying the albums from the musicians, the internet services allows them to stream it which doesn 't cost a penny. Now the musicians are receiving less while the customers are getting their music for free.

Read More
372 Words | 2 Pages

Many believe music artists produce tons of money and are billionaires because of their songs. What if I told you that isn 't true. The music industry has been altered since programs like Spotify and Pandora have arrived. You can pay a monthly due to these companies and basically listen to whatever music you want anytime and anywhere. My question is, what happened to the joy of receiving iTunes gift cards and buying CD 's?

Read More
303 Words | 2 Pages

Ha0vye you ever wondered why Taylor Swift does not have her music on streaming services such as Spotify? Well it's because streaming services such as Spotify pay next to nothing back to them. Taylor swift swift said that music is art, art has real value, and artist deserve to be paid for it, but streaming services paid less one cent every time there song gets one play. For small artist who might only have a couple thousand plays might only make enough money to buy cheese burger from Mcdonald's.

Read More
1265 Words | 6 Pages

Holmes responded right away. Even though he had not yet completed his last year of college, Holmes immediately signed up as a private in the Massachusetts militia. By April 25, he was in basic training at Fort Independence in Boston harbor. He had to stop going to his classes at Harvard, although he did take his final exams and graduate.

Read More
681 Words | 3 Pages

The record label can obtain the remaining 65 percent income and only then musicians will be paid between 8 to 11 cents for each song (The Vly House, 2011). Despite of the incredible amount of sold songs a day, the profit remains less neither for both content providers nor Apple. An artist must sell 12,399 tracks or 1,299 albums on iTunes per month to reach the level of US minimum wage. Likewise, iTunes Music services are only a fraction regarding to all Apple’s services. Most of iTunes’ users are likely to purchase single songs at a time, which highly reduces the overall profit margin, even if the intelligent system that can delay single transactions and converges them into grouping transactions is not able to bring Apple more profits.

Read More
1062 Words | 5 Pages

The RIAA had been found out, and the change was removed from the final bill. In these cases, artists' interests were not just ignored; the people who were thought to be protecting artists destroyed them. These late night attempts at thievery have added to the suspicion and harmful, angry behaviors in the artist/record company relationship, and have created artists rights groups like the Recording Artists supporting group and has a started a fire in the artists unions such as the American Federation of Television and Radio Artists (AFTRA) and the American Federation of People, who make money from playing music (AFM). This all must be read in the big picture of a serious problem in the recording industry.

Read More
249 Words | 1 Pages

Lots of people worldwide listen to Spotify or Pandora. Maybe the people that do this should stop. Lots People have been debating whether streaming sites like Spotify and Pandora have helped or hurt the music business. The people that stream music should stop streaming music on these sites, it’s awful and will ruin the music business. One reason streaming music is awful is music is art and should be treated like art.

Read More
279 Words | 2 Pages

Listening to music for free is amazing, but that could all change. More and more music artists are pulling their music from popular streaming sites like Spotify. People are debating whether or not to keep the streaming sites which means there won’t be music for free anymore. There is a reason though. The streaming services are hurting the music industry.

Read More
387 Words | 2 Pages

When considering the way that technology changed the music industry, it is important to

Read More
2724 Words | 11 Pages

According to RIAA statistics, the blossom of the industry began with the comparison of offline and online sales. With the popularity of digital, music industry focused on new strategies to develop their companies. From the above analysis it can be understood that the Music industry in UK is flourishing. But it still may be assumed difficult target for a new company. Internet and new technologies are developing every day and decline more and more new entrants in the market.

Read More

More about The New Economics Of The Music Industry

Related Topics

Open Document