With all the music streaming platforms readily available at our fingertips, it's hard to imagine why actually buying music is still an option. Many people may ask, "what is the incentive to buy each song individually when you can pay a flat monthly rate to stream thousands of full albums right on your device?" and they certainly have a point. Plus, not only does this model save consumers money, it makes money for labels. In fact, Bill Rosenblatt from Forbes proclaims that "the most recent data shows that listeners get more music, and the industry makes more money from it, through 'access' models than through 'ownership.'" This "celestial jukebox," as Rosenblatt calls it, allows access to a plethora of songs and albums that in the past have been individually bought through services like iTunes. Just a few years ago, users were buying …show more content…
VINYL STILL SELLS Vinyl music is a whole other realm that strays from this idea; it has become increasingly popular over the years as a trend within the music industry. Let's take Urban Outfitters for example: this popular fashion store has a whole section dedicated to vinyl and record players. In this case, music ownership is very valuable to the consumer, and they are willing to pay more because they are buying an experience rather than just the songs themselves. It seems that streaming avails all other music consumption in terms of consumer preference, so why is it still available to us? Perhaps it's because the occasional fans that don't want a monthly commitment feel they have more control over their money by simply purchasing individual songs or albums at their convenience. It may also be due to the trendy element of owning vinyl. Whatever it is, we can safely say that streaming hasn't completely taken
If there is no individuality, then there is no costumer choice. When costumer choice is eliminated, then the problem of exploitation arrives from how these popular music products are commercialized. Raprehab reports, “[...] major record companies are paying radio stations thousands of dollars to play their records!” This contributes to the already established monopoly because when the radio, one of the most effective promotion and mass communication devices, circles around certain products attributed to certain labels exclusively, competition is lowered to a minimum, again. Alternative and independent labels are rarely ever, if lucky, played on the radio, leaving the only way for the consumer to discover alternatives to popular products through extensive research, that is unless the consumer is “not lazy” and willing to expand their horizons and turn their radius of view away from the popular world and dictated products into the underground, “struggling” music
The music industry has changed in more ways than we could imagine. At first we started with artists just selling singles, then it transformed over to people buying albums, and then on iTunes started to sell songs for just cents. In the year 2005, Pandora was launched on the Internet and later they created a mobile app. Most of the artist’s music can be found on YouTube. Free downloads have affected this industry as well.
record industry? Maybe some people buy CDs based on what they hear on Napster, but for
The Internet—as it did for almost everything—has radically changed the way people get music. The Internet has cut into the music industry's profits. It reduced the demand for CDs, increased the interest in singles and let people decide whether they want to pay for the new Prince album. This alone could be offset if all of the people pirating music would go to their favorite artists' shows. However, the hard economy has rapidly cut into people's ability to spend on luxury items and concerts rank right up there with sports in terms of practicality.
Spotify’s Time. (n.d.). Music Business Journal Berklee College of Music RSS. Retrieved May 21, 2014, from http://www.thembj.org/2014/05/spotifys-time/
An “analyst” was quoted in the case (in 2002) as saying that “people will pay for music on the Internet, eventually.” This person was skeptical of the willingness of consumers to pay for
As we all know, marketing is a necessary part of our daily life. Not only are products and services marketed, but we market ourselves as part of everyday business. I spent time this week speaking with a close friend of mind who is a Store Manager for H&R Block discussing the 4-Ps and how they pertain to his organization. It was very interesting to see how different industries market their products and services. Does the thought of receiving your tax return immediately grasp your attention? Well it has definitely helped H&R Block in boosting their ability to attract customers. It seems as thought immediate gratification is a promotion marketing tool that many companies are now using. After briefly describing the 4 P's of marketing we will review how H&R Block utilizes all of the steps in their marketing mix.
...his since they make money for licensing the music for the streaming services. Labels are embracing the streaming services since this allows another way for making revenue in a not so strong music economy.
Abstract: Relatively little attention has been given to the effect of digital music on amateur musicians and music distribution. Here, I examine the revolution on the horizon-sites such as MP3.com herald the eventual bridging of the gap between artist and listener while shrinking the record companies. In this paper I examine two such sites that host independent and labeled artists alike: the larger, better-known MP3.com and the smaller, independent, non-profit Songfight. I examine how they each handle the challenges of digital music and their attraction for artists while concluding that a change in the recording industry as we know it is forthcoming.
Back in the early 1980’s, record labels controlled what people could hear through airplay, record distribution and manufacturing, and selective promotion of music based on their judgement of their audience. An artist’s only feasible option was to go through this system. To obtain music of high quality, people had to buy vinyl singles or albums or tape, and later, only CDs. There was no practical way to listen to music before buying it without listening to or taping off the radio. Music was very restricted by several different record companies.
Consumers rely on their smartphones and laptops to listen to music on-demand. Although there are many music streaming companies, Spotify was one of the first to let consumers access millions of artist without buying individuals songs or albums. With Spotify, consumers pay for a premium subscription that allows access to every artist, album, and song within their library of
People pay low subscription fees to streaming services, and as a result of this, listeners can be exposed to new artists and help these artists become popular (“Music Industry”). New artists are exposed to more people as streaming services often increase the amount of artists that people listen to. While streaming services do result in more exposure for an artist, that’s where the benefits stop. One of the issues with streaming services is payment issues. "Public relations missteps in the early 2000s kept many musicians from speaking out about economic issues, artists and executives said... But the shift toward streaming in recent years has prompted many musicians to investigate the changes in the business and comment online (Sisario)." Artists are not being paid much for providing their music to streaming services, but these issues and artist protests are being ignored by executives of the services until a high-profile artist makes the wage disparity public. "Streaming services pay a lot less than downloads, with the artists receiving a fraction of a cent per play on the service. Newer artists could struggle with the level of payments offered by the services, opponents have argued (O’Brien).” Hardworking artists are not receiving as much money from streaming services as they did from people purchasing their albums. This
Listening to music for free is the best thing in the world, honestly, without paying for something is better than anything. Music to some-people is a way of life, why should they pay for music when they can download it for free. If you download a song off the internet, you’ll have your favorite song in the palm of your hand, charge free! You can save that money that you won’t spend on a few songs or albums and use it for something more important. “Free music downloads could be a solution to our attempts to scrimp and conserve in these rough financial situations” says Frank Castle from Article Alley.
Spotify is on-demand streaming music player. After registration and downloading the desktop application user gains access to more than 20 million songs that are currently available on Spotify [1]. The main characteristic of Spotify’s streaming service is that it does not sell music, but it gives access to it. Streaming digital music is based on agreements with content owners - record labels, digital distributors, aggregators and publisher collecting societies, to whom Spotify pays out royalties [2]. Without these agreements there would be no music to stream. Basically, Spotify has an intermediary role as it distributes music content from right holders to listeners.
Moreover, hackers came up with new ways to remove the digital copyrights so the same as before one downloads music and distributes them around. The industry gets its revenue from selling this content, whether it’s online or in stores, this funds new projects and allows for better products in the future. The public should be aware of this, downloading the content for free, and not buying it will decrease revenue for the companies, stopping them from undertaking future projects. “Production companies should lower the price on their products, I can’t buy music for at least 20$ per album and DVDs for 30$, I only make 200$ per month,” said George Issa, a music fan who spends most of his nights downloading music from the internet, “when there is an album or movie that I really like, I try to buy it legally, I don’t think I am doing anything wrong, they are wrong making money off our backs,” he added.