She also mentions that for the last decade, record labels business are experiencing decreases in revenues. McArdle criticizes the millennium generation for violating property rights of recording labels and the music industry. Moreover, McArdle points out that many young people in this millennium generation are the ones who are downloading music for free. She discusses how hard it was for people to look for music and to copy music in the past history compared to the present. She also points out that young people in the millennium generation do not see downloading music for free as a huge problem.
This is why many companies have fallen in the industry. They simply could not make a profit out of having music being streamed compared to it being sold individually. A long-term profit has not been sustainable for most music-streaming companies. Music streaming has been around for over a decade. Companies such as Rhapsody, Napster, MOG, and We7 have tested different business models.
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. This one-two punch has left the industry experimenting with different ideas trying to find their next revenue stream. No one is sure where the music industry will be in the next five years, but things are already changing.
The third effect is that it increased the cost of recorded music. Once people can download free music through peer-to-peer software services, they have less incentive to buy original editions, which will make recording industry spend more to fight against copyrights and invest more in new artists and new music. Overall, these three effects make the recording industry go through a hard time. 3) 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
Many well-known artists including Taylor Swift are against Spotify and have her music catalogue removed from Spotify, because by letting people listen to your music for free you undermine the value of art. But Taylor Swift is one of not so many artists that could pull such thing off and still remain popular. After all, her removing her catalogue from Spotify was a huge scandal and one of the most important happenings during the last year in the music industry. This move of hers affects Spotify in a bad way, as she was one of the most popular artists on spotify and her songs were on 19 million playlists. It is also thought that taking her music catalogue from Spotify could be related with her own record label, Big Machine’s sale.
Certainly there are detractors to the format who charge that MP3’s steal revenues off their music. While it is true that people could (and probably have) simply download entire albums of artists. That reasoning alone is not enough to condemn an entire format of music. The artists that complain the loudest of the potentially crippling album sales are the established artists who have already made a fortune in the recording business. The established artists feel it is necessary to protect there recordings, and by all means they have that right, but one argument that is brought up by these same artists is that this technology hurts up and coming artists.
One of the main challenges that the digital music is experiencing at the moment is the increase of the sound quality. First of all, the digital format that the industry has adopted over the digital period is the MP3. Although other formats such as WAV or AAC were competing, the more compressed with less quality of sound was the one picked by the public. Mainly because with the speed of the internet and the storage of past devices was only feasible with MP3. Once again music consumers choose over what they’ve been told to use by the music industry, as the other formats where locked and weren’t able to be shared.
But when downloading became reality the music industry tried to fight against the change. Then they attempted to keep control of the music industry and keep it the same also while keeping a high profit for selling, but eventually this backfired. What the music industry had planned was not what they wanted but instead they got the opposite of what they wanted. Also technology has changed by online downloading. Since online downloading has been used or introduced the selling of actual CD’s has decreased.
Illegal music downloading has helped several artists get looked at by big corporations. A lot of artists’ career have been sky rocketed by illegal sites. Additionally, Illegal music sites help artists succeed. In the article entitled, “How can Your Band Benefit from Piracy?” the writer says, “Some bands are finding ways to use free music, illegal downloading and so called “piracy” to grow their audience” (1). With a growing audience, bands can now book more shows to perform.
Over the past ten years money being spent in the music industries has been declining because everyone is not buying as much as they were. Never the less, this problem does not only affect the music industry but also the publishing and movies industries. There is yet to be a solutio... ... middle of paper ... ...tudent'. It doesn't matter what the circumstance, this article made me realize the effect that illegal downloading has. Reading the first sentence of the article " industry revenues have been declining for the past 10 years," was when I realized the negative impact were all creating on movies and music (McArdle, 2010).