Music industry revenue system:
- Radio advertising revenue
- Live music sector
- Music Retail store
- Licensing of music third parties
95% of music downloads are unauthorised. - Illegal
71% of users increasing their illicit downloads cite high prices as the reason.
84% of illicit downloaders think artists deserve to be paid.
The solution is lower song prices and raise the artists compensation transparency.
The effect of piracy:
The music industry is still losing out to internet pirates on a huge scale, an estimated 95% of music available online is being downloaded illegally. The music industry is ''transforming'' its business models, turning to marketing ideas such as Radiohead's ''pay what you like'' album in Rainbows and Coldplay's move to give away tracks to promote their album. In the UK market alone, the record industry lost £180m 2 years ago.
Quote by Alan Rusbridger, editor-in-cheif of The Guardian- ''It's a trend...about a new democracy of ideas and information, about changing notions of authority, about the releasing of individual creativity''
So these new ideas and information about authority and artists releasing creative music without higher authority telling them what to do, is a new trend, ie more and more artist are doing this, taking control.
Case Study
Beyonce - Illegal album downloads cost Beyonce $3.8 million/£2.53 million in sales revenue.
Showing that it does effect the artist, meaning they have to do more concerts to make more of a profit.
Independent swim upstream:
As streaming services increases their share of the overall market, their royalty payments have come under scrutiny from artists and record labels.
Spotify said it paid out about $500 million in royalties in 2013, according to numbers it released in december. The company likes to focus on that big number instead of how it breaks down: .6 to .84 cents every time a song is played. It doesn't pay a set amount per stream, but uses a more complicated formula based what percentage of Spotofy's total monthly streams an artist represents.
The company cites a example of a ''global hit album'' earning $425,000 in a month, but thats for a top seller. A mid-level artist could do tens of thousands of streams in a month and maybe see a few hundred bucks for it. Mulligan's report notes that some independent artists do crack that 1%, but it's not easy.
No danger for major labels:
The numbers tell different stories here: the rise of streaming and increase in total artist income sound like music to muscians' ears. But they're not in the 1%, they may be singing the blues the next time they open their royalty checks.
On the other hand, the major labels, Universal music group, Sony and Warner music group, don't appear to be in danger of losing their market share as downloads decrease and more users turn to streaming.
Writing Tasks:
How do institutions sell their products to audiences in contemporary media?
Traditional sales, such as physical copy's being sold in HMV, of a music product have decreased in popularity, since the development of technology, the internet. Audiences do not buy music as much as they used to, but they illegally download it. Digital copy's, such as itunes, are more popular than physical copy's of music. But some people illegally download, therefor the artists do not get the money, nor do the record label.
EMI in the past, decided to take music pirates to court, which audiences felt negatively towards. Causing EMI to fall out of the major record labels, audiences have a lot of control within the music industry. Whereas companys such as Sony, took a much more laid back approach. Using tours, reducing costs, merchandise and other forms of products, to create a profit.
Streaming services, such as Spotify, costs a monthly fee to listen to music whenever you want. This is a convenient way to have ownership of music, at a low cost. They pay royalties to the artist/record label, every time a song is played. This is contemporary may of selling a product.
Domino are an independent record label, based in the UK. Domino does not think piracy is a huge problem, but they have protection in place and do take it seriously. They combat piracy by finding alternatives in selling the product, rather than taking extreme action, which could put them into the place were EMI are.
Traditional sales, such as physical copy's being sold in HMV, of a music product have decreased in popularity, since the development of technology, the internet. Audiences do not buy music as much as they used to, but they illegally download it. Digital copy's, such as itunes, are more popular than physical copy's of music. But some people illegally download, therefor the artists do not get the money, nor do the record label.
EMI in the past, decided to take music pirates to court, which audiences felt negatively towards. Causing EMI to fall out of the major record labels, audiences have a lot of control within the music industry. Whereas companys such as Sony, took a much more laid back approach. Using tours, reducing costs, merchandise and other forms of products, to create a profit.
Streaming services, such as Spotify, costs a monthly fee to listen to music whenever you want. This is a convenient way to have ownership of music, at a low cost. They pay royalties to the artist/record label, every time a song is played. This is contemporary may of selling a product.
Domino are an independent record label, based in the UK. Domino does not think piracy is a huge problem, but they have protection in place and do take it seriously. They combat piracy by finding alternatives in selling the product, rather than taking extreme action, which could put them into the place were EMI are.
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