Music industry essay thesis

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Music industry essay thesis

The PC itself needed 15 years, and even the cellular phone did it in about 13 years. The digital world is unquestionably the future and offers much hope. Fixed costs make it harder for firms and businesses with large infrastructures Music industry essay thesis be able to profit or avoid early losses in the first period after a major change.

However, we are now well past the Napster revolution inand labels have not perhaps been as mentally agile as they should. Music industry essay thesis Market and a Change in Demand A statistical overview of the market today is illuminating.

This is due to the rising sales of digital albums and singles, and to downloads of music videos. Mobile ringtones sales have actually decreased a small percentage because of the option to download an mp3 music file and have that be played as a ringtone.

Ringback Tones, the songs that are being played while a caller is waiting on the line, are nevertheless showing an increase. Total units sold in were Total dollar value fell by There are, ostensibly, three additional elements that are holding back industry revenues.

First, there is a shift from full album purchases to single song downloads. Consumers who only wanted these hit songs had no choice but to get the whole album, allowing the record labels to wrap a small product in a bigger and more expensive package.

However, the era of digital downloads brought up to the surface the culture of single song sales. Naturally, this affected total revenue negatively.

Second, there were many different substitute goods for recorded music that exploded with the new technology, especially video games and online movie sales. The Internet, of course, made much more entertainment options available to many more people at a much cheaper price.

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Thirdly, the most obvious factor affecting the demand of legally produced recorded music is the availability of pirated product. If that percentage were lowered even by a little, the revenue grossed by the labels would rise significantly. Vigor in Anti-Piracy It is this third factor that deserves attention, for in the current juncture it appears that some progress is being made at last.

Second, even if the ISP admits that something can be done about piracy, the music industry is only the first in line: For instance, in June of a Belgian court had to reassure itself that there was a practical way to target and filter out any infringement before it ruled against the ISP.

When expert testified that there were eleven filtering technologies available, the Court then held the ISP liable rather than the user and was able to discard a defense based on the protection of privacy rights.

Other European governments are starting to follow suite. A historical outline should make this clear. Hit music, unlike the rest of the less successful albums, was sold not just in record stores but also in hypermarkets Wal-Mart, Best Buy, and so on.

These retailers were willing to lower the price of music sold in their stores just to drive traffic in and get people to buy other more expensive consumer durables. Since there was almost perfect competition at retail for hits, recorded music devalued against the consumer price index by more than 25 per cent without the labels being able to stop this.

Another area, incidentally, where the value of music suffered, and which also affected the creative community, has to do with the payment of the mechanical right of reproduction of a song.

Music industry essay thesis

Here, as a matter of fact, the labels did use their stronger lobbying power in congress to trump artists and their publishers. Monetizing Demand Yet, in the midst of all this, trade organizations, governmental agencies and industry analysts concur that demand for recorded music is actually at an all time high.


So what are the options to monetize this into more revenue from this demand in the new world? What promise does the future bring for the music industry?

Music industry essay thesis

In earlyiTunes began to incorporate variable pricing for its products: The effects, and the limits, of this strategy can be gauged by using a price elasticity of demand PED analysis.

If demand is elastic, lowering the price will increase revenues since more people will presumably buy it. With variable pricing, therefore, and because Apple iTunes is by far the most significant retailer in the online music market, labels have gained some control over pricing. The implication is that labels will be looking at price data very closely in the near future.Quality academic help from professional paper & essay writing service.

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We guarantee high quality of our product because we cooperate under strict conditions with expert English native speaking writers worldwide. The Music Business Journal, published at Berklee College of Music, is a student publication that serves as a forum for intellectual discussion and research into the various aspects of the music business.

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