Premium Essay

Impact of the Internet on the Music Industry

In: Computers and Technology

Submitted By mikegn2
Words 4618
Pages 19
The Impact of the Internet on the Music Industry: Downloadable Music VS. Records
Table of Contents

* Introduction 3 * Music Label Industry Analysis 5 * EMI Group Unlimited Business Description 7 * Record Label Business Model 8 * Record Label History 10 * Record Label SWOT Analysis 11 * Downloadable Music Business Description 14 * Downloadable Music Business Model 14 * Downloadable Music History 15 * Competing Online Services 15 * Financial Analysis 16 * The Future of The Music Industry 19 * Conclusion 21 * References 21

The Impact of the Internet on the Music Industry: The Record Label VS. Downloadable Music It was only a short time ago that record stores like Specs and FYE were littered across the country, stocked from wall to wall with all the latest albums from your favorite bands and all sorts of music paraphernalia. People like me would have stacks of compact discs or binders full of the music they owned ready to go wherever they went. Before them there were cassette tapes, and before that vinyl records. If you were lucky enough to be a signed musician, you were a star destined for fame and fortune with thousands if not millions of loyal supporters buying your album and following you on tour. Most importantly for the purpose of this paper, the record labels were some of the wealthiest companies in the entertainment industry.
The music industry is a multibillion dollar industry and was thought by many to be too big to fail. Record labels had their pick of the crème de la crème with regards to up and coming artists and when they weren’t cutting shady deals with new acts they were reaping in the profits with album sales and royalties for radio play of their music catalog. The music industry is...

Similar Documents

Premium Essay

File Sharing and the Revenue of the Creative Industries

...the Creative Industries Introduction File sharing hosts, who provide online storage to share various files ripped from media like recorded music, films, and books, have been considered as a type of internet piracy that threatens the creative industries, including films, music, software, and books. (Van Eijk, 2011) However, after the shutdown of Megaupload, one of the most popular file hosting site, a series of ripple effect happened, causing several other file sharing hosts either deleted their files, or set up an access restriction. (Peukert and Claussen, 2012) It appeared to be an impact on the internet piracy and the revenue of the creative industries would go up — But it didn’t. According to Peukert and Claussen (2012), for example, the revenue of the film industry have decrease ever since Megaupload’s shutdown. The purpose of the essay is trying to analyze the relationship between the internet piracy via file sharing hosts and the revenue of the creative industries — how does the former interact with the latter — and a solution to resolve the declined revenue of the creative industries. Internet Piracy and File Sharing As its name suggests, “Internet Piracy” refers to manufacturing and distributing unauthorized copies, ie. “pirate copies”, on the Internet. (Panethiere, 2005) While the term “File Sharing” means to share a file with another person physically, such as storing and distributing a file in a CD, DVD, or a drive, or via uploading to the Internet to be......

Words: 1483 - Pages: 6

Premium Essay

Will the Web Kill Collleges

...Will the Web Kill Colleges? In this paper I will examine the article written by Zephyr Teachout entitled “Will the Web Kill Colleges”. The key point of Teachout’s argument is whether or not the Web will kill Colleges. According to the author Zephyr, “undergraduate education is on the verge of a radical reordering” (Chaffee, p.91, para 2). Zephyr states that colleges will be torn apart by the Internets new ways of sharing information. Classes are slowly changing from an in class setting to an online setting that may become permanent over the next 15 years. The author also states “colleges are becoming more virtual” (Chaffee, p.91, para 3). Traditional Colleges will experience a decline in enrollment and since they are depending on tuition this will hurt them tremendously. You don’t have to be in a classroom to do research, ask questions and receive lectures to gain a full learning experience. “The funding of academic research, the culture of the academy and the institution of tenure are all threatened” (Chaffee, p.96, para 4). The evidence used by the author to support his argument is the cost of getting a online degree are relatively inexpensive compared to traditional college. For example, “in state online undergraduate completion degree offered by the East Carolina University costs only $99 per credit hour which is a base of $1200 a year” (Chaffee, p.92, para 2). And the author also believes that the price will “only dive in coming decades as more universities......

Words: 1646 - Pages: 7

Free Essay

Annotated Bibliography

...has the music industry been affected by the internet and digital downloading? As the world progresses, internet power is handed over to people and the digital music downloads and sharing of files has become so common that the business in the music industry has started deteriorating and they are losing money really fast. This project came into my concern since the available number of musicians and their music genres on the internet is very high. A few megabytes and the song is already on your digital device and all qualities are available without using a lot of money to access the music. The expense an artist uses is so much and there is no profit to gain after the music is produced and probably it might not hit. I anticipate joining the music industry that is why this topic is of my major concern. The main issue in question is how has the music industry been affected by the internet and digital downloading? Annotations BBC News. US Court Re-imposes $220,000 Music Piracy Fine. BBC News. 2012. Web. Retrieved from In this article, a lady, Jamie Thomas-Rasset was accused by the Recording Industry Association of America, a trade organization that supports major music industries, that he had been pirating music and uploading them on the internet. She was fined a large amount of money per song and this shows how serious the digital downloading of music has affected the music industry and has become an offense to share the music online.......

Words: 1717 - Pages: 7

Premium Essay

Illegal Downloading

...use the internet have downloaded music or movies. Now, that the internet is more and more popular, people copy created works more easily. According to “Copyright and The Internet”, Kenneth Jost mentions that, “Each technological breakthrough made it less and less expensive to copy creative works with greater and greater fidelity to the original”(Jost). While a lot of the content on the Internet is free to download, that does not mean it is legal. What is illegal downloading? Illegal downloading is downloading without paying or obtaining permission for files that people do not have the right to use from the Internet. Illegal downloading is one of the ways that many people use to enjoy others’ property. Therefore, those who knowingly download and steal intellectual property should be punished with prison time because they destroy the profit of artists and producers, reduce the motivation of artists to create new property, and hurt the reputation of the Internet as a legitimate source of advertising. First, people who illegally download need to be punished because they hurt the profit of creative people. The music industry is one in which illegal downloading has had terrible effects. New artists especially work very hard to write a song or lyrics, and they hope to sell their creation and build a music career. However, if someone steals the song from the internet, those artists will never get a chance to be famous. Besides, illegal downloading reduces amount of recorded music......

Words: 1547 - Pages: 7

Premium Essay

Ifsm 304 A1

...SOFTWARE PIRACY IFSM 304 Abstract In the various media industries there are extreme worries concerning unauthorized downloading and copying of their products known as piracy. Piracy of items has been part of commerce for centuries; counterfeiting of currency for example. With the information age the ease at which media can be pirated has caused an explosion of this phenomenon. This practice is an illegal act that is done by individuals for personal use and also for profit. The first do not seem to see the issues caused by this practice such as; the spreading of viruses and lower quality products. We will use Reynolds' Seven-Step Ethical Decision Making Approach for the breakdown of the ethical reality of software piracy. Introduction Software piracy is defined as illegally copying software for distribution within the organization, or to friends, clubs and other groups, or for duplication and resale (PC Mag, n.d.). Software piracy is a worldwide issue. With the increase in the access to and the speed of the Internet the availability of pirated media continues to increase in availability. The most common of types of piracy follow: Softlifting: Borrowing and installing a copy of a software application from a colleague. Client-server overuse: Installing more copies of the software than you have licenses for. Hard-disk loading: Installing and selling unauthorized copies of software on refurbished or new computers. Counterfeiting: Duplicating and selling......

Words: 1354 - Pages: 6

Premium Essay

Managerial Accounting

...However, they loss more profit due to the price decreases. PEST Analysis Economic According to the Canada Statistic1, other operating revenue includes repairing and renting musical instruments slightly decrease by 4.5 million in 2009 compared to the sale in 2000. The statistic states that the percentage of other operating revenue declines from 10.3% in 2000 to 8.2% in 2009. It indicates that the music shop is gradually switching their main revenue source from renting and repair to the sale of instruments. Comparing the sale in 2004, it drops about 200 millions on its sale in 2009. Therefore, instruments repair are directly affected. In addition, from the report of economic impact on music industry2, the employment of musical instrument repair shops without retailing new musical is only 175. It is only 1% of the total music-related employment (19,437). Their revenue is around 12.21M, which indicate that it is not a major income source for the music industry. Therefore, repair shop doesn’t really have a great economic impact on the music industry. The National Association of Music Merchants presents a Global Report⁵ through collecting all data around the world about declining in musical instrument sales. When the recession hit the desert in 2007, sales of musical instrument as...

Words: 1676 - Pages: 7

Premium Essay

To Share or Not to Share

...Peter Todd Shawshank University To Share or not to Share Have you ever taped music off your favorite radio station? That's the old way you would do it if you can't afford the albums. Today people are not only downloading music off the internet but also pictures, movies, games, software and any other kind of computer files that could be beneficial. Each week there are more than one billion downloads of music files alone. Participation in file sharing has also grown. Over 60 million Americans above the age of twelve have downloaded music (Ipsos-Reid, 2002b). File sharing is heavily linked to youth. While a majority of Americans under 18 years old have downloaded and half of those are heavy users, only a fifth of those aged 35-44 have downloaded files (Edison Media Research, 2003). Among U.S. adults at least 18 years old, the number of downloaders has about doubled since 2000 (Pew Internet Project, 2000 and 2003). Because physical distance is largely irrelevant in file sharing, individuals from virtually every country in the world participate. When peers download, they don't all download from one place. Millions of peers around the world are connected and they download files off of each other's computer.  Popular networks are Kazaa, WinMX, Limewire, Morpheus, Frostwire and many more. Downloading files is free, but many people are confused that it would be stealing. The RIAA (Record Industry Association of America) had announced that it is stealing, but people won’t......

Words: 1741 - Pages: 7

Free Essay

Digital Piracy

...Digital piracy is making up profit from illegal copying and reselling music, videos, software videogames and other digital media which requires genuine. In 2005, loses of legal media and software industry from digital piracy was $200 billion (DSTI/IND (2007). Also, Oberholzer-Gee (2010) indicates that 60% of World Wide Web broadband busy by consumers’ video, game and music sharing. To avoid this issue intellectual proprietors use various methods. In this paper is shown methods to dodge problem of digital piracy. There are two ways to protect legal digital content from piracy. Firstly, there is indirectly impact to society, where manufacturers are producing additional equipment like guitars for game “Guitar Hero” and forwarding special social services where people can play with each other via internet, so while people playing, system is checking license (Goel, 2010). In addition, companies perform free software with fewer options than paid software. Moreover, some organizations such as Free Software Association and Open Source agitation, which advert spreading software for free have helped to grapple with problem of expensive software and companies that gain from this, for example, Microsoft (Hill, 2007). Secondly, there is direct impact on users, where companies and internet providers use methods which impacts directly on users such as blocking peer-to-peer connections between users and web-sites where users can download pirated software. Furthermore, closing the sources......

Words: 1577 - Pages: 7

Premium Essay

Effects of Smart Phones in the Society

...Introduction A smart phone is a highly developed cell phone which has more applications than the normal mobile phone. It is a personal device that connects to cellular data so as to provide online services. Smart phones have different capabilities in comparison to a normal cell phone. It can check e-mails, make phone calls, and browse the web in its basic form. Examples of smart phones’ operating systems today include, Android (Google), iPhone (Apple), Windows mobile (MS), Blackberry OS (RIM), and S60 (Symbian). These operating systems allow their customers to use different applications for their needs. Smartphone users have an access to the internet. This means that extremely many things can be done by a small device that is portable and one can carry it around everywhere. The users have internet on their pockets (Reed, 2010). The Smartphone is more than a phone and more than a computer. In America, today, 42% of phone users have Smart phones. Smartphone became a revolutionary innovation when Apple released its first generation of Iphone (Reed, 2010). This became a benchmark for Smartphone makers to adhere to in order to gain the market share in the Smartphone market. Today each company is trying to come up with the best smart phones so as to be able to compete with others. IPhone reinvented a Smartphone in 2007. Nowadays, most Smart phones support a number of applications that users can download. For example, Apple’s App Store on iTunes enables program users and......

Words: 1218 - Pages: 5

Premium Essay

Illegal Downloading Research Background

...Sandra Richardson 090713457 Illegal digital downloads and piracy: What effect is this having on the entertainment industry and is there a solution to the problem? Background. The entertainment industry felt their first blow in 1999 when a student developed Napster, a software program allowing millions of users to illegally download and share music files; sparking the beginning of the hundreds of entertainment sharing websites around the world today. Although shut down due to the Recording Industry Association Of America filing a lawsuit because of copyright infringement and suppressed record sales, this did not stop the development of more sophisticated file sharing softwares able to manipulate copyright laws around the world. Downloading films became possible due to increased storage and memory space available on computers, enabling users to download multiple movies in a matter of hours, even before released in cinemas. Currently, Mass media storage devices are available that hold thousands of music and film files on a small box, transferred from the users computer. So what effect is all this having? Has the popularity of illegal downloading affected the profits and jobs of the entertainment industry? Is there a correlation between entertainment stores losing revenue or even going out of business because of suppressed sales and illegal downloads? Does this have a negative effect on the economy through job loss, reduced income tax, fewer artists growing and is......

Words: 1113 - Pages: 5

Premium Essay

Reaerch Project on Eretailing

...Growth of E-Retailing in India By: Shifa Hashmi MBA – 1 Year Tapmi School of Business, Jaipur Abstract Consumer’s perception regarding shopping has been changed with the introduction of Internet media. Retail industry has witnessed major revolution in the changing technology oriented business scenario of 21st century in India. Internet has shrunk the entire World. The rules of the game in retailing are fast changing with the introduction of Information Technology. The e Retailing website is the front door of the online store that interacts between the e-retailer and consumers. The electronic retailing (e-Tailing, e-Retailing, internet retailing etc.) is the model of selling of retail goods using electronic media, in particular, the internet. E-Retailing is a subset of e-Commerce (Electronic Commerce). E-Retailing accounts for about 10% of the overall growth of e Commerce market. The growth in the e-Retailing market is driven by the need to save time by urban India. It is estimated that 2.5 billion internet users, access to internet has played a significant role in growing the business markets. The Internet gives retailers an instrument for: broadening target markets, enhancing consumer relationships, extending product lines, improving cost efficiency, improving consumer communications, and delivering customized offers. E-Retailers serve 24 hours x 7 days in a hassle free manner to consumers. Along with advantages of e-Retailing some major......

Words: 960 - Pages: 4

Premium Essay


...competitors and planted the roots for a 360 degree Social Customer Relationship Management and a capability for  social commerce. By early 2012 the music industry in India had witnessed remarkable changes. With the rapid growth in Internet penetration and usage, innovative technology was driving music production, access and consumption. Sales from digital platforms had surpassed sales from traditional physical formats, such as CDs and tapes. With the distribution of digital music in India largely skewed towards the telecom business, music was increasingly being accessed via mobile devices, including smartphones and tablets. Overall, the role of the recording company seemed to be diminishing. While some of the leading companies in the music industry were testing the waters in the digital space, new players, including technology companies, were quickly entering the market with various new platforms and services.  Sony Music has unveiled its ‘India Segmentation Study’, the country’s first and largest research undertaken to analyse psychographic and demographic profiling of Indian audiences based on their music consumption patterns. It offers a never seen before insight into the life of a consumer over-layed with their music preferences. Sony Music Segmentation Study is researched and conceptualised by the International Insight Team at Sony Music UK and India, along with market research giant GMI (Global...

Words: 843 - Pages: 4

Premium Essay

Muisc and Piracy

..."Here Be Pirates! Facing the Music: Issues in the Transformation of the Music Industry." The panel consisted of a diverse mix of music industry experts, each of whom shared his views on the cataclysmic effects illegal Internet downloading is having on this beleaguered market sector. Estimates of how much music CD sales have suffered from Internet piracy in the last three years vary from about 14% to the figure most of the panelists used -- 30%. National estimates say some 60 million Americans regularly "pirate" copyrighted music online, a practice that's costing the industry at least $700 million in lost CD sales annually. While they rarely agreed on how to solve the problem, everyone on the panel - representing composers, artists, lawyers and entrepreneurs - agreed that digital music file swapping is shaking the industry to its very core, and is radically altering a financial model that has thrived for decades. The Views from Inside Mike McQuary, a co-founder of Mindspring and now a partner in Brash Music, a music services company that develops new artists, began with an insightful overview: "It's old wine in new bottles: the issues surrounding intellectual property and royalties and artists' getting their due haven't changed. What's changed is the way all that stuff is packaged and the willingness or non-willingness of people to adapt to it. Those 261 people who were recently hit by RIAA [Recording Industry Association of America]......

Words: 806 - Pages: 4

Premium Essay


...computers, music, movies, apparel, toys, computers, etc… -Amazon. has six global websites:,,,, and -Amazon was incorporated in 1994 in the state of Washington and reincorporated in 1996 in the state of Delaware -Has been available to the public on the stock market since May of 1997 works with companies such as Nordstrom’s, Gap, Eddie Bauer, Urban Outfitters, Osh Kosh, Footlocker Barnes & Noble 1873: From his home is Wheaton, Illinois Charles M. Barnes starts a small book business 1917: William Barnes, Charles’s son travels to New York to negotiate with G. Clifford Noble and from a partnership, then opening the first Barnes and Noble 1987: Barnes and Noble acquires B. Dalton 1991: Barnes and Noble pioneers the super store concept that has huge location, wide selections of titles, experienced bookstore staff, warm atmosphere and cafes in stores 1993: Barnes and Noble goes public on the stock exchange on September28, 1993 In May 1997 Barnes and Noble opens it public site on the world wide web 1999: goes public on the stock exchange and raised $468 million and unprecedented amount for an internet company Business Models’s business model is still being proven to this day -Barnes & Noble’s business model is called Brick-and-Mortar retailing -Brick and mortar retailing is when a company expands their business to the internet and......

Words: 1185 - Pages: 5

Premium Essay

The Ipod and Spotify

... The media industry has changed in the past twenty years in so many ways, most for the better but, in some cases, for negative reasons. Since the late 1990’s, society has witnessed the blow up of the internet allowing people from all over the world to access and research many different things, the influx of mobile phones and the advantage it has had on the people, the many different game consoles around and other things such as the transition between VHS to DVD’s and the introduction of BluRay and Bluetooth. Two major impacts on the media industry for both positive and negative effects, have been the iPod and the music sensation, Spotify. Both have created a large hype within the media industry for several different reasons, and are both appreciated and cursed by the audience of today. Spotify is a downloadable window, where if you have internet connection, you are able to stream music for free. There are many positive effects that come with Spotify. You are able to listen to music anywhere, due to a new app that can be downloaded to any Android phone. On Spotify, there are two different subscriptions that are available. One can either pay for “The Ultimate” or “The Premium” or, alternatively, one can opt out of subscription, pay nothing, and have ten hours of free streaming per month. These options are appreciated by today’s music listeners as they are able to decide which one best suits them and caters......

Words: 1105 - Pages: 5