MIS 446 Unit 2 Review
Music
1. Review the evolution of the music industry. a. Old Model: Go on tour for free (or little) in order to achieve higher sales with record label. i. Record Labels had all power in contracts, musicians made very little in all reality ii. Originally only way to hear music was live, so records were a big deal to be able to listen at home iii. Bundling in albums iv. Record companies had the power, tried to sue customers b. Newer Models: v. Promoting self as a brand, like “Kanye” vi. Use of video as a medium: YouTube (allows for long tail content) vii. Internet breaks the bundle, people can buy single songs viii. Give away music for free or very little (Spotify, iTunes, YouTube, Pandora) in order to make money on mega tours, on merchandise, on brand itself ix. Avoid record deals/buy out of record deals x. Capitalize on people paying for the experience, you can’t download or torrent the experience xi. Use of metadatamakes iTunes work (crowd sourcing of track names) c. General Trends: xii. Listening to music at home has become private, go to shows for actual crowd experienceUsed to be records with speakers in order to listen, group activity xiii. Music is now an experience/service/information goodUsed to be a physical commodity 2. How did the internet force the music industry to change? What are some other disruptions? d. It’s broken the bundle, forcing the music industry to try to make money off of live tours and their brand more than anything else e. Other disruptions include share of eye to video games, share of ear to cell phones, DVDs, Napster, Satellite Radio 3. How has free as a price point changed the music industry? f. Pandora/Spotify /Youtube free