Академический Документы
Профессиональный Документы
Культура Документы
According to the latest figures presented by the FCM, RIAA and BPI, sales have increased again in
both the physical and in the digital formats. While the growth is not exponential, it is growing year on
year at a formidable rate. Vinyl for example is going through a resurgence with sales figures similar
now to what they were in 1996. During 2013 revenues grew by 4.3% no doubt thanks to the recent
phenomena of subscription streaming services. While many artists will complain, and rightfully so, that
they are getting swindled due to fact that many will never earn enough from these streaming services to
make it worth their while. However, the statistics make for interesting and optimistic reading as far as
the health of the industry goes. There's no denying that most people that worked in the industry were
badly affected by the down turn that swept through the industry during the period of 2003-2008. When
we look at the more contemporary revenue streams, advertising supported streaming services such as
YouTube and Vevo we can see that they have grown by 17.6% in 2013. Looking at these figures we can
see that with the ever growing world wide access to the internet is creating more potential consumers
but is equally slashing earning potential.
While it may be just my opinion but looking at the growth and revenue's I believe we are caught in the
middle of another music industry evolution. As Bob Dylan so aptly put it "The times they are a
changin'".
If we look more closely at the sales figures we can see that out of 189 million sales 99.6% are digital,
yet physical formats claim 49% revenue in the UK. It doesn't take a mathematician to realise that the
potential earnings for artists are limited in the digital forum. This coupled with the fact that since 2012
vinyl sales have risen by more than 120% could indicate a sharp u-turn towards physical formats. It is
important to find a middle ground that will still make buying music an affordable hobby yet still allow
artists to create the music without having to subsidise their earnings through other non-music related
avenues.
From the above excerpt we can see that the majority of studies showed there was a negative
relationship between file sharing and physical album sales. However, I would be more sceptical as I
previously stated, as a whole consumers tend not to buy albums anymore. We are in an era where
downloading or streaming music is the norm. Most people will not buy whole albums but will rather
buy a collection of single songs or stream specially selected play lists. So with that in mind what would
these studies show if artists, as a collective, stopped creating and producing albums and instead focused
on EP's and singles?
In march of 2013 a newer study was written by Luis Aguiar and Bertin Martens. They studied digital
music consumption on the internet and found that digital music revenue has increased by more than
1000% during the period of 2004-2011. This is pretty much what we would have expected to find as
iTunes launched in 2003. The major interest in this study is that they could find no conclusive evidence
showing proof of sales displacement. The research instead shows that had these illegal download sites
not existed to begin with, the music in question would probably never have been purchased legally
either. Carrying on from this we can ascertain that, if anything, illegal downloading websites could
potentially increase an artists exposure and possibly increase their sales and value over all. I believe
there is striking similarity between illegal download and legal streaming sites. The reality is that most
artists will never gain substantial revenues from streaming sites but will gain exposure from it instead,
exactly what illegal download sites offer. So what is the main difference between legal streaming and
illegal downloads? Well apart from the obvious of one being legal and the other not, there isn't much.
Both offer and abundance of music with just a click of your mouse. The legal streaming sites are
supported by major and indie labels while illegal download site are obviously shunned. Upon making
this observation it was important to understand why one is embraced while the other is rejected even
though both seemingly offer very similar services. Naturally it all boils down to money. Streaming sites
are reportedly worth 49 million to UK record labels. By all means this is a huge sum of money, but
then why aren't the artists that create the music all running to support spotify and co? In 2014 the
biggest selling artist in the world, Taylor Swift removed all of her music from streaming site Spotify
"I didn't see that happening, perception-wise, when I put my music on Spotify. Everybody's
complaining about how music sales are shrinking, but nobody's changing the way they're doing things.
They keep running towards streaming, which is, for the most part, what has been shrinking the
numbers of paid album sales." - Taylor Swift 2014
I would be inclined to agree that streaming sites have affected sales negatively but we must also accept
that it is not the artists, producers, musicians, record labels or multi-national corporations that control
the music market. It is the consumers. Record labels, streaming and downloading sites merely set the
boundaries, how the game is played is down to the players who are the consumers. Rather than
attempting to outlaw or ban music piracy the industry needs to find a way of regulating so there is no
longer a need for music piracy. For instance what would happen if the industry just gave away low
quality but still suitable for home listening versions? They could still charge for high quality lossless
formats or physical formats, at least this way they could end the need for illegal downloads. Would this
offer the public what they want while still giving labels something in return, in the form of the essential
download/streaming data? At the end of the day it's the consumers that make the rules. Its now up to
the companies residing in the music industry to learn to adapt or risk becoming obsolete.
Copyright
Copyright has always been an essential tool for artists, producers and record labels in protecting their
work. It also enables these artists to sell or loan their material to others and still generate revenue's. The
biggest battle with copyright has been the continued evolution of technology and the availability and
power of the internet. While people born before 90's would have been well versed in buying music,
mainly in the physical formats, today's generation could be accused of seeing music as something that
doesn't need to be paid for. Why would you pay for something when it's free? How music is perceived
is the biggest copyright issue as far as I am concerned. Many laws govern the copyright spectrum not to
mention the many different types of copyright. Many music industries professionals have nothing but a
vague understanding of the laws involved. Perhaps this is one of the main issues when it comes to the
public flouting copyright law, well this and perhaps that their needs are not matching up to what the
industry is giving them. If we look at everyday life there are hundreds of laws that rule towns, cities
and villages. As a collective we don't necessarily know them all or even understand them but yet, for
the most part, we are ordinary and decent citizens. So why has it become so acceptable to "steal"
music? For the most part I believe its because its easy, it doesn't affect the community and music is
everywhere anyway. Music has become an everyday occurrence for most people. When we are at home
we have the radio & TV. When we are out shopping it's being plumbed throughout the shopping
centres. When we are out socialising it's there too. We can go to any number of establishments and
experience "free music" throughout our visit, so if its everywhere for free why should we need to pay
to listen to it at all?
If we look back over the last 40 years we can see that copyright in music is an area the general public
have always breached. The cassette tape was mass produced in 1964 but didn't reach its peak until the
1980's. During this time it was quite common for people to sit by the radio and record songs straight
from their favourite stations. Unfortunately these songs are copyright protected so to make unlicensed
recordings is illegal. In 1982 the compact disc (CD) became commercially available. As time
progressed and more homes had personal computers, technology developed and soon most home
computers came with in-built CD writers. This allowed users to copy to and from CD's and this
coupled with the cheap prices of blank CD's, it was only a matter of time before the CD became the
most popular way of breaching copyright. In the late 90's to early 2000's several peer-to-peer sharing
services began popping up on the internet. These services allowed users to share mp3 files with other
users. This meant the sharing of illegal (copyright protected) music reached new heights. The ease of
which files could be shared between complete strangers meant that these illegal copies had a further
reach then ever before. With internet speeds increasing year on year this allowed for just about every
songs ever created to be shared with just about anyone that had access to the internet. In 2015 we are
right in the middle of the battle between the recording industry and the internet. recording companies
are now legally seeking injunctions to prevent sites from hosting these illegal recordings. Whether or
not they have the power and ability to stop these sites is beside the point. Technology is changing at
such a fast rate that by the time a law is passed and web sites are shut down, they have already become
obsolete and are replaced by the next generation. As previously stated, its more important to understand
the needs of consumers and act accordingly. Prohibition doesn't work, with just about anything. If
people want something they will always find a way of getting it.
Conclusion
We are part of an ever evolving and changing technological era. No longer are we, consumers, subject
to the terms of large corporations and record companies. The tables have turned and the power now lies
with the customers. Record companies have attempted to deflect blame on their part in the resultant
down-turn in the music industry. The figures don't lie. Year on year we are seeing a growth in the music
industry and creative sectors. So much so that just about every degree and skill can be applied to the
industry in some shape or form.
Download sites and streaming services both legal and illegal are the norm and according to the figures
at least, that doesn't look like waning any time soon. We have looked at the history of copyright and its
infringements. These infringements have continued from its earliest physical format through the 70's,
80', 90's and right up to the contemporary digital format of today. At no point could the record industry
claim to have solved or even disbanded the problem. They have merely managed to sweep it under the
rug only for it to emerge in newer forms each time.
The relationship between consumers and music has changed dramatically over the last 30+ years. The
digital format is now the preference even though from a sensory perspective it now longer fulfils the
same needs. Perhaps we have evolved beyond the need to be able to hold and see commodities. Perhaps
music is no longer the commodity it was once was. We cannot say for certain that either of these
statements are correct or incorrect as it is a matter of perspective. What we can say with certainty is that
our current relationship with digital music looks set to remain the same for a long time to come unless
something drastic is achieved between buyers and sellers, consumers and record labels. Much like the
war on drugs, this is one battle that won't be won through legal channels and outdated marketing
strategies. Its a battle that can only be ended through compromise and education. The current model of
pushing consumers towards streaming sites seems to have calmed the storm briefly but the reality is
this model is still not completely fair to everyone. Many artists are struggling to continue their art of
writing and creating music. Record labels are content with the revenues creating from streaming. The
streaming websites are also content as they continue to reap the rewards of subscriptions and
advertising. The consumer has a never ending play list of music at their disposal at fraction of the cost
of buying hard or soft copies of music, in essence they are allowed to rent music but still have constant
access. Before all parties can be happy, we need to achieve a balance where all can get a fair slice of
revenues. Until such a time the artists may have to continue the current model of subsidising their
revenue streams through other channels such as live performance and merchandising.
Bibliography
1.
Aguiar, L. and Martins, B. (2013) Digital Music Consumption on the Internet: Evidence from
Clickstream Data.
2.
3.
4.
El Gamal, A. (2012) The Evolution of the Music Industry in the PostInternet Era.
5.
Giletti, T. (2011) Streaming, downloading, and digital music consumption in the iTunes era.
6.
Koh, B., Murthi, B. P. S. and Raghunathan, S. (2010) Shift in Demand for Music: Causal
Effect of Online Music Piracy and Digital Music on Album Sales.
7.
Masnick, M. (2012) RIAA Insists That, Really, The Music Industry Is Collapsing; Reality
Shows Its Just The RIAA That's Collapsing, Masnick, M. Tech Dirt. Available at:
www.techdirt.com (Accessed: 19 January 2014).
8.
9.
Citation
1. (Aguiar and Martins, 2013, p. Report EUR 25851 EN)
2. (Masnick, 2012)
3. (Domingo, 2014)
4. (Veitch and Constantiou, 2012, p. 9780615718439)
5. (Giletti, 2011)
6. (Koh, Murthi and Raghunathan, 2010)
7. (Morris, 2010)
8.
9.