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PRESENT

Page history last edited by Andrew Schumacher 11 years, 5 months ago

Music Group

PAST

FUTURE


 

 


 

 

Current Music Industry Technology Model


 

Current Music Production

 

With the creation of music production software, the ability of any individual to create and share music is based on their determination to do so. Due to the digital form of music production software people are able to download or purchase these software products online at any time. This allows the masses to easily obtain previously expensive products, and use them to independently produce and promote their music. Now that a considerable population of individuals own music software, music has entered a social age. People are now able to remix and remaster song that they like, in order to put their own influence in the music of others. There is a booming community of producers and DJ's, and it seems to be the new way of asserting yourself musically instead of forming a band.

 

Example of a music production social media community

 


Tutorial and example of the production software "FL Studios"

 

Current Music Format: MP3

 

A German electrical engineer, Karlheinz Brandenburg created the compressed audio file in 1992. His first intentions were to send the audio files or music through a standard telephone line without any lost of sound quality. It instead led to different markets. Such as the the Mp3 player in 1999. Which is manageable, more portable and can hold much more sound. Record labels were scared that the Mp3 file will destroy the booming CD business. Of coarse it did. It was not until 1999, the CD business was truely destroyed and the Mp3 file was king When Sean Parker, a College kid from Northeastern, created Napster. Napster introduced the Mp3 file to the internet. It featured free file sharing in which others could download off the internet.  It started around one million users, then within seven months it pulled in fifty million users. It became the biggest threat of the recording label industry. Napster had a very cost effective company. It was pure profit. There is no manuafacting costs or retail channel costs. In 2001, the music industry brought Napster to the U.S Supreme court and shut down the file sharing service. The next target was peer-to-peer (P2P) systems, such as Limewire, Grokster and BitTorrent. P2P allowed illegal downloads and surpassed copyright laws. The Recording Industry Association of America (RIAA) has filed thousands of lawsuits for copyright infringments in the 2000's.

In 2003, iTunes became a legal model of Mp3 music(and other media) distribution. It sold more than ten billion songs by 2010 and became the number one music retailer in the U.S. It sold more than the biggest retail stores. The illegal to legal downloading today is still roughly 10 to 1.

 

Streaming Distribution Method

 

Streaming is a method of delivering data that delivers more information as you play it. Currently a media stream can be transmitted either live or on demand. On-Demand streaming is where the consumer streams a copy of a media file that is saved onto a cloud or a hard disk somewhere. Live Streaming is where the content is sent to the consumer as it is being recorded, rather than being saved anywhere.  

Examples of Music Streaming: Spotify, Pandora, Last.fm, Google Music

 

A brief CBS news report where they interview CNET Senior Editor Bridgett Carry

  • Two types of digital music consumption: purchasing, and streaming
  • Explanations of streaming software: Pandora, Spotify  
  • Talks about how Spotify is competing very well against other digital music services by making it a social network that runs along side Facebook 
  • Click Here if video does not work 

 

See Also: Streaming Business Model

  

File Sharing Distribution Method

 

This is a presentation by a music expert of the library of congress. The library of congress is nation's oldest federal cultural institutions and the world's largest library. It has a mission of fulfilling constitutional duties and help progress creativity and knowledge for the American people.

 

 

   Watch: 20:05-24:32

 

This video presents the following:

 

  • The revolution of the Mp3 and file sharing through the internet
  • The intangible and accessibility of music
  • Effects of file sharing 

 

 

Current Music Industry Business Model


 

The Internet and Social Network Promotion

 

 Post-Napster, artists have been made aware they no longer need large recording industries so more artists have been moving towards forming independent labels. They can individually promote their music through social networking sites, music blogs and streaming sites. Major labels only invest in artists if they have proven that there is a demand for their music. The pop phenomenon, Justin Bieber used the streaming site Youtube and gained popularity with no overhead cost for himself. The vocalist Adele has her fame due to her Myspace page she made before she signed with a independent label.

 


Eric Hebert, CEO of Envolver Media gives an explanation of where the business model has been, and where it is now.

 

  • The media industry used to be essential to spreading music due to their control of distribution
  • With the emergence of the internet and digital music, artists do not need to have production or distribution costs allowing them to make money as indie artists.
  • Artists can cheaply promote their music worldwide using webpages and music social media. 
  • Click Here if video does not work 

 

 

Donation Model

 

     In 2008, Radiohead released their new album online. They accepted the fact that people might download their music for free, the album was released with no cost to download, but instead the consumer was given a choice to give a donation. This business model was successful and the band earned $6 million in the first week of the album release. Other artists have followed their footsteps, such as Nine Inch Nails netting $1.6 million in their first week of the realease of their album "The Slip".

 

Today, there is websites such as SellaBand or Jamendo that uses internet as a hub of artists to fan direct funding. There is no gatekeeper for the artists. The fan has a choice to donate into their favorite artists' new project. Like the Radiohead donation model, the artists have the choice of releasing "free incentive downloads" to the users.

 

 

New Forms of Record Labels


 

Independent Record Labels

 

Record Labels that operate without the funding of major record labels. These labels generally focus on local musicians, and local events.

Examples in Minnesota: Afternoon Records, Rhymesayers Entertainment, Havoc Records, De Stijl Records, Modern Radio

 

 

Copyleft

 

 Copyleft is a copyright that allows consumers to attain ownership of the copylefted good, but requires all modified and expanded versions of this good to be free as well. This is a protection from users that would wish to convert their modified version of the copylefted good into a good that is being sold instead of given for free. In order to copyleft a good the original creator must put a copyright on his product that has expanded distribution terms. This legally allows all consumers the rights to use, modify, and redistribute the good or any goods that have been created through modification. 

 

 

The inventor of the Copyleft explaining how it pertains to programming software 

  • Freedom to run the program
  • Freedom to study and modify the source code,
  • Freedom of redistribution of original,
  • Freedom of redistribution of modified source code. 
  • Talks about his works on Linux 

 

 

Example: Calabash Music, LOCA Records, Magnatune, OnClassical, Small Brain Records

 

 

 

Politics


 

With the current music industry paradigm being challenged by the emergence of the internet, the industry will either have to reinvent the way they sell their product or lobby for laws to maintain their paradigm's sales process. New Streaming companies like Spotify and Pandora are good examples of Economical Darwinism of the current environment of the music industry. The current industry's paradigm has been outdated since the creation of the internet, and the only other option to change would be to limit the applications of the internet. By pushing laws that would restrict the uses of the internet, the music industry is fighting against the technological evolution of humanity. By lobbying for restrictions, they are refusing to change and evolve their paradigm to the current state of music distribution. If they didn't lobby for restrictions, and if they don't change, then their outdated corporate system will collapse.  The music industry is trying to avoid being outdated by the internet by putting limitations on the rights of the individual and expanding the rights of the copyright, but the decline of the music industry could be averted if they cast off their previous sales paradigm and adopt a new revenue system that would work in the new technological environment created by the internet 

 

  

Current events:

In current news, there is only four Major recording labels left.  Just recently Universal Music bought out Electric and Musical Industries(EMI) for $1.9 billion. Harnesting legendary bands such as: The Beatles, The Rolling Stones, and The Beach Boys.

 

Sony BMG Music Entertainment Inc. is the product of a merge between two music giants, Sony Music and BMG music. They became a legal in August of 2004. They decided to split the share of company 50/50. At the merge they became the largest major label until Universal Music Group bought out EMI. Sony BMG had to overcome many obstacles and was faced with charges that violated monopoly and anti-trust laws. Also independent record labels banded together in major music markets to protest the merge.

 

Universal Music Group was established in 1934 by the Hollywood company universal pictures. The company started releasing soundtracks from films, until they were interested in their own rights of sound, and expanded into a record company. Universal Music is the top selling major label today, and since they bought out EMI recently, they have an extraordinary amount of power in the music industry.

 

EMI was founded in the year 1931 by being a gramophone record player manufacturer. It had early licensing agreements with Columbia and RCA Records. The UK record company entered the U.S. music market in 1957 by purchasing the United States'  Capital records. The label was skyrocketed by signing the best selling rock band in the history of music, The Beatles.

 

Warner Music Group was founded in 1958 and was established by Warner Bros Movie Studio. It took the same business path as Universal and started off selling soundtracks from their movie pictures. 1968 was important year for the major label because it bought out two high grossing labels. Warner Music Group bought Atlantic Records, which at the time was the top selling jazz and R&B label in the world. Warner also bought another main label, Elektra Records. After the expansion, the company changed its name to Warner Communication, but was mostly referred to as WEA (Warner Elektra Atlantic). In 1987, Warner Music Group merged with Time Corporation and formed the extremely powerful media corporation Time Warner. Time Warner sold Warner Music Group in 2003 for $2.3 billion. In 2006, Warner Music Group tried buying out EMI, but EMI declined.

 

BBC coverage video

 

Napster

 

 Napster introduced the Mp3 file to the internet. It featured free file sharing in which others could download off the internet. It started around one million users, then within seven months it pulled in fifty million users. It became the biggest threat of the recording label industry. Napster had a very cost effective company. It was pure profit. There is no manufacturing costs or retail channel costs.

 

Developers: Sean Parker, a prestigious hacker. At 19, he teamed up with the younger teen, Shawn Fanning, from Northeastern college

 

Copyright Infringement Case: Napster was sued by many CD publishers and was supported by the Recording Industry Association of America (RIAA). The case, A&M Records Inc.  V. Napster Inc. was brought to the U.S. Court of appeals in San Francisco. Napster was shut down and had to make a settlement of $26 million dollars to copyright owners.

 

 

 Works Cited:


Bellis, Mary. "The History OfĂ‚ MP3." About.com Inventors. About.com, n.d. Web. 19 Oct. 2012. 

Billionton, James H. "About the Library." (Library of Congress). USA.gov, n.d. Web. 19 Oct. 2012.

CBS News. "Streaming music - The next evolution? ." YouTube . N.p., n.d. Web. 12 Oct. 2012. Dodge, Don. "Don Dodge on The Next Big Thing." : Napster. Web/Tech, 3 Oct. 2005. Web. 19 Oct. 2012.

Envolver Media. "The New Music Distribution Model." YouTube . N.p., 5 Aug. 2008. Web. 12 Oct. 2012. 

 "Fruity Loops 10 (FL Studio) Complete Basic Tutorial [Face] - YouTube."YouTube. FKProds, 6 Sept. 2011. Web. 16 Nov. 2012. 
McDonald, Heather. "EMI." About.com Music Careers. N.p., n.d. Web. 17 Nov. 2012.

McDonald, Heather. "Sony BMG Profile." About.com Music Careers. N.p., n.d. Web. 17 Nov. 2012.

McDonald, Heather. "Universal Music Group." About.com Music Careers. N.p., n.d. Web. 17 Nov. 2012.

McDonald, Heather. "Warner Music Group - Company Profile." About.com Music Careers. N.p., n.d. Web. 17 Nov. 2012.

 Plummer, Robert. "EMI-Universal Deal Cleared by EU and US Regulators." BBC News. BBC, 21 Sept. 2012. Web. 19 Oct. 2012.

Stallman, Richard. "Richard Stallman Copyleft." YouTube . Free Software Foundation, n.d. Web. 12 Oct. 2012.
"What is Copyleft? - GNU Project - Free Software Foundation (FSF)." The GNU Operating System. N.p., 6 Oct. 2012. Web. 12 Oct. 2012.

"What is the Hype Machine?" YouTube. GoGroove, 30 Dec. 2011. Web. 17 Nov. 2012

 

Comments (5)

Andrew Schumacher said

at 11:25 am on Oct 10, 2012

I will get collaborative music on here

Joshua Hosek said

at 9:18 am on Oct 11, 2012

Check out the slides I put in. and know them for the presentation

Joshua Hosek said

at 7:58 pm on Oct 11, 2012

i will describe each site above. next to it

Andrew Schumacher said

at 6:26 pm on Oct 12, 2012

Can those slides be put in the wiki an a more aesthetically pleasing manner?

Joshua Hosek said

at 2:18 pm on Nov 1, 2012

I will add summaries next to each major industry under current events

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