Over the last 10 years the state of the music industry is ever changing. With the current recent rise in the illegal downloading of music, record labels are finding it harder and harder to make a profit. As a matter of fact they technically make a loss when it comes to the distribution stage of an artist single; this is why over the past few years there has been a large increase in the amount of times an artist tours in a year because record labels see a better profit margin in the sale of tour tickets and artist themed merchandise than in the sale of singles themselves.
As a class we discussed the way in which music was made, distributed and exchanged, and how this differs today. We were put into groups and asked to outline the key differences:
Production (How the music is created/recorded and produced):
Then: -More live instruments in studios
Now: -Computer generated artificial sounds
Distribution (How the public finds out about the music & how it is exposed to them):
Then: -Radio (Tim Westwood, John Peel)
-Posters
-Word of mouth
-CD’s & cassettes
Now: -YouTube (SBTv) & (Streaming)
-Social networking sites (Video Sharing)
-Downloadable music (MP3)
Exchange (What the public give in return for the music, usually money):
Then: - Music was physically bought with money.
Now: -Singles are purchased more than albums
-Music is downloaded illegally.
-Things like iTunes are used by the few who are willing to pay.
We also talked about how important music videos are in the music industry today, and how it relates to 4 of the biggest record labels (Sony, Universal, EMI and Warner Music). All of these labels are part of international companies called conglomerates, which do not only focus solely on the music side of media; they also focus on other aspects of multimedia including film, technology, etc. One of the reasons why I think this is, is that they have realised that although there is money to be made in the music industry it is not the most lucrative form of media that there is; roughly three quarters of all music that is downloaded in the UK is done so illegally, with an estimated 1.2 billion illegal downloads last year.
As I mentioned previously the state of the music industry over the last ten years has changed dramatically. One of the changes that I noticed is that audiences are being targeted more and more through digital media such as social networking sites Facebook, Twitter ect (which is not surprising seen as Facebook boast an estimated 800 million active users) and video streaming sites such as MegaVideo and YouTube. One of the ways in which audiences are being target now is through the launch of VEVO. Vevo is a joint venture among Sony Music Entertainment, Universal Music Group, and Abu Dhabi Media with EMI licensing its content to the group without taking an ownership stake. The service was launched officially on December 8, 2009. The videos on VEVO are syndicated across the web, with Google and VEVO sharing the advertising revenue.
Example of video sharing on Facebook via YouTube:
Step 1: Find the video you wish to share.
Step 2: Click on the share to Facebook icon.
Step 3: Add a personal message or comment in the text field.
Another way record companies make money is through Product Placement in music videos. This is when companies pay to have their products shown/ advertised in music videos, in hopes of enticing the viewers into wanting there product because they see their favourite artist using it in the video. Here are some examples of product placement in Telephone by Lady Gaga:
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