Music, Economics, and Beyond

“The whole point of digital music is the free of risk grazing”

–Cory Doctorow

Cory Doctorow, Canadian journalist and co-editor and of the off-beat blog Boing, is an activist in favour of liberalizing the laws and regulations of copyright and a proponent of the Imaginative Commons non-profit organization focused to expanding the range of creative works available for others to build after legally and discuss. Doctorow and others keep on writing prolifically about the apocalyptic changes facing Intellectual Property on the whole and the music industry in specific. new hip hop songs

In this article, we will explore the cataclysm facing U. H. industry through the web site sort of the music industry, a simple industry in comparison to those of automotive or energy. However, in the convenience of this example we might uncover some lessons that apply to all industries. 

In the web-article, “The Inevitable March of Recorded Music Towards Free of charge, ” Michael Arrington instructs us that music COMPACT DISC sales continue to plummet alarmingly. “Artists like Knight in shining armor and Nine Inch Fingernails are flouting their product labels and either giving music away or telling their fans to steal it… Radiohead, which is no longer handled by their label, Capitol Records, put their new digital project on sale on the net for whatever price people want to pay for it. ” As many others have iterated in recent years, Arrington will remind us that unless effective legal, technical, or other artificial impediments to development can be created, “simple economical theory dictates that the price of music [must] land to zero as more ‘competitors’ (in this circumstance, listeners who copy) enter in the market. ”

Until sovereign governments that register to the Universal Copyright laws Convention take drastic actions, including the proposed mandatory music tax to support the industry, there almost are present no economical or legal barriers to maintain your price of recorded music from falling toward zero. In response, artists and product labels will probably return to focusing on other earnings streams that can, and will, be exploited. Particularly, these include live music, merchandise, and limited model physical copies of their music.

According to publisher Stephen J. Dubner, “The smartest thing about the Rolling Stones under Jagger’s leadership is the band’s workmanlike, corporate approach to touring. The economics of pop music include two main earnings streams: record sales and touring income. Record sales are a) unpredictable; and b) divided up among many functions. In the event you learn how to tour efficiently, meanwhile, the profits–including not only admission sales but also business sponsorship, t-shirt sales, and many others., –can be staggering. You can essentially control how much you earn by adding more dates, although it’s hard to control how many records you sell. ” (“Mick Jagger, Profit Maximizer, ” Freakonomics Blog, 26 July 2007).

To get a handle on the difficulties brought about by digital media in the music industry, we consider the data most depended after by the industry. This data comes through Neilsen SoundScan which functions a system for collecting information and tracking sales. Most relevant to the main topic of this column, SoundScan offers the established method for tracking sales of music and music video products throughout the us and Canada. The company collects data on a weekly basis and makes it available every Thursday to subscribers from all facets of the music industry. These include business owners of record companies, building firms, music retailers, self-employed promoters, film entertainment makers and distributors, and specialist management companies. Because SoundScan provides the sales data employed by Billboard, the main investment magazine, for the creation of its music chart, this role effectively makes SoundScan the official supply of sales records in the background music industry.

Quo vadis? According to Neilsen Soundscan, “In a fragmented media world where technology is reshaping consumer behaviors, music is still the soundtrack of our daily lives. According to Music fish hunter 360 2014, Nielsen’s third twelve-monthly in-depth study of the tastes, habits and personal preferences of U. S. music listeners, 93% of the country’s population listens to music, spending more than 25 hours every week fine-tuning into their favorite music. “

This entry was posted in Uncategorized. Bookmark the permalink.

Comments are closed.