Music Industry Analysis

Satisfactory Essays
Music Industry Analysis

For most, it seems like a pretty bad time to be part of the music industry. Something that the music industry can do to find a way to increase profits would be to find a new way to develop new artists. Everyone is scared that when everyone is getting all these songs for free, it is the beginning of the end of the music industry and that the sky is falling. People from the music industry say they are losing money, but what really is happening is that when you download songs for free, you don’t take money away from labels and artists, you just don’t give them any. If a major label has invested in an artist/album, it’s generally a whole package including concerts, merchandise, etc. If, in the long run, total revenue doesn’t match projected profit, obviously you need to change your business model. Musicians compete in a monopolistic competition. There are a fairly large number of big artists, but not a whole lot actually make it. Each artist has no feeling of interdependence and some are more successful at different times then others. As more musicians make an economic profit, more musicians are encouraged to enter, eventually eliminated economic profit. As stated in the movie, musicians are forced to create albums at certain to meet quarterly profit deadlines for their music labels. Music labels compete in an oligopoly. Five major labels controlled over 75 percent of the world market for recorded music. Now it's four. These firms are mutually interdependent. Significant events that influence the markets of both these groups include people illegally downloading music from the internet, new technology being able to sell music in different ways, and more. When music was put on the itunes store, profits started to rise for the music companies, but they were still losing a lot of money to people who share their music illegally. They even started to track down these people and arrested them. They sued and shut down various peer to

You May Also Find These Documents Helpful

  • Better Essays

    Analysis of the Music Industry

    • 30012 Words
    • 121 Pages

    Music may be defined romantically as `the food of love ' (Shakespeare) or more prosaically as `sound with particular characteristics ' (Wikipedia), but it is undeniably a `vibrant artform ' (Arts Council England) and one which touches more people, in more ways, than any other art form. In commercial terms, music certainly generates a higher market value than the other arts, although a comprehensive market size for music in all its manifestations is impossible to calculate. Key Note has put a value…

    • 30012 Words
    • 121 Pages
    Better Essays
  • Good Essays

    Music has been around for ages and has influenced multitudes of people culturally, socially, and economically. Music brings people together, and likewise can separate them. In the United States, music is easily accessible. With the technology we have today, music can be heard with the click of a button. Today, the internet has become greatly influential on how music is spread amongst people. The internet (e.g. streaming services online) is affecting the music industry in positive and negative ways…

    • 571 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Music Industry

    • 6555 Words
    • 27 Pages

    Filipinos dedication and love to music started during pre-Hispanic period. Early Filipinos love to express themselves through ethnic musical instruments. These early settlers played diversity of musical instruments which includes flutes, nose flutes, gong and guitar to play appropriate songs in commemoration of courtship, marriage, and harvest. Even during the hardest time of Philippine revolution when we were invaded by several countries, Filipinos cling to music as outlet of entertainment and leisure…

    • 6555 Words
    • 27 Pages
    Powerful Essays
  • Good Essays

    Music Industry

    • 385 Words
    • 2 Pages

    Is the Music Industry Flourishing or Struggling? Argument & Communication Assignment 2 According to the article, “Having a ball; what’s working in music”, despite the fear that the music industry is at a loss through increased piracy, it is actually flourishing (Anonymous, 2010, para. 4). The article states “Between 1999 and 2009 concert-ticket sales in America tripled in value, from $1.5 billion to $4.6 billion” (Anonymous, 2010, para. 5) which indicates increased popularity of live concerts…

    • 385 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    music industry

    • 2172 Words
    • 9 Pages

    listen to music for a variety of reasons. Some listen to music to relax in which it serves as a sort of escape from everyday life, some because they are a fan and follow a certain artist, and others because they can relate the lyrics to their own personal experiences. Whichever the case may be, music has and continues to serve an important role in people’s lives. Music has been circulating the air across many cultures for centuries; however, in the last 50 years, the music industry has become…

    • 2172 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Music Industry Digital Communications Peter McLelland – 1001849 In this essay, I intend to discuss several points regarding the state of the Music Industry and Digital Communications (MIDC). I will begin by explaining how Copyright is affected by technological developments, then I will go on to compare Digital and Physical Marketing and Distribution with a SWOT analysis to show my findings. I will then continue to describe how Corporations, Artists and Consumers have responded to changes in the…

    • 2226 Words
    • 7 Pages
    Powerful Essays
  • Best Essays

    The attractiveness of the music industry from the perspective of Warner Group Music Summary Major transformation in the music industry over the last decade has resulted in the three major record labels; The Warner Music Group, Sony Music Entertainment and Universal Music Group finding themselves with rapidly decreasing revenues and company structures which no longer provide profitability. A brief analysis of the external strategic factors affecting the Warner Music Group has revealed the changes…

    • 2225 Words
    • 9 Pages
    Best Essays
  • Powerful Essays

    Music Recording Industry

    • 1991 Words
    • 8 Pages

    Music Recording INTRODUCTION For centuries man had dreamed of capturing the sounds and music of his environment by means of music recordings. The road to successful music recording had not been smooth until the derivation of the music recording industry. Since the inception of the music recording industry, the way in which music is produced, distributed, sold and consumed have greatly changed so also has popular music changed over time. These changes resulted from new technology which was invented…

    • 1991 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Globalization in the Music Industry Jonathan Ben Ami ACOM 388 The music industry has been around for over two centuries (PBS). Its volatility can be measured by its ability to shift and change according to its time period, the technologies that arise through the ages and the public’s shift in musical taste. The music industry is comprised of many different components, organizations and individuals that operate within it. Some of these components include the…

    • 1304 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    the music business industry; a basic artwork has taken to the digital world, and the range of the ‘Art’ is forming more variety with depths with digital technologies. Music streaming has become the primary engine behind increased revenues; the music has entered a new era that both the music industry and its consumers must accept. According to researcher SoundScan, some 164 billion songs were streamed in just the United States during 2014 via audio and video platforms. While the music industry looks…

    • 422 Words
    • 2 Pages
    Good Essays