The Impacts of the Digital Revolution on Bands in the Music Industry Essay Example
The Impacts of the Digital Revolution On Bands in the Music Industry
Positive Impacts
• Higher profit potential -The Internet provides bands that do not have contracts with a traditional record company access to a worldwide distribution channel that offers them a much higher profit potential. Most internet-based record labels offer royalties of 50%, compared to 12-15% offered by the major record companies. Royalties are higher partly because the packaging and distribution costs associated with internet music distribution are very low. • Expansion of distribution and selling opportunities -Bands also have the opportunity to set up websites to sell music and merchandise directly to fans. This can generate significant profits because the costs are very low. This is more risky because with this approach bands are not able to benefit from the marketing and distribution resources of a label. By working with an internet label, bands can have the best of both worlds: assistance with producing and promoting music, and the increased profits and visibility provided by the internet. • Greater freedom in expression of artist creativity - The Digital Music Revolution gives artists more freedom in expressing their creativity and more control over their music, and customers are given a wider selection of music. In the past, record companies have been allowed to choose which artists the public is allowed to listen to and marketed an artist according to corporate thinking rather than individual creativity. It has been predicted that in the future popular music would become a much more democratic medium with artist success dependent on how many people liked the music enough to pay for it, rather than on how effectively an image was marketed. • Greater exposure/ promotional opportunities- The Internet is a global medium and hence through putting music online, an artist’s music is able to reach a wider audience. The number of Internet users worldwide exceeds 1
Positive Impacts
• Higher profit potential -The Internet provides bands that do not have contracts with a traditional record company access to a worldwide distribution channel that offers them a much higher profit potential. Most internet-based record labels offer royalties of 50%, compared to 12-15% offered by the major record companies. Royalties are higher partly because the packaging and distribution costs associated with internet music distribution are very low. • Expansion of distribution and selling opportunities -Bands also have the opportunity to set up websites to sell music and merchandise directly to fans. This can generate significant profits because the costs are very low. This is more risky because with this approach bands are not able to benefit from the marketing and distribution resources of a label. By working with an internet label, bands can have the best of both worlds: assistance with producing and promoting music, and the increased profits and visibility provided by the internet. • Greater freedom in expression of artist creativity - The Digital Music Revolution gives artists more freedom in expressing their creativity and more control over their music, and customers are given a wider selection of music. In the past, record companies have been allowed to choose which artists the public is allowed to listen to and marketed an artist according to corporate thinking rather than individual creativity. It has been predicted that in the future popular music would become a much more democratic medium with artist success dependent on how many people liked the music enough to pay for it, rather than on how effectively an image was marketed. • Greater exposure/ promotional opportunities- The Internet is a global medium and hence through putting music online, an artist’s music is able to reach a wider audience. The number of Internet users worldwide exceeds 1