The
Music Industry
The
music business has faced a number of challenges in recent
years. The effect the internet would have on the music
business was completely underestimated by record companies
and music publishers. They were taken unaware by the
impact that file sharing websites such as Napster and
The Pirate Bay would have on their business.
In the past few years cd sales have declined sharply.
People regard them as being expensive and out of date.
Many bands now make more money from touring then they
do from cd sales.
The internet has had a huge effect on the music business
in recent years both positive and negative. Positive
effects that the internet has had are that it has created
a cheap and efficient way of selling music-downloading
MP3 files straight from the internet e.g. I Tunes. The
internet has also reduced advertising costs and created
closer relationships between bands and their fans. The
negative impact of the internet has mostly to do with
piracy and file-sharing websites. Within hours of a
new cd being released it has been copied and is available
for illegal download on the internet. This obviously
costs record companies a huge amount of money in lost
sales.
The music industry needs to adapt to changing circumstances.
If it can change its business model to take advantage
of new technology and deal with the problems of piracy
then it will remain profitable.
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