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 Innovative Commons non-profit organization dedicated to expanding the range of creative works available for others to build on legally and also to talk about. Doctorow and others keep on writing prolifically about the apocalyptic changes facing Intellectual Property generally speaking and the music industry in specific. latest music album download

In this article, we will explore the cataclysm facing U. S i9000. industry through the site sort of the music industry, a simple industry in comparison to those of automotive or energy. However, in the ease of this example we might uncover some lessons that apply to all industries. 

In the web-article, “The Inevitable March of Recorded Music Towards No cost, ” Michael Arrington says us that music COMPACT DISK sales continue to plummet alarmingly. “Artists like Royal prince and Nine Inch Toenails are flouting their brands 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 warns us that unless effective legal, technical, or other artificial impediments to development can be created, “simple financial theory dictates that the price of music [must] fall season to zero as more ‘competitors’ (in this circumstance, listeners who copy) get into the market. ”

Unless of course sovereign governments that sign up to the Universal Copyright laws Convention take drastic procedures, like the proposed mandatory music tax to support the industry, there practically can be found no financial or legal barriers to maintain your price of recorded music from falling in the direction of zero. In response, artists and product labels will probably return to focusing on other income streams that can, and will, be exploited. Especially, these include live music, merchandise, and limited model physical copies of their music.

According to writer 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 income streams: record sales and touring income. Record sales are a) unpredictable; and b) divided up among many celebrations. Should you learn how to tour efficiently, meanwhile, the profits–including not only admission sales but also corporate and business sponsorship, t-shirt sales, and so on., –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 use the data most counted after by the industry. This data comes through Neilsen SoundScan which runs a system for collecting information and tracking sales. Most relevant to the main topic of this column, SoundScan supplies the standard method for tracking sales of music and music video products throughout america 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 professionals of record companies, creation firms, music retailers, 3rd party promoters, film entertainment manufacturers and distributors, and musician management companies. Because SoundScan provides the sales data employed by Billboard, the main company magazine, for the creation of its music graphs, 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 practices, music remains the soundtrack of our daily lives. According to Music fish hunter 360 2014, Nielsen’s 3rd 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. “