Music Industry Research a Research

Music Industry Research A Research Process Concerning the Web and the Music Industry If one is to take the music industry as a case study of the changing nature of commerce with the integration of internet technology, there may be evidence to suggest that the retail approaches traditionally taken by many industries may be subject to extinction. The initiation of Napster to the collective consciousness of web-users and lawmakers alike began a new era for the exchange of media on the internet.

Though the web had initially been viewed as a popular way for major record companies and compact disc retailers to expand their reach, it would ultimately prove a means to the obsolescence of a physical rendering of a digital recording. Napster was a peer-to-peer-based way to trade digital media such as music and movies already possessed by private users and contained on computer hard drives. Though a court injunction closed its operations, this proved an inflection point for both ecommerce and the music industry.

The free exchange of media which formerly commanded imposing profit margins for record companies and retailers alike, had become an increasingly widespread means through which consumers would obtain their music. This is the trend that would drive my personal research process, and would take me through a review of available literature, an investigation into the music consumption habits of those whom I know personally and a direct reflection on my own music consumption habits.

Collectively, these sources have revealed a music industry that has been significantly damaged not by the emergence of music downloading patterns but by its own failure to adjust to the changing demands of its buyers. With respect to these changing demands, the article by Rosenbaum (2007) would be particularly useful in informing my research process. The article in question would discuss the increasingly prevalent willingness of musicians to give away new recordings in exchange for the publicity, proliferation of music, merchandising and touring benefits that come with a well-distributed album.

Citing Prince, Radiohead and Nine Inch Nails, the Rosenbaum article demonstrates that artists are increasingly using the web technology at their disposal to remove the middle man separating musicians from their bases. Though I entered into this process with some understanding of the importance of technological innovation in altering distribution patterns in the industry, it was not until I truly considered the implications of the Rosenbaum article that I began to appreciate how dramatically this changes the business landscape.

By removing the need for distribution amongst many of the most prominent and powerful artists, the technology now available has significantly diminished the practical relevance of the record company. Bands are increasingly able to operate successful without the expenses that are often a part of working in the traditional industry mode. This was particularly highlighted for me in the research by McCready (2008), which examines the legal and accounting implications of working with a major record company.

This was certainly the most complex of the articles which I have considered in my research, particularly for its exhaustive discussion of the record contract and the myriad financial pressures which this forces an artist or band to shoulder. Again, I would find here that in spite of my assumptions entering into the process that the technology now available has been the primary cause of damage to the record industry, the poor practical orientation of the record industry seems to be the real catalyst to its dramatic collapse.

As McCready points out, making money on album sales through a record company has always been a convoluted and dubious process. Accordingly, McCready reports that "Record companies try to make the royalty rate paid to artists as attractive as possible. They may give you a generous royalty rate. However, in addition to the reduced royalty rate on CD's sold outside normal retail channels, there are also many reductions in your royalty rate. I said that the financial terms are often 15 pages or more.

Well, your royalty rate is on the first page and the remaining pages are all the reductions. It is impossible to determine how much a band will get for selling a CD without a calculator." (p. 1) With channels of contact on the web diminishing the value of a distributing agency, it is also increasingly becoming more sensible for those organizations which have seized on the downloading sales to find ways to repackage music accordingly.

As Marino (2008) points out, this is a condition which has resulted in a diminishing focus on albums as opposed to singles. Listeners and artists alike are benefiting from such models as iTunes, where one can purchase a 99 cent song rather than a $15 album. Indeed, this article would cause me to consult friends, families and even my own memory with respect to recent CD buying decisions. Invariably,.