Music, the Internet and its Future
The Internet seems poised to revolutionise many aspects of the music industry including: the publishing of music, artist royalties for use of copywrited material and the sale of recorded music.
Theories Related to Future of the Industry
There are currently three arguments
1. The industry will be unchanged because of the MP3's less-than-CD-quality sound and its large disk space requirements. In other words, the MP3 technology will be shelved along with other music technologies such as the 8-track.
2. The industry will eliminate traditional record labels by eliminating the need to manufacture and distribute the physical product of CDs.
3. MP3 will simply wet music lovers' appetites for the benefits of a technology that can deliver songs online. Because the majority of music buyers are not willing to sift through thousands of obscure bands, web sites, etc. they are not going to be willing to completely shift to Internet music technology. Internet music technology will have a place in the market, but will not completely dominate it.
As we look to the future of music, the most obvious change we can expect is the dismantling of traditional physical music retail operations i.e the music shop. This is not to say that retail sales of music will be obliterated, but to say that retail sales will possibly re-emerge in a different form i.e. through the Internet . The Internet is accesible nearly anywhere in the world where music buyers want to purchase music.
Another change is the demise of the manufacturing and distribution infrastructure that currently supports traditional music retail stores. As more consumers have more access to the Internet, aspiring recording artists will need experienced guidance, financing and promotional resources in order to create quality music that will reach audiences more mature and more sophisticated about music. Record companies will have more distribution opportunities, giving them more ways to expose and distribute their artists' product to the consumers with more precise methods for targeting the ideal customer for their music. More revenue opportunities mean more abundantly available, affordable music. This will be good not just for established artists who will continue to see more money spent to promote their work but for new artists hoping someone will invest in their work.
The Future of Internet Music Distribution
Music distribution using MP3 compression through the Internet has become an important happening and a major concern of the recording industry. MP3 is just one of many forms of compression that is available for audio. At this time it happens to be wildly popular and is likely to remain so. The popularity MP3 is driving changes in the music industry that will bring a leveling of income to composers and performers, increase in their share of gross revenues, and drastically increase the number of composers and performers that are accessible to the music purchasing public.
After MP3 as finished remodeling the recording industry, the recording industry will consist of a three players:
1. Remnants of the current recording industry
2. Internet companies that sell CDs
3. Internet companies that sell individual recordings.
MP3Shareware.com is a new Internet company intent on capturing this market.
The leveling of income will occur because at the high end the limiting factor of unauthorized recordings will reduce how financially successful any artist can be. The middle and base layers will provide exposure that was impossible in the pre-Internet recording industry thereby increasing the possibility of financial success for more musicians.
In the new recording industry, artists will retain more control of their copyrighted products and receive a larger percentage of the profits. Both MP3.com and MP3Shareware.com offer a 50% split compared to the small percentages now given by record companies.
With the Internet, anybody can put their music online quickly and easily. Mediation sites such as MP3.com and MP3Shareware.com offer several important advantages over private sites such as handling credit card transactions, a high hit rate, and the capability of aggregating many artists to produce custom CDs. Most private sites will simply provide a link to their music on the mediation site of their choice.
Internet audio distribution is providing composers and performers choices that have never been available before.
The future of MP3Right now MP3 is changing the way we receive and listen to music. Napster is actually using a recent law called the Digital Millennium Copyright Act as a defense to the pending lawsuit it faces with the Recording Industry Association of America. Even if Napster is eventually shut down, there are other programs available right now that can not be stopped so easily. Gnutella is a file sharing program that links individual computers together without a centralized server. Since Gnutella can share any file type, people are claiming that movies will be distributed in the same way once broadband internet access becomes available in more areas. The bottom line is that the music industry is going to have to adapt to new technology. One way would be find another way to make money on recorded music than just selling CD's. For example, many online retailers are losing money on their merchandise in order to be competitive but are making up for this loss by selling ad space on there sites. Even if they can't stop people from sharing copyrighted music, people will still by CD's. It is much easier to purchase a CD than find and download every song on that CD and put it on a recordable media. Mp3 sharing poses the bigest threat to music singles since the consumer is only interested in one song. It also poses a threat to an artist who releases 1 or 2 good songs from their CD but the rest of their CD sounds like it was recorded in two days. The recording industry has to evolve and figure out how to use new technology to make money instead of clinging on to the past.