Introduction of the Music Industry
ucIntroduction to the Music Industry
Within the last twenty years, the music industry has experienced drastic changes. Information and Communication technology has impact almost every aspect of the industry, ranging from its supplier to consumer, be it positively or negatively.
Some reputable music suppliers includes Yamaha as well as LiveNations, a live event company, who specialise in event planning and supplies music venue for record label companies.
Supplier , those who manufacture CD, supply equipment to record company, artist who supplies and created music such as ArtistLed, Inc
Now , let us see what are some of the ways in which IT has affected the various suppliers in the music industry.
Internet
Decreasing revenue for CD manufacturer due to increase sharing and piracy over the web.
Before the birth of the internet, music was largely distributed in a form of CD-ROM, cassette and etc and this has resulted in increase revenue for CD manufacturer and making the production of CD a profitable business.
However, after internet was introduced, music has been slowly transforming into a digital goods that is being distributed over the web. With music easily accessible using the internet, people started to download music from the web and this has decrease the need of a music CD. Analysts predict that in five years 20% to 33% of all music sales will shift from CDs to digital distribution [Keegan, P. “Is the Music Store Over?” Business 2.0.Online, March 2004.] Furthermore, with the increasing sharing of music over the internet using P2P sharing network such as BitTorrent and Gnutella as well as increase in unscrupulous users to violate copyrights by engaging in piracy activities over the web, record label company has been facing a decrease in sales which directly affect the CD manufacturer as record label company ordered less quantity of CD from this various manufacturer. This is evident by the 13% drop in the physical sale of CDs and DVDs in 2007 to
Within the last twenty years, the music industry has experienced drastic changes. Information and Communication technology has impact almost every aspect of the industry, ranging from its supplier to consumer, be it positively or negatively.
Some reputable music suppliers includes Yamaha as well as LiveNations, a live event company, who specialise in event planning and supplies music venue for record label companies.
Supplier , those who manufacture CD, supply equipment to record company, artist who supplies and created music such as ArtistLed, Inc
Now , let us see what are some of the ways in which IT has affected the various suppliers in the music industry.
Internet
Decreasing revenue for CD manufacturer due to increase sharing and piracy over the web.
Before the birth of the internet, music was largely distributed in a form of CD-ROM, cassette and etc and this has resulted in increase revenue for CD manufacturer and making the production of CD a profitable business.
However, after internet was introduced, music has been slowly transforming into a digital goods that is being distributed over the web. With music easily accessible using the internet, people started to download music from the web and this has decrease the need of a music CD. Analysts predict that in five years 20% to 33% of all music sales will shift from CDs to digital distribution [Keegan, P. “Is the Music Store Over?” Business 2.0.Online, March 2004.] Furthermore, with the increasing sharing of music over the internet using P2P sharing network such as BitTorrent and Gnutella as well as increase in unscrupulous users to violate copyrights by engaging in piracy activities over the web, record label company has been facing a decrease in sales which directly affect the CD manufacturer as record label company ordered less quantity of CD from this various manufacturer. This is evident by the 13% drop in the physical sale of CDs and DVDs in 2007 to