Time and change are unstoppable. We try to predict how slow and fast and to what degree things will revolutionize, but sometimes adjustments are too fast and fads are quickly put into history books. According to economist.com, in 2006 the CD accounted for over 80% of total global music sales, but the CD is quickly becoming extinct as the digital world takes over. So now that music’s physical products are disappearing does this mean the music industry is going down with it? Of course not.
With the rise of illegal downloading through programs like Kazaa and LimeWire, the industry has quickly learned that selling online through paid-for download services, such as iTunes and Rhapsody, are the best ways to sell albums. But even working alongside paid-for download services the industry still struggles to accumulate significant revenue similar to the once-hip CDs, so they are constantly searching for other promotional options.
FREE FREE FREE! is the new bite. Because consumers obviously thrive on free music, one of the industry’s new changes is to find ways for consumers to receive free music while still receiving a profit. One way the industry is experimenting is through social networks. For instance, Imeem is a social network that produces advertising-supported streamed music. Imeem buys the music for their ads from the music companies, such as Universal, Warner Music Group, and EMI, and provides it to their consumers while still receiving profit through their ads. Similarly the industry is working alongside phone companies. According to economist.com, Universal worked out a deal with Nokia, the worlds-largest phone manufacturer, to supply all the music for the music-phone consumers to download. In return, Universal receives a piece of the price for each phone.
The way the industry deals with their celebrities is changing significantly as well. According to usnews.com, instead of the industry merely selling the artist’s albums, they are buying all rights to the artist. In return, they are not only selling their albums, but taking over their merchandising and touring organization. Furthermore, they are working with different product companies to display the celebs with a variety of products (such as Shakira on Pepsi cans or Beyonce doing Covergirl commercials). Despite the dissatisfying “branded” connation that is perceived by some, this tactic is quickly becoming popular. Managers are obviously finding this new idea outrageous, but record executives suggest that pushing artists to this new rising improvement is most beneficial to them, and, of course, the music industry.
Kayla Peek
Live OC
www.LIVEOCMAG.com
