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  1. 1. The Changing Face of Music By: Alyssa Carroll and Jesse Grab
  2. 2. <ul><li>The digital music business internationally saw a sixth year of expansion in 2008, growing by an estimated 25 per cent to US$3.7 billion in trade value. </li></ul><ul><li>Digital platforms now account for around 20 per cent of recorded music sales, up from 15 per cent in 2007. </li></ul><ul><li>Recorded music is at the forefront of the online and mobile revolution, generating more revenue in percentage terms through digital platforms than the newspaper (4%), magazine (1%) and film industries (4%) combined. </li></ul>Digital Music Business
  3. 3. Cd sale decline,rise in mp3
  4. 4. MP3s <ul><li>MP3 stands for MPEG Audio Layer III and is a standard for audio compression that makes any music file smaller with little or no loss of sound quality. </li></ul><ul><li>MP3 is part of MPEG, an acronym for Motion Pictures Expert Group </li></ul><ul><li>Timeline - History of MP3 </li></ul><ul><li>1987 - The Fraunhofer Institut in Germany began research code-named EUREKA project EU147, Digital Audio Broadcasting (DAB). </li></ul><ul><li>1996 - United States patent issued for MP3. </li></ul><ul><li>1999- A record company called SubPop is the first to distribute music tracks in the MP3 format. </li></ul><ul><li>1999 - Portable MP3 players appear. </li></ul>
  5. 5. Torrents and filesharing <ul><li>A torrent is a file sent via the BitTorrent protocol. It can be just about any type of file, such as a movie, song, game, or application. </li></ul><ul><li>Torrents are downloaded onto computers using Torrent Clients </li></ul><ul><li>95 % of music downloads are unauthorized, with no payment to artists and producers </li></ul><ul><li>Torrents account for approximately 27-55% of all Internet traffic (depending on geographical location) as of February 2009. </li></ul><ul><li>Top 5 most popular torrent downloading sites of 2009: </li></ul><ul><li>1. Isohunt </li></ul><ul><li>2. Entertane </li></ul><ul><li>3. Torrent root </li></ul><ul><li>4. Demonoid </li></ul><ul><li>5. Flixflux </li></ul>
  6. 6. World Markets in Sharing <ul><li>The US is the world leader in digital music sales, accounting for some 50 per cent of the global digital music market value. </li></ul><ul><li>In Japan, a predominantly mobile music market, digital sales helped overall trade revenues to growth in the first half of 2008. </li></ul><ul><li>140 million mobile singles were sold in 2008, an increase of 26 per cent on the prior year (RIAJ). </li></ul><ul><li>The UK saw the biggest increase in digital sales in the first half of 2008 among the top markets, with sales up by 45 per cent. </li></ul>
  7. 7. Piracy
  8. 8. Napster-like sites
  9. 9. itunes
  10. 10. Top 10 Digitally Downloaded Songs <ul><li>Issue Date December 12, 2009 </li></ul><ul><li>Rank Last Week Artist Album </li></ul><ul><li>1 1 LADY GAGA, Bad Romance </li></ul><ul><li>2 4 JAY-Z + ALICIA KEYS, Empire State Of Mind </li></ul><ul><li>3 2 KE$HA, TiK ToK </li></ul><ul><li>4 3 OWL CITY, Fireflies </li></ul><ul><li>5 5 IYAZ, Replay </li></ul><ul><li>6 9 THE BLACK EYED PEAS, Meet Me Halfway </li></ul><ul><li>7 7 JASON DERULO, Whatcha Say </li></ul><ul><li>8 8 DAVID GUETTA FEATURING AKON, Sexy Bitch </li></ul><ul><li>9 11 BRITNEY SPEARS, 3 </li></ul><ul><li>10 10 MILEY CYRUS, Party In The U.S.A. </li></ul><ul><li>Source: Billboard Hot Digital Songs, powered by Nielsen SoundScan </li></ul>
  11. 11. ipods
  12. 12. Streaming sites
  13. 13. Change in music business <ul><li>Dropping album sales has led artists to perform more shows and make more public appearances: </li></ul><ul><li>Gross dollar sales of concert tickets increased 40% from 2008 (40% increase from 2007 to 2008) </li></ul><ul><li>Fans bought and sold tickets for over 14,000 concert events on StubHub (over 11,000 in 2008) </li></ul><ul><li>The average price of concert tickets sold through StubHub was $133 ($159 in 2008) </li></ul><ul><li>U2's 360 Tour is the highest-grossing concert tour in StubHub history </li></ul>
  14. 14. Online promotion <ul><li>Online band profiles like MySpace allow for easy promotion and publicity </li></ul><ul><li>Bands can distribute their music without record company help </li></ul><ul><li>Bands can use recording software to create their own CDs and demos </li></ul><ul><li>Artists like Lilly Allen and Sean Kingston were found on MySpace and given successful record deals </li></ul>
  15. 15. Mashup artists
  16. 16. ringtones