Music and the Internet“It’s not
supposed to be a model for anything else. It was simply a response to a situation. We’re outof contract. We have our own studio. We have thisnew server. What the hell else would we do? This was the obvious thing. But it only works for us because of where we are.” —Radiohead’s Thom Yorke
Convergence: Sound Recording in the
Internet Age• MP3 format in mid-1990s paved way for illegal and legal digital music downloads.• iTunes is the model for legal music downloading.• Streaming music and “music in the cloud” are the future of Internet distribution.
Payola Scandals Tarnish Rock and
Roll• Payola: The practice of record promoters paying deejays to play their songs on the air • Congressional hearings in 1959 • Ended DJs’ careers and undermined rock and roll’s credibility • By 2005, payola persists.
Folk and Psychedelic Music Reflect
the Times• Folk music: • Popularized by radio and by grassroots activists like Woody Guthrie • A democratic and participatory form• Psychedelic era of music influenced,and ultimately brought down by, drugs.
Music Labels Influence the Industry•
The music industry has experienced significant revenue losses: • 1999 U.S. music sales: $14.5 billion • 2009 U.S. music sales: $7.7 billion• Global oligopoly • Four corporations control most of industry worldwide.• Indies discover new musical trends.
Making, Selling, and Profiting from
Music• Artist development (A&R agents)• Producer and session engineer oversee recording process.• Sales and distribution • Internet sales—now 40% of U.S. market • Chain, independent record stores continue to go out of business.
What Sony Owns (selected)Music •
Metro-Goldwyn-Mayer – VAIO computers• Sony Music Studios – Handycam Entertainment • Sony Pictures Home Camcorders– Arista, Arista Nashville, Entertainment – Cyber-shot DigitalColumbia, Epic, Jive, CamerasRCA, RCA Victor, Sony Television – Walkman Video MP3Masterworks • Sony Pictures Television players• Sony/ATV Music – Jeopardy!, Wheel of – Sony Reader Digital Publishing Fortune, The Young and Book(50% ownership) the Restless, Breaking Bad, Seinfeld, The Big C SoftwareMovies • Crackle • Sony Creative• Sony Pictures • Game Show Network SoftwareEntertainment Inc. (GSN)• Columbia TriStar Motion Digital GamesPicture Group Electronics • Sony Computer– Columbia Pictures, • Sony Electronics Inc. Entertainment America Sony – DVD and Blu-Ray Disc Inc.Pictures Classics. Screen players – PlayStationGems, TriStar Pictures – Bravia HDTVs and• Sony Pictures Studios projectors Mobile Phones • Sony Ericsson Mobile Communications (50% ownership)
Alternative Voices• Indie labels are
the music industry’s risk-takers.• The Internet: • Indie labels become more viable by using Internet as low-cost distribution outlet. • Signed and unsigned artists can reach fans through social networking and video sites.