Technology & the music industry presentation


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Technology & the music industry presentation

  1. 1. Technology & The Music Industry<br />The Good, The Bad and The Ugly<br />
  2. 2. The Good<br />Portability made possible by the invention of the Sony Walkman, the MP3 player and the iPod.<br />Enactment of the Home Audio Act of 1992, which enabled consumers to make digital copies of compact discs and tape cassettes without penalty.<br />Napster, the file-sharing website is developed and introduced in 1998 by Shawn Fanning, an 18-year old high school student.<br />
  3. 3. The Good <br />Record companies think this will convince consumers to buy newly recorded music releases on compact discs after hearing them on Napster.<br />Video games resurrect the vinyl record and the turntable.<br />Sales of vinyl increase as young consumers record songs on mobile devices.<br />Record companies scramble to find warehouses that press vinyl records for new releases.<br />
  4. 4. The Bad<br />Websites like Napster cause compact disc sales to drop dramatically.<br />Piracy is born and causes record companies to lose millions due to downloading songs on the internet.<br />The Recording Industry Association of America estimates that piracy has caused $12.5 billion dollars in economic losses.<br />These losses include the following:<br />
  5. 5. The Bad<br />71,060 jobs lost in the United States.<br />$2.7 Billion dollars in workers earnings.<br />$422 Million dollars in tax revenues<br />$291 Million in personnel income<br />$131 Million in lost corporate income and production taxes<br />(<br />
  6. 6. The Bad<br />The British record company, known as EMI, reported a loss of $221.9 million because of declining compact disc sales in the first three months of 2010. <br />For the three months ending June 30, 2010, Warner Music Group experienced a decline in compact discs amounted to 3.7% compared to 4.5% in 2009.<br />
  7. 7. The Ugly<br />30,000 lawsuits still being litigated through the court system<br />Only 2 cases have gone to court and are currently being appealed:<br />Ms. Jammie Thomas-Rasset for $1.9 million – trying to eliminate all charges<br />Mr. Joel Tenenbaum for $4.5 million – trying to eliminate all charges.<br />Record companies decide not to litigate any further lawsuits in 1998 <br />Most cases settle for $3,000 to $5,000<br />
  8. 8. The Solution<br />Record executives of all the major record labels, the Recording Industry Association of America and the heads of technology companies met in December 1998 in Manhattan.<br />Announced their Secure Digital Initiative which would develop a standard so that consumers can copy songs from the internet through a system that would prevent piracy and ensure that music copyrights were paid.<br />Several record companies form alliances with internet providers and other record companies.<br />
  9. 9. The Solution<br />British record company EMI and the file-sharing site Roxio, Inc. of Milpitas, CA joined forces to create a way to collect an additional fee from consumers who want to make compact discs out of the songs that they download.<br />Warner Music joined forces with Orascom, the leading mobile phone group in the Middle East, to sell ring-tones, ring-backs and other music content to about 60 million Orascom wireless customers in markets Algeria, Pakistan, Bangladesh and Italy. <br />In the United States, the record companies have since teamed up with the telecommunications companies to offer these services as well for a minimum price of $2.99 per song.<br />
  10. 10. The Solution<br />In 2008, Warner Music Group teamed up with MySpace, Sony BMG, and Universal Music Group to launch MySpace Music <br />The site will let people watch videos (for free) on the Web, buy merchandise, concert tickets, and music through downloads like Apple's iTunes. <br />
  11. 11. The Conclusion<br />My personal musical beliefs are embedded in music. Having the opportunity to be the proud owner of over 1,000 compact discs in every genre available, I am blessed to be able to be a part of it. As I have shown, computers not only have revolutionized the way we think, do business, and socialize, but also the way we listen to music.<br /> It has also taught me to respect the music in all that it has to offer. I love having the compact disc in my hand and admiring the cover art that has been created for that artist. I have respect for the musical artists that make this music and their ability to reveal their emotions in song and share that with the entire world. <br />I also understand that music is a business just like any other business, but technology has taken the warmth out of the music industry. Record executives have always been about profits, which will never change, but they have a long way to go before they realize what the good, the bad, and the ugly technology are and how they will be able to survive going forward.<br />
  12. 12. References<br />JON HEALEY.  (2001, June 5). Company Town; EMI Backs CD-Burning Software; Music: The technology being developed by Roxio would let users copy songs but not encourage piracy: [Home Edition]. Los Angeles Times, p. C.4.  Retrieved September 7, 2010, from Los Angeles Times. (Document ID: 73678529).<br /> <br />Ricardo Baca Denver Post Pop Music Critic.  (2006, September 19). The lure of vinyl MUSIC The predecessor to the CD is not only alive, it's thriving: [Final Edition]. Denver Post. F.01. Retrieved September 7, 2010, from ProQuest National Newspapers Premier. (Document ID: 1129920151).<br /> <br />Aaron O. Patrick, AinsleyThomson. (2009, Feb 2) EMI's Loss Raises Concerns on Label's Turnaround Plan. Wall Street Journal (Eastern Edition), p. B.4.  Retrieved September 8, 2010, from ProQuest National Newspapers Premier. (Document ID: 1636582251<br />Online sales help narrow loss. (2010, May 7). Los Angeles Times, p. B.5. Retrieved September 8, 2010, from Los Angeles Times. (Document ID: 2026873311).<br />
  13. 13. References<br />Jonathan Saltzman.  (2009, July 28). Trial to begin in music copyright case: BU student faces major record labels. Boston Globe, p. B.1. Retrieved September 8, 2010, from ProQuest National Newspapers Premier. (Document ID: 1806241191).<br />EARNINGS ROUNDUP / WARNER MUSIC; Digital sales growth slows. (2010, August 6). Los Angeles Times, p. B.2. Retrieved September 8, 2010, from Los Angeles Times. (Document ID: 2101944011).<br />Jonathan Saltzman.  (2010, July 10). Judge slashes downloading penalty: Calls $675k award in BU student's case `excessive'. Boston Globe, p. A.1.  Retrieved September 8, 2010, from ProQuest National Newspapers Premier. (Document ID: 2077030031).<br />London.  (2007, February 14). Warner teams up with Orascom: [LONDON 2ND EDITION]. Financial Times, p. 24.  Retrieved September 8, 2010, from ABI/INFORM Global. (Document ID: 1216083691).<br />By Catherine Holahan.  (2008, April). RECORD LABELS AND MYSPACE CUT A DEAL: Warner, Sony BMG, and Universal have teamed with the site in a venture that gives them equity and ad income. Business Week, (4079), 32.  Retrieved September 8, 2010, from ABI/INFORM Global. (Document ID: 1459659941).<br />