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The Music Industry: Piracy or Poor Strategy

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The Music Industry: Piracy or Poor Strategy

  1. 1. themusic industry.<br />piracy or poor strategy?<br />JOSH HERNANDEZ<br />
  2. 2. my passion. <br />music.<br />
  3. 3. the music industry.<br />$10.4 BILLION<br />a year industry in the US alone<br />
  4. 4. an industry of giants.<br />82%<br />INDEPENDENT<br />LABELS<br />of the music industry is controlled by four entities: <br />UNIVERSAL<br />SONY<br />WARNER<br />EMI<br />
  5. 5. the rise of digital <br />content.<br />1993: The mp3 file format is born<br />1999: Napster, a music sharing network, is launched<br />2001: The RIAA shuts Napster down<br />2001: Apple releases the first iPod<br />2003: Apple opens the iTunes Store<br />
  6. 6. an industry in decline.<br />According to the RIAA, music sales have dropped 47% from $14.6 to 7.7 billion since 1999<br />From 2004 to 2009, 30 billion songs have been downloaded illegally online<br />Approximately $12.5 billion in lost revenues are caused by music piracy every year<br />
  7. 7. interesting facts.<br />- Album sales increased every year while Napster was in existence<br />- The RIAA calculates sales by the amount of units shipped, not units sold<br />- Consumers can buy the songs they like as singles rather than an entire album<br />- Digital files have decreased the cost of producing music immensely: no CDs, album inserts, cases, shipping, unsold inventory<br />
  8. 8. a look at RIAA financial statements.<br />$64 million<br />spent in prosecuting piracy from 2006-2008 <br />$1.4 million<br />recovered from piracy cases actually won<br />
  9. 9. discussion.<br />1. Is piracy actually affecting music sales? (would pirates actually buy the music if they couldn’t steal it)<br />2. Have the record companies failed to adapt to the preferences of the customer?<br />3. How much are you willing to pay for an album on iTunes?<br />4. With services like Pandora and Grooveshark, do you still feel the need to buy music?<br />

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