Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Digital disruption in the music industry
#med332
The perennial gale of creative
destruction (p84) …
[The] process of industrial mutation
… that incessantly revolutionizes ...
<1 billion iOS devices sold
500 million active iTunes accounts
4 billion videos per day
800 million monthly music videos
12
13
Paid-for subscribers: 68m
Ad-supported: 900m
Paid-for subscribers revenue: $2b
Ad-supported revenue: $634m
“In the earlier days
of the web many
artists started to
buy into the
disintermediation
theory that that
maybe the
middleme...
Record label greed
Piracy
Obstinate tech companies
‘because that connection is with
creators of the music, the artists and
songwriters themselves, the sentiment
usually tran...
Shawn Fanning
Sean Parker
First commercial CD October 1982
“Digital started with the CD. No one
realized the implications of putting
ones and zeros of data on a disc. Vinyl
had been...
CD-GRAB
A.L. Digital
“The early 1990’s was the most profitable the record labels had
ever been. [They] were flush with cash and didn’t know wha...
Aerosmith
‘Head First’
1994
First commercial download
13.5 million US internet users
Took 60-90 mins
38
1
2
4
8
16
60 million users
Judge Marilyn Hall Patel
44
What changed?
• ‘a set of broader cultural forces … have
changed the role of music within society, and
relegated its im...
45
Scale of music industry
‘no more than 10 percent of records actually
recoup the money the record industry invests in
it...
46
Attitude shifts
1. Developments within the music industry
– Context (clubs; festivals; merchandise)
2. Synergetic marke...
47
The blame game?
• Industry business model has been in trouble at
least since the 1980s.
– Temporary delay via CD back c...
48
Responses
• ‘Instead of exploring P2P exchange as a
business opportunity, they defined it as a
piratical threat. In doi...
49
Busted?
• RIAA PR own-goal: prosecution of 12 year old Brianna
LaHara (BBC, 10/9/2003)
• Illinois Senator Dick Durbin:
...
Sue your customers?
50
File-Sharers Buy 30% More Music Than Non-P2P Peers
Source: American Assembly, via Torrentfreak, Oct...
Jacques Attali, 1976
The ‘crisis of proliferation’
Interlinking of money, music and
power
“I find it quite strange that I'm struggling to buy a one-bedroom flat in London six
albums into my career, 12 years down ...
‘We are now drowning in music … There’s
too much good music out there so making a
living when scarcity is busted is a real...
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Med332 Digital disruption in the music industry
Upcoming SlideShare
Loading in …5
×

Med332 Digital disruption in the music industry

1,847 views

Published on

Stage 3 slides

Published in: Education
  • Be the first to comment

Med332 Digital disruption in the music industry

  1. 1. Digital disruption in the music industry #med332
  2. 2. The perennial gale of creative destruction (p84) … [The] process of industrial mutation … that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one (p83)
  3. 3. <1 billion iOS devices sold
  4. 4. 500 million active iTunes accounts
  5. 5. 4 billion videos per day 800 million monthly music videos
  6. 6. 12
  7. 7. 13 Paid-for subscribers: 68m Ad-supported: 900m Paid-for subscribers revenue: $2b Ad-supported revenue: $634m
  8. 8. “In the earlier days of the web many artists started to buy into the disintermediation theory that that maybe the middlemen could be cut out and we could all start selling music directly to our fans and we will make more money.” David Lowery in Mulligan, 2015
  9. 9. Record label greed Piracy Obstinate tech companies
  10. 10. ‘because that connection is with creators of the music, the artists and songwriters themselves, the sentiment usually translates into a mistrust of the actual industry. Perceptions fall into cliché, of fat cigar smoking record label executives and devious accountants determined to squeeze every last penny out of struggling artists’ - Mulligan, 2015
  11. 11. Shawn Fanning
  12. 12. Sean Parker
  13. 13. First commercial CD October 1982
  14. 14. “Digital started with the CD. No one realized the implications of putting ones and zeros of data on a disc. Vinyl had been the best copy protection technology ever.” -Martin Goldschmidt in Mulligan, 2015
  15. 15. CD-GRAB A.L. Digital
  16. 16. “The early 1990’s was the most profitable the record labels had ever been. [They] were flush with cash and didn’t know what to do with the money except buy up every indie in sight. Even after the threat appeared none of those profits was focused on meeting the challenge that digital had unleashed. It was not an issue of resource it was a question of will. The industry to the end and even today believed it would control distribution. They refused to understand how technology would morph and change their business.” - Roger Faxon, former CEO of EMI
  17. 17. Aerosmith ‘Head First’ 1994 First commercial download 13.5 million US internet users Took 60-90 mins
  18. 18. 38 1 2 4 8 16
  19. 19. 60 million users
  20. 20. Judge Marilyn Hall Patel
  21. 21. 44 What changed? • ‘a set of broader cultural forces … have changed the role of music within society, and relegated its immediacy and importance among many of its consumers’ – (Leyshon et al, 2005: 181)
  22. 22. 45 Scale of music industry ‘no more than 10 percent of records actually recoup the money the record industry invests in its production’ with some companies stating that the real figure is closer to 3 % • (Leyshon, 2005: 187)
  23. 23. 46 Attitude shifts 1. Developments within the music industry – Context (clubs; festivals; merchandise) 2. Synergetic marketing of music – Cross platform tie-ins (X-Factor, Pop Idol) 3. The inability to sustain consumer attention – Competition for income (games, DVDs, mobiles, Internet subscriptions)
  24. 24. 47 The blame game? • Industry business model has been in trouble at least since the 1980s. – Temporary delay via CD back catalogues – (Breen, 1995) • It is easier to blame an external process (piracy) than to admit the industry itself made a series of errors?
  25. 25. 48 Responses • ‘Instead of exploring P2P exchange as a business opportunity, they defined it as a piratical threat. In doing so, they inadvertently implied that they had the right to determine how people apply after-sales use of intellectual property by re-asserting commercial copyright in a set of relations that were effectively deregulated.’ – (Rojek, 2005: 359)
  26. 26. 49 Busted? • RIAA PR own-goal: prosecution of 12 year old Brianna LaHara (BBC, 10/9/2003) • Illinois Senator Dick Durbin: • ‘Are you headed to junior high schools to round up the usual suspects?’
  27. 27. Sue your customers? 50 File-Sharers Buy 30% More Music Than Non-P2P Peers Source: American Assembly, via Torrentfreak, Oct 2012
  28. 28. Jacques Attali, 1976
  29. 29. The ‘crisis of proliferation’ Interlinking of money, music and power
  30. 30. “I find it quite strange that I'm struggling to buy a one-bedroom flat in London six albums into my career, 12 years down the line … The problem is the devaluation of music as a thing and the fact that people are not interested in paying for it anymore” - Al Doyle, Hot Chip/LCD Soundsystem
  31. 31. ‘We are now drowning in music … There’s too much good music out there so making a living when scarcity is busted is a real problem’ -George Ergatoudis, BBC, 2015

×