Record labels make money through album sales, licensing music for use in media, and concert promotions. They must pay recording and marketing costs as well as royalties to artists. New media like streaming has reduced sales revenue but increased the audience; while DRM aims to curb piracy, it is disliked by users and not fully effective.

1. How do labels make money?

2. Sketch out some ideas to the following discussion points: How do record labels make money? 2. What do record labels have to pay out for? What expenses do labels incur? 3. How has new media technology changed things for record labels? 4. List some advantages and disadvantages of new media technology for the labels. 5. What is DRM? Why is DRM good for the record labels? 6. Does DRM work?