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WHAT EFFECT HAS THE INTERNET
  HAD ON THE MUSIC INDUSTRY?

The internet is an incredible software that allows for worldwide connection instantly. This
has caused both positive and negative effects for the musical industry. In this case study I
will look into how this instant connection is effecting the industry as a whole.


Music Channels and The Internet
With the birth of the internet came the creation of the websites. This has allowed any
person with the software to create a web page. A popular page that has had a
considerable negative influence on the music channel, is Youtube. Youtube is a video
sharing website that allows users to upload, view and comment
on videos. This allowed anybody to upload music videos. From
its creation it now has a section dedicated to music videos
allowing anybody to view any video whenever they want. The
instant streaming has had a profound affect for the Music
Channels as they are unable to compete with the ability to watch
any music video whenever the viewer wants.

                       A company that this has had a large affect on is MTV. The channel
                         was launched in 1981 and played music videos 24/7. However,
                            since the launch of Youtube and similar websites it has cut
                            down the amount of music videos it plays, due to not getting
                           sufficient views. However the company did not lose money just
                          the main musical background that it started on. It has since then
                         shown TV shows instead of the music videos, thus causing it to be
                        a channel not a music channel.

Although Youtube and similar website can be blamed for the fall of the music channels it
has caused artists to become famous because of their video which gains money for the
music industry. A teenager who became an ‘internet sensation’ is Justin Bieber. One of his
home made music videos received 10+ million views on the video sharing site, thus causing
him to be signed by Ushers label RBMG. Even though the site has had a negative affect it
has also had a positive influence for the unsigned musicians. These artists are now able to
find stardom as easily as Lily Allen did.

 Lily Allen had put together an array of songs with little help from her label London Records.
She was struggling to gain interest in her music, so she decided to set
up a MySpace account and posted demos online. This
attracted thousands of listens and became her breaking point
into the musical world. This show how powerful and positive
the internet can be.
Music Stores and The Internet
Their seems to be a correlation with every positive thing there is a negative that is
destroying the music industry.

The music business has come across a number of large issues but
none have caused an extinction of the industry. The record stores
have disappeared down the high street. According to an article by
The Telegraph from 2000 to 2009 the independent record stores
have fallen by 404, a massive drop from the original 700 shops. This
is believed to be due to the instant downloading websites and
software like iTunes. On the 8th of April 2003 iTunes store was
opened, in 2010 it reached it’s 10 billionth download. This statistics
show a correlation in the rise of downloads to the decrease in the
amount of record stores. This is one of the major issues that the internet has created for the
music business.

Other than making the stores close down the internet has caused the local companies to
reduce the amount they spend on CD’s. This then causes less money to be spent on the
actual CD cases thus taking away money from the industry. However, the industry still
makes money through the buying of the CDs online, even though its cheaper.

                    The effects of the world wide web has not just affected the local
                     business it has caused larger established companies to struggle with
                     their income. HMV stores was not able to solve the internet problems it
                     was facing so it was forced to change. It is not just a store anymore it is
                    an internet store. I believe that they tried to find a way to beat the
               internet but then decided to join. From doing this they are still able sell their
        stock to two consumers, the ones that go to the stores and the one that download.

Compared to the music channels the stores have been able to adapt to the effects of the
internet. Although the local companies have not been so luckily.

  Piracy and the Music Industry
     However there is one thing that the download sites and the stores cannot hide from,
      piracy. Piracy is the leading cause for the destruction of the music industry, in 2009
      95% of music downloaded was illegal. This just shows hows much of an issue music
     piracy is.

     Napster was the first website that exploited the world wide web connection. Napster
     was a peer-to-peer (P2P) file sharing website that specified in audio files, it allowed
      any user to click on an audio file they want and it downloaded for free. However this
       corporation was shut down to copyright violations, and has reopened as an online
       music store.

         Napster opened the doors to a world of online music piracy. This has lead to
         more P2P file sharing operations to start up one that has caused massive loses
         to the industry is the software Limewire. It works in exactly the same way as
          Napster did. The only issue with Limewire is it has yet to be closed down, as it
          is up to the person to allow their files to be downloaded or to download files
        making them
legally responsible not.

The illegal download of music is killing the industry. It has caused a massive decline in the
amount of records sold and the number of record stores that are in the UK. The internet
has a direct line to the result of this.

THE AFFECTS
For better or worse the internet has developed the way we consume music in an immense
way. This has been because of all the illegal and legal actions that have taken part along the
expansion of the internet. Without Napster we would still be going to record stores and not
the instant download pages. Without the internet we wouldn’t have been able to find the
likes of Lily Allen and Justin Bieber, the internet has given power to the people to decided
who's going to be the next best thing instead of the record companies. The internet has
changed and is still changing the music industry.

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Music Industry

  • 1. WHAT EFFECT HAS THE INTERNET HAD ON THE MUSIC INDUSTRY? The internet is an incredible software that allows for worldwide connection instantly. This has caused both positive and negative effects for the musical industry. In this case study I will look into how this instant connection is effecting the industry as a whole. Music Channels and The Internet With the birth of the internet came the creation of the websites. This has allowed any person with the software to create a web page. A popular page that has had a considerable negative influence on the music channel, is Youtube. Youtube is a video sharing website that allows users to upload, view and comment on videos. This allowed anybody to upload music videos. From its creation it now has a section dedicated to music videos allowing anybody to view any video whenever they want. The instant streaming has had a profound affect for the Music Channels as they are unable to compete with the ability to watch any music video whenever the viewer wants. A company that this has had a large affect on is MTV. The channel was launched in 1981 and played music videos 24/7. However, since the launch of Youtube and similar websites it has cut down the amount of music videos it plays, due to not getting sufficient views. However the company did not lose money just the main musical background that it started on. It has since then shown TV shows instead of the music videos, thus causing it to be a channel not a music channel. Although Youtube and similar website can be blamed for the fall of the music channels it has caused artists to become famous because of their video which gains money for the music industry. A teenager who became an ‘internet sensation’ is Justin Bieber. One of his home made music videos received 10+ million views on the video sharing site, thus causing him to be signed by Ushers label RBMG. Even though the site has had a negative affect it has also had a positive influence for the unsigned musicians. These artists are now able to find stardom as easily as Lily Allen did. Lily Allen had put together an array of songs with little help from her label London Records. She was struggling to gain interest in her music, so she decided to set up a MySpace account and posted demos online. This attracted thousands of listens and became her breaking point into the musical world. This show how powerful and positive the internet can be.
  • 2. Music Stores and The Internet Their seems to be a correlation with every positive thing there is a negative that is destroying the music industry. The music business has come across a number of large issues but none have caused an extinction of the industry. The record stores have disappeared down the high street. According to an article by The Telegraph from 2000 to 2009 the independent record stores have fallen by 404, a massive drop from the original 700 shops. This is believed to be due to the instant downloading websites and software like iTunes. On the 8th of April 2003 iTunes store was opened, in 2010 it reached it’s 10 billionth download. This statistics show a correlation in the rise of downloads to the decrease in the amount of record stores. This is one of the major issues that the internet has created for the music business. Other than making the stores close down the internet has caused the local companies to reduce the amount they spend on CD’s. This then causes less money to be spent on the actual CD cases thus taking away money from the industry. However, the industry still makes money through the buying of the CDs online, even though its cheaper. The effects of the world wide web has not just affected the local business it has caused larger established companies to struggle with their income. HMV stores was not able to solve the internet problems it was facing so it was forced to change. It is not just a store anymore it is an internet store. I believe that they tried to find a way to beat the internet but then decided to join. From doing this they are still able sell their stock to two consumers, the ones that go to the stores and the one that download. Compared to the music channels the stores have been able to adapt to the effects of the internet. Although the local companies have not been so luckily. Piracy and the Music Industry However there is one thing that the download sites and the stores cannot hide from, piracy. Piracy is the leading cause for the destruction of the music industry, in 2009 95% of music downloaded was illegal. This just shows hows much of an issue music piracy is. Napster was the first website that exploited the world wide web connection. Napster was a peer-to-peer (P2P) file sharing website that specified in audio files, it allowed any user to click on an audio file they want and it downloaded for free. However this corporation was shut down to copyright violations, and has reopened as an online music store. Napster opened the doors to a world of online music piracy. This has lead to more P2P file sharing operations to start up one that has caused massive loses to the industry is the software Limewire. It works in exactly the same way as Napster did. The only issue with Limewire is it has yet to be closed down, as it is up to the person to allow their files to be downloaded or to download files making them
  • 3. legally responsible not. The illegal download of music is killing the industry. It has caused a massive decline in the amount of records sold and the number of record stores that are in the UK. The internet has a direct line to the result of this. THE AFFECTS For better or worse the internet has developed the way we consume music in an immense way. This has been because of all the illegal and legal actions that have taken part along the expansion of the internet. Without Napster we would still be going to record stores and not the instant download pages. Without the internet we wouldn’t have been able to find the likes of Lily Allen and Justin Bieber, the internet has given power to the people to decided who's going to be the next best thing instead of the record companies. The internet has changed and is still changing the music industry.