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Music ıNdustry

Submitted by handenilay on May 22, 2007

Category: Music and Movies
Words: 2172 | Pages: 9
Views: 350
Popularity Rank: 37,256
Average Member Grade: N/A (Add a Comment / Grade this Paper)

MUSIC INDUSTRY

We can determine music industry as; “The industry which produce, market, distribute, sell music in”. The music industry can be classified in two categories according to case: Traditional and New Business Model. But traditional model is preferred less than new business model in last years especially. Therefore; we can say music industry want to transit to new model completely. There are some advantages and disadvantages for that.

Music Industry

Traditioanal Model

In the traditional model cassettes and cds are used to promote and distribute music by record labels.

New Business Model
Internet is key component of the new business model. Musicians can produce and market their music easily and less costly. This facilitates time and money saving. Low cost entry and easily communication provides to market and reach more consumers. The consumers can communicate other music lovers. They search about musician, music and share ideas. Not only ideas but music can be shared by internet. So, we can say one function of internet is “sharing”. In addition of that, the consumers purchase music which they like on the internet. There is no time or location restriction for them by this way. So, this facilitates buying process for the consumers. “Purchasing” is other function of new business model. Another one is “download”. This motivates the music lovers. Most of customers buy music after listened on the internet.

The case is about how the music industry is affected by internet. The main problems of the industry are copyrights, the use of internet, earning share of the artist.

Earnings share of the artist

In traditional business model; the value chain is consuming very much time and money. Because every stage (A&R Development, Recording, Manufacturing, Marketing, Distribution and Retailing) links to each other and requires to...

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