Wed 19 Mar, 2008
The Music Industry and the Digital Revolution
Filed under: UncategorizedTags: Digital Music, Digital Revolution, New Media
The digital revolution is upsetting mass media. From movies to news, from books to music, the way we consume media has changed over the last 10 years. The music industry is in turmoil and the Recording Industry Association of America (RIAA) has a tenuous relationship with consumers at best. The old media models are not working anymore; the music industry is hemorrhaging money as consumers continue to flock to new formats.
Despite the apparent war against consumers for file sharing and supposed piracy, the reality is that the vast majority of consumers still purchase their music in music shops and through legitimate digital downloads. In fact, digital sales make up approximately 10 percent of all music sales in the US, with Apple iTunes (NASDAQ:APPL) as the No. 2 music retailer next to Wal-Mart.
Although many consumers still purchase CDs, the digital market is growing by leaps and bounds — particularly among people between the ages of 35 and 50. One draw of digital download is the ability to choose to buy one song at a time as opposed to an entire CD. According to PC World, nearly 50 percent of US teens purchase songs individually and about 1 million buys left the CD buyer market — and this trend is growing.
kmmad
There are several reasons for the shifting music industry paradigm. According to the Wall Street Journal, the decline in music sales — CD sales in particular — can be largely attributed to the decrease in boutique music retailers. In 2006 alone, about 800 music retailers closed their doors, including all 89 locations of the long time music distribution powerhouse, Tower Records. Yowza!
Digital music is definitely empowering the consumer. No longer do people have to fork over their hard earned cash for an entire album when all they really want is one song. I’m sure I’m not the only person frustrated with the mediocrity of mainstream music. Unless I’m a die-hard fan of an artist or I’m doing a music review, I’m not too keen on buying an entire CD at the risk of it being lackluster and/or a waste of my money. I do like having CDs, but with CD prices skyrocketing, I’ve only purchased one CD in the last year.
It’s time for the music industry to evaluate its practices and business model — the old business model “ship is sinking,” and the industry can sink with it or adapt and swim. There will always be music lovers, just as there will always be news readers. The pressing challenges for the music industry today are to align itself with consumer empowerment, and to produce music worth listening to. Currently the RIAA is warring against the very people who line their pockets, and this fight is bound to backfire.
VinylNotes says:
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