The music industry has developed in a series of technological advances, from the development of vinyl to the digitization of music and the creation of formats such as compact disc (CD), digital audiotape, and minidisk (Leyshon 2001). Although the digitized music facilitates consumers, it causes the appearance of piracy and the drop of sales. The subject of piracy has occurred for a certain period. Since 1920's, music piracy has appeared into the world with the production of cassette tapes, voice recorders, and CDs, which brought a new kind of event to court. Moreover, music piracy has become a worldwide issue due to the development of downloading music via the internet.
Music piracy is something that affects the entire world record industry and is known incompletely by most of people. In accordance with the debates around music piracy, there are many different views on this issue. This paper will analyse the reasons that people pirate music and illustrate the impacts on the music industry. Additionally, it hopes to spread the exact knowledge about music piracy to audiences.
According to the RIAA, the industry has to suffer losses by nearly $4.2 billion because of global music piracy. Firstly, pirates are the first to encounter losses due to the severe suppress from recording industry and law enforcement officers. Secondly, consumers also lose personal interests, because the costs of authorized music products will go up along with the Internet downloading of music with shortcut savings. Moreover, piracy could impact negatively on those retailers that give strong backing to their products, whose prices have no competitive power with that of piracy music provided by illegal vendors or free illegimate downloads. Thus, in this situation, unemployeement rate will climb in the music industry. Furthermore, it is inevitable for the recording companies to be impacted by music piracy. The majority of released recordings (approximately 85%)，cannot even balance revenues and expenditures. In addition, 15% profitable recordings are relied on greatly by the recording companies, who use them to subsidise less profitable types of music to cover the costs of developing new artists, and to keep their businesses operational, while downloaders often do not focus on that. Finally, the most direct victims are the creative artists which include musicians, singers, songwriters and producers, for the royalties and fees have not been earned by themselves. Virtually about 95% of artists rely on these fees to make a living and their reputations which are discredited by the inferior quality of pirated copies spreaded to the public.
Therefore, music piracy is destroying both the music industry and anything that relies on the music industry.
However, music piracy also brings benefits to the music industry. At first, it is a way access to get the departed music that is no longer to republish. As a result of the way of...