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The Effect Of Internet On Music Industry

661 words - 3 pages

The Internet has been hailed as one of the most prolific inventions in modern times. Although many believed it to be a passing phase at its inception, it has proven to be a driving force especially in the business world. Most industries have seen a boom in business due to the access of the global market the Internet draws. However, many have had to deal with the increase in competition. The music industry is no stranger to some of these challenges. Much has been said about how music piracy has decreased the revenue for some in the business. The Internet has revolutionized not only how music is made. It has affected economically the record companies the artists and those who listen to their music.

In the Pre internet era record labels controlled the music industry. They produced, distributed and promoted the music. They were the middlemen between the creators of the music and the consumers. Naturally they received most of the profits of their enterprises. They even went as far as obtaining the rights to their artist’s songs and in some cases even their names. Their financial success was based on receiving a percentage of the revenue from record and CD’s sales. But With the advent of the Internet and the increase in music piracy, the record labels had to change their business model. According to some studies, “Since 2000, sales of compact discs have plummeted 40 percent in the United States, and illegal music downloads are at an all-time high”. (Espejo) Although many claim that Music theft has contributed to the crippling of the music industry others have sought ways to use the internet to their advantage. One of the first to benefit from an E-commerce platform was Steve Jobs. In 2003 he created Itunes which revolutionized how consumers could buy music. Even though the record industry had been resistant to the idea they finally came on board knowing that if they did not they...

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