• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The Internet Changes the World of Music, But What Comes Next?

Extracts from this document...

Introduction

Stockholm School of Economics Quo Vadis Music Industry: The Internet Changes the World of Music, But What Comes Next? Course: 2101 Market Systems Fall 2002 1. Major points of conflict Today there are struggles between several different parts of the value chain. The labels are trying to stop customers from downloading free music from the Internet. This conflict is mostly between the sound carriers producers and the customers. Even the compositors of music, i.e. the artists are fighting against free downloading of their material. One example of this is Metallica who sued Napster for encouraging illegal use of their music. Napster responded by preventing the users who had downloaded Metallica songs from using the service. 1 We believe that these struggles will become more intense in the future. Another aspect not covered in the value chain are the new competitors that have entered the market. One example of this is the Internet suppliers and the electronic industry. The electronic industry has been on the market for quite some time but first now they have become indirect competitors to the music industry by providing empty CDs, CD burners and MP3 players. These products are not illegal but are often used by consumers to get hold off, distribute and listen to illegally downloaded material. It is likely that conflict will arise between these actors and the traditional labels. In fact, as examined below this is already happening. 2. Strategies Defining the business A very important step in forming a strategy is defining the business. The reason behind the difficulties faced by the labels can be analysed by using the structure - conduct - performance paradigm. ...read more.

Middle

8 Another approach is to compensate artists for loss of income by forcing companies that import and manufacture empty CDs to pay a fee. Today this is already in use - a fee is paid for every empty CD.9 As the problem becomes bigger this fee could increase. In this manner people would not save as much money by downloading instead of purchasing. Labels can also cooperate with Internet suppliers. One example of this is the so-called Piratbyr�n - an association with representatives from the film and computer game industry that try to stop illegal downloading. Piratbyr�n has recently started to cooperate with suppliers of broadband. As a result of this, several of the Internet supplier's customers were turned off from their Internet connection. 10 What has to be considered in this approach is that suppliers of Internet are indirect competitors of the music industry. They provide a service that enables their customers to illegally download free material from the Internet. If their costumers risk being shut down from the service by downloading they will probably use another Internet supplier. Therefore this strategy is most effective if all Internet suppliers agree on the same conduct. The Internet supplier also gains income from the customers' illegal downloading. If all illegal downloading stopped they would lose profit. Therefore such an agreement might be difficult to realize without legal reinforcement. 3) Exploiting industry change The progress in technology is here to stay and this will no doubt affect the labels. The labels will probably be unable to stay in their dominant position at least not without using the available technology. ...read more.

Conclusion

It would also be interesting to add time dimension to the value chain. Overall the value chain seems oversimplified and does not take into account horizontal and vertical relationships. These relations might be visualised better by using some sort of network model. The models used by the author do not take into account the new competitors after the virtualisation, neither the cooperation between companies. Progress of technology and knowledge is an important aspect that is not directly covered by the models. The view taken in the case is strictly economical and do not consider aspects such as culture. Since culture is a strong influencing force in consumer behaviour it should not be neglected. One aspect of purchasing CDs that the author does not mention is that barging records is a lifestyle for many people and for them it is very important to go in the shops, finding, spending time, listening, talk to people at the store and so on. All these factors presumably weigh up some of the authors arguments in the reality. Dr Hutzschenreuter introduces the word music as a product in the meaning of a thing you send forth and back over the Internet. We would say that 'music' today is even more than only music! The intentions from the labels today are all about to make as much money as fast as possibly. One example that illuminates that statement is the TV-program "Pop stars" in Sweden/Europe. In this program one single label gets a lot of free marketing. In general, our opinion is that the author made a well-illustrated and correct image of the musical industry. We think that Porters model is well known and is very suitable in this particular case. It might not be a model perfectly describing reality but it covers the most important aspects. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Music section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Music essays

  1. Marked by a teacher

    Theodore Adorno's notions of 'standardisation' and 'pseudo-individualism' might be applied to contemporary pop music ...

    5 star(s)

    Who are the main consumers of popular music? Youth are highest consuming marketing within pop music accounting for the highest percent of single sales. Bradley (1992) accounted the significance with youths and music as reaction to post war teenager with an increase in disposable income and new position in society.

  2. The music industry and the Internet

    Having started so late, the record companies are at a major disadvantage. Music fans using the Internet have got used to Internet downloads being free, and it is going to take a lot of persuading to make them start paying for it.

  1. How successful have your chosen texts been for their industry. (On Beyonce)

    played at the Glastonbury in June 2008, they have also been described as a incredibly egotistic band but a front-runner in their genre, Beyoncé shares the same characteristics, Beyoncé’s song, ‘Ego’ illustrates Beyoncé’s egotistic nature and Beyoncé being a prominent artist of R&B just represents how perfect this cover was

  2. The subject of this dissertation is how feminist beliefs have been expressed in alternative ...

    A common course for many female artists is self-production - this is much more common in alternative music, with genres like Lo-fi attempting to downplay the importance of slick production on music. 1.3.7 The Road Crew When gigging, the sound, lighting, and road crews are generally male.

  1. How helpful the concept of counter-culture is in understanding the changes that took place ...

    These changes were not a result of massive protest or opposition but a gradual change that started after the second world war and continued after the sixties had ended. Within the sixties the changes in attitude towards certain areas of science created a shift in the views of wider society as well as within the scientific community.

  2. Representation of artists Jusice & SBTRKT within electronic music

    production that includes cut-up basslines, and distorted synth sounds, have created a huge hype for the live shows, which are known to be extremely powerful and ear splitting. SBTRKT, whom is a relatively new artist, music is what you would call 'post-dubstep' in other words the more soulful sound of

  1. The Arctic Monkeys album Whatever People Say I Am Thats What Im Not and ...

    The audience almost craves the "fly on the wall" type documentary where they are able to perceive and form their own judgements of others through surveillance. Simon Fullers "Pop Idol" originally kicked off the music and talent based reality television we know today.

  2. Critical Evaluation part 1,2 & 3

    The theme of hardship provides the narrative element of the video and the active audience identifies with the protagonist, because the young man is the victim of the music industry's deceit and their way of using vulnerable people, to thrive for what they essentially want.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work