Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet...

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Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet Networking Case Study Future Bibliography THE INTERNET’S THE INTERNET’S CHALLENGE CHALLENGE TO THE MUSIC INDUSTRY TO THE MUSIC INDUSTRY THE INTERNET’S THE INTERNET’S CHALLENGE CHALLENGE TO THE MUSIC INDUSTRY TO THE MUSIC INDUSTRY John Perry Barlow John Perry Barlow “we are now creating a space in which people of the planet “we are now creating a space in which people of the planet can have [a new] kind of communication relationship: can have [a new] kind of communication relationship: I want to be able to completely interact with the I want to be able to completely interact with the consciousness that’s trying to communicate with me.” consciousness that’s trying to communicate with me.” (Castells, 2OOO,386) PRESENTED BY:BEN FORTNEY 15.3.2OO6 GLOBALISATION AND CULTURE

Transcript of Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet...

Introduction

Theory: Sociological

Theory: Networking

Industry

Internet

Virtual Community

Internet Networking

Case Study

Future

Bibliography

THE INTERNET’S THE INTERNET’S CHALLENGECHALLENGE

TO THE MUSIC INDUSTRYTO THE MUSIC INDUSTRY

THE INTERNET’S THE INTERNET’S CHALLENGECHALLENGE

TO THE MUSIC INDUSTRYTO THE MUSIC INDUSTRYJohn Perry BarlowJohn Perry Barlow“we are now creating a space in which people of the planet “we are now creating a space in which people of the planet can have [a new] kind of communication relationship: can have [a new] kind of communication relationship: I want to be able to completely interact with the I want to be able to completely interact with the consciousness that’s trying to communicate with me.”consciousness that’s trying to communicate with me.”

(Castells, 2OOO,386)

PRESENTED BY:BEN FORTNEY15.3.2OO6

GLOBALISATION AND CULTURE

Introduction

Theory: Sociological

Theory: Networking

Industry

Internet

Virtual Community

Internet Networking

Case Study

Future

Bibliography

INTRODUCTION

New communication networks have enabled greater communication and information sharing.

These new networks have challenged a stagnant music industry.

Innovators are moving ahead of the curve to take full advantage of these new communication concepts.

Communication decisively shapes our culture.(Castells, 2OOO:356)

Introduction

Theory: Sociological

Theory: Networking

Industry

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Internet Networking

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Future

Bibliography

THEORY: SOCIOLOGICAL

Music Industry Fordist

: Hierarchical Top-down

: Planned Controlled

Internet Post-Fordist

: Democratic Bottom-up

: Decentralized Chaotic

Introduction

Theory: Sociological

Theory: Networking

Industry

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THEORY: NETWORKING

Laws of Networking Power Metcalf’s Law

: As powerful as the # of users

Reed’s Law: As powerful as the # of users2

But, not all users are equal

Diane Stone:

A network amplifies and disseminates ideas, research and information to

an extent that could not be achieved by individuals or institutions alone.

Moreover, a network mutually confers legitimacy and pools authority and

respectability in a positive-sum manner. (Global Networks Journal, 2002:3)

Introduction

Theory: Sociological

Theory: Networking

Industry

Internet

Virtual Community

Internet Networking

Case Study

Future

Bibliography

THEORY: NETWORKING

Manuel Castells: The Rise of the Network Society(2OOO)

Networks constitute the new social morphology of our societies, and the diffusion of networking logic substantially modifies the operation and outcomes in processes of production, experience, power, and culture.

…dramatic reorganization of power relationships.

In a broader historical perspective, the network society represents a qualitative change in the human experience..

Mike O’Donnell:

…it is the information itself – knowledge building upon knowledge – that

is axial to the information age. (2000:71)

Introduction

Theory: Sociological

Theory: Networking

Industry

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MUSIC INDUSTRY

Major Labels(International Federation of the Phonographic Industry)

85% US Market 7O% Global Market

Universal Music Group (France/USA) 25.5% Sony BMG Music Entertainment (Japan/Germany) 21.5% EMI Group (UK) 13.4% Warner Music Group (USA) 11.3% Independents 28.4%

Independents(LA Business Journal 2OO4)

% Share of US Market

13

14

15

16

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18

2001 2002 2003 2004 (1:4)

Introduction

Theory: Sociological

Theory: Networking

Industry

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INTERNET MUSIC

Digital Downloading MP3s

: Downloads iTunes: 1 billion in less than 3 years p2p: 2-3 billion per month The level of file-sharing has remained the same for two years

despite 20,000 legal cases in 17 countries. (BBC.com) More than 100 countries supply files (Felix Oberholzer-Gee )

BroadbandAmerican Adults with

Broadband at Home

[Pew Report]

Introduction

Theory: Sociological

Theory: Networking

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INTERNET MUSIC

Slumping Sales

(Sound & Vision Magazine, 2OO3)

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INTERNET DISTRIBUTION

Challenge to traditional: “Industrialism to Informationalism”

(Castells, 2OOO:164)

: Bharat Rao (Rao, 1999:288)

Challenging the traditional distribution structures

: Eric Raymond (Rheingold, 2OOO:51)

Cathedral and bazaar

Robin MurrayEmphasis shifts from scale to scope.Organisations geared to respond rather than regulate markets.Frameworks for learning as much as instruments of control.Allows for specialist, niche production/consumption.The guerilla force takes over for the standing army.

(O’Donnell, 2OOO:74)

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Theory: Sociological

Theory: Networking

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VIRTUAL COMMUNITIES

Gift Society Networks of Fans

: Combining Resources

Knowledge

Experiences

Why it works?: Richard Barbrook -Westminster University

By adding their own presence, every user is contributing something to the collective knowledge accessible to those already on-line.

: Manuel Castells -Sociological Genius …uninhibited discussion, thus allowing sincerity in the process.

(Castells, 2000:389)

: Marc A Smith -Microsoft Research Sociologist …it becomes possible for more people to pool resources.

And ‘more people pooling resources in new ways’ is the history of civilization seven words” (Rheingold, 2000:31)

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INTERNET NETWORKING: BENEFITS

Established Acts Free promotion

: Radiohead ‘Kid A’ Huge buzz with little radio or promo

: Fiona Apple ‘Incredible Machine’ Highest chart debut, almost half million sold

: Prince - online albums Build-up to concert tours

: Public Enemy‘There’s a Poison Going On’

Live and Rare Recordings: Grateful Dead, Phish, Dave Matthews

Encourage recording and swapping of live performances to expand fan-base as well as consolidate support

: Beastie Boys release rare tracks via their online fan club

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INTERNET NETWORKING: BENEFITS

Emerging Artists: Fans can sample numerous songs: Network recommendation: Feedback loops: Intimate relationships: Labels: Fan-base already included

Michael Roberston, founder MP3.com:

"[w]e talk about a new middle-class of musician emerging, If a band sells 20,000 CD's now, they go hungry. But if they can do that through the Net,that's $100,000 just on CD sales. (Auslandermusic.com)

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NETWORKING IN ACTION

Case Study: Arctic Monkeys Networking in Action

: Promo CDs given away at shows Fans uploaded to file-sharing programs

: Myspace.com Personal contact with fans builds loyalty Word of mouth

Independent Smash: #1 Single in the UK: 36O,OOO albums sold, 1st week(BBC.com)

Fastest-selling British debut of all time

: Most visited band site in the UK(Hitwise) More than Oasis & Greenday

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NETWORKING IN ACTION

Introduction

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THE FUTURE IS NOW

Artists Freedom of Distribution

: Total control Schedule Songs Leverage

Fans Interactive creativity

: Artist-to-Artist “musicians are working together, making friends and inspiring

each other within network communities.” (Barbrook) Grey album

: Fan-to-Artist Remixes contests

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BIBLIOGRPAHY

Agger, Ben (2004) The Virtual Self. Blackwell, Oxford

Auslander music (1999) Auslander Music Manifesto(http://www.auslandermusic.com/manifesto.html) [Accesssed 10.3.06]

Barbrook, Richard (200?) Cyber-Communism: how the Americans are superseding capitalism in cyberspace. University of Westminster, Hypermedia Research Center. http://www.hrc.wmin.ac.uk/theory-cybercommunism.html

BBC.com (2006) Monkeys Let the Music Do the Talking. 24.2.06 http://news.bbc.co.uk/1/hi/entertainment/4644214.stm [Accesssed 3.6.06]

Castells, Manuel (2000) The Rise of the Network Society. Blackwell, Oxford

Hitwise.com (2006) Arctic Monkeys & Viral Marketing – Update 2.1.06 http://weblogs.hitwise.com/heather-hopkins/2006/01/arctic_monkeys_viral_marketing.html

[Accessed 13.3.06]

Introduction

Theory: Sociological

Theory: Networking

Industry

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BIBLIOGRPAHY

IFIP (2005) IFPI releases definitive statistics on global market for recorded music. Press Release: 8.2.05 http://www.ifpi.org/site-content/publications/rin_order.html[Accesssed 14.3.06]

O’Donnell, Mike (2000) Classical and Contemporary Sociology. Hodder & Stoughton, London

Rao, Bharat (1999) The Internet and the revolution in distribution: a cross-industry examination. Technology in Society #21, 1999. Pg. 287–306

Rheingold, Howard (2000) Smart Mobs. Basic Books, Cambridge, MA

Simons, Andrew (2004) Digging downloads: small labels making most of audience's access to digital music files. Los Angeles Business Journal,  May 3, 2004http://www.findarticles.com/p/articles/mi_m5072/is_18_26/ai_n6036150 [Accesssed 14.3.06]

Stone, Diane (2002) Introduction. Global Networks Journal, Vol. 2 #1, 1.2002