Learning Objectives

- To develop understanding of illegal downloading

- To consider the role of the “consumer as producer”

Legal MP3 Downloading in the UK: 2005

- MPEG-1 Audio Layer 3

- In 2005, the global market for legal downloads was worth £624 million.

- 26.4m tracks were legally downloaded in the UK, a 355% increase on 2004.

- Legal downloads were incorporated into the UK singles chart figures for the first time, April 17th 2005 What was the first No.1 to incorporate both?

-“Is this the way to Amarillo” – Tony Christie and Peter Kay

- In 2004 downloads were responsible for 52% of total single sales, in 2005 they accounted for 75%.

-In 2008 downloads were responsible for nearly 90% of sales. Many retail outlets no longer stock CD singles.

• On post-it notes write the 2 most interesting facts/stats you researched

• Stick on whiteboard

How does Digital Downloading work?

To receive electronic data from a remote system, usually on a computer via a web browser

Subscription or “Peer to Peer” file sharing services (P2P)

1st phase of downloading was through peer to peer networks, breaking copyright laws

Anything not paid for is classed as illegal

2nd phase of downloading – The Online Music Store

Per song or subscription basis

Digital downloading took off in a big way in 2003 with the launch of iTunes

What are some of the advantages / disadvantages of Digital Downloading when compared to traditional music formats?

Download SitesWhere do you download from?

In pairs list as many download sites as you can think of, both legal and illegal

A mixture of specialist sites and existing retailers.

Napster, where it all began•Established by Shawn Fanning, a 19 year old student, in June 1999.

•File sharing network, provided the technology to give peer to peer file sharing, Napster itself did not own or sell music.

•In 2000 the band Metallica filed a lawsuit against Napster when it discovered one of its songs was being passed around that had yet to be released. The lawsuit failed but 300,000 Napster users were banned for sharing Metallica MP3s.

•Madonna and Dr Dre were also outspoken against the service.

Napster continued….

• Not all bands were against the service though. Radiohead found a whole new audience before their album ‘Kid A’ was released in the US as a result of its music being shared.

• By February 2001 Napster had 26.4 million users worldwide.

• On March 5th 2001 an injunction prevented Napster from trading copyrighted music on its network

• Shortly after Napster converted to a legal subscription service, most of their initial profit went to pay settlements to the recording industry. They now offer legal access to over 2m tracks.

Illegal Downloading – can it be stopped?

Illegal file sharing is banned under UK copyright law, Illegal file sharing is banned under UK copyright law, however legal experts claim that the CPS is unlikely to take on however legal experts claim that the CPS is unlikely to take on

the burden of pursuing offenders. the burden of pursuing offenders.

Internet use is extremely difficult to regulate. It is currently Internet use is extremely difficult to regulate. It is currently very difficult to track and prosecute illegal downloading.very difficult to track and prosecute illegal downloading.

The Hertfordshire data suggests that 63% of teenagers admit The Hertfordshire data suggests that 63% of teenagers admit to illegally downloading. However many more probably do but to illegally downloading. However many more probably do but

don’t admit to it.don’t admit to it.

In another BBC survey conducted in 2006 only 4 in 10 In another BBC survey conducted in 2006 only 4 in 10 interviewed claimed that they understood the law about illegal interviewed claimed that they understood the law about illegal

downloadingdownloading . .

In the UK the music and film industries are demanding that In the UK the music and film industries are demanding that the European Parliament creates laws to help them prosecute, the European Parliament creates laws to help them prosecute,

companies suggesting this include Sony, BMG, Disney and companies suggesting this include Sony, BMG, Disney and EMI.EMI.

They have requested access to communications data – They have requested access to communications data – records of phone calls, email and surfing. This would treat records of phone calls, email and surfing. This would treat downloader's in the same manner as suspected terrorists.downloader's in the same manner as suspected terrorists.

The British Phonographic Industry (BPI) have so far The British Phonographic Industry (BPI) have so far successfully prosecuted just over 150 downloader's. Half of successfully prosecuted just over 150 downloader's. Half of these paid on average around £6500 to settle out of court.these paid on average around £6500 to settle out of court.

The record industry has criticised internet providers for their The record industry has criticised internet providers for their hands off approach and says that data to prosecute should be hands off approach and says that data to prosecute should be

made more freely available.made more freely available.

• http://www.guardian.co.uk/music/musicblog/2010/jan/07/decade-digital-music

• Write your own blog response….

2000: “80:20 rule” To 20% selling artists responsible for 80% of all

music sales

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Artists Sales

ITunes

Read the article on wikispaces:

How does iTunes work?

How and why did it start?

What impact is it having on the record industry?

The Effect on the Retail Market?

• What kind of impact has digital downloading had on the retail market?

• What are the advantages for the consumer?

• What are the advantages for the industry?

• What are the disadvantages for the consumer and audience?

Proliferation of Formats

• The advent of digital media has led to the sudden creation of many new music formats available to the average consumer.

• In 2003 there were less than 10 formats available, but by 2007 there were over 100.

• Today a single artist release can be packaged in multiple formats. Can you name some formats:

• On line MP3 purchase• CD single• Vinyl records• Music Video downloads• Ringtones• Mobile full tracks• DVD • Video games

Music Industry

Music and Artist Promotion

Music consumption – a recap• MP3 technology and download sites have revolutionised the ways

we consume music. In fact the very word consumer is changing in terms of music as fewer and fewer people are actually paying for music.

• Some 90% of singles sales are from downloads. Of course millions of songs are being illegally downloaded and wont feature on any official charts or figures. Many of these sites are being forced to go mainstream and turn into pay sites.

• The music industry is attempting to do everything in its immense power to prevent illegal sites from functioning including trying to get laws passed to ban or block sites and to get greater access to your internet user profiles so that they can prosecute you!!

• The music industries argument is that illegal sites will eventually have an impact on the industry hindering their attempts to financially support new acts and therefore weakening their creative output.

• However in recent years many young ‘digital’ artists have grasped the internet as a way to cheaply market and promote themselves…..

Proliferation of Formats • The advent of digital media has led to the sudden creation of many new

music formats available to the average consumer.

• In 2003 there were less than 10 formats available, but by 2007 there were over 100.

• Today a single artist release can be packaged in multiple formats. Can you name some formats:

• On line MP3 purchase• CD single• Vinyl records• Music Video downloads• Ringtones• Mobile full tracks• DVD • Video games

A & R• A&R stands for artist and repertoire. It is the part of

the music industry that attempts to discover and then manage/market new talent.

• Task: discuss the ways in which a new music artist can be discovered, promoted and marketed by a record company’s A&R:

• Radio airplay• Live performance/club nights• Music press interviews• Reality TV shows• Promotional videos• TV appearances• Websites• Word of mouth.

A & R• Task 1: discuss what you know about the following music

artists. What for them would be the most important marketing method:

• The Kings of Leon• Sway• Amy Winehouse• Calvin Harris• Rihanna

Task 2: Can you think of another artist that has been marketed in a non- traditional way?

A & R continued• Most of these are traditional ‘pre-digital’ ways of a

promoting/marketing a new artist and most are still being used by the industry.

• However in recent years some artists have embraced the internet to promote themselves. Why?

• Exposure - Potential to be seen or heard by millions.• Directness - Cuts out the record industry- no auditions

demos, concert performances.• Cheaper – you can make your own music and even your

own video very cheaply without a record company's financial help.

• Freedom – allows you to express yourself in the way you want .

The consumer as producer.

- The Marxist approach - Karl Marx said that one reason the masses were being dominated by the dominant ideology was through the media. The dominant ideology (the government, big businesses) ‘control the means of production’.

- In the ‘digital’ the means of production has been increasingly handed over to new groups of society – us! The masses and not the dominant ideology are setting the agenda for making media.

The consumer as producer

• Why are the means of production being handed over to us?

- Cheaper, smaller, ease of use –’idiot proof’

- What are we using new media technology to produce?

- Films (DV cameras, i-movie etc) - TV (Community Channel, Multi Channel satellite)- Music (home recording, distribution, pirate radio)- Written word (Desktop publishing, internet blog sites)

- Think of any media you have ever created?

Case Study-MySpace and ‘user generated content’

MySpace is a social networking site.

It specialises in ‘user generated content’. What does this mean?

Initially it began as version of MSN, wherebypeople could simply chat to each other.

It has now become a forum for debate, a promotionalspace to promote whatever product/service you have, or a place where you can post photos/messages etc.

My Space has been bought out by Rupert Murdoch’s News Corporation.

Lily Allen and MySpace

• It has been claimed that pop artist Lily Allen's fame is also due in part to her being promoted on MySpace.

• In response to an interview question "The way it's been portrayed in the media, is that you were almost like discovered by MySpace; how accurate is that?" Allen responded "Not accurate at all, I had a record deal before I set up my MySpace account so, erm, that ... couldn't really be further from the truth."

• Nevertheless, Allen's work was widely circulated and gained popularity due to her MySpace profile.

• Allen’s success reflects the ‘digital zeitgeist’ of her fans and is perhaps a benchmark for the future whereby artists can cut out the record industry A&R completely.

• Read article: ‘Mister Space Man’.