Music & New MediaMusic & New Media

•Launched August 1981•Low cost to produce•Creating Video Clips•MTV Expanison in 1983 and 1986•VH1 launches in 1985•MTV Europe begins in 1987•Since 2000

• Shawn Fanning – 1999• 26 million users in 2001• Legal Trouble - DMCA• (1) users were directly infringing the plaintiff's

copyright; (2) Napster was liable for contributory infringement of the plaintiff's copyright; and (3) Napster was liable for infringement of the plaintiff's copyright.

• Napster shuts down July 2001

Today’s Market Structure

• The Record Labels• Five major recording

companies dominate the music industry– Universal Music Group,

Warner Music Group, Sony Music, BMG, and EMI

• Independents – “Indies”

• Take the risk of producing new groups (like Rock & Roll)

Warner MusicGroup

Impact of Piracy

One credible analysis by the Institute for Policy Innovation concludes that global music piracy causes:– $12.5 billion of economic losses every year– 71,060 U.S. jobs lost– a loss of $2.7 billion in workers' earnings– and a loss of $422 million in tax revenues– $291 million in personal income tax– $131 million in lost corporate income and production

taxes

The Decline

• Down by 25% since 2000

• 2000 – 785 million albums

• 2006 – 588 million albums

• 2000 – Top 10 sold 60 million albums

• 2006 – Top 10 sold 25 million albums

• Digital Sales are up

• Ringtone sales are up

i-Tunes on-line store

• 2001: legal music downloads

• Today – selling billions

• 75 million accounts – 6 billion downloads

• http://www.youtube.com/watch?v=thOBRe8-_W4

Internet Streaming

• Disproportionate Internet royalty rates• Internet broadcasters may have to cease

operations, citing SoundExchange's much higher royalty fee on Internet compared to satellite broadcast.

• By 2010, Internet radio stations will be expected to pay an estimated 2.91 cents per hour per listener, while satellite radio would pay a much lower 1.6 cents, and terrestrial radio is still ‘up in the air.’

Music & The New Media

• Music is sold to young people (how to pay)

• Today the Tech companies and consumers are now in power (not the Record Companies)

• Thousands of bands are being dumped by record companies

• Record sales are down by 50%

• Apple is King

Future of Music

• MP3 Glasses– http://oakley.com/electronics

• Bands creating relationships w/ fans– Through TV; Through clothing; fans email

what the list of songs will be

• Artists as Brands

Branding Artists

• Branding musical groups on the internet• http://www.andrewlipke.com/ • http://www.myspace.com/andrewlipke • http://www.drexel.edu/westphal/portfolio/?

pID=musc&id=404&pg=1&q=high • http://pennydistribution.wordpress.com/

2007/12/18/the-rise-fall-of-snocap-what-did-we-learn/

• After Napster - we have snocap• http://cdbaby.org/stories/07/10/19/0126457.html • cdbaby partners with snocap