2. “The Digital Age”
• Analog to Digital
• Massive Paradigm Shift brought about by
“Disruptive Technology”
• Radically altering the:
• Creation
• Manufacture
• Distribution
• Consumption
• Discovery
OF MUSIC
3. History of Key Music Innovations
• 1800’s Sheet Music:
1800’s-
– Brought music to a mass audience
– E t bli h d th music publishing b i
Established the i bli hi business
• Late 1800s/Early 1900s- Phonograph and
Records:
– 1877 Th
1877: Thomas Edi
Edison develops th fi t working
d l the first ki
phonograph
– Now Pre-Recorded Music could be purchased
Pre Recorded
and played at home
– Record Label industry was born
4. History of Key Music Innovations
• 1910s-30s-
1910s 30s Public Radio Broadcasts:
– The first radio public radio broadcasts
– Live Music Performances were now widely available
• 1970’s- Early1980s- Magnetic Tape:
– More convenient; Smaller format
– Copying music becomes easier
• Early 1980’s-1990s- CDs:
– U S Record Labels were skeptical at first
U.S. ere
– Concerns about Higher Audio Quality and copying
5. History of Key Music Innovations
• Mid-1990s- MP3 File Format:
– Digital format
– Compresses music; retains high quality
– RIAA tried to suppress the spread of MP3s
s ppress
• L t 1990s-Early 2000s- P
Late 1990 E l 2000 Peer to Peer music is
t P i i
born:
– 18
18-year old Sh
ld Shawn F
Fanning d
i develops N
l Napster i
t in
his dorm room… changing the record label
industry forever
forever.
6. Key Music Innovations for Today
• Social Networking
• Mobile
• Apps/Widgets
• User-generated
User generated media/content
• Customization/Personalization
• Online/Digital Video
7. The “Old” Paradigm of Recorded Music
• The Recorded Music Industry focused on
the creation, manufacture and distribution
of physical product
f h i l d t
• Means of production controlled by
corporate entities- Top down system
• Massive profits concentrated in hands of
few
8. The New Paradigm of Recorded Music
• Global Adoption of
• The Internet
• Digital music files
• Peer to Peer sharing…
• …Radically restructured the recorded
music industry
• Music is an ENTREPRENURIAL business
again for the first time since the 1950’s
9. The New Paradigm of Recorded Music
• Passive consumption replaced by “conversations ”
conversations,
storytelling and co-creation
• Power and means of production shift to the
creators:
– Musicians, Writers AND Fans
• New Paradigm demands new business models
• Consolidation of wealth being challenged by
dispersed revenue streams
10. Who Survives in The New Paradigm?
• Fan-Focused; fan ownership -and co-creation
• Multiple streams of income
• Word of Mouth marketing
• Sales experts
• Experiential/Immersive Brand experiences
• Creative Business Models and Financing
Financing-
Sponsored Music; Crowdsourcing
• Technology Savvy
