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MUSIC INDUSTRY CRISIS

Is	
  your	
  digipak	
  really	
  going	
  to	
  sell?	
  
Music collection
•  For	
  most	
  of	
  the	
  20th	
  
     century	
  record	
  
     companies	
  made	
  
     money	
  by	
  selling	
  a	
  
     tangible	
  product	
  –	
  a	
  
     vinyl	
  disc	
  or	
  a	
  CD.	
  You	
  
     owned	
  music	
  by	
  having	
  
     a	
  disc	
  collecBon.	
  	
  
	
  
                                                                                 se?   	
  
                                                                 -ll	
  the	
  ca
                                                  Is	
  this	
  s
Changing tech
•  With	
  the	
  internet	
  the	
  music	
  industry	
  has	
  had	
  to	
  
   adapt	
  as	
  CD	
  sales	
  are	
  falling	
  each	
  year.	
  The	
  
   ‘product’	
  is	
  now	
  bought	
  online	
  as	
  a	
  single	
  song	
  or	
  
   album,	
  and	
  exists	
  only	
  as	
  an	
  item	
  on	
  an	
  iPod,	
  
   mobile	
  phone	
  or	
  computer.	
  	
                  In	
  20
                                                                     09
                                                             the	
  m 	
  as	
  much
                                                            onlin usic	
  dow 	
  as	
  95%	
  o
                                                                 e	
  wa            n                  f
                                                                           s	
  don loaded	
   	
  
                                                                                   e	
  ille
                                                                                             gally
                                                                                                  	
  
DISCUSSION



 Should	
  you	
  
pay	
  for	
  your	
  
  personal	
  
downloaded	
  
   music?	
  
VS.
•  Chief	
  execuBve	
  Simon	
  Fox	
  said	
  
   that	
  within	
  three	
  years	
  
   technology	
  would	
  become	
  its	
  
   single	
  biggest	
  product	
  
   category	
  ahead	
  of	
  both	
  CDs	
  
   and	
  DVDs.	
  It	
  plans	
  to	
  devote	
  
   25%	
  of	
  the	
  floor	
  space	
  to	
  MP3	
  
   players,	
  tablet	
  computers	
  and	
  
   headphones	
  as	
  the	
  CD	
  goes	
  
   the	
  way	
  of	
  other	
  defunct	
  
   formats	
  such	
  as	
  vinyl	
  and	
  
   tapes.	
  He	
  said	
  the	
  headphone	
  
   market	
  was	
  worth	
  £150m	
  with	
  
   Dr	
  Dre’s	
  Beats	
  selling	
  for	
  more	
  
   than	
  £300.’	
  
DE-COMMODIFICATION?
•  A	
  commodity	
  always	
  
   depends	
  for	
  its	
  status	
  and	
  
   its	
  value	
  on	
  it	
  relaBve	
  
   scarcity;	
  once	
  the	
  
   reproducBon	
  and	
  
   distribuBon	
  of	
  that	
  
   commodity	
  become	
  
   effecBvely	
  free,	
  then	
  it	
  
   necessarily	
  loses	
  that	
  
   value	
  and	
  that	
  status	
  
•  Jeremy	
  Gilbert	
  (Capitalism,	
  
   creaBvity	
  and	
  the	
  crisis	
  in	
  the	
  music	
  
   industry)	
  
Research and planning




     JOR VS.
 MA
        NDE NT S
IND EPE
2.	
  	
  	
  	
  	
  Who	
  are	
  the	
  big	
  4?	
  
                                            3.  What	
  do	
  they	
  own?	
  (what	
  
                                                              are	
  their	
  subsidiary	
  
                                                              labels?)	
  
                                            4.  Find	
  out	
  about	
  some	
  
                                                              Independent	
  labels	
  (you	
  
                                                              find	
  a	
  list	
  of	
  UK	
  one	
  here)	
  
                                            5.  In	
  your	
  groups	
  discuss	
  and	
  
                                                              suggest	
  labels	
  that	
  your	
  
                                                              arBst	
  could	
  be	
  signed	
  to	
  –	
  
1.  Research	
  the	
  difference	
                            provide	
  reasons	
  e.g.	
  how	
  
    between	
  Major	
  and	
                                 does	
  the	
  	
  arBst	
  fit	
  with	
  the	
  
    Independent	
  record	
  labels	
                         ideology	
  of	
  the	
  label	
  or	
  
    –	
  how	
  do	
  they	
  funcBon	
                       what	
  can	
  the	
  label	
  do	
  for	
  
    differently	
  within	
  the	
                             the	
  arBst?	
  
                                                                                                          s	
  on	
  
                                                                    Ensure	
  all	
  research	
  i
    music	
  industry?	
                                                                           4	
  is	
  
                                                                         your	
  blog	
  (1-­‐
                                                                                                         ).	
  Be	
  
                                                                     indepen     dent	
  work
                                                                                                               	
  #5	
  	
  
                                                                      prepared        	
  to	
  present
How will you combat de-commodification?
•  Consider	
  all	
  of	
  the	
  
   outlets/	
  placorms	
  were	
  

                                              VS.
   your	
  arBst	
  music	
  will	
  be	
  
   available.	
  
•  How	
  are	
  you	
  going	
  to	
  
   ensure	
  that	
  your	
  
   digipak	
  a	
  tangible	
  
   commodity	
  is	
  going	
  to	
  
   sell?	
  

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Music industry crisis

  • 1. MUSIC INDUSTRY CRISIS Is  your  digipak  really  going  to  sell?  
  • 2. Music collection •  For  most  of  the  20th   century  record   companies  made   money  by  selling  a   tangible  product  –  a   vinyl  disc  or  a  CD.  You   owned  music  by  having   a  disc  collecBon.       se?   -ll  the  ca Is  this  s
  • 3. Changing tech •  With  the  internet  the  music  industry  has  had  to   adapt  as  CD  sales  are  falling  each  year.  The   ‘product’  is  now  bought  online  as  a  single  song  or   album,  and  exists  only  as  an  item  on  an  iPod,   mobile  phone  or  computer.     In  20 09 the  m  as  much onlin usic  dow  as  95%  o e  wa n f s  don loaded     e  ille gally  
  • 4. DISCUSSION Should  you   pay  for  your   personal   downloaded   music?  
  • 5. VS. •  Chief  execuBve  Simon  Fox  said   that  within  three  years   technology  would  become  its   single  biggest  product   category  ahead  of  both  CDs   and  DVDs.  It  plans  to  devote   25%  of  the  floor  space  to  MP3   players,  tablet  computers  and   headphones  as  the  CD  goes   the  way  of  other  defunct   formats  such  as  vinyl  and   tapes.  He  said  the  headphone   market  was  worth  £150m  with   Dr  Dre’s  Beats  selling  for  more   than  £300.’  
  • 6. DE-COMMODIFICATION? •  A  commodity  always   depends  for  its  status  and   its  value  on  it  relaBve   scarcity;  once  the   reproducBon  and   distribuBon  of  that   commodity  become   effecBvely  free,  then  it   necessarily  loses  that   value  and  that  status   •  Jeremy  Gilbert  (Capitalism,   creaBvity  and  the  crisis  in  the  music   industry)  
  • 7. Research and planning JOR VS. MA NDE NT S IND EPE
  • 8. 2.          Who  are  the  big  4?   3.  What  do  they  own?  (what   are  their  subsidiary   labels?)   4.  Find  out  about  some   Independent  labels  (you   find  a  list  of  UK  one  here)   5.  In  your  groups  discuss  and   suggest  labels  that  your   arBst  could  be  signed  to  –   1.  Research  the  difference   provide  reasons  e.g.  how   between  Major  and   does  the    arBst  fit  with  the   Independent  record  labels   ideology  of  the  label  or   –  how  do  they  funcBon   what  can  the  label  do  for   differently  within  the   the  arBst?   s  on   Ensure  all  research  i music  industry?   4  is   your  blog  (1-­‐ ).  Be   indepen dent  work  #5     prepared  to  present
  • 9. How will you combat de-commodification? •  Consider  all  of  the   outlets/  placorms  were   VS. your  arBst  music  will  be   available.   •  How  are  you  going  to   ensure  that  your   digipak  a  tangible   commodity  is  going  to   sell?