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SOCIAL MEDIA AND
THE FUTURE OF THE MUSIC
INDUSTRY
Kaitlyn Barnes & Kyle Brownlee
Agenda
On today‟s agenda we will be discussing:
   Introduction
   Record labels and social media
   Social media and fame
   Copyright infringement
   Artist sharing
   User sharing
   Youtube and the music industry
   The financial side of the music industry
   Conclusion
Introduction
Currently a shift is taking place in the music
industry that it converting it from a time of
executives and artists into a time of artists
and fans. Fans can acquire music in brand
new ways through the advent of social media
and the public has also made a shift from
listeners to producers, now in charge of
creating their own media as well.
We will be discussing the major changes in
the music industry thus far, relating to social
media and how they impact how the world
gathers music as well as how the music
industry will grow in the future.
The Music Industry: From Then
„til Now




                                Kaitlyn
The Music Industry: From Then
„til Now




http://thetecnica.com/2012/08/the-state-music-industry-pics-   Kaitlyn
2012
Record Labels and Social Media
The transition from record labels to recording it yourself.
Control of the Music Industry
In the past, record labels held influence
on what musicians became popular
and when their content was released to
the public.

Now, there is a focus on independent
artists releasing their content without
representation, online distribution, and
the use of social media as a platform to
become famous.
Motown Records
                                                              An example of the control that record
                                                              labels had in the past is Motown
                                                              Records. In the 1960‟s Motown
                                                              Records was a major label that
                                                              controlled all aspects of an artist‟s
                                                              career.
                                                              The had a “factory-like” system that
                                                              worked as a production line for their
                                                              artists.
                                                              If the artists did not pass each phase
                                                              of the “inspection” then their songs
                                                              were not released.
http://www.guardian.co.uk/music/musicblog/2010/nov/26/behind-music-motown-pop-
factory
Motown Records
  This led to well-polished artists whose songs
  sounded perfect. If the label was not sure the
  song would become a #1 hit, it would not be
  released
  This process led to the “Motown Sound”,
  which was very distinct and recognizable.
  An example of this intense process is Marvin
  Gaye‟s “ I Heard it Through the Grapevine”. It
  was rejected the first few times going
  through the machine, as it was not deemed
  good enough.
http://2or3lines.blogspot.co.uk/2011/02/marvin-gaye-i-heard-it-through.html
The Music Industry Now
Now, labels have less of an influence on the
music industry because everyone is their own
producer and anyone can upload a video the
Youtube and have it become a hit.
As well, an established band can go
independent, cutting out the need for a record
company.
There is no longer a larger power that is in
charge of the content being distributed to the
people.
Social Media and Fame

A major aspect of this shift away from record companies
is the idea of the consumers of the media becoming the
producers.
Anyone who has access to the internet can post a video
or mp3 of them singing and could potentially become a
star.
Access to recording equipment and technology has never
been easier and leads to an influx of consumer-made
media.
http://www.youtube.com/watch?v=c_iN_QubRs0
Example: Justin Bieber
Just look at the example of Justin                                                       Just this summer he played a
Bieber. Justin Bieber posted videos                                                      large part in the popularity of the
                                                                                         summer hit “Call Me Maybe” by
of him singing on Youtube and                                                            Carly Ray Jepsen by posted a
attracted the attention of singer                                                        video of him and his friends lip-
Usher who signed him to his record                                                       syncing to the song and the video
label. He is now a very successful                                                       went viral.
musical artist and continues to                                                          His version and the original
                                                                                         became                  very           popular, Ms.
influence pop culture with his
         http://www.billboard.com/#/news/usher-introduces-teen-singer-
         justin-bieber-1003966989.story                                                  Jepsen‟s having 212 million views
presence online.                                                                         on Youtube.
                                                                                         Her song was on the top of the
                                                                                         charts for 9 weeks this summer.
                                                                                         This was made possible all
                                                                                         through the influence of social
                                                                         http://www.nytimes.com/2012/08/22/business/media/how-call-me-
                                                                                         media such as Youtube and
                                                                         maybe-and-social-media-are-upending-music.html?_r=0
Artists Releasing Music
      An example of         Any artist can now release their music separate from the
      this is Prince. He    record label by distributing it online. Using websites such as
      released his
      album Planet          MySpace, Facebook, Spotify, and Youtube, artists can get
      Earth for free in a
      U.K                   their music into the hands of their fans without having to go
      newspaper/online
      .                     through a middle-man. This marks a huge shift in power in
                            the music industry from the record executives to the artists
      While, he may
      have not have         and the fans.
      made any money
      off of the album                   While it seems as though it may hurt the artist to release their
      by cutting out the
      middleman, all of                  content online, in a time when illegal downloading is so
      his concert dates
      for the tour were                  popular, it seems the opposite is true. Artists are able to
      sold out.                          connect with their fans through social media and as a result,
                                         concert sales tend to be steady, even if the album is cheaper
http://www.time.com/time/arts/article/0,8599,1666973,00.htm for free online.
                                         or available
Social Media, Fame and the
Future
Gone are the days when the executives at
an record label such as Motown Records
would decide who could be a star. Now,
anyone can have a hit song, all they have to
do is record it and post it on Youtube or
another social media site.
This seems to be the pattern for the future as
well. It is more than likely that everyone will
use social media for their music and the
need for these „middlemen‟ will continue to
deteriorate.
COPYRIGHT
                     INFRINGEMENT
How does illegal downloading and distribution of music through social
media affect the music industry?
Copyright Infringement
Copyright Infringement is one of the most         Contrary to believing that piracy is a
popular topics in the music industry and          completely negative aspect of the music
government.                                       industry, the study that Columbia
                                                  University conducted also reports that
File-sharing and illegal distribution of music    file-sharers purchase nearly 30% more
has increased due to the boom in social           music than social media users who do
media in the last decade.                         not partake in file-sharing.
Since the popularity of social media still lies   This essentially means that file-sharing
dominantly in the younger generation opposed      consumers are the best and most active
to the popularity with adults, a Columbia         customers although they distribute
University study has been conducted               music and infringe copyright.
concluding young adults aged 18-29 are more
commonly pirating music than people aged
29+.
Popular BitTorrent websites now include public
forums, where piracy is openly discussed and
shared. These sites can also be integrated with                                        Kyle
Copyright Infringement




These graphs provide interesting and valuable information. Although on nearly opposite sides
of the world, the patterns in both the US and Germany have correlations to each other. The
young adult sector downloads the most illegally across both nations. However, in the US,
there are still more consumers that are buying music than Germany in all ages. This may be
because of how social media and peer-to-peer networks differ in nation to nation.
Fighting Copyright Infringement – Corporate
Sharing
                       Spotify is a social media platform partially owned
                       by the music industry. Based in Europe that has
                       helped turn copyright infringement into a positive
                       alternative to illegal downloading and distribution
                       of music.
                       Spotify steams millions of songs to users via peer-
                       to-peer networks instead of servers, the same way
                       illegal file sharing sites distribute files.
                       The corporate sharing platform uses this social
                       media technique to generate revenue for company
                       itself and record labels. 70% of Spotify‟s revenue is
                       paid out in royalties.
                       Social media has now become the music
                       industry‟s most valuable tool in generating
                       revenue, but unfortunately and simultaneously,
Music Industry‟s Defense against
Piracy
Social Media has had massive impact on
potentially dangerous laws that were
presented in a positive way to combat
copyright infringement.
In the United States, SOPA (Stop Online
Piracy Act) was introduced on October
26, 2011. It was made to prevent
copyright infringement, but was so
detailed while maintaining vague
statements that it would even infringe
freedom of speech.
The Recording Industry Association of
America (RIAA) played a massive role in
trying to get this bill passed silently.
Social media networks made a lot of
noise.
                                           Kyle
Social Media vs. Music Industry




The power of social media demonstrated the first planned “Internet Blackout”. The Internet
Blackout was a day where all websites who participated would either shut down completely, or
inform visitors of SOPA on the front page. Social networks impacted websites that were not social
networks. The massive scale of Facebook, Twitter, Reddit, and LinkedIn gave notice to
                                                                                            Kyle
Social Media Prevails
                The bill was retracted by Lamar
                 Smith, the representative that
                 introduced the bill due to the
                        extreme protests.

                 The government and the music
                industry were not able to stand
                up to the power of social media,
               companies, and the users behind
                  every Facebook profile and
                        Twitter account.
                                                   Kyle
Radiohead – Artist Sharing
A prime example of where the music industry is heading
was demonstrated by Radiohead in 2007 when they
released their album “In Rainbows” as a digital
download. Instead of charging for the album, they
included a notification that said “IT‟S UP TO YOU”,
regarding how much the customer would want to pay, free
being an option.
Radiohead‟s digital release went viral around the internet
and in the music industry through social media platforms.
Thousands of articles and posts were made on Facebook
and Twitter.
Months later when the band released a physical copy of In
Rainbows, it still sold three million copies within the year
of release.
Social media helped spread word about the album. They
were able to help the fans get the music they created, and
still generate revenue for Radiohead.                          Kyle
User Sharing: BitTorrent
                  Users who share music via peer-to-peer
                  methods (which infringe copyright and are illegal)
                  usually utilize a relatively new form of downloads
                  called Torrents. BitTorrent is a system that
                  allows multiple people to share files directly.

                  It is the most common peer-to-peer method for
                  downloading, and currently the largest
                  supporting backbone of piracy against the
                  music industry along with many others.

                  Websites such as isohunt.com and
                  thepiratebay.se are the largest torrent websites
                  on the internet and include public forums and
                  profiles allowing for a social media platform for
                  illegal file sharing.
                                                           Kyle
User Sharing:
An even more social approach for the music
industry is a network called Last.fm. Last.fm
allows you to create a profile and download a
program that will automatically update your
profile with songs and artists you listen to.

You can then find and connect with users who
have similar or opposite tastes and find new
music, friends, or online groups who share the
same musical interests as you.

The program will live stream a signal to your
Last.fm profile page and tell your friends and
fans what you are currently listening to in real
time, and allow you to find others who are
listening to the same artist at the same time
around the world.                                  Kyle
User Sharing:
YouTube is one of the most popular social networks in the
world, and has arguably had the largest effect on the music
industry since the era of the internet.




                                                              Kyle
YouTube
How has YouTube affected the music industry to date, and what will the
future of YouTube bring to the table?
YouTube & The Music Industry
Since YouTube is a website that reaches 3 billion page hits per day, the
social media aspect of the website can nearly be classified as a global
media. YouTube is now a frontier of the Internet.
Clay Shirky describes in his TED Talk about consumers and users being
producers as well. YouTube is a prime example of where this statement
becomes a fact.
This social media platform now allows users to upload video of anything,
regardless of content. It could be for an audience of one, or hundreds of
millions. The people who use YouTube are also providing YouTube with
their content, allowing for viral exposure and exponential growth and hits
on videos.
Experts on the music industry and YouTube do not know what the
outcome for the future may be, and the predictions vary. There are of
course positives and negatives for YouTube and the music industry
working together or apart.
We can begin to identify these positives and negatives based on real         Kyle
YouTube‟s Stance
          Artists and record labels have the option to upload their music or music
          videos to YouTube. They can then enable an option to monetize their
          video and start to generate revenue through advertisements.
          Advertising is one of the largest markets in the entire world, which is a
          great way for YouTube to be profitable for the company itself and the
          uploader and owner of the content.
          YouTube executives state that record labels who decide to pursue the
          social media monetization of videos generate a 200-300% increase in
          revenue. Traffic increases on YouTube and stronger advertisements
          allow more money to be made per video watched. Specific advertising
          formulas and techniques allow relevant advertisements to appear so
          audiences tend to not mind the ads as much. Some of the larger
          partners YouTube has make millions of dollars per month.
          The best part? The more content and original music they upload, the
          more money they make. A social media platform has successfully
          provided income for the hurting music industry, income for YouTube,
          and free music for audiences.
                                                                             Kyle
YouTube: Copyright Infringement &
       Future
YouTube also includes a “Content ID System”. This system allows
copyright holders to either allow or disallow their music to be uploaded
to YouTube for any use at all. The system scans every YouTube video
upon upload to find any songs in their database, and will strip the
music off the video before it is published.
So, YouTube help the music industry make money, protect their
copyrighted work, and stream songs for free with the viewing of a
quick advertisement? What isn‟t to like?
The future for YouTube and the music industry looks good. The social
media aspect of YouTube allows for people to link videos within videos,
feature videos on a different channel and advertise their own video or
music to people who may enjoy it. Music videos and videos containing
songs give audiences around the world the opportunity to speak their
mind about the song, and share opinions with others.
So, what are the other benefits for the music industry to participate in
the growth of social media?                                                Kyle
YouTube: Viral Exposure
           A common term that appears on the Internet regarding popular content is
           called viral. Recently in social media, content going viral means that
           content gaining massive attention, very quickly, and retaining the mass
           audience for a long time.
           Nobody chooses what goes viral or gets popular except the masses of
           users of social media. The music industry can in turn hope to go viral to
           generate massive revenue.
           Since YouTube is the most popular video hosting website, the videos
           posted on YouTube are often linked and embedded in even more social
           networks such as Facebook, Twitter, tumblr etc., therefore creating an
           extremely large potential audience.
           Rebecca Black‟s song called “Friday” was uploaded to YouTube in
           February 2011, and only had 1,000 views in the first month. It went viral
           the following month because of how terrible the song and video was. To
           date, it has accumulated ~43.7 million views. The revenue and popularity
           generated from the viral effect of the video (regardless of the quality of
           song) kick started Rebecca‟s career in music.                   Kyle
YouTube: Viral Exposure
Viral exposure was never possible until social
media became a near standard for digital
communication. Now that YouTube has
integrated services with other social networks,
the chances for viral exposure and musical
success stories have been greatly increased.
This is a huge market for the music industry to
pursue in the future.
Another great example is “Gangnam Style” by
PSY. Uploaded only three months ago,
Gangnam Style has ~801 million views to
date and became viral through social media.
Memes and parodies of Gangnam Style
helped quickly build the viral fame.              Kyle
YouTube: VEVO & Music Industry
Adaptation
                   VEVO is a music video website largely known in the music
                   industry. It is run by Sony Music Entertainment (SME),
                   Universal Music Group (UMG) and EMI Music.
                   The music industry started using Vevo in December of 2009,
                   and became an extremely popular music website. Since
                   most of the music industry today is owned by one of these
                   companies, most artists and record labels attribute their
                   name to a “Vevo” account on YouTube.
                   Vevo became a social media experiment which proved to
                   be successful. The name VEVO now appears on most
                   popular artists YouTube page and essentially built a brand
                   for quality and social networking. Vevo‟s Twitter account has
                   nearly 10,000 tweets notifying followers of new videos,
                   music, and content that can be found all on YouTube via
                   Vevo‟s channel or the specific artist‟s Vevo channel.
                   YouTube and Google partnered with Vevo to create a more
                   personalized and social experience for digital music on the
                   Internet.                                                Kyle
YouTube: Musicians
For musicians, YouTube is one of the best platforms
they can use to further their career or hobby. YouTube
has a sign up option where you can choose your account
to be a “Musician” account. In this account, you have
many new options and features that you can utilize.
Creating playlists, labeling tracks and putting all of the
artist or band info on the users channel are just some of
them.
Users can subscribe to their channel and get instant
notifications to their phones that a new song or video
update has been released. Musicians can upload their
songs, music videos, “lyric videos” (which show the lyrics
on the video as the song progresses, tour updates, studio
updates and even hold contests.
You can now find indie and amateur pieces of music on
YouTube with a simple category search. Even Justin
Bieber was found on YouTube in 2008. Social media and        Kyle
YouTube: Mobile
                  With the digital revolution coming hand in hand with
                  social media, using smart phones for Internet access has
                  become very common.
                  By using the Cloud to host music, it is available
                  anywhere with an Internet connection. YouTube is
                  enabling users to get music for free, regardless of where
                  they are. The music industry has changed to a download
                  on demand basis.
                  YouTube applications for iOS, Android etc, combined with
                  mobile websites gather a total of 600 million hits per day
                  – and that‟s only 6.7% percent of the total views that
                  YouTube gets per day (4 billion).
                  The number of mobile hits will only continue to rise as
                  smart phones decrease in price and become more
                  common. The music industry will be able to put music,
                  music videos, updates, and content in the hands of any
                                                                   Kyle
                  consumer with the power of a couple clicks and taps.
YouTube: Music Industry
      Changes
The music industry has already began to adapt and            The audience for music videos have been greatly
integrate the services of social media into their business   increased. Since the destruction of music videos being
model to attempt to successfully rebuild the industry.       played on television for reality shows and other news
                                                             content, YouTube has become the major platform for
There is no set formula or certain way to tackle social
                                                             music videos. Even if the audience is just looking for the
media and YouTube for the music industry, since social
                                                             song, they are more likely to click on the official music
media and YouTube is still constantly changing. There is
                                                             video version, even if they minimize the tab and do not
no perfect balance yet. In the future, the music industry
                                                             watch, and just listen.
will be able to determine what works, and what doesn’t
work when there has been enough research.                    However, one of the downfalls the music industry is
                                                             heading towards is the loss of art. YouTube is slowly
YouTube has changed music in a variety of ways. The
                                                             making music disposable because certain music is being
most dominant is Cloud based streaming instead of using
                                                             over produced and populated to become a promotional
MP3s. Older songs in the 70s and 80s are being reborn
                                                             tool. Audiences are less likely to think about the artistic
into the digital age daily.
                                                             value of the song when they‟re distracted by an
YouTube is now an embedded platform, allowing videos         advertisement at the beginning, or have recycled music
and music to be taken to the audience instead of the         being pumped through YouTube too often.
audience coming to YouTube.
                                                                                                              Kyle
The Financial Side of the Music Industry
Who is making money now? How are they doing it?
Finances




With the change in the music industry from record labels to Youtube to
the prevalence of copyright issues and the dissolution of record
companies, we must ask, who is making money? Is the music industry
still profitable? Will it be in the future?
Money: Where‟s it coming from,
   where‟s it going?
  The money for the music industry is                          The money is going to:
  coming from:                                                    Labels
      Internet radio sites                                       Recording artists
      iTunes                                                     Songwriter
      Social media (Youtube, Vevo)                               Retailer or Company (such as
      CDs                                                         Apple)
      Subscription Services



http://www.rollingstone.com/music/news/the-new-economics-of-
the-music-industry-20111025
Who is Making Money
Internet Radio Sites
As you can see from the diagram on the right,
the record label is getting the majority of the
sales from internet radio sites such as
Pandora or Slacker. After the record label gets
their cut then the recording artist will get 45%
of the sales and any featured artist will get
5%.
Internet radio typically pays $0.001per stream
of a song.
http://www.rollingstone.com/music/news/the-new-economics-of-the-
music-industry-20111025?page=4
Who is Making Money
     iTunes
     With iTunes, the breakdown is similar to
     that of internet radio. The label is paid the
     most, $0.60 of the $1.29 song, the only
     difference being that after the label, Apple is
     the one who gets paid the most. Apple will
     take $0.40 of that $1.29 song leaving $0.29
     remaining for the recording artist and the
     songwriter.


http://www.rollingstone.com/music/news/the-new-economics-of-
the-music-industry-20111025?page=2
Who is Making Money
       Social Media
       On social media sites such as Youtube,
       an artist is given $1 for every 1000 views.
       This venue is especially valuable if an
       artist is independent, free from a record
       label. An artist can upload videos of their
       material and as long as they are getting
       views, they are making money. There is a
       potential for having no middleman and
       still making a decent amount of profit.

http://www.rollingstone.com/music/news/the-new-economics-of-the-music-
industry-20111025?page=3
Who is Making Money
   CDs
   The financial aspect of CD sales are
   very similar to those of iTunes sales.
   The majority goes to the record label
   and then the retailer selling the CD gets
   a large chunk of the remaining sales of
   the CD. The recording artist then gets
   $1.93 of the $17.98 the CD was sold for,
   and the songwriter gets $0.91.


http://www.rollingstone.com/music/news/the-new-economics-of-the-
music-industry-20111025?page=5
Who is Making Money
        Subscription Services
        In order for anyone to make money
        off of a subscription service such as
        Spotify or MOG the artist‟s song
        must be listened to at least 60 times.
        Once this has occurred the label and
        the recording artist are paid $0.19
        and the songwriter is paid $0.09.
        This is the only media outlet where
        the label and the recording artist are
        getting paid the same amount of
        money.
http://www.rollingstone.com/music/news/the-new-economics-of-the-music-
industry-20111025
Finances and the Future
As you can see from the different outlets available for buying
music, it is clear that the record labels are making the most money
off of the sales of artist‟s songs. This is something that has been
happening for many decades and is an excellent indicator of why
the music industry is shifting the way it is.
Artist‟s want to make the most they can on their material and they
want their fans to pay a reasonable amount. This cannot happen if
the money is being divided amongst a large amount of
people/companies.
The cost of music will continue to go up in order to pay the labels,
recording artists, songwriters and companies associated with
distributing the music. If an artist is able to release their music
online, directly to their fans, essentially cutting out the need for
these middlemen, it seems like the price may go down for the
fans, and the respect for the artist may go up. Radiohead and
Prince have both shown examples of this being done effectively.
Finances and the Future
It is also clear, just from the numbers on those charts that indicate the cost per song or
album ($1.29 and $17.98 respectively) why people would download the songs illegally
or stream them online over Youtube, etc. as opposed to buying the song or full album.
In the future, it seems likely that the public will continue to download their music
illegally or through outlets such as Youtube in order to avoid the large fees associated
with buying albums.
If artists are able to connect to their fans via social media and release their album that
way, fans may be more receptive to it, seeing as the profits go directly to the bands
they love. It seems as though the landscape of the music industry will continue to shift
this way in the future in order to connect to the public via social media and convince
them to continue buying albums.
Conclusion
In conclusion, the music industry is currently changing immensely. There is a shift from record labels having all of
the control to the artists having control if they use social media to their advantage. Anyone can use social media in
order to express their creativity and produce music that is available to the public. There is no longer a string of
channels that someone must go through in order to get their music to the public‟s ears. Youtube and other social
media sites play a huge role in giving everyone, from a nobody at his computer to a famous artist, the chance to
distribute material online and become somebody. Laws are prevalent in the music industry right now and are
something that everyone must be aware of. In this time where Youtube and sharing music is increasingly popular,
copyright laws are more important than ever. With the increase of technologies used to download music there is a
fight over finances and who gets paid. This is a continual struggle for artists to escape the grasp of the record
labels and provide entertainment at a fair rate to them and to their fans.


The future of the music industry and social media seems to balance on how well the people can use social media
to their advantage. If everyone continues to take advantage of the opportunities that social media presents for the
music industry then it seems likely that in the next 10 years or so, we will be finding out about and purchasing our
music through social media sites more than any other medium.
Annotated Bibliography
    "2 or 3 Lines (and so Much More)." Marvin Gaye. N.p., n.d. Web. 10 Nov. 2012.
              http://2or3lines.blogspot.co.uk/2011/02/marvin-gaye-i-heard-it-through.html
This article talks about Marvin Gaye and how his song “I Heard it through the grapevine” went
through a rigorous process at Motown Records before it was released to the public. This is a great
example of how intense their quality control program was.
    "35 Mind Numbing YouTube Facts, Figures and Statistics †“ Infographic." Jeffbullass Blog.
     N.p., n.d. Web. 01 Nov. 2012. <http://www.jeffbullas.com/2012/05/23/35-mind-numbing-youtube-
     facts-figures-        and-statistics-infographic/>.
I used this source for the infographic they provided. All the information is credible and provides a
visual learning experience to help communicate the sheer mass of YouTube and how social media
interacts with YouTube, such as Twitter and mobile devices.
    "Billboard - Music Charts, Music News, Artist Photo Gallery & Free Video." Billboard. N.p., n.d.
     Web. 01               Nov. 2012. <http://www.billboard.com/>.
This article is about Justin Bieber and his rise to fame. He is a perfect example of someone who was
discovered on Youtube and is now a major star. His story is a great one to tell when discussing the
power of social media.
Annotated Bibliography
    "BIO." Rebecca Black. N.p., n.d. Web. 01 Nov. 2012.
     <http://rebeccablackonline.com/?page_id=61>.
I used the official Rebecca Black website to get information and background about her success and
how social media and the music industry swooped her up within months. It is obviously the most
accurate source for this information so I picked this above other biographies.
    "Clay Shirky: How Cellphones, Twitter, Facebook Can Make History." YouTube. YouTube, 16
     June 2009.          Web. 20 Nov. 2012. <http://www.youtube.com/watch?v=c_iN_QubRs0>.
This TED talk video by Clay Shirky discusses how social media is becoming so popular in our society
that now anyone with access to a computer and the internet has the opportunity to become famous.
    "Evolver.fm." Evolverfm Free Music Can Pay As Well As Paid Music Says YouTube Comments.
     N.p., n.d. Web.     01 Nov. 2012. <http://evolver.fm/2011/02/02/free-music-pays-as-well-as-paid-
     music-says-         youtube/>.
I used Evolver as a source because it had insider information with YouTube‟s executives on how
royalties are paid to record labels and artists in the music industry via video monetization. It also
includes statistics and information about the evolution of YouTube and how using YouTube and it‟s
social media platform can help revive the music industry.
Annotated Bibliography
    "In Rainbows Reviews, Ratings, Credits, and More - Metacritic." In Rainbows Reviews, Ratings,
     Credits, and         More - Metacritic. N.p., n.d. Web. 01 Nov. 2012.
     <http://www.metacritic.com/music/in-          rainbows/radiohead>.
This article clearly describes how Radiohead correlates to an artist sharing their music, providing
insight to the possible future about what is going to happen in the future of the music industry, and
how more artists may begin to take this route.
    "In The NME Office." NME.COM. N.p., n.d. Web. 01 Nov. 2012.
             <http://www.nme.com/blog/index.php?blog=10>.
I used this source because it‟s more of an informal but accurate blog. It had real down to earth
answers about how YouTube is changing music and how the music industry is adapting. It proved to
be a very insightful article.
    "Justin Bieber Makes Them Proud. But Why?" Vancouver Observer. N.p., n.d. Web. 01 Nov.
     2012. <http://www.vancouverobserver.com/politics/news/2010/12/24/justin-bieber-makes-them-
             proud-why>.
I used this source because it dates back to the entry of Justin Bieber into the music industry. It
includes information about how he got discovered on YouTube and how he burst to fame in a matter
of weeks due to social media.
Annotated Bibliography
    Lindvall, Helienne. "Behind the Music: Motown: A Pop Factory with Quality
     Control." The    Guardian. Guardian News and Media, 26 Nov. 2010. Web. 01 Nov.
     2012. <http://www.guardian.co.uk/music/musicblog/2010/nov/26/behind-music-
     motown-          pop-factory>.
This article provided an excellent overview of how Motown Records ran when it was in
its prime in the 1960s. This is important for our social media project because we must
note the differences between how things were run in the past and how the music
industry runs now.
    PSY Biography." AceShowbiz. N.p., n.d. Web. 01 Nov. 2012.
           <http://www.aceshowbiz.com/celebrity/psy/biography.html>.
I used this biography of Psy because Psy himself verified the information via a reddit
Q&A session. Information about Gangnam Style was gathered as well.
    "Rebecca Black Friday." YouTube. N.p., n.d. Web. 01 Nov. 2012.
           <http://www.youtube.com/watch?v=kfVsfOSbJY0>.
Here is the link to Rebecca Black‟s Friday video mentioned.
Annotated Bibliography
   Schiesser, Tim. "Trivia Tuesday: Some Facts About Bittorrent." Neowin.net. N.p., 27 Dec. 2011. Web. 01
    Nov. 2012.           <http://www.neowin.net/news/trivia-tuesday-some-facts-about-bittorrent>.
I used this source because NeoWin is an established and very community driven website with reputable
articles. The facts displayed about Torrents and BitTorrent are given in an unbiased view and provide
information about the legitimacy of torrents and the piracy side of torrents.
    Sisario, Ben. "The New Rise of a Summer Hit: Tweet It Maybe." The New York Times. The New York
     Times, 22 Aug. 2012. Web. 12 Nov. 2012. <http://www.nytimes.com/2012/08/22/business/media/how-
     call-me-maybe-and-social-media-are-upending-music.html?_r=0>.
This article discusses how social media is influencing the music that we hear on the radio. When a song
becomes popular on Youtube, that is now enough of an influence to push the song onto the billboard charts
and onto the radio for us to hear.
    Smith, Catharine. "Online Piracy: Youth Shaping Future Of Online TV, Movies, Music." The Huffington
     Post. TheHuffingtonPost.com, 18 Feb. 2012. Web. 01 Nov. 2012.
             http://www.huffingtonpost.com/2012/02/18/online-piracy-youth_n_1286911.html
I chose The Huffington Post article on youth and young adult piracy because of the credibility Huffington Post
provides. There are valid points about how the Youth is shaping the future of media and how things will
change based on the youth demographic.
Annotated Bibliography
    "The New Economics of the Music Industry." Rollingstone.com. N.p., n.d. Web. 12 Nov. 2012.
             <http://www.rollingstone.com/music/news/the-new-economics-of-the-music-industry-
             20111025?page=4>.
This article provides an extensive look into the current financial side of the music industry. It is
important to see how the finances have changed since the advent of social media and to note who is
getting paid the most and where the money is coming from.
    "The State of the Music Industry." TheTenica. N.p., 01 Aug. 2012. Web. 28 Oct. 2012.
             <http://thetecnica.com/2012/08/the-state-music-industry-pics-2012>.
This source has a very entertaining cartoon about where the music industry was in the past, where it
is now, and where it will be in the future. It seemed like a good way to start off the presentation which
is why it was included.
    "TorrentFreak." TorrentFreak RSS. N.p., n.d. Web. 01 Nov. 2012. <http://torrentfreak.com/file-
     sharers-buy-         30-more-music-than-non-p2p-peers-121015/>.
I used this TorrentFreak article because it provided a very informative insight into peer-to-peer file
sharing including unexpected positive information about the topic.
Annotated Bibliography
   "TorrentFreak." TorrentFreak RSS. N.p., n.d. Web. 01 Nov. 2012. <http://torrentfreak.com/spotify-a-
    massive-p2p-network-            blessed-by-record-labels-110617/>.
I used this TorrentFreak article because of information about Spotify, and the expansion of peer-to-peer
networks that the music industry actually supports.
   Tyrangiel, Josh. "Radiohead Says: Pay What You Want." Time Magazine. N.p., 01 Oct. 2007. Web. 01
    Nov. 2012.            <http://www.time.com/time/arts/article/0,8599,1666973,00.html>.
This article provides the example of Prince and how he distributed his album through a free newspaper. The
unconventional method avoided going through his publishers and yet he still sold out all of his concert dates
on the tour associated with the album.
   "Vevo." Twitter. N.p., n.d. Web. 01 Nov. 2012. <https://twitter.com/#!/vevo>.
Here is the mentioned Twitter account for Vevo.
   "Where Do Music Collections Come From?" Media Piracy The American Assembly. N.p., n.d. Web. 01
    Nov. 2012.            <http://piracy.americanassembly.org/where-do-music-collections-come-from/>.
I chose this article because of the great infographic material. American Assembly is a very good credible
source that holds great discussion and statistics. The facts about piracy of music are great information on
how music is being pirated around the world.

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Social media final

  • 1. SOCIAL MEDIA AND THE FUTURE OF THE MUSIC INDUSTRY Kaitlyn Barnes & Kyle Brownlee
  • 2. Agenda On today‟s agenda we will be discussing:  Introduction  Record labels and social media  Social media and fame  Copyright infringement  Artist sharing  User sharing  Youtube and the music industry  The financial side of the music industry  Conclusion
  • 3. Introduction Currently a shift is taking place in the music industry that it converting it from a time of executives and artists into a time of artists and fans. Fans can acquire music in brand new ways through the advent of social media and the public has also made a shift from listeners to producers, now in charge of creating their own media as well. We will be discussing the major changes in the music industry thus far, relating to social media and how they impact how the world gathers music as well as how the music industry will grow in the future.
  • 4. The Music Industry: From Then „til Now Kaitlyn
  • 5. The Music Industry: From Then „til Now http://thetecnica.com/2012/08/the-state-music-industry-pics- Kaitlyn 2012
  • 6. Record Labels and Social Media The transition from record labels to recording it yourself.
  • 7. Control of the Music Industry In the past, record labels held influence on what musicians became popular and when their content was released to the public. Now, there is a focus on independent artists releasing their content without representation, online distribution, and the use of social media as a platform to become famous.
  • 8. Motown Records An example of the control that record labels had in the past is Motown Records. In the 1960‟s Motown Records was a major label that controlled all aspects of an artist‟s career. The had a “factory-like” system that worked as a production line for their artists. If the artists did not pass each phase of the “inspection” then their songs were not released. http://www.guardian.co.uk/music/musicblog/2010/nov/26/behind-music-motown-pop- factory
  • 9. Motown Records This led to well-polished artists whose songs sounded perfect. If the label was not sure the song would become a #1 hit, it would not be released This process led to the “Motown Sound”, which was very distinct and recognizable. An example of this intense process is Marvin Gaye‟s “ I Heard it Through the Grapevine”. It was rejected the first few times going through the machine, as it was not deemed good enough. http://2or3lines.blogspot.co.uk/2011/02/marvin-gaye-i-heard-it-through.html
  • 10. The Music Industry Now Now, labels have less of an influence on the music industry because everyone is their own producer and anyone can upload a video the Youtube and have it become a hit. As well, an established band can go independent, cutting out the need for a record company. There is no longer a larger power that is in charge of the content being distributed to the people.
  • 11. Social Media and Fame A major aspect of this shift away from record companies is the idea of the consumers of the media becoming the producers. Anyone who has access to the internet can post a video or mp3 of them singing and could potentially become a star. Access to recording equipment and technology has never been easier and leads to an influx of consumer-made media. http://www.youtube.com/watch?v=c_iN_QubRs0
  • 12. Example: Justin Bieber Just look at the example of Justin Just this summer he played a Bieber. Justin Bieber posted videos large part in the popularity of the summer hit “Call Me Maybe” by of him singing on Youtube and Carly Ray Jepsen by posted a attracted the attention of singer video of him and his friends lip- Usher who signed him to his record syncing to the song and the video label. He is now a very successful went viral. musical artist and continues to His version and the original became very popular, Ms. influence pop culture with his http://www.billboard.com/#/news/usher-introduces-teen-singer- justin-bieber-1003966989.story Jepsen‟s having 212 million views presence online. on Youtube. Her song was on the top of the charts for 9 weeks this summer. This was made possible all through the influence of social http://www.nytimes.com/2012/08/22/business/media/how-call-me- media such as Youtube and maybe-and-social-media-are-upending-music.html?_r=0
  • 13. Artists Releasing Music An example of Any artist can now release their music separate from the this is Prince. He record label by distributing it online. Using websites such as released his album Planet MySpace, Facebook, Spotify, and Youtube, artists can get Earth for free in a U.K their music into the hands of their fans without having to go newspaper/online . through a middle-man. This marks a huge shift in power in the music industry from the record executives to the artists While, he may have not have and the fans. made any money off of the album While it seems as though it may hurt the artist to release their by cutting out the middleman, all of content online, in a time when illegal downloading is so his concert dates for the tour were popular, it seems the opposite is true. Artists are able to sold out. connect with their fans through social media and as a result, concert sales tend to be steady, even if the album is cheaper http://www.time.com/time/arts/article/0,8599,1666973,00.htm for free online. or available
  • 14. Social Media, Fame and the Future Gone are the days when the executives at an record label such as Motown Records would decide who could be a star. Now, anyone can have a hit song, all they have to do is record it and post it on Youtube or another social media site. This seems to be the pattern for the future as well. It is more than likely that everyone will use social media for their music and the need for these „middlemen‟ will continue to deteriorate.
  • 15. COPYRIGHT INFRINGEMENT How does illegal downloading and distribution of music through social media affect the music industry?
  • 16. Copyright Infringement Copyright Infringement is one of the most Contrary to believing that piracy is a popular topics in the music industry and completely negative aspect of the music government. industry, the study that Columbia University conducted also reports that File-sharing and illegal distribution of music file-sharers purchase nearly 30% more has increased due to the boom in social music than social media users who do media in the last decade. not partake in file-sharing. Since the popularity of social media still lies This essentially means that file-sharing dominantly in the younger generation opposed consumers are the best and most active to the popularity with adults, a Columbia customers although they distribute University study has been conducted music and infringe copyright. concluding young adults aged 18-29 are more commonly pirating music than people aged 29+. Popular BitTorrent websites now include public forums, where piracy is openly discussed and shared. These sites can also be integrated with Kyle
  • 17. Copyright Infringement These graphs provide interesting and valuable information. Although on nearly opposite sides of the world, the patterns in both the US and Germany have correlations to each other. The young adult sector downloads the most illegally across both nations. However, in the US, there are still more consumers that are buying music than Germany in all ages. This may be because of how social media and peer-to-peer networks differ in nation to nation.
  • 18. Fighting Copyright Infringement – Corporate Sharing Spotify is a social media platform partially owned by the music industry. Based in Europe that has helped turn copyright infringement into a positive alternative to illegal downloading and distribution of music. Spotify steams millions of songs to users via peer- to-peer networks instead of servers, the same way illegal file sharing sites distribute files. The corporate sharing platform uses this social media technique to generate revenue for company itself and record labels. 70% of Spotify‟s revenue is paid out in royalties. Social media has now become the music industry‟s most valuable tool in generating revenue, but unfortunately and simultaneously,
  • 19. Music Industry‟s Defense against Piracy Social Media has had massive impact on potentially dangerous laws that were presented in a positive way to combat copyright infringement. In the United States, SOPA (Stop Online Piracy Act) was introduced on October 26, 2011. It was made to prevent copyright infringement, but was so detailed while maintaining vague statements that it would even infringe freedom of speech. The Recording Industry Association of America (RIAA) played a massive role in trying to get this bill passed silently. Social media networks made a lot of noise. Kyle
  • 20. Social Media vs. Music Industry The power of social media demonstrated the first planned “Internet Blackout”. The Internet Blackout was a day where all websites who participated would either shut down completely, or inform visitors of SOPA on the front page. Social networks impacted websites that were not social networks. The massive scale of Facebook, Twitter, Reddit, and LinkedIn gave notice to Kyle
  • 21. Social Media Prevails The bill was retracted by Lamar Smith, the representative that introduced the bill due to the extreme protests. The government and the music industry were not able to stand up to the power of social media, companies, and the users behind every Facebook profile and Twitter account. Kyle
  • 22. Radiohead – Artist Sharing A prime example of where the music industry is heading was demonstrated by Radiohead in 2007 when they released their album “In Rainbows” as a digital download. Instead of charging for the album, they included a notification that said “IT‟S UP TO YOU”, regarding how much the customer would want to pay, free being an option. Radiohead‟s digital release went viral around the internet and in the music industry through social media platforms. Thousands of articles and posts were made on Facebook and Twitter. Months later when the band released a physical copy of In Rainbows, it still sold three million copies within the year of release. Social media helped spread word about the album. They were able to help the fans get the music they created, and still generate revenue for Radiohead. Kyle
  • 23. User Sharing: BitTorrent Users who share music via peer-to-peer methods (which infringe copyright and are illegal) usually utilize a relatively new form of downloads called Torrents. BitTorrent is a system that allows multiple people to share files directly. It is the most common peer-to-peer method for downloading, and currently the largest supporting backbone of piracy against the music industry along with many others. Websites such as isohunt.com and thepiratebay.se are the largest torrent websites on the internet and include public forums and profiles allowing for a social media platform for illegal file sharing. Kyle
  • 24. User Sharing: An even more social approach for the music industry is a network called Last.fm. Last.fm allows you to create a profile and download a program that will automatically update your profile with songs and artists you listen to. You can then find and connect with users who have similar or opposite tastes and find new music, friends, or online groups who share the same musical interests as you. The program will live stream a signal to your Last.fm profile page and tell your friends and fans what you are currently listening to in real time, and allow you to find others who are listening to the same artist at the same time around the world. Kyle
  • 25. User Sharing: YouTube is one of the most popular social networks in the world, and has arguably had the largest effect on the music industry since the era of the internet. Kyle
  • 26. YouTube How has YouTube affected the music industry to date, and what will the future of YouTube bring to the table?
  • 27. YouTube & The Music Industry Since YouTube is a website that reaches 3 billion page hits per day, the social media aspect of the website can nearly be classified as a global media. YouTube is now a frontier of the Internet. Clay Shirky describes in his TED Talk about consumers and users being producers as well. YouTube is a prime example of where this statement becomes a fact. This social media platform now allows users to upload video of anything, regardless of content. It could be for an audience of one, or hundreds of millions. The people who use YouTube are also providing YouTube with their content, allowing for viral exposure and exponential growth and hits on videos. Experts on the music industry and YouTube do not know what the outcome for the future may be, and the predictions vary. There are of course positives and negatives for YouTube and the music industry working together or apart. We can begin to identify these positives and negatives based on real Kyle
  • 28. YouTube‟s Stance Artists and record labels have the option to upload their music or music videos to YouTube. They can then enable an option to monetize their video and start to generate revenue through advertisements. Advertising is one of the largest markets in the entire world, which is a great way for YouTube to be profitable for the company itself and the uploader and owner of the content. YouTube executives state that record labels who decide to pursue the social media monetization of videos generate a 200-300% increase in revenue. Traffic increases on YouTube and stronger advertisements allow more money to be made per video watched. Specific advertising formulas and techniques allow relevant advertisements to appear so audiences tend to not mind the ads as much. Some of the larger partners YouTube has make millions of dollars per month. The best part? The more content and original music they upload, the more money they make. A social media platform has successfully provided income for the hurting music industry, income for YouTube, and free music for audiences. Kyle
  • 29. YouTube: Copyright Infringement & Future YouTube also includes a “Content ID System”. This system allows copyright holders to either allow or disallow their music to be uploaded to YouTube for any use at all. The system scans every YouTube video upon upload to find any songs in their database, and will strip the music off the video before it is published. So, YouTube help the music industry make money, protect their copyrighted work, and stream songs for free with the viewing of a quick advertisement? What isn‟t to like? The future for YouTube and the music industry looks good. The social media aspect of YouTube allows for people to link videos within videos, feature videos on a different channel and advertise their own video or music to people who may enjoy it. Music videos and videos containing songs give audiences around the world the opportunity to speak their mind about the song, and share opinions with others. So, what are the other benefits for the music industry to participate in the growth of social media? Kyle
  • 30. YouTube: Viral Exposure A common term that appears on the Internet regarding popular content is called viral. Recently in social media, content going viral means that content gaining massive attention, very quickly, and retaining the mass audience for a long time. Nobody chooses what goes viral or gets popular except the masses of users of social media. The music industry can in turn hope to go viral to generate massive revenue. Since YouTube is the most popular video hosting website, the videos posted on YouTube are often linked and embedded in even more social networks such as Facebook, Twitter, tumblr etc., therefore creating an extremely large potential audience. Rebecca Black‟s song called “Friday” was uploaded to YouTube in February 2011, and only had 1,000 views in the first month. It went viral the following month because of how terrible the song and video was. To date, it has accumulated ~43.7 million views. The revenue and popularity generated from the viral effect of the video (regardless of the quality of song) kick started Rebecca‟s career in music. Kyle
  • 31. YouTube: Viral Exposure Viral exposure was never possible until social media became a near standard for digital communication. Now that YouTube has integrated services with other social networks, the chances for viral exposure and musical success stories have been greatly increased. This is a huge market for the music industry to pursue in the future. Another great example is “Gangnam Style” by PSY. Uploaded only three months ago, Gangnam Style has ~801 million views to date and became viral through social media. Memes and parodies of Gangnam Style helped quickly build the viral fame. Kyle
  • 32. YouTube: VEVO & Music Industry Adaptation VEVO is a music video website largely known in the music industry. It is run by Sony Music Entertainment (SME), Universal Music Group (UMG) and EMI Music. The music industry started using Vevo in December of 2009, and became an extremely popular music website. Since most of the music industry today is owned by one of these companies, most artists and record labels attribute their name to a “Vevo” account on YouTube. Vevo became a social media experiment which proved to be successful. The name VEVO now appears on most popular artists YouTube page and essentially built a brand for quality and social networking. Vevo‟s Twitter account has nearly 10,000 tweets notifying followers of new videos, music, and content that can be found all on YouTube via Vevo‟s channel or the specific artist‟s Vevo channel. YouTube and Google partnered with Vevo to create a more personalized and social experience for digital music on the Internet. Kyle
  • 33. YouTube: Musicians For musicians, YouTube is one of the best platforms they can use to further their career or hobby. YouTube has a sign up option where you can choose your account to be a “Musician” account. In this account, you have many new options and features that you can utilize. Creating playlists, labeling tracks and putting all of the artist or band info on the users channel are just some of them. Users can subscribe to their channel and get instant notifications to their phones that a new song or video update has been released. Musicians can upload their songs, music videos, “lyric videos” (which show the lyrics on the video as the song progresses, tour updates, studio updates and even hold contests. You can now find indie and amateur pieces of music on YouTube with a simple category search. Even Justin Bieber was found on YouTube in 2008. Social media and Kyle
  • 34. YouTube: Mobile With the digital revolution coming hand in hand with social media, using smart phones for Internet access has become very common. By using the Cloud to host music, it is available anywhere with an Internet connection. YouTube is enabling users to get music for free, regardless of where they are. The music industry has changed to a download on demand basis. YouTube applications for iOS, Android etc, combined with mobile websites gather a total of 600 million hits per day – and that‟s only 6.7% percent of the total views that YouTube gets per day (4 billion). The number of mobile hits will only continue to rise as smart phones decrease in price and become more common. The music industry will be able to put music, music videos, updates, and content in the hands of any Kyle consumer with the power of a couple clicks and taps.
  • 35. YouTube: Music Industry Changes The music industry has already began to adapt and The audience for music videos have been greatly integrate the services of social media into their business increased. Since the destruction of music videos being model to attempt to successfully rebuild the industry. played on television for reality shows and other news content, YouTube has become the major platform for There is no set formula or certain way to tackle social music videos. Even if the audience is just looking for the media and YouTube for the music industry, since social song, they are more likely to click on the official music media and YouTube is still constantly changing. There is video version, even if they minimize the tab and do not no perfect balance yet. In the future, the music industry watch, and just listen. will be able to determine what works, and what doesn’t work when there has been enough research. However, one of the downfalls the music industry is heading towards is the loss of art. YouTube is slowly YouTube has changed music in a variety of ways. The making music disposable because certain music is being most dominant is Cloud based streaming instead of using over produced and populated to become a promotional MP3s. Older songs in the 70s and 80s are being reborn tool. Audiences are less likely to think about the artistic into the digital age daily. value of the song when they‟re distracted by an YouTube is now an embedded platform, allowing videos advertisement at the beginning, or have recycled music and music to be taken to the audience instead of the being pumped through YouTube too often. audience coming to YouTube. Kyle
  • 36. The Financial Side of the Music Industry Who is making money now? How are they doing it?
  • 37. Finances With the change in the music industry from record labels to Youtube to the prevalence of copyright issues and the dissolution of record companies, we must ask, who is making money? Is the music industry still profitable? Will it be in the future?
  • 38. Money: Where‟s it coming from, where‟s it going? The money for the music industry is The money is going to: coming from:  Labels  Internet radio sites  Recording artists  iTunes  Songwriter  Social media (Youtube, Vevo)  Retailer or Company (such as  CDs Apple)  Subscription Services http://www.rollingstone.com/music/news/the-new-economics-of- the-music-industry-20111025
  • 39. Who is Making Money Internet Radio Sites As you can see from the diagram on the right, the record label is getting the majority of the sales from internet radio sites such as Pandora or Slacker. After the record label gets their cut then the recording artist will get 45% of the sales and any featured artist will get 5%. Internet radio typically pays $0.001per stream of a song. http://www.rollingstone.com/music/news/the-new-economics-of-the- music-industry-20111025?page=4
  • 40. Who is Making Money iTunes With iTunes, the breakdown is similar to that of internet radio. The label is paid the most, $0.60 of the $1.29 song, the only difference being that after the label, Apple is the one who gets paid the most. Apple will take $0.40 of that $1.29 song leaving $0.29 remaining for the recording artist and the songwriter. http://www.rollingstone.com/music/news/the-new-economics-of- the-music-industry-20111025?page=2
  • 41. Who is Making Money Social Media On social media sites such as Youtube, an artist is given $1 for every 1000 views. This venue is especially valuable if an artist is independent, free from a record label. An artist can upload videos of their material and as long as they are getting views, they are making money. There is a potential for having no middleman and still making a decent amount of profit. http://www.rollingstone.com/music/news/the-new-economics-of-the-music- industry-20111025?page=3
  • 42. Who is Making Money CDs The financial aspect of CD sales are very similar to those of iTunes sales. The majority goes to the record label and then the retailer selling the CD gets a large chunk of the remaining sales of the CD. The recording artist then gets $1.93 of the $17.98 the CD was sold for, and the songwriter gets $0.91. http://www.rollingstone.com/music/news/the-new-economics-of-the- music-industry-20111025?page=5
  • 43. Who is Making Money Subscription Services In order for anyone to make money off of a subscription service such as Spotify or MOG the artist‟s song must be listened to at least 60 times. Once this has occurred the label and the recording artist are paid $0.19 and the songwriter is paid $0.09. This is the only media outlet where the label and the recording artist are getting paid the same amount of money. http://www.rollingstone.com/music/news/the-new-economics-of-the-music- industry-20111025
  • 44. Finances and the Future As you can see from the different outlets available for buying music, it is clear that the record labels are making the most money off of the sales of artist‟s songs. This is something that has been happening for many decades and is an excellent indicator of why the music industry is shifting the way it is. Artist‟s want to make the most they can on their material and they want their fans to pay a reasonable amount. This cannot happen if the money is being divided amongst a large amount of people/companies. The cost of music will continue to go up in order to pay the labels, recording artists, songwriters and companies associated with distributing the music. If an artist is able to release their music online, directly to their fans, essentially cutting out the need for these middlemen, it seems like the price may go down for the fans, and the respect for the artist may go up. Radiohead and Prince have both shown examples of this being done effectively.
  • 45. Finances and the Future It is also clear, just from the numbers on those charts that indicate the cost per song or album ($1.29 and $17.98 respectively) why people would download the songs illegally or stream them online over Youtube, etc. as opposed to buying the song or full album. In the future, it seems likely that the public will continue to download their music illegally or through outlets such as Youtube in order to avoid the large fees associated with buying albums. If artists are able to connect to their fans via social media and release their album that way, fans may be more receptive to it, seeing as the profits go directly to the bands they love. It seems as though the landscape of the music industry will continue to shift this way in the future in order to connect to the public via social media and convince them to continue buying albums.
  • 46. Conclusion In conclusion, the music industry is currently changing immensely. There is a shift from record labels having all of the control to the artists having control if they use social media to their advantage. Anyone can use social media in order to express their creativity and produce music that is available to the public. There is no longer a string of channels that someone must go through in order to get their music to the public‟s ears. Youtube and other social media sites play a huge role in giving everyone, from a nobody at his computer to a famous artist, the chance to distribute material online and become somebody. Laws are prevalent in the music industry right now and are something that everyone must be aware of. In this time where Youtube and sharing music is increasingly popular, copyright laws are more important than ever. With the increase of technologies used to download music there is a fight over finances and who gets paid. This is a continual struggle for artists to escape the grasp of the record labels and provide entertainment at a fair rate to them and to their fans. The future of the music industry and social media seems to balance on how well the people can use social media to their advantage. If everyone continues to take advantage of the opportunities that social media presents for the music industry then it seems likely that in the next 10 years or so, we will be finding out about and purchasing our music through social media sites more than any other medium.
  • 47. Annotated Bibliography  "2 or 3 Lines (and so Much More)." Marvin Gaye. N.p., n.d. Web. 10 Nov. 2012. http://2or3lines.blogspot.co.uk/2011/02/marvin-gaye-i-heard-it-through.html This article talks about Marvin Gaye and how his song “I Heard it through the grapevine” went through a rigorous process at Motown Records before it was released to the public. This is a great example of how intense their quality control program was.  "35 Mind Numbing YouTube Facts, Figures and Statistics †“ Infographic." Jeffbullass Blog. N.p., n.d. Web. 01 Nov. 2012. <http://www.jeffbullas.com/2012/05/23/35-mind-numbing-youtube- facts-figures- and-statistics-infographic/>. I used this source for the infographic they provided. All the information is credible and provides a visual learning experience to help communicate the sheer mass of YouTube and how social media interacts with YouTube, such as Twitter and mobile devices.  "Billboard - Music Charts, Music News, Artist Photo Gallery & Free Video." Billboard. N.p., n.d. Web. 01 Nov. 2012. <http://www.billboard.com/>. This article is about Justin Bieber and his rise to fame. He is a perfect example of someone who was discovered on Youtube and is now a major star. His story is a great one to tell when discussing the power of social media.
  • 48. Annotated Bibliography  "BIO." Rebecca Black. N.p., n.d. Web. 01 Nov. 2012. <http://rebeccablackonline.com/?page_id=61>. I used the official Rebecca Black website to get information and background about her success and how social media and the music industry swooped her up within months. It is obviously the most accurate source for this information so I picked this above other biographies.  "Clay Shirky: How Cellphones, Twitter, Facebook Can Make History." YouTube. YouTube, 16 June 2009. Web. 20 Nov. 2012. <http://www.youtube.com/watch?v=c_iN_QubRs0>. This TED talk video by Clay Shirky discusses how social media is becoming so popular in our society that now anyone with access to a computer and the internet has the opportunity to become famous.  "Evolver.fm." Evolverfm Free Music Can Pay As Well As Paid Music Says YouTube Comments. N.p., n.d. Web. 01 Nov. 2012. <http://evolver.fm/2011/02/02/free-music-pays-as-well-as-paid- music-says- youtube/>. I used Evolver as a source because it had insider information with YouTube‟s executives on how royalties are paid to record labels and artists in the music industry via video monetization. It also includes statistics and information about the evolution of YouTube and how using YouTube and it‟s social media platform can help revive the music industry.
  • 49. Annotated Bibliography  "In Rainbows Reviews, Ratings, Credits, and More - Metacritic." In Rainbows Reviews, Ratings, Credits, and More - Metacritic. N.p., n.d. Web. 01 Nov. 2012. <http://www.metacritic.com/music/in- rainbows/radiohead>. This article clearly describes how Radiohead correlates to an artist sharing their music, providing insight to the possible future about what is going to happen in the future of the music industry, and how more artists may begin to take this route.  "In The NME Office." NME.COM. N.p., n.d. Web. 01 Nov. 2012. <http://www.nme.com/blog/index.php?blog=10>. I used this source because it‟s more of an informal but accurate blog. It had real down to earth answers about how YouTube is changing music and how the music industry is adapting. It proved to be a very insightful article.  "Justin Bieber Makes Them Proud. But Why?" Vancouver Observer. N.p., n.d. Web. 01 Nov. 2012. <http://www.vancouverobserver.com/politics/news/2010/12/24/justin-bieber-makes-them- proud-why>. I used this source because it dates back to the entry of Justin Bieber into the music industry. It includes information about how he got discovered on YouTube and how he burst to fame in a matter of weeks due to social media.
  • 50. Annotated Bibliography  Lindvall, Helienne. "Behind the Music: Motown: A Pop Factory with Quality Control." The Guardian. Guardian News and Media, 26 Nov. 2010. Web. 01 Nov. 2012. <http://www.guardian.co.uk/music/musicblog/2010/nov/26/behind-music- motown- pop-factory>. This article provided an excellent overview of how Motown Records ran when it was in its prime in the 1960s. This is important for our social media project because we must note the differences between how things were run in the past and how the music industry runs now.  PSY Biography." AceShowbiz. N.p., n.d. Web. 01 Nov. 2012. <http://www.aceshowbiz.com/celebrity/psy/biography.html>. I used this biography of Psy because Psy himself verified the information via a reddit Q&A session. Information about Gangnam Style was gathered as well.  "Rebecca Black Friday." YouTube. N.p., n.d. Web. 01 Nov. 2012. <http://www.youtube.com/watch?v=kfVsfOSbJY0>. Here is the link to Rebecca Black‟s Friday video mentioned.
  • 51. Annotated Bibliography  Schiesser, Tim. "Trivia Tuesday: Some Facts About Bittorrent." Neowin.net. N.p., 27 Dec. 2011. Web. 01 Nov. 2012. <http://www.neowin.net/news/trivia-tuesday-some-facts-about-bittorrent>. I used this source because NeoWin is an established and very community driven website with reputable articles. The facts displayed about Torrents and BitTorrent are given in an unbiased view and provide information about the legitimacy of torrents and the piracy side of torrents.  Sisario, Ben. "The New Rise of a Summer Hit: Tweet It Maybe." The New York Times. The New York Times, 22 Aug. 2012. Web. 12 Nov. 2012. <http://www.nytimes.com/2012/08/22/business/media/how- call-me-maybe-and-social-media-are-upending-music.html?_r=0>. This article discusses how social media is influencing the music that we hear on the radio. When a song becomes popular on Youtube, that is now enough of an influence to push the song onto the billboard charts and onto the radio for us to hear.  Smith, Catharine. "Online Piracy: Youth Shaping Future Of Online TV, Movies, Music." The Huffington Post. TheHuffingtonPost.com, 18 Feb. 2012. Web. 01 Nov. 2012. http://www.huffingtonpost.com/2012/02/18/online-piracy-youth_n_1286911.html I chose The Huffington Post article on youth and young adult piracy because of the credibility Huffington Post provides. There are valid points about how the Youth is shaping the future of media and how things will change based on the youth demographic.
  • 52. Annotated Bibliography  "The New Economics of the Music Industry." Rollingstone.com. N.p., n.d. Web. 12 Nov. 2012. <http://www.rollingstone.com/music/news/the-new-economics-of-the-music-industry- 20111025?page=4>. This article provides an extensive look into the current financial side of the music industry. It is important to see how the finances have changed since the advent of social media and to note who is getting paid the most and where the money is coming from.  "The State of the Music Industry." TheTenica. N.p., 01 Aug. 2012. Web. 28 Oct. 2012. <http://thetecnica.com/2012/08/the-state-music-industry-pics-2012>. This source has a very entertaining cartoon about where the music industry was in the past, where it is now, and where it will be in the future. It seemed like a good way to start off the presentation which is why it was included.  "TorrentFreak." TorrentFreak RSS. N.p., n.d. Web. 01 Nov. 2012. <http://torrentfreak.com/file- sharers-buy- 30-more-music-than-non-p2p-peers-121015/>. I used this TorrentFreak article because it provided a very informative insight into peer-to-peer file sharing including unexpected positive information about the topic.
  • 53. Annotated Bibliography  "TorrentFreak." TorrentFreak RSS. N.p., n.d. Web. 01 Nov. 2012. <http://torrentfreak.com/spotify-a- massive-p2p-network- blessed-by-record-labels-110617/>. I used this TorrentFreak article because of information about Spotify, and the expansion of peer-to-peer networks that the music industry actually supports.  Tyrangiel, Josh. "Radiohead Says: Pay What You Want." Time Magazine. N.p., 01 Oct. 2007. Web. 01 Nov. 2012. <http://www.time.com/time/arts/article/0,8599,1666973,00.html>. This article provides the example of Prince and how he distributed his album through a free newspaper. The unconventional method avoided going through his publishers and yet he still sold out all of his concert dates on the tour associated with the album.  "Vevo." Twitter. N.p., n.d. Web. 01 Nov. 2012. <https://twitter.com/#!/vevo>. Here is the mentioned Twitter account for Vevo.  "Where Do Music Collections Come From?" Media Piracy The American Assembly. N.p., n.d. Web. 01 Nov. 2012. <http://piracy.americanassembly.org/where-do-music-collections-come-from/>. I chose this article because of the great infographic material. American Assembly is a very good credible source that holds great discussion and statistics. The facts about piracy of music are great information on how music is being pirated around the world.