Sunday, 28 September 2014

Music industry crisis

Changing tech

Internet has made the music industry have to adapt because of the issue of downloading. CD sales are falling each year because of downloading. In 2009 as much as 95% of the music was downloaded or illegally downloaded. Four men behind file sharing sites pirate bay were sentenced to a year in jail and ordered to pay £2.5 million in damages for helping people download games films and music for nothing.

HMV vs ITunes

Simon Fox said that within three years technology would become its single biggest product category ahead of DVDs and CDs. 25% of the floor space in HMV to MP3 players, tablets, computers and head phones where as the CDs are going out of date and becoming defunct formats such as Vinyl and tapes. He said that head phones market was worth £150 million with Dr Dre's Beats selling for more than £300 million. Now is worth £1 billion after being bought by Apple.

De commodification 

Decommodification is when you can view a product as an entitlement rather than having to pay for the product. A commodity is an item where it can be bought or sold. Decommodification product would be removed from the market.

How to combat Decommodification you would have to consider all of the platforms that an artist can be exhibited on for example DVDs, CDs, downloads, iTunes and apps. You would have to make your product unique so that people would buy it and not illegally download it or view it for nothing. CDs are getting out of date now and becoming less known, people wouldn't want to buy these products if you could get them for free online.     

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