Basic music industry research

1. Basic music industry research By kirtnicholls

2. Objectives and goals My objectives consist of the following; • Current state of the music industry • Concerns • Future of the music industry These objectives will explain why the music industry value and profit is dramatically falling.

3. Current state The music industry is currently declining due to the fact music people who listen to music are downloading their music from sites such as YouTube and downloads.nl these types of sites put music companies out of business because people don’t buy the disks so companies don’t make disks. The fact that people aren’t buying CD’s means that companies will close and lose a lot of money, companies who sell albums and make most of their money off of albums will find it harder to stay in business which will mean people will not be able to get CD’s as easily, people will find that the fine for downloading will increase. There will be less artists and singers because they will not be making as much money which will deter people from being singers and companies will not go looking for singers due to the fact there wont be any money in it. Results of illegal downloading

4. Concerns Some concerns of the music industry are that the music companies will loose millions in profits from cds/ albums due to the increasing amount of people downloading content from the internet. The result in this is the unemployment rate will increase due to companies closing and not selling their products, If companies are closing down and the unemployment rate increases then there will be more people with less money and there will be less jobs available for people which will mean the general economy will get worse causing the common welfare to decrease. As a result of downloading the record companies only employ people they think people will pay to see live this means nearly 50% of the music industry will not be employed due to the fact that they need to be put through a machine to make their voice better which means they wont be good live this is because albums/ cd’s don’t make any profit so people who cant sing live aren't wanted.

5. Good statistics • 13 million tracts licensed by record companies. This is good for the general population because it means that there are more artists and records on sale which means there will be more money in circulation throughout the music industry raising the standard of singers and their music, this is because companies will have more money to invest into better singers and machines to make singers sound better. • 400+ licensed digital music services means that there is more music available to people and they are able to chose the music they wish to listen to instead of having to the next best thing, if people are getting the music they want easier they are more likely to spend money on albums and tickets to see artists which brings companies more money to invest into better and more singers. • $4.6 billion trade value of the digital music industry, this is good because it shows that people are buying goods and there is money in the music industry which helps get investors and promote further growth. This growth will bring people more music and better music. • 6% growth in digital music revenues shows that people may be downloading online but there is still a lot of profit in the conventional CD and the concerts, this helps get investors who will help fund newer and bigger events boosting the revenue of the music industry and lowing the percentage of people downloading music. • 16.5% internet users buy digital music in the us this shows that there is potential in the online music industry and that people are willing to buy albums online, this is good for people because companies will make music more readily available helping people get the music they want.

6. Bad statistics • -77% estimated fall in debut album sales 2003-2010 this means that there are less people buying albums and more people downloading and listening to music online this is bad for the people who buy records because less people will sell them due to the fact they are not in as higher demand and don’t make people as much money as they need to keep their business going if there is a decline in money in the music industry there will be less people employing singers due to the fact they will need extremely good singers to make them money. • -31% decline in the value of the recorded music industry 2004-10 meaning there are less people recording music to sell and release to people, this is because it is harder to make money in the music industry so people aren’t taking the risks with artists they used to make. If there are less people in the industry there will be less music available to people there will be less choices for people which means people are more likely to not listen to allow of new music which will start to make the music industry shrink. • -12% fall in the revenues of the top 50 tours in 2010, this fact means that less people are going to see artists live due to the fact they can view the concerts live on TV and experience the same things form another location, this means that there will be less venues because people will plan more for one big festival so that they make enough money rather than make lots of festivals and struggle to make money. Because less people are going to concerts there will be a decrease in the amount of artists there are due to the fact employers will be more skeptical about employing people incase they wont make them much money and a decrease in singers means less music and less festivals because there aren’t enough singers to ding at the venues. • -17% fall in the number of musicians employed in the US from 1999-2009 this is due to the fact more people re downloading their music and watching concerts from home instead of paying for songs and going out to see artist live, because less people are going out and paying for things employers aren’t employing as many artists which is the reason why there are less artists, the affect this has on the listeners is they will have less choice of music and less festivals to go to.

7. File sharing • The new generation of young adults don’t want to buy the physical product like a cd/ album they want specific files, this is inconvenient for the music industry but great for file sharing companies such as lime wire and putlocker. For people this is a positive, they can pay for an album then share it with all of their friends and family but this makes music companies and artists lose money which should or could have been spent on records and the songs this in turn means the music industry will shirk and less musicians will be about. In the long run sharing files will do more harm to the listeners than good because there will be a decrease in songs that can be downloaded due to the fact there will be less artists.

8. Artists These are some of the artists That dominate the market

9. Current state of the magazine industry • The magazine industry is very well organized, but people are buying less magazines and replacing them with electronic versions of the traditional paper based booklet, people are doing this because they can easily access these documents and they don’t have to worry about taking lots of space wasting booklets. As well as this it is cheaper to get an electronic magazine and look at that, there are less people interested in reading magazines as well which had caused a decrease in the amount of magazines being sold and made. The industry is declining because people are finding it increasingly easier to get documents such as magazines for free online. Because everything is now becoming electronic magazines are having to struggle to sell their magazines when people are going online and getting the products for free. This means that people who want to buy magazines may not be able to due to the fact there are less magazines available for people to buy.