Friday 11 March 2016

Independent NDM case study: Media Factsheet research

The Music Industry (24) –
The music industry is a global business that generates profit by selling musical recordings in both physical and digital formats to media audiences. The music industry is a complex and competitive business and record companies and labels are continually devising new ways of attracting audiences to consume their products. Most refer and define the music industry as the ‘organisation of the various activities associated with the performing and recording of music and distributing access to those performances to audiences around the world’. The term music industry refers to all the businesses that are responsible for the creation and the marketing of music. The music industry is an umbrella term used to explain all aspects of music production. The diagram below highlights the various roles undertaken by record labels in the marketing and production of music.


Distribution and Marketing
Once an artist has created their recording, it is then distributed and marketed in order to attempt to make a profit and cover the cost of its production. It is the record label’s responsibility to promote and distribute the product.
Record companies must market the music correctly in order to attract the intended target audience. The mass media, specifically the Internet, radio, television and the music press play an important role in the distribution and marketing of music to the intended target audience.

Radio: plays an important role in promoting the artist via frequent
airplay on popular channels. In 2004 the official downloads chart
was launched and runs alongside the conventional music chart.
This has provided artists with more opportunity for radio
exposure.
Television: the popularity of music channels such as MTV helps
promote a recording artist’s image and sound to a global
audience.
The Music Press: have close relationship to the music industry
and are very influential in the marketing and promotion of new
recording artists.
The Internet: official websites help reinforce the image and
sound of the recording artist. Websites offer the opportunity
for continual and up-to-date promotion and the popularity of
chat rooms, message forums and blogs also enable fans to
communicate with other fans.

Now with the emerging use of technology people can stream music straight from their devices with apps such as Tidal, Apple Music and Spotify. A monthly fee of £4.99 - £19.99 a month is charged depending on the quality of the service. For instance, for high-definition streaming it’s £19.99 on TIDAL, but for standard quality streaming it’s £9.99 on Spotify and £12.99 on TIDAL.


Adorno and the Culture Industries
Adorno built his theory of the culture industries on Marxist principles. He was a critic of the capitalist system and argued that popular culture or the culture industries maintained capitalism. They achieve this by offering audiences generic products and consumer goods that act as diversions, making them disinterested in politics and change. Adorno argued that the products produced by them culture industries are:
• Formulaic
• Simplistic
• Emotive

Adorno believed the culture industries were responsible generating false needs. The culture industries’ main role is to persuade consumers to put money they have earned back into the capitalist system. Adorno saw the culture industries’ use of technological reproduction as a way of controlling audience spending.

Peterson and Berger
Peterson and Berger examine the concept of authenticity and ideology within popular music. They identify that historically popular music had come from a place of resistance to dominant ideologies and values and provided a creative outlet for people that allowed expression of counter-cultural positions.

However, they argue that:
• Once music is commercialised it loses its authenticity
• Commercialised music is non-resistant to dominant ideologies,
even when its origins are (e.g. Rap and Hip Hop, Blues, Jazz,
Punk etc.)

Peterson and Berger believe that because the music industries are primarily concerned with generating a profit, they choose to invest in musical forms that offer the least resistance to the culture and they take resistant musical forms (e.g. Soul) and sanitize them (removing ideological challenges) to make them attractive to a mainstream audience (e.g. Mariah Carey). Once a successful format is identified it will be replicated and re-sold to audiences. This on-going production of similar musical forms reduces the possibility of musical development and removes all resistant qualities.

This, Peterson argues is problematic for audiences as:
• The audience relies on the media for information and this removes audiences from creative ‘street level’ or original music

• Audiences can only access what the media offers them and they do not have access to all musical choices that are available

• The industry only invests in the types of music that audiences are familiar with and, therefore, only offer what has been proven to be successful in the past

• This reduces music into formulaic and predictable formats means past successes are replicated often
o For audiences this means they can only access more of the same
o For the record companies there is less financial risk and more potential profit
o Ultimately, this means less choice for consumers

The changing face of the music industry (122):
The music industry is a complex industry which is made up of conglomerates such as those identified above as well as record labels, some of which are owned by the big 4, others which are considered to be ‘indie’ (independent) labels such as Rounder Records and Concord Records who make music for niche audiences. Most ‘indie’ labels have had to develop affiliations with major companies so that they can effectively distribute their music. Examples include Def Jam (Universal), Aftermath (Interscope/Universal), Maverick (Warner Bros. Music), and LaFace and Zomba (Sony BMG).

The music industry wants to protect their position of dominance. The five major record labels; Sony, Universal, BMG, EMI and Time Warner monopolize the market when it comes to sales of music  leaving less than 20% for the hundreds of independent record labels or indie labels. Furthermore when the independents get too big or an artist or group starts to garner more of a fan following these major companies usually pick up the artist or group or buy the record label, this is called Horizontal Integration. Music companies like to ensure that when they invest into a music artist or group that they have the potential to be commercially successful and take a large share of the profits made from the sale of the music. According to www.songrights.com music companies give between 9% and 12% to the artist and the rest is profit for their company. So, for many decades the music industry had a relatively uncomplicated business model: band or artist records song, record label sells song and then artist and record label make money

Music companies like to ensure that when they invest into a music artist or group that they have the potential to be commercially successful and take a large share of the profits made from the sale of the music. According to www.songrights.com music companies give between 9% and 12% to the artist and the rest is profit for their company. So, for many decades the music industry had a relatively uncomplicated business model: band or artist records song, record label sells song and then artist and record label make money.

However, this traditional model is changing. Developments in technology and the emergence of the Internet mean that artists have the potential to reach audiences without the need for a major company and where once recording equipment was expensive it was out of reach for the average person; it is now widely available at a low cost. You can purchase sophisticated music production software for a few pounds on your mobile device or tablet.

In many cases artists are able to promote and distribute their music digitally without the assistance of a record label. Unsigned artists can sell their music on iTunes, have it streamed on Spotify, TIDAL or Soundcloud and produce their own videos for YouTube. In an era of fragmented platforms, file sharing, and non-traditional routes to market, the music industry is facing various challenges. It has had to react to change: new formats, new technology and new business models mean an industry in a constant state of transformation. This has been particularly obvious in the way that audiences are dictating how they want to consume their music, but having more ways you can listen to music is not necessarily the same thing as having more choice.

Dramatically with the emergence of digital technology and the music industry has struggled to keep up at times and this is especially true when it comes to changing audience behaviours. One of the most problematic issues that the industry is facing is the ‘culture of free’. In recent years consumers are less willing to pay for their music and as a consequence piracy and file-sharing have seen the industry lose billions over the last decade. According to the Institute for Policy Innovation global music piracy causes $12.5 billion of economic losses every year. In order to combat this music streaming services such as Spotify and TIDAL have worked in conjunction with the industry to try offer audiences the opportunity to listen to music but not actually download it, which means it is not being shared YouTube has also placed ID content censorship on videos to stop music being downloaded. However, these are only temporary measures and the industry has had to find more ways to prevent this.

One way it is doing this is through saturating the market with what Mulligan calls ‘The Superstar Economy.’ The Internet was meant to weaken the dominance of superstar artists in the music industry and enrich the smaller, niche music creators. But new research suggests that this “long tail” theory is wrong: superstars are capturing the vast majority of music revenues and their share is increasing – not decreasing – because of the rise of digital services like iTunes and Spotify. The top 1 per cent of artists the likes of Rihanna and Adele accounted for 77 per cent of recorded music income in 2013. Most digital music services have catalogues of more than 20m tracks are not listened to. In this illusion of choice consumers are overwhelmingly listening to the ‘hits’.


Para-social relationships – Psychologists use the term “parasocial relationship” to describe the connection people get from celebrities and other famous people but which an illusion is. This can be seen through the functions the streaming apps have, especially TIDAL which allows artists to update fans and stay connected by providing them with exclusive news and playlists. 

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