The U.S. record industry has taken a major drop in overall value over the last 15 years. The industry as a whole, worth $14.6 billion in 1999, is now only worth $8.5 billion ("RIAA - Key"). CD sales are also at record lows, while digital downloads, song and album downloads from the Internet, have steadily increased since their beginnings in the late 90s ("RIAA - Key"). Most artists now sign contracts with record companies to sell their works through online mp3 services, like iTunes and Amazon (O'Hear). People have gradually begun to move away from purchasing analog music, like CDs and vinyls, to purchasing digital downloads. These trends now contribute to a dying U.S. music industry, which previously had a business model that dominated the market primarily through CD and concert ticket sales.
[...] I used a stratified random selection to choose people, and my friends represented many different types of people in the U.S. Almost all of the friends I invited took the survey, so there was little non-response bias. Questions: Questions 1 and 2 were designed to determine whether people pirate based on how much they like a certain band. In question the person taking the survey does not know the band, while in question the person loves the band. With the data from these two questions, I will be able to see if a correlation exists between a person's choice of pirating and level of interest in a band. [...]
[...] The new model would also allow for a broader exchange of ideas and information instead of focusing solely on one aspect of the music industry. New fledgling artists could have the means to making a name for themselves without the hassle of going through major record labels. Lastly, artists and recording companies could finally have the potential to maximize their profits without the enforcement of piracy encroaching musical talent. Recording companies would no longer have to worry about music piracy, so they would not need services that make them monopolize the industry, such as DRM. [...]
[...] Note that these units are separate: artists are groups that create and promote music to make a profit, and record companies, collectively known as the recording industry, organize the promotional, financial, and business aspects of many different artists. In the discussion section, I will analyze an innovative model that recently has gained support: the Pay-What-You-Want model. Background: One of the biggest threats the current model faces is the difference in opinion between artists and their respective record companies. Both artists and recording companies want to make a profit, but oftentimes artists lose out and recording companies make most of the money. [...]
[...] On one hand, DRM may help prevent piracy and sharing of songs, but on the other hand, the implementation of DRM helps record companies and music developers monopolize the market (Grossman). This extreme reaction to piracy, although it may be warranted on the argument of protecting artists' copyrights, ironically gives record companies much more power than before, and the loser in profits often ends up being the individual artists (Grossman). Finally, the rapid decline in CD sales threatens to destabilize the industry as a whole. [...]
[...] torrents, websites, sharing, etc.) or purchasing the song on ANY legal channel (e.g. iTunes, Amazon.com music, etc.). What would you do? In the pirating situation, imagine that you have no chance of facing legal consequences. Note: you have never heard of this band. a. Purchase the song legally b. Pirate the song illegally 2. Now imagine that you are being asked the same question of your favorite band (whatever that band, composer, etc., may be). Would you choose to pirate or purchase the song? [...]
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