The advent of digital technology has completely revolutionized how songs are produced, priced, and distributed. Music today has transcended the use of polygraphs and outdated recording machines and has evolved into various digital software and technologies and online streaming platforms.
The Compact Discs (CDs) was the first digital music medium to be created. However, the creation of Mp3 file formats compressed recording size and made it easier to listen to music on the go. Over time, the iPod was created. The iPod could hold about five gigabytes (1000 tracks) of MP3 files compared to regular MP3 players, which could only store around 12 tracks. Today, musicians have adopted entirely different ways of creating music, thanks to digitization. Composers can write and produce songs from the comfort of their homes. Also, fans can stream concerts of their favorite musicians from anywhere globally. Digitization has also made it possible for songwriters to release their songs on digital streaming sites without the help of a record label. Consequently, digitalization has significantly impacted the hierarchy and structure of the music industry. The channels and cost of distribution of music have been altered by digitization. This has eventually resulted in establishing a new crop of downstream retailers who have reduced the need for publishers, collecting societies, and record labels. Digitization has also made music cheaper and the distribution less complicated. While digitization has improved music production, sales, and distribution, a few problems exist. Digitization improved the efficiency of piracy. Piracy no longer requires the extra effort of burning CDs and dubbing tapes. One could illegally download any song they want from specific websites. Consequently, this has greatly affected the profits of creatives and investors in the music industry. However, paid digital music platforms like iTunes and Spotify were eventually established to entrench the monetization of music downloads. These platforms have helped mitigate the effects of digital piracy, increasing profits from the digital production and distribution of music. Similarly, online video platforms like PayPal and YouTube also joined in on the music streaming business. Today, YouTube has become the world’s most crucial video-sharing platform. It has also released its music streaming platform application, YouTube Music. In 2017, YouTube agreed to share revenues with three major record labels in the United States. Then they introduced a paid music service with Google Play Music. Furthermore, the digitization of music created new dynamics in copyright. For instance, performers’ rights were initially meant for public performances. However, since the digital recording of performances, these rights have been extended to cover dancers, instrumentalists, singers, or individuals involved in the performance. These individuals now possess the right to derive financial benefits from the commercial exploitation of their performance. From the preceding, one could conclude that the digitization of music is increasingly being centered around subscription-based streaming. This has brought massive economic prospects for both creatives and investors. Today, the music industry in the United States is worth an estimated $14 billion, while the global music industry, on the other hand, is worth about $40 billion. This digital transformation of the music industry is primarily dominated and championed by five companies, namely, Warner Music, EMI, Bertelsmann Music Group, Universal/Polygram, and Sony. These companies are responsible for about 80 percent of the music sold globally.
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AuthorSiobahn Hotaling - Project Consultant at Adaption Institute. Archives
November 2022
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