Independent research on changes in production in the music industry in the last 10 years

The digital world has truly transformed the world of music. Up until around 2005 the vast majority of people bought all their music from music stores and record shops in the form of CDs. This meant that the shops were very profitable due to music playing a big part in most peoples lives. The start of the digital revolution was actually a positive for the record stores due to the introduction of the walkman CD/tape player which resulted in a huge influx of people buying tapes and CDs. However, as technology advanced people changed the ways they obtained their music. Firstly, there was the MP3 player introduced in the late 1990s, this signalled the beginning of the end for record shops. Due to the huge increase in computer technology, more people were able to download their music without buying a hard copy, and could therefore put it on their MP3 player where they had 24/7 access to it. Then came the introduction of iTunes in 2001, which led the way for hundreds of other online music download services. This came about at the same time of the introduction of the iPod which effectively changed the whole music industry completely. People now started to buy their music digitally, and listen to them on their Apple devices. Nowadays, digital technology is increasing at a scarily fast rate. As a result, even the iPod's days are numbered, which was the game changer as far as music technology goes. Due to mobile phones now being able to do basically everything that a laptop and iPod can do, as well as make calls and text, people are now starting to access and listen to their music in this way.

There are many advantages of the digital revolution, especially for the public. The main advantage would be the way in which we can now obtain and listen to music. Twenty years ago if someone wanted to listen to music, they would have to be in a house, with a CD player and a CD. Nowadays, people can listen to music wherever they go and also download it from their mobile phones at the touch of a button. This makes music
a lot more accessible and is due to the vast changes/advancements in digital technology. There are also disadvantages however, since most people do not download their music anymore they do not have hard copies, therefore if their mobile, laptop or iPod breaks it is likely they will lose all access of it. It has also restricted people being able to lend each other music such as albums etc which is also a social disadvantage.

As everyone knows the music industry has been hit hard by the increasing growth in piracy and internet in general which has left many artists losing out on record sales which they wouldn't have lost twenty years ago. This is due to people illegally downloading their music in order to save money. This has had many detrimental effects on music artists, record companies, record shops and many more. We don't need to look far to see the effect it has had, the huge multi-national firm HMV has recently went into administration and closed down the vast majority of their shops. This is the same firm which only a few years ago was booming and bringing in massive profits each year. HMV can not just blame illegal downloading for this, they most also point the finger at the digital revolution such as Youtube, Spotify and iTunes which contribute to how millions across the world now consume their music.
Record labels are also starting to have less control over artists due to the huge launch of technology and internet over recent years. For instance, an artist can build their own studio, make their own music then advertise it round the world by just sitting behind a computer screen. This is due to the revolution of social networking and websites such as Twitter and Facebook which allows the artists to have a closer relationship with their fans. This therefore means they can market their music to fans by themselves. All this means that the artists have become a lot less dependant on the record labels which means in years to come it is very likely that they will face the same fate as record shops such as HMV.

Here is a great photo which sums up how music distribution has changed over the last 30 years. It shows the change from the LP/EP, to the cassette, then the birth of the CD which reigned at the top until now when it was finally overtook by the various methods online downloading. It only goes as far as 2010, and I suspect there would be a huge change since then which would show online downloading increasing rapidly.
Fifteen years ago the vast majority of music artists would have distributed their music through music stores in the form of CDs, as a result these stores were very popular and easy to find. However, nowadays the majority of artists' main source of distribution is online as this is where the majority of people tend to be. Since hundreds of millions of people surf the internet each day, it is common sense that this is the most effective place to distribute music and advertise it. As a result, many music stores have went bust and shut down, and many new online stores have opened in order to keep up with the changing market and consumer needs.

The news that revenue from recorded music worldwide in 2012 grew for the first time since 1999 is surely heartening for an industry struggling to get to grips with digital and overcome piracy – even if it's just by 0.2% to $16.48bn.

It is, however, worth noting that revenue levels are still down more than 40% from the halcyon days of the late 1990s when CDs reigned supreme and online filesharing was still over the horizon.

Twitter and Apple prepare to launch music services

Biggest music retailer close to securing streaming licences with major labels, as Twitter Music gears up for Coachella debut.

In a debate on Monday about executive pay, he said: "I think it's mad that members of boy band One Direction made £5m each last year."

Business secretary Vince Cable, also at the debate, was more cautious about attacking one of Britain's biggest recent exports and tried to bring the debate back to the corporate sector. "I don't want to attack One Direction," he said, "but there is a general issue of chief execs in particular who are paid well beyond what can be justified in terms of the performance of their companies, and that's something the government is now trying to address."

Soul Jazz Records

Soul Jazz Records

Range of Music:

The musical genres are less mainstream than most other sites and focus on genre's such as funk and soul, latin, African, Electronic, German Rock, Reggae and punk. The range of music is a strange one and focuses on various niche markets that are looking for something specific that may be difficult to discover on other sites. The labels that are sold are less familiar to an audience than labels such as Universal Music group, Sony Music Entertainment and Warner Music Group. This site is composed of labels such as Studio One, Universal Sound, World Audio Foundation and their own label, Soul Jazz Records which aims to find unappreciated bands and give them a chance for their music to be sold.

Ways To Purchase:

The first thing you will discover when trying to buy from this site is the ability to either add music to a wish list or to pre-order a certain album that hasn't been released yet or to simply purchase an already released album. The albums are available to the customer in various ways, some come with a deluxe edition meaning extra tracks are released. Others may contain a special DVD that accompanies the album, some have an MP3 version of the track available to purchase but what is interesting is that most of the albums available to purchase are sold as CD's or LP records. WHen purchasing, the merchandise is added to a cart which can then be sold at the checkout. In order to pay, a customer must make an account with the website and provide card details for payment.

The Label:

The Label began in Britain in the 1990's releasing music such as Reggae, Jazz, Soul and Ska. Since, it has grown to include other genre's similar to electronic and international rock. They have signed many versatile artists including The Cables, John Holt and Sister Nancy.

What kinds of music do Soul Jazz Records produce?

Relatively unknown artists and genre's that appeal to a niche market including:
electronic, reggae, bass/dubstep/grime, jazz, house, funk&soul, african, deep cult and roots music, punk, new wave, hip-hop, german rock&electronic, latin/salsa, Brazil, Soundtrack.

What strategies do they use to promote and distribute their music?

The label advertises in the Guardian newspaper and holds various events in London outside their store to promote their label and the artists. By using online advertising and holding street parties, the label manages to remain working with unusual techniques to promote their unusual musical services.

Who is the audience?

The audience are older people who enjoy musical genres that are not as mainstream as others. They aim to appeal to the alternative music listeners and mainly those with african-american roots due to the genres that they sell. These genres appeal to this particular race as it follows the progression of music from African to the slaves in America with Bluegrass and Soul as it grows into the modern times evolving into Hip-Hop. 

What is the relationship between SJR and the mainstream music industry?

The record label keeps itself separate from the mainstream music industry. The Big Three, Universal Music Group, Sony Music Entertainment and Warner Music Group are kept separately from this label. Soul Jazz Records aims to focus less on mainstream artists in the popular genres of Rock and Pop. They do not usually sign artists affiliated with these mainstream genres and keep a distance from the mainstream music industry in order to focus on their niche market.

Glossary

Production : 

Music production is the overall process by which an album or song is created. It is an umbrella term referring to a composition's structure (beats, chord progression, melodies, etc.) and/or the engineering (sound levels and various elements of the song).
The person in charge of music production is usually the record producer. He or she will work with an artist to create a sound that is likely to be commercially successful. Music production usually but not exclusively includes deciding on the recording environment, arranging the sounds, choosing the instruments involved and mixing the track in post-production.

Distribution:

Distribution is how albums get into shops. Distribution companies sign deals with record labels (or very rarely, directly with artists) that gives them the right to sell that label's products to record stores that have an account with that distributor. The distributor takes a cut of income from each album sold and then pays the label the remaining balance.

Marketing: 

Music marketing is a term that describes a technique in which a brand promotes its products and services to consumers through the use of musicians, endorsements, concert tours, festivals, events, and other similar tactics within the music industry.

Consumption:

Consumption can be easily defined as the act of consuming, therefore to take something in or use it. In music, consumption relates to the way people get their music and listen to it, which in todays age is usually through downloads.

Music Industry:

The music industry involves the production, distribution, and sale of music in a variety of forms as well as the promotion of live musical performance. It is the term used to describe the whole process of how music is made and shared, and the industry in which the music artists are a part of.

File Sharing:

Internet file sharing describes digital information which is distributed by downloading, uploading, or even both at the same time. The information that can be shared is varied and includes digital music, audiobooks, movies, software, ebooks, etc.

Vertical Integration:

When a company expands its business into areas that are at different points on the same production path, such as when a manufacturer owns its supplier and/or distributor. An example of this would be the merger of Live Nation and Ticketmaster created a vertically integrated entertainment company that manages and represents artists, produces shows and sells event tickets.

Synergy:

The potential ability of individual organisations or groups to be more successful or productive as a result of a merger. This would therefore mean two music organisations joining together to help each other be more successful, an example of this is record labels among different countries working together.

Convergence:

Convergence is a coming together of two or more distinct entities or phenomena. Convergence is increasingly prevalent in the IT world; in this context the term refers to the combination of two or more different technologies in a single device. Taking pictures with a cell phone and surfing the Web on a television are two of the most common examples of this trend.

Copyright:

Copyright is the exclusive ownership of and the right to make use of a literary, musical, or artistic work, protected by law for a specified period of time. In music specifically, it is a document granting exclusive right to publish and sell music.

Conventions:


Conventions are the widely recognised way of doing something which is to do with content, form and style. There are two types of conventions which consists of:

- Technical Conventions - A convention in a technical area. These conventions, apply to the majority of music videos for e.g. the video being the same length as the song and fast cuts

- Genre Conventions - this is where conventions are associated with a particular genre. An example of this would be Pop videos, which may consist of dance routines and bands performing songs with instruments.

Demographic:

Demographic information is used in media marketing to classify an audience into age, gender, race and other categories.
In media, as in all business, demographics are used to pinpoint potential audience growth and to spot underperformance. All forms of media are targeted to certain audiences.

Download: 

To transfer data or programs from a server or host computer to one's own computer or digital device. In the case of music this would mean downloading music in the form of albums or singles from the internet onto your device.

Hardware:

The mechanical equipment necessary for conducting an activity, usually distinguished from the theory and design that make the activity possible. This basically means the equipment used to make music play on a device.

Independent: 

Independent is the description given to music artists who work and operate on their own without the help of record labels. This means they independently record and market/advertise their music. As a result of this they will not have to pay anyone else and can keep profits for themselves.

Subsidiary:

A subsidiary is a company that is partly or completely owned by another company that holds a controlling interest in the subsidiary company. This would mean that a record label may own control over a music artists and make decisions on their behalf on what music they release etc.

Horizontal Integration:

The acquisition of additional business activities that are at the same level of the value chain in similar or different industries. This can be achieved by internal or external expansion. An example of this would be a large online music distributor such as Apple buying over a music store such as HMV.

The Big Three:

The big three is the term given to the three main music labels which control around 88% of the music industry. They are:

- Universal Music Group

- Sony Music Entertainment

- Warner Music Group