The Recorded Music Industry

Description

Music has become one of today¿s great global industries, generating world retail sales of US$27 billion to $38 billion during the 1990s, by satisfying the diverse music appetites of people around the globe and popularising new artists and music styles. Recorded music in turn belongs to a group of copyright-based industries valued at 360 billion euros in Europe and $430 billion in the U.S., accounting for more than 5% of GDP. Yet the very foundation of this industry, its copyright system, is currently being challenged by the introduction of new information and communication technologies. The International Federation of the Phonographic Industry (IFPI) largely blames illegal CD-R copying and free online music for the decline in global music sales in 2000, claiming that the latter has driven fans from the largest music market, to Napster and similar sites to the detriment of traditional music formats such as cassettes and singles. At the same time, there is no denying that these same technologies are creating new and exciting opportunities for music companies to deliver their content to the end consumer. This type of turbulence is not new for an industry that has grown on technological change and development.

Keywords

Distribution channels Industry analysis Marketing