Can the Music Industry Change Its TuneEssay Preview: Can the Music Industry Change Its TuneReport this essay1. Apply the value chain and competitive forces models to the music recording industry.The principal physical distribution channel of the recording music industry value chain has been standardized with a final physical media as CDs among other products.
Unfortunately with the Internet and digital technology the recording music industry has been one of the most affected by companies like KAZZA, Morpheus, Grokster, Gnutella, and the like, which are all based in peer to peer networks or just selling music without taking care of the copyrights.
When a person buys a CD, that person is acquiring a product that represents all contributions of a chain that are part of the music industry. The price that is paid for a CD compensates all the contributors involved in the production of the CD.
The value chain for the music recording industry consists in basically 6 components:Artists or Singer:Recording: Studios (Universal Music Recording, Sony Music, Warner Music, BMG or EMI)Manufacturing: CD ManufacturersMarketing: Advertisement, catalogues, tours, concerts, Interviews, etcDistribution: Transportation, Packaging from manufacturing to distributors.Indirect distribution through traditional channels: chain music stores and chain bookstoresIndirect distribution through nontraditional channels: gift stores, independent business.Retailing: Carried by major label and internet superstores until products become popular with particular segments.It is important to know that there are other types of distribution channels like radio stations which use music to make profits. These companies are known as professional users of music and in order to use any kind of music they have to pay fees for doing so.
This section is not set in stone, but has been updated to reflect changes within the industry at large, as well as the various factors we are taking into consideration.
See a breakdown of what we consider to be the most important factors and factors within the music industry.
These include, but are not limited to, “propriety,” “availability,” “production,” “recording” and “mix,” “playtime,” “musicians,” and, of course, “price,”