How the Internet has Rocked the Music Industry

HOW THE INTERNET HAS ROCKED THE MUSIC INDUSTRY DOMNLDADING 70% Online music downloads and streaming caused the traditional ways of buying and listening to music to suffer. BUT JUST HOW BAD IS IT? THE DECLINE OF THE RECORD STORE Between 2000 and 2010 record store sales Between 2000 and 2009 CD album sales declined by declined more than 76%" (1] 50%" [2] It may be dropping another 77.4% BY 2016. ALBUM RECORD STORES WERE IN IBISWORLD'S LIST OF 10 U.S. INDUSTRIES THAT WERE DEAD OR DYING FAST. [1] SIGN OF THE TIMES: ALSO IN 2006, IN 2009, IN 2006, the last of the Virgin stores closed its IN 2004, HMV-a company like Virgin, but based out of the UK-pulled out of the U.S. market. (3) Sam Goody's parent company filed for Tower Records closed all of its 89 U.S. stores. (5) doors. [3] Chapter 11 bankruptcy. [4] The company's parent filed for Chapter 11 bankruptcy in early 2009. In January 2012, digital music sales surpassed physical music sales for the first time ever, [6] Digital sales made up 50 3% of all music sales. Digital music sales 18.4% UP Physical music sales In 2011: 5% DOWN FROM MP3S TO STREAMING ORIGINALLY, DIGITAL MUSIC WAS CONFINED TO THE COMPUTER. MP3S were mainly File-sharing services became distributed online. popular, like: Morpheus Audiogalaxy Then, Diamond Multimedia created RIO, a digital audio player. MUSIC BECAME: iTunes was V Portable established V More in 2001.(8] affordable iPod users could buy songs for just V Available with large selections $0.99 Instead of storing music on a hard drive or Spotify is now a very popular way to access music. MP3 player, users can stream songs. 1 $0.99 İTunes ann 64 Spotify po. song listens purchase THE MP3 PLAYER PHENOMENON AND MUSIC STREAMING HAVE ALLOWED USERS TO DOWNLOAD AND LISTEN TO INDIVIDUAL SONGS INSTEAD OF ENTIRE ALBUMS. This marked a huge change in the music industry. In fact, from about 1999 to 2009, sales of full albums dropped However, individual, digital track sales went from 0 to 1.2 billion. 55% to less than 400 million. ALEUM ABOUT 2,000 INDIE MUSIC STORES STILL SURVIVE, (10] THE OLD LIVES ON DESPITE THE GROWTH IN DIGITAL MEDIA, Some attribute this to the remaining popularity for vinyl. So far in 2012, sales are up about 10 %f In 2011, vinyl album sales 39% increased by VINYL REMAINS RELATIVELY POPULAR BECAUSE IT: [11] Causes feelings of nostalgia. Provides quality sound. Is actually tangible. CONCLUSION Even though the digital music revolution caused both independent and chain record stores to suffer, some retailers continue on with the help of avid supporters. ALBUM Regardless of the growth and decline of music forms, there are pros and cons to every type, and only the future will tell what additional changes are to come. DOWNLOADING a0% [1] http://abcnews.go.com/Business/top-10-dying-industries-usinclude-newspapers-telecom/ story?id-13292328#.T-Dr-8306IM [2] http://www.thefiscaltimes.com/Special-Features/Slideshow/Dying-Industries/Slide2.aspx [3] http://www.nytimes.com/2009/06/15/arts/music/15virgin.html [4] http://money.cnn.com/2006/01/13/news/companies/samgoody_suncoast/ [5] http://www.cbsnews.com/2100-207_162-599008.html [6] http://gizmodo.com/5873471/digital-music-sales-beat-physical-music-sales-for-the-first-time [7] http://www.mit.edu/-glettler/resume/undergrad/tc215_The_Digital_ Music_Revolution_and_Consumers.pdf [8] http://www.huffingtonpost.com/2011/10/06/steve-jobs-itunes_n_999014.html [9] http://www.pcworld.com/article/194081/10_things_the_internet_has_ killed_or_ruined_and_5_things_it_hasnt.html [10] http://www.huffingtonpost.com/2012/04/20/record-store-day-2012_n_1439916.html [11] http://www.forbes.com/sites/zackomalleygreenburg/2011/07/13/vinyl-vs -cd-the-tables-are-turning-rolling-stones-dom-lyor-cohen/ SOURCES