Sounds like an enormous loss, doesn't it? It almost makes you feel guilty for downloading that song you heard on that radio or accepting a copy of that CD from your friend. However, before you consider confessing your sins, there are a few things you should be thinking about. For example, who ever said that corporations had a fundamental right to succeed using the same methods they have used in the past? The rise of the internet revolutionized so many other industries, what caused the music industry to believe that they would be the exception? I am not saying that piracy is wrong or right; however, I do wholeheartedly believe that the music industry business model, that was once successful, is now outdated.
Nowadays, everyone can download music at almost no cost. Using legislation to fight piracy is like dumping loads of money from a helicopter, while flying above busy streets with a sign that says, "Don't catch the money." Without doubt, most of the people on the ground will take it, especially if everyone else is doing so without apparent consequences. Downloading songs illegally may not be right but it is widely available and it is easy to do.
Rather than changing the consumer environment, I believe it would be a lot wiser for the music industry to reconsider its business model. In fact, I believe the music industry would benefit greatly from the book "Who Moved My Cheese?" Its simple story reveals profound truths on change. Below I have outlined its lesson and how they have applied to the revolution in the music industry thus far:
Lesson #1: Change happens.
Long ago, artists spent loads of money recording albums and then made loads of money selling those albums to a wide variety of customers. However, that is no longer the case.
Lesson two: Anticipate change.
The internet came about. Perhaps the utility of the internet was not as clear during its initial stages as it is now; however, through the times many useful innovations came about, such as YouTube and Facebook, and revolutionized our lives and the way we do business.
Lesson three: Monitor change.
While technology quickly progressed, some artists believed that they could satisfactorily sit on their pile of money, without keeping an eye on Napster, LimeWire and YouTube.
Lesson four: Adapt to change quickly.
Some of the folks in the music industry began to realize that the days of making money off record sales were ending, and began to adapt to the change by focusing much more on live performances than ever before.
Lesson five and six: Change and enjoy the change.
Wise artists began to focus most of their time and energy on image and brand development. It happened with the phonautograph; it happened with the cassette; it happened with the CD; and it is now happening with digital media. The landscape is continuously changing and so must the artists.
In short, piracy has not killed the artist but rather it has challenged the methods that have been used in the past to make a profit. Those who wish to remain in the industry must learn to adapt, and those who wish to enter must be ready for more changes in the future. It’s going to keep happening. Behaviors that prove successful in the past are not necessarily successful techniques for the future.
My fellow music industry friends, fighting digital media and piracy will only cause you to stay behind while others successfully adapt to the changing times. I recommend you pick up a copy of this book and apply it to your business today.
Great point about other industries having to adapt to the Internet. The music industry has done some adapting as well, such as iTunes, but for the most part they haven't done a whole lot to change the industry in a positive way. Certainly, the music industry's business model is outdated.
ReplyDeleteThe fact that downloading music is so easy is really all the needs to be said. There is no possible way legislation will be able to keep up with the technology. There will always be some new way to download free (illegal) music.
I agree with you that if the music industry wants to combat music piracy, they will need to make some major changes to their model. It will be challenging and it may not even be possible, but they have to try something.
Excellent job Ms. Diaz!!
ReplyDeleteJust to bolster your argument, perhaps the recording industry should take a look back at the introduction of the VCR and how film industry analysts thought the blank VHS would bring an end to profitability in film-making.
They were WRONG! People continued to watch movies in theatres. In fact, as VCRs grew in popularity, an entirely new industry was born: video rental.
Jennifer, great blog about the imperative need of artists evolving to newer forms of generating money. But we should also realize the positive impact music industry has in U.S. economy. There are lots and lots of people that depend on jobs and income generated by this industry and this is at least one type of work we can’t take abroad. The most successful performers in the world for at least the last 60 years have come from America and millions of dollars have been generated by sales. If we stop the prosecution of illegal downloading of music in the internet, soon everybody will be trying to get all software, movies and all other electronic information without fear of prosecution.
ReplyDeleteGreat Blog!!
ReplyDeleteI completely agree with you. Music industry cannot blame internet or any other medium for their misery. Piracy is associated with every industry and every product .For example we have piracy in software, hardware, books, clothes etc but all the industries have adjusted and took remedial measures to counter piracy and illegal infringement. Microsoft added digital key to all their products. They also made many of their products free for trial giving customers more options and choices. Music industry on the other hand is not coming up with solutions instead they are cribbing and criticizing technology for all their problems. I agree technology and internet have hurt their revenues and markets but it has also giver a wider audience and market share. The onus is on Music industry to take advantage of such opportunities and come up with innovative solutions .