Case Summary: Darren Skanson, a classical guitarist, has used his expertise and popularity as a performing artist to form a company, Colorado Creative Music, to produce and distribute recorded CDs of his and other musicians' works. In 2001, he has one other performer on contract and two part-time employees whose responsibilities range from answering telephones, filling and sending out orders, maintaining equipment, managing inventory, preparing for gigs and promoting CDs to local vendors. In March 2001, Darren, who travels and performs up to 40 weekends a year, is caught between his multiple roles as lead performer, marketing and sales director, and manager. However, he realizes that he cannot sustain the energy needed to do everything well. Tendonitis in Darren's elbow is forcing him to rethink his plans and examine his current role in his company. Questions & Answers 1. I think Darren has done some good job and has used his expertise and popularity as a performing artist to form a company, Colorado Creative Music, to produce and distribute recorded CDs of his and also help other musicians. The studio now encompasses 16 tracks of digital recording and nearly the entire basement. 2.Competiton in the industry- It¡¦s hard for a small music company like CCM to compete with the major leaders of the music industry, such as SONY, EMI and so on. The music industry deals with increasing market growth, especially from smaller labels. There is potential for CCM to grow to an independent label in future. 3. Driving Forces of change ¡V Internet today is one of the major forces changing the music industry. Internet brings new opportunities in the areas of downloadable MP3 music and e-commerce sales. Also, marketing, technology and promotion are key elements. 4. There are a number of companies battling for a piece of this market. Only in the United States, online sales...
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"Music on the Internet: Transformation of the Industry" 1. Competitive Forces Analysis Today a growing number of consumers are using the Internet to access music. The Internet has changed the distribution systems as well as raised many legal and ethical issues in the music industry. With the Internet making a presence in nearly every business, it is not surprising that the Internet is bringing about some changes in the $38 billion music industry. The onset of the Internet will demand change in the business model and overall strategy of those participating in the music industry. 1b. Industry Driving Forces The introduction of the Internet into the music industry is the most influential driving force of change. The Internet significantly increases the size of the market because it is much easier to reach consumers that were not previously being reached. The number of people using the Internet to access music is continually growing for a variety of reasons. Consumers are using the Internet because they can acquire free or cheaper music. Consumers may also use the Internet to get music that is not available to them on the radio or in retail stores. The Internet also provides convenient shopping as many of the participants in the Internet music industry provide customer service measures such as chat rooms, instant messaging, secure credit card transactions, wish lists, reviews, order status checks, recommendations, and availability searches. Consumers may also just want to avoid overcrowded shopping centers and sales tax. The Internet also offers some incentive for use by artists. The Internet allows artists to reach customers that may have never accessed their music through the traditional distribution channels such as retail stores or concerts. The enormous market creates the opportunity for artists to produce and market their own music with little need for a record label. Furthermore, participants...
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INTRODUCTION Nietzsche once said, "Without music life would be a mistake." With this eloquent statement, he expresses the magnitude of what lies at the core of every human being and that is simply our inherent love for music. It is a human necessity that strikes a chord (no pun intended) with all of us and always seems to mark every emotion, experience, event, and time period. Music has no boundaries with its interpretations, evolutions and expressions being limitless. Though little could Nietzsche have ever imagined, a world-wide communication network allowing for the consumption of downloadable music from cyber networks by internet explorers on personal computers. In this paper, I will briefly explore the world of music swapping over the internet and how this new phenomenon has sparked one of the largest quandaries of legal episodes to ever hit the modern era. Millions of people are illegally downloading copyrighted songs from the Internet causing the music industry to be caught in a downward spiral as it continues to lose exponential amounts of revenue every year. There is no doubt that this is piracy from a legal standpoint, but who wants to see twelve-year old girls and young college students being dragged into courts because they downloaded Britney Spears singing "Oops! I Did It Again?" No one does. But this paper does not answer the ethical issue of whether or not people have the right to download music from the internet instead of paying $19.95 for a CD. Instead, it analyzes how the music industry, under the umbrella of the Recording Industry Association of America (RIAA), has been legally enabled to do so because of the Digital Millennium Copyright Act (DMCA) of 1998. This paper is separated into five different segments that provide: A) a brief background on and current status of internet music swapping;...
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SYNOPSIS This paper takes a look at innovation drawing from the worldwide music industry. The music industry is currently facing a slump in its sales and dropping revenues worldwide. This paper traces the effects of evolution of disruptive technological innovations like Napster and subsequent technologies. Napster as a community file sharing peer-to-peer application defied the traditional physical music distribution system. The paper attempts to throw light on the subsequent fallouts of the Napster effect, documenting the music industry's dilemma and exploring a possible distribution model for the future. Such a model would anticipate the future changes like a wireless age, accelerating technology and focus on a community-based model. Also an attempt has been made to look at technological innovations as apart from firm-driven innovations. These technological innovations are capable of changing the industry complexion and are essentially freelance in nature. THE CHANGING TECHNOLOGY ENABLED WORLD… The I-Pod, the mp3 technology, mobile music devices… Information, entertainment and communication anytime, anywhere, on the move… Welcome to the wonders of the telecommunications era. The era of technological innovation that spurs business innovation. In the last decade technological advances have changed the way businesses function; the prime mover of the technology being the information technology and the proliferation of the Internet. Consider another scenario. At 56kbps modem speeds all it takes to download the whole new Eminem single takes 20 minutes. And the vintage works and less seen or heard collections like those of John Lennon's Lost Weekend are up on E Bay for auction. Amazon.com has a catalogue of CDs to rival any music showroom and has a regular clientele as well. Fans swap music online and critique it online. In a nutshell like any other industry the worldwide music distributing and publishing industry is in a state of flux. The community that buys this music is moving online....
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Is downloading music stealing from the music industry? The music industry has prospered for many years in the past with few copyright problems. However, with the rise of the Internet in the late 1990s, the music industry began to face a new foe like no other. With the combination of software such as Napster and the MP3 technology, users can now download songs with near CD quality at no cost. With all this new computer technology(Internet, MP3, Napster), moral issues have been subject to debate like never before. Is downloading free music stealing from the music industry? From the way I see it, the music industry has brought this upon themselves due to overpriced CD's. A CD costs on average 12 dollars. The CD's usually have one or two good songs that are worth listening to. For over twenty years, the industry has not changed their marketing methods. If a person were given a choice, either to buy a 12-dollar CD for one song or download that same song free of charge, this person would most likely choose the latter. This essay will go into depth on the moral aspect of this issue. For example, whether or not it is right to download music for free while artists lose money. Artists after all, have spent a lot of time and effort into producing a CD Indeed, this technology hurts the artists and those involved in the music industry the most. Lawsuits have recently gone on and off, in my opinion, without purpose. The reason being that there are many ways to download music from the Internet and many file swapping softwares being created at the same time. Determining whether or not file sharing is stealing from the music industry will require moral issues to be discussed in depth....
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The British phonographic Industry; Introduction and historical development The British Phonographic Industry (BPI) was launched in 1972, although was formally incorporated in 1973, and has since been representing the interests of British record companies. The industry started off with just five members and its principle aim was to fight the growing problem of music piracy. Since then, the BPI now represents 267 record companies to date ranging from small independent labels, these includeV2, Independiente and Mushroom, to multi-national corporations such as BMG and EMI. Everyone who works for the BPI has one aim in common: to help create an environment in which the British music business can thrive and remain a world leader (BPI Handbook). To achieve this, the BPI's work has been concentrated in four main areas. Firstly, to fight against music piracy on a commercial scale. Secondly to gain Rights' negotiation and the provision of legal expertise to lobby government on behalf of the member record companies. The BPI also considers promoting the music industry to the media, politicians and the public. Lastly the BPI takes note and research and publication of key statistics on the value of the UK record business. Music piracy The act of music piracy has been abusing the main assets of BPI members along with their rights for decades, and is now more serious than ever. The BPI's Anti-Piracy Unit is fighting for these rights and taking action on their behalf to reduce this act. Currently, one in three recordings is a pirate copy and this results in costing the UK music industry millions of pounds each year. Within the UK, the BPI face threats from the growth of the CD-recordable disc highly sophisticated counterfeit CDs from Eastern Europe, and Online Piracy. Napster, which has been the centre of controversy for many months, is a type...
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Have you paused lately to give thanks to the Recording Industry Association of America? We certainly have not. Extensive research has been undertaken to reveal how truly evil the RIAA is. e·vil ( v l) That which causes harm, deceit, or destruction The RIAA, we have resolved, has significantly shown instances of each of these tiers of evil. In early September, The RIAA began to initiate a seemingly unending sequence of lawsuits to hold online music sharers accountable for the file-sharing which according to MPAA president Jack Valente is no different than "those who slip a CD under their shirt at a local Tower records." The accused were issued informational subpoenas obtained from users' Internet Service Providers. The cornerstone reasoning is said to be that musicians are losing money due to the increasing trend in file-sharing. First of all, Artists hardly profit from their CD sales in the first place. The RIAA owns exclusive rights to most of their musicians' music. One of the only bands to speak out against file sharing, Metallica, coincidentally is one of the few bands successful enough to own their own music. Almost all artists have little or no say in what happens to their music. Thanks to an RIAA lobbied adaption to copyright laws, the old copyright restriction of seven years plus a seven year extension has been pushed to the author's life plus seventy-five years. Furthermore none of the money obtained in the currently ensuing lawsuits is arranged to go to the musicians whom the RIAA claims to defend. This proves that lawsuits against file-sharers are not for the benefit of musicians. Not only does the RIAA have ridiculous reasoning behind their lawsuits, the lawsuits themselves are carried out in an unconstitutional manner. The informational subpoenas issued by the RIAA are obtained in the following manner: The RIAA...
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Everyday millions of kids are committing theft in broad daylight. Their parents don't care, they're stealing too, or asking their children to do it for them. No one tries to hide it and no one calls it stealing. People who wouldn't shoplift a stick of gum or take more than one newspaper from a street rack think nothing of stealing music. This is an issue that is rocking the music industry and cannot continue if we, as listeners, want to hear new songs and new artists. By now, most people know that distributing copyrighted music over the Internet is as easy as checking your e-mail. Millions of people download music from the Internet, robbing musicians, recording companies and retail stores of profits. I do it, you do it, and our neighbors do it. If we all continue, there will be no profit for anyone in the music industry. Artists will not make the money that they deserve and will, in turn, stop making music. New artists will not want to put their lives and life savings into a market that doesn't seem to be a profitable one. Someone downloads the music onto the Internet, and everyone else swoops in and takes it. This is called file sharing. Despite the court-ordered demise of Napster, hundreds of other downloading sites are thriving. The three most popular sites, Kazza, Morpheus, and Audiogalaxy, have a combined 70 million active users (www.musicunited.org). Let's say for example, the average amount of songs those 70 million users have is 25, that is 1.75 billion songs that are being shared for free. Sure, some are duplicates but I think that you can see how the music industry is being hurt by piracy. Music doesn't just happen. It's made and brought to you by millions of people, from songwriters and recording artists to...
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NAPSTER PAPER -- Right or WrongNAPSTER – RIGHT OR WRONG? Synopsis Recent controversy revolving the music industry and the distribution and "sharing" of music over the Internet has music executives, artists, consumers, Internet users/advocates, and politicians/judicial courts with conflicting arguments. After several court room battles, such as the March 5, 2001 Music Industry vs. Napster case in which Napster was ordered to "catalog the copyrighted songs it wants removed from the system," arguments are still and probably will always be split in half ("Judge"). The reason being is that some argue, mainly music industry executives, that on-line services such as Napster or MP3.com are "violating copyright laws and threatening to erode the economic base for popular music" (Jost). Artists feel threatened that they will lose control of their music. Many struggling in the music business may feel that consumers will lose interest in purchasing their CD's since Internet users can download music for free. Music executives and artists are threatened with the possibility of reduced music sales because file sharing over the Internet may promote piracy. Others such as rock star Courtney Love "support free distribution of music via Napster and other on-line music-sharing sources. 'Technology that exposes our music to a larger audience can only be a good thing,' she says" (Jost). Some consumers may find file sharing a good way to listen to an artist's music before they decide to purchase a CD. Many artists believe that Napster will threaten their means of living, but many others find it a great (free) marketing tool. Moral Dilemma The notion of million of Internet users worldwide having access to millions of pieces of music is astonishing. What is more astonishing is that after Internet users have access to other musicians work, any person is able to manipulate how he or she will use it. This may cause music pirating, copyright infringement, loss of creative control, or simply that music is shared freely with so many people that "creativity is...
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Piracy has been a problem for the music industry on a number of levels. Ever since the Internet began saturating American culture, the number of pirated songs available has increasingly become a serious threat to the entire music industry, especially record labels and music stores. Advanced compression techniques (mp3 format) have been distributed across the Internet that enable high quality music to be freely available to anyone on theInternet. The "mp3" fad started in dorm rooms of college students where music could be shared across the campus network with thousands of others. We investigated the ethical implications of music piracy from the perspectives of the college student and various components of the music industry. The general term "piracy" refers to the illegal duplication and distribution of sound recordings and takes three specific forms: counterfeit, pirate and bootleg. Jason Zuman, a Santa Clara University student, encoded 12 songs into mp3 format on Nov. 4, 1998, from a promotional CD of a local band "Whistle Blower." Jason got the CD from the local Santa Clara County street fair where the band was playing. Three months earlier, Whistle Blower signed a record deal with Empire Records, a large music label, that produced and marketed their self titled CD. Whistle Blower discovered that many local fans downloaded their CD instead of purchasing it from the store. On November 11th, the band's drummer, Kurt Smith, found pirated songs on Jason's computer. In March 1999, Whistle Blower noticed a steep decline in record sales, undoubtedly related to the freely available songs on the Internet. They asked Empire Records to pursue a legal course of action against Jason Zuman. By now, the songs were seen on hundreds of students' computers across the nation. Empire Records reported Jason's actions to the RIAA (Recording Industry Association of America) who addressed SCU officials...
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