The music industry in 2011 has changed compared to the music industry 10 years ago. Companies have to deal with the new crisis of illegal downloading as now all music is being downloaded for free, thus making no profit for the companies and their bands. Sales fell to 7% in the UK in 2010 and every year sales fall. The industry has now halved in size, displaying the effect of new methods of obtaining music. Shops are starting to feel the heat as well.
The industry usually found it's income by the original distribution of CDs in shops. Nowadays, music is virtually sold online via itunes and other websites.
HMV have lost 60 shops due to online methods of buying music and other goods being cheaper. Ironically, many believed the digital sales of music would save the industry but the growth profit stalled and only grew by 1 % in 2010.
Artists are beginning to try to come up with new ideas on how to make a profit. Ellie Goulding teamed up with Nike to target the niche audience of runners and create an album specifically for running.
New websites are appearing offering music. Spotify is a free/subscription website where users can either pay to listen to songs or listen to them for free with the drawback of adverts.
In conclusion, the industry is at a tough stage, but in my opinion I'm sure it'll get back up on it's feet so long as there are customers out there.
No comments:
Post a Comment