Wednesday, November 18, 2009

Research Journal Assignment #13

RJA #13a: Field Research Report– I am still waiting for my uncle to email the answers to my interview questions. Here are the questions I sent him:

1.) In what ways has the music industry tried to compete with what is essentially considered to be "free" music online? I know that music has been licensed to companies like Amazon, iTunes, etc. to offer people a legal alternative. What confuses me is that pricing seems to be pretty level among tracks and that different bit rate qualities aren't offered. I could be wrong but doesn't iTunes only sell songs at 128kbps? Someone could easily download an illegal mp3 at much higher bit rates...even FLAC. If legal sources of downloadable music do offer songs at different qualities why aren't they focusing on these incentives in their advertising?

2.) How does the music industry (I suppose RIAA) know, exactly, how much blame to assign to internet piracy in regards to lost profits? It seems difficult to know just how many songs are being downloaded and by what artists, etc and with easily accessible, streaming music sources like Pandora, Last FM, etc. consumers are not necessarily even required to download the music they want to listen to at all. One website, playlist.com, lets you create your own playlists from a seemingly infinite catalog of tracks that can be played on any computer at any time. Not only can you listen to the playlists whenever you want but you can skip to whatever track on the playlist you want at any time. Its almost like having your own iTunes library on every computer with internet access.

sub-question: i know pandora licenses their music but I'm sure playlist.com doesn't. How is this site still up? What does the industry do to combat these kinds of sources that lessen the perceived value of music as well as the need to buy it?

3.) With today's digital recording technologies the recording process requires less raw talent and has become much easier & faster to do. Now it is not only easier for record labels to record their artists but for people with home studios to record as well. Artist that really have no business recording have been able to put out their own material. The overall standard of music has been reduced, in part, because of this. Copycat artists hear something one day and in that same day record a complete track that is beyond just being influenced by it. There is this dangerous sort of "homogenization" going on in music right now. Sometimes I wonder if this prevailing tendency to excuse, or in many cases praise, mediocrity has done more to the perception of music's value than the piracy phenomenon has.

4.) one of the core components in this issue, I feel, is the value people put on physical copies of music. One sentiment I have heard over and over again is that the music industry had it coming, in a sense, because of the price they put on these physical copies. $12-15 per CD is apparently more money than what people think they are worth. Now, I have no idea what it costs for a label to put out a cd. Surely it isn't cheap given the costs of recording, marketing, packaging, shipping, etc. But, is it possible that the record industry could survive by drastically reducing the cost of physical copies in an effort to regain their market interest and profit from volume sales? What ways could the industry re-connect with with their former market and how are they doing it?

5.) One cold fact is that internet piracy is probably never going to disappear. However there must be incentives the industry is working on to give people a reason to become music collectors again. When I was interning at Reprise I remember looking at some of the packaging some of the material came in and thinking "this must have cost a fortune to produce". Usually the better packaged copies were reserved as promotional copies to send to stations, etc. Of course some are also sold in stores for die-hard fans who want something more. For the average music "fan", however, packaging is of little importance.

one idea, albeit completely unrealistic and naive perhaps, is that record companies could set up a system where the customer is rewarded after a certain number of purchases. For instance, if a customer buys a certain number of cds, dvds, etc. of an artist of theirs they reward the customer with a ticket to that artists concert. The reward couldn't be music or anything else that could be digitally copied otherwise the value of the reward might not be recognized. Merchandise and tickets, however, would always have value.

I found these figures on the damage done on the RIAA website:

•71,060 U.S. jobs lost = $2.7 billion of worker’s earnings lost
•$422 million tax revenues lost
•$291 million in personal income tax lost
•$131 million in lost corporate income and production
taxes
Total Loss Annually= $12.5 billion (globally)


perhaps the government could get involved and help the industry set up a reward system (as i'm sure it would cost a lot while the system gained steam) in an effort to recoup some of the tax revenues they're losing.

RJA #13b: Annotated Bibliography, Part 1–

Chris Goodwin

Professor Clark

English 1020

18 November 2009

Healthy Music: industry, culture, and economics

An Annotated Bibliography

Weissman, Dick. Navigating the Music Industry: Current Issues & Business Models.

Milwaukee: Hal Leonard Corporation, 2003. Print.

This book looks at the record industry from a business stance, offering business models for various situations. This includes information on Napster’s business model as well as other peer to peer sites.

This source is a scholarly source. It was written by an associate professor at the University of Colorado at Denver. He has written several books on the music industry in regards to business practices and financial aspects. He has a fairly large list of citations in the book and it seems to be well documented. It was also written in 2003 and so is relevant today.

This source fits into my research in that it provides a perspective on this issue from the business standpoint. In addition to providing information on Napster’s business model it also looks at those of the music market industries: retail stores, online stores, etc. A lot of the book will not be useful to me but several chapters will be.

Lathrop, Tad. This Business of Music Marketing & Promotion: Revised and Updated

Version. New York: Billboard Books, 2003. Print

This is a very well known book that examines every detail of the record industry including marketing, promotions, distribution, licensing, etc.

I believe this is a scholarly source as it is very well documented and is known to be a very good book on the subject. It was required as a text book when I went to CSU Chico for my degree in music in the recording arts program. It is a current publication as well.

This will fit into my research as it helps me to understand the inner-workings of the record industry more, especially as it pertains to the sales of the product, how it is marketed, packaged, and promoted. This is important to know when discussing what the industry is doing in response to internet -piracy.

Hull, Geoffrey P.. The Recording Industry: 2nd Edition. New York & London:

Routledge, 2004. Print.

This book examines the industry behind the music business. It focuses onthe three facets of income in the business: sales, publishing, and live performances. It was written for students.

This is a scholarly source that cites many other sources. It is well written, concise, and straightforward.

One chapter, in particular, will help me a lot with my research: The Recording Industry and the Internet. It examines the internet as a promotional tool, distribution tool, and piracy tool.

Towse, Ruth. Creativity, Incentive, and Reward: An Economic Analysis of Copyright

and Culture in the Information Age. Northhampton: Edward Elgar Publishing,

Inc., 2001. Print.

This book looks at the cultural industries (including music) and the economical issues surrounding them. It looks at copyright and economic incentives, artist’s rights, and artist’s rewards.

It is a scholarly resource that is heavily cited and is written by an author who has written several books on these industries.

I believe it will help my research in regards to copyright issues and rewards/incentives needed to keep the music industry thriving.



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