Home  >  Subjects  >  Music / Musicians / Instruments  >  current page My Profile

Symbiotic Relationship Between Musicians and FansChapter Writing

Pages: 6 (2730 words)  |  Style: n/a  |  Sources: 5

Custom Writing

Evidence

The recorded music industry, after more than a decade of hardships and decline, is now slowly making profits and recovering. For the first time in more than a decade, the global music industry managed to make a positive annual increase by an estimated 0.3% from its trade revenue generation that reached $16.5 billion in 2012 as reported by the International Federation of the Phonographic Industry (IFPI). The major contributor to this growth was the digital sector that boosted up revenues for the industry (Valencia, 2013).

The innovation in the music marketplace has seen a new revenue model growing that is based on the music rights and a number of revenue generation methods using the internet. While the revenue generated in 2012 was far lower than the record of $36.9 billion reached in 200 for the industry, however the indications are very indicative of the growth of new sector for the music industry.

The trade value of recorded music is expected to grow exponentially in at least eight of the top twenty markets in the next few years that include market like Australia, Brazil, Canada, India, Japan, Mexico, Norway and Sweden.

While in comparison to the revenues generated by the music industry is far away from the revenue record of 200, the growth of the digital sector for music consumption and revenue generation has provided a promising future. The revenue earned from digital source in 2012 stood at $5.6 billion which was a 9% increase from the earlier years. The revenue generated from digital sources accounts from more than one third of the total revenue generated by the industry (Madden, 2004).

Record labels and publishers are targeting the digital medium more and more as the digital channels increasingly become the primary source of income. This is especially true for markets like Norway, Sweden, India and the U.S. (Madden, 2004). The growing importance of the digital medium as a source of revenue is evident from the fact that digital revenues surpassed physical revenues for the first time in 2012 in the United Kingdom, in the same manner as in the U.S. where the revenue generated from digital sale is 50.3% of the total revenue generation of the music industry in 2011 (Madden, 2004).

These figures show that a strong connect is developing between the musicians and the fans through the internet, the growing revenues from the internet indicate that the musicians are able to develop a stronger bond through their music using the internet medium. This has also allowed the musicians to reap financial benefits from the internet-based channels of music distribution (Valencia, 2013). The range of the music distribution has also increased by the use of the internet medium. For example the internet music-based distribution channels like iTunes, Spotify, and Deezer have their operations in more than 185 countries. In stark contrast this service was available in just twenty countries about twenty years ago. Therefore there use of the internet and the channels of music distribution have also contributed to a large extent in the increase in the revenue generation from this medium. At present there are more than 500 licensed companies that distribute music through the digital medium all over the world effectively increasing the options for both, the fans and the musicians, as well as enhancing the opportunities for revenue generation through the internet distribution channels. .

The majority of sales in global digital revenues comprises primary of the download stores that provide revenues of about 70% of total digital revenues. But the rapid growth in the streaming services for digital music at 40% indicates a strong possibility of this form of revenue generation model to come up strongly in the near future. Another form of digital revenue growth model is the subscription channels (Valencia, 2013). The growth in the subscription rate has grown by 44% in 2012 compared to that corresponding period a year ago. In their annual report for 2012, the report International Federation of the Phonographic Industry claimed that the total amount of revenue generation from subscriptions for the first time in history contributed more than 10% of the total digital revenue generation.

Notable Examples of Revenue Generation from Digital Medium

One of the most talked about incident of musician gaining fan base and earning revenues using the internet has been the 'Gangnam Style' video that had gone viral on the internet and in just two years had recorded a viewership of well over 2 billion, a never before phenomena on the internet for a single music track. This single track video by the Korea pop star Psy was first posted on the YouTube in 2011 (McIntyre, 2014). In just two years the video went viral and millions viewed the video and the number has continued to grow.

Though it is a matter debate about how much Psy managed to earn from the single video album, it is estimated that the Korean pop star earned around $2 million from the advertisements placed on the video on You Tube only. This is just a clip and the clip has now become known as the Gangnam clip. The style of dance has been made popular all across the globe (McIntyre, 2014).

There are other notable examples where the internet was used by the musicians to gain fan following as well as revenue. The 'blurred Lines', by Robin Thicke is an example which made $350,000 from the internet. The model as that the musician got money per view of the video I the form of advertisements on the video clip. This is one of the models of revenue generation for musicians in the internet medium (David, 2009).

In other form of revenue models of the digital media a partnership approach to the production and publication between a digital served provider and major record labels is a popular form and according to estimates this model has been able to generated a combined wealth of over $250 million for video owners since the service's 2009 debut. This is termed as monetization which is the buzz word in the modern music industry where artists, managers, record labels, investors and outside parties are getting attracted to this model of online music business. This has come up to be one of the most popular models for music business online (Valencia, 2013).

One of the first proponents of this business model was YouTube Music Videos which is also the third most popular website. More than 40% of the 384 billion, of YouTube's trillion-plus views every year comprises of views of music videos. This figure is the larger than, according to the Digital Music News, the combined viewership of music videos on Spotify, Rhapsody, Grooveshark, Rdio, MOG, Deezer, and eMusic. The popularity of the medium was reflected in a recent study by comScore where it was found that 43.5 billion videos in 2011 were streamed by Americans in 2011 which was 44% more than what they did a year ago (comScore, Inc., 2013). It was also revealed that 43% more Americans watched streamed online videos every day in 2011 touching 43.5 billion in 2011 which was 44% more than what Americans did in 2010 (comScore, Inc., 2013).

The monetizing of YouTube has been in existence in the form of YouTube's Partner Program and Content ID system where the labels and other copyright holders joined hands with YouTube since 2007 to generate revenue through advertisements. Content ID was a program where in a copyrighted holder to upload a video material on YouTube and a system matches and compares this content with other similar contents that are uploaded by users without copyrights. The copyright holders, after getting a notification from YouTube, then have the options of either blocking, tracking or monetizing the content.

The fingerprinting tool in efforts to curb piracy and block unauthorized videos was used in the initial period when the content ID program was first implemented. This was pretty similar to the defensive action that the music industry had taken in the initial years when the internet was used to upload copyrighted material illegally (Thomson & Cook, 2015). However this defensive tool is now being used as a revenue generation tool by the music companies and copyright holders. Therefore musicians with copyrights of their work can generate revenue in this way from the use of the internet (IFPI Digital Music Report 2013 Engine Of A Digital World). Authorities claim that those who monetize their content rather than monitoring their content find that they are able to double their viewership through this process. Thus while generating revenue from this model, musicians were able to create a larger audience for their product (Gannes, 2009).

Experts claim that till date the most ever successful monetization of all times on the internet has been the South Korean Rapper Psy for his viral meme "Gangnam Style." The experts claim that since the video clip went viral in 2011, the South Korean Rapper has been able to amass over $8 million alone in advertising revenue in total while half of… [END OF PREVIEW]

Download Full Paper (6 pages; perfectly formatted; Microsoft Word file) Microsoft Word File

Music Artists and New Ways to Reach Fans


Impacts of Facebook on Young Generation


View 6 other related papers  >>

Cite This Paper:

APA Format

Symbiotic Relationship Between Musicians And Fans.  (2015, May 18).  Retrieved September 19, 2017, from https://www.essaytown.com/subjects/paper/symbiotic-relationship-musicians-fans/4554161

MLA Format

"Symbiotic Relationship Between Musicians And Fans."  18 May 2015.  Web.  19 September 2017. <https://www.essaytown.com/subjects/paper/symbiotic-relationship-musicians-fans/4554161>.

Chicago Format

"Symbiotic Relationship Between Musicians And Fans."  Essaytown.com.  May 18, 2015.  Accessed September 19, 2017.
https://www.essaytown.com/subjects/paper/symbiotic-relationship-musicians-fans/4554161.

Disclaimer