MusicIndustryinWeb2.ppt

Old Music Discovery Web 2.0 and the New Business Models Old Music Industry Model Digital Music Industry Model Types of music business on the web Retailers (Amazon ) Subscription services (Rhapsody, Online Radios) Social Music Communities ( Last.fm ) Ad-Revenue (Grooveshark) Pay-per-song (Itunes) Pay-as-much-as-you-wish (Free Albums) Artist Communities Online (Myspace) Music Tax (ISP taxing) The downloading controversy Digital Rights Management (DRM) Pro’s and Con’s of the free flow of music on the web  MUSIC INDUSTRY IN WEB 2.0 Gergana Tyaneva Konstantin Bahchevanov From Vinyl to Mp3 Until the 90’s the development of music industry and its innovation was guided by the industry itself. In 1935 magnetic tape started to be used for recording , while in 1963 Philips introduced the first music cassette and standardized the first 8 track’s music players 1983 Sony and Philips joined forces and created the Compact Disk( CD ) Player , which became the standard for physical music storage From Vinyl to Mp3 The release of the first sound cards for the consumer market in 1991 , changed the attitude of people towards the use of computers to listen to music. The commercialization of the internet was becoming more and more evident at this time. In 1996 was the official release of the first popular compressed format MP3. That was the turning point of the music industry , which took it to the new age of digital distribution of music. ?All of those gave the ground to the raise of the p2p Sharing.(The Case of Napster , Kazaah and torrents) The Industry in Numbers Digital music, as defined by the Recording Industry Association of America (RIAA), includes mostly music downloaded over the Internet for a fee, music downloaded from subscription sites, and music downloaded to cellular phones and other mobile devices. There is almost 33 % decline in the profits of the record studios , while online distribution channels have a growth of more than 1000% 95% of the music downloa