Impact of Digital Downloading on the Music Industry

This article discusses the impact of digital downloading on the music industry, including illegal downloading, demand for free products, streaming devices, financial losses for music artists, social media's role, and future scope.

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Table of Contents
Introduction................................................................................................................................3
Illegal Downloading of music....................................................................................................3
The demand for free products....................................................................................................3
The growing popularity of streaming devices............................................................................4
Music artists losing on financial grounds...................................................................................4
Social media’s role in decline of the music industry.................................................................5
The future scope of music industry and digital downloading....................................................5
Conclusion..................................................................................................................................6
Reference List............................................................................................................................7

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Introduction
Advent of the computer technology has brought various deviations in the avenues of
entertainment in the lives of people. The music industry constitutes a comprehensive part of
the entire resource chain of human entertainment. Furthermore the music industry also
accounts for being the lone source of income for the music artists of the country alongside
depositing a heavy percentage of revenue to the government. Introduction and alignment of
computers and other modes of digitalisation has made it possible to promote the music
industry at a larger scale. With the progress of this strategic partnership, some illegal
practices have crept in. moreover the growing demand of music streaming or free song
downloads have affected the financial growth of the music industry. The music artists also
use the avenue of internet to promote their ideas and creativity through social media.
However, the music composer or producers are eager to promote their music through paid
websites.
Illegal Downloading of music
Recent innovations in the digital and cyber domain have made it possible to do peer to
peer transfer of digital files between internet users. On one side, Aguiar (2015), is of the
opinion that the copyrighted products of the music producing companies are supposed to be
purchased over the internet portals that offer purchased access over music albums. On the
other hand, according to the findings of Datta, Knox and Bronnenberg (2017), illegal copying
of copyrighted portals and release of the same material over the free to access websites have
proved to be fatal for the music producing companies. Some of the major applications that’s
support such illegal access to songs are Lime-wire, Napster, Win MX and so on.
The demand for free products

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The demands of listeners for free access of music have some strategic advantages for
the producers also. Demand for particular product enhances as a result of this. However there
is an opposite face of the coin also. Piracy of music from original portals have detracted the
listeners from the purchase of real physical music albums. Other than the financial losses that
the music producing companies endure, there have been a direct impact of the illegal
practices on the legal structure of the industry. According to the opinion of Gamble, Brennan
and McAdam (2017), such illegal practice entails severe violation of copyrights.
Furthermore, the generalisation and acceptance of the music piracy over time have brought
about a change in the perception of listeners about music on the whole.
The growing popularity of streaming devices
The recent popularisation of the music streaming platforms like Amazon Prime,
Pandora, iTunes, Spottify and so on, allows the people to access huge on-line music libraries
against payment of minimum online application fees. As a direct outcome, the practice of
direct purchase o0f music albums have been an obsolete heredity (Meier, 2015). Listeners
have to pay AUD 10 dollars on an average for procurement of single physical albums.
Therefore, customers are also favouring music streaming platforms highly. In contrast,
Myrthianos et al. (2016), opines that the negative fact is that in this whole endeavour of the
online libraries, the original copyrighted owners of the music earns minimum royalty money.
Whereas, a parallel industry is being run based on the products that they produce.
Music artists losing on financial grounds
The royalty contracts of online music vendors with the musicians and the record
companies do help them in earning money. However, quiet contrastingly, Ordanini and
Nunes (2016), opines that the musicians express negative sentiments regarding the growing
popularity of the streaming stations because this business is gradually making it harder for

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them to earn a living off their work. However, they have accepted the fact in the internet age,
this is just the way in which the business is conducted. According to Pavlik and McIntosh
(2018), they have to survive and sustain in this atmosphere only.
Social media’s role in decline of the music industry
The use of social media has changed the face of the music industry. Previously, as
Sinclair and Green (2016) states, the artists and the music composers relied completely on the
recording companies for earning money. The chief earning source for them were the royalty
bonus that they earned. In contrast, now, Sinclair and Green (2016), states that the musicians
do not need to rely on the recording companies only. They can publish their own songs and
music videos online. Online platforms like Tune Core, Distro-Kid and so on, have provided a
chance for the musicians to choose an alternative living strategy. They not only earn royalty
money from each of the platforms they are subscribed to, but also gain per unit sale incentive.
However, this shift of the macro business environment has definitely hurt the business
interest of the record companies. Moreover, according to Smith and Zentner (2016), they
have also reduced the level of supremacy that the musicians enjoyed over the music
creations. Change of the mode of business have definitely made the scenario problematic for
the musicians. However, they have opened up new avenues for them also.
The future scope of music industry and digital downloading
Looking at the future, it might be said that digital downloading, music streaming and
paid online music library will gradually reduce the physical sales of music CDs and records.
However, there are some positive developments also. The amount if exposure that singers get
nowadays have made them more popular. Hence, people nowadays are more excited to go
watching live music concerts and shows. According to Wagner et al. (2015), this would lead
to the emergence of new business models within the industry, revolving around the show

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hoisting business. In the present day, there is a need to reconceptualise the distribution and
marketing of business. An instance can be provided in this context. Music genres like pop,
rock or electronic dance music that is more popular with the younger generation are suitable
for online streaming or downloading. However, reggae, blues or country music that is being
loved by elderly people are to be marketed by conventional means like sell of album cassettes
or CDs (Yang and Wang, 2015).
Conclusion
Analysing the impact of the trend of online downloading of songs and further
digitalisation of the music industry, it might be commented that traditional record companies
would gradually sink into oblivion. The degeneration of the industry is unavoidable.
However, it should be perceived that the music industry is going through a constantly
ongoing change.

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Reference List
Aguiar, L., 2015. Let the music play? free streaming, product discovery, and digital music
consumption. 17(2), pp.1-16.
Datta, H., Knox, G. and Bronnenberg, B.J., 2017. Changing their tune: How consumers’
adoption of online streaming affects music consumption and discovery. Marketing Science.
17(4), pp.1-28.
Gamble, J.R., Brennan, M. and McAdam, R., 2017. A rewarding experience? Exploring how
crowdfunding is affecting music industry business models. Journal of Business
Research, 70(6), pp.25-36.
Meier, L.M., 2015. AND PROMOTIONAL WORK INSIDE THE ‘NEW’MUSIC
INDUSTRY. The Routledge Companion to the Cultural Industries, 15(8), pp.402-403.
Myrthianos, V., Vendrell-Herrero, F., Bustinza, O.F. and Parry, G., 2016. How Does Music
as a Digital Service Affect Consumer Attitude and Behaviour? 1/Servitización Digital:
Actitud y Comportamiento del Consumidor en la Industria Musical. Universia Business
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Ordanini, A. and Nunes, J.C., 2016. From fewer blockbusters by more superstars to more
blockbusters by fewer superstars: How technological innovation has impacted convergence
on the music chart. International Journal of Research in Marketing, 33(2), pp.297-313.
Pavlik, J.V. and McIntosh, S., 2018. Converging media. Eds. 8th, London: Oxford University
Press.
Sinclair, G. and Green, T., 2016. Download or stream? Steal or buy? Developing a typology
of today's music consumer. Journal of Consumer Behaviour, 15(1), pp.3-14.

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Smith, M.D. and Zentner, A., 2016. 18 internet effects on retail markets. Handbook on the
Economics of Retailing and Distribution, 19(2), pp.433-434.
Wagner, T., Rose, M., Baccarella, C. and Voigt, K.I., 2015. Streaming killed the download
star! How the business model of streaming services revolutionizes music distribution. 12(2),
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Yang, Z. and Wang, J., 2015. Differential effects of social influence sources on self-reported
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