The music industry today are no longer making as much money as they used to, therefore not making a larger profit on music sales.
This may be due to new technology in which means more people then ever are able to access music from various platforms. In addition through the means of the Internet, it is much easier for consumers to access music and illegally download their favorite music. However there are other platforms such as Itunes in which artists can make further profit, however this is not enough.
In addition artists and their record labels can sign to the 360 deal. The 360 deal is a business relationship between an artist and a music industry company. The company agrees to provide financial support for the artist, including direct advances as well as funds for marketing, promotion and touring. This allows the artist to make money through live concerts, creating their own clothes range, headphones range, perfumes, tours and signings etc. The artist agrees to give the company a percentage of all of their income, including sales of recorded music, live performances and any other income.
Another way in which the music industry make money is through, Vevo in which is a co-owned by Sony and Universal Music Group. They are always looking for new ways to make money, the major record companies decided that they needed to make bigger profits from YouTube's use of their music videos. So the labels created Vevo and arranged an agreement with YouTube that all official music videos had to be shown through Vevo. Vevo uses advertising in order to make money for their artists.
During a recent survey that I held i found that the majority of my class, illegally download their music. However occasionally buy an album for their favorite artists.
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