RESEARCH:The state of the music industry

At the moment the music industry is in turmoil. The Music industry is no longer making as much money as they used to do.

Why is this?

 Simply because of the broad use of digital downloading. Consumers no longer pay for songs as the vast majority choose to illegal download through file sharing networks. However the music industry and artist do make money through Itunes.

Itunes is a legal digital downloading site, made by apple. As a way to add music to their portable hardware device known as the Ipod. Itunes sales songs to the consumer at 79p but apple takes 20% (13p) away from the original selling price. That is an example of how the music industry get their money, even though it is a small amount this is particularly useful because the music industry is still receiving a form income.
However, this is not the only form of receiving income as there is the 360 degree deal. This is a deal made with the artist and the record label. This is where the record label supports the artist financial and then take a percentage of the money through: sales of songs, merchandising, tours, signings, gigs/ concerts and TV appearances.

 Another form where the music industry makes money is when that artist makes products such as headphones. On fine successful example of this is Beats by Dr Dre. The headphones are made to enhance the way music is being listen every beat, every rhythm and sound. Artists have made custom versions for their fans, for example Justin Bieber has created one for his fan base.

Moreover, artist try and stimulate sales through CD's by making the packaging appealing for the consumers. For example, Katy Perry had her Album smell like candy floss due to her well known hit. California Girls where it is set in candy land. Another example is where artist/bands add posters, lyrics or history of the music within the packaging (this is mostly seen in Soul Jazz music) Stimulating sales through this method is a form of USP - unique selling point. Instead of the consumer paying for the song they are paying for the add on's and for the attraction.

In the music industry there are 3 major labels are:

• Universal music group
• Sony music group
• Warner music group

The state of the music industry, THE BIG 3, Who owns who? What owns what? Who is signed?