Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet Networking Case Study Future Bibliography THE INTERNET’S THE INTERNET’S CHALLENGE CHALLENGE TO THE MUSIC INDUSTRY TO THE MUSIC INDUSTRY THE INTERNET’S THE INTERNET’S CHALLENGE CHALLENGE TO THE MUSIC INDUSTRY TO THE MUSIC INDUSTRY John Perry Barlow John Perry Barlow “we are now creating a space in which people of the planet “we are now creating a space in which people of the planet can have [a new] kind of communication relationship: can have [a new] kind of communication relationship: I want to be able to completely interact with the I want to be able to completely interact with the consciousness that’s trying to communicate with me.” consciousness that’s trying to communicate with me.” (Castells, 2OOO,386) PRESENTED BY:BEN FORTNEY 15.3.2OO6 GLOBALISATION AND CULTURE
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Introduction
Theory: Sociological
Theory: Networking
Industry
Internet
Virtual Community
Internet Networking
Case Study
Future
Bibliography
THE INTERNET’S THE INTERNET’S CHALLENGECHALLENGE
TO THE MUSIC INDUSTRYTO THE MUSIC INDUSTRY
THE INTERNET’S THE INTERNET’S CHALLENGECHALLENGE
TO THE MUSIC INDUSTRYTO THE MUSIC INDUSTRYJohn Perry BarlowJohn Perry Barlow“we are now creating a space in which people of the planet “we are now creating a space in which people of the planet can have [a new] kind of communication relationship: can have [a new] kind of communication relationship: I want to be able to completely interact with the I want to be able to completely interact with the consciousness that’s trying to communicate with me.”consciousness that’s trying to communicate with me.”
(Castells, 2OOO,386)
PRESENTED BY:BEN FORTNEY15.3.2OO6
GLOBALISATION AND CULTURE
Introduction
Theory: Sociological
Theory: Networking
Industry
Internet
Virtual Community
Internet Networking
Case Study
Future
Bibliography
INTRODUCTION
New communication networks have enabled greater communication and information sharing.
These new networks have challenged a stagnant music industry.
Innovators are moving ahead of the curve to take full advantage of these new communication concepts.
Communication decisively shapes our culture.(Castells, 2OOO:356)
Introduction
Theory: Sociological
Theory: Networking
Industry
Internet
Virtual Community
Internet Networking
Case Study
Future
Bibliography
THEORY: SOCIOLOGICAL
Music Industry Fordist
: Hierarchical Top-down
: Planned Controlled
Internet Post-Fordist
: Democratic Bottom-up
: Decentralized Chaotic
Introduction
Theory: Sociological
Theory: Networking
Industry
Internet
Virtual Community
Internet Networking
Case Study
Future
Bibliography
THEORY: NETWORKING
Laws of Networking Power Metcalf’s Law
: As powerful as the # of users
Reed’s Law: As powerful as the # of users2
But, not all users are equal
Diane Stone:
A network amplifies and disseminates ideas, research and information to
an extent that could not be achieved by individuals or institutions alone.
Moreover, a network mutually confers legitimacy and pools authority and
respectability in a positive-sum manner. (Global Networks Journal, 2002:3)
Introduction
Theory: Sociological
Theory: Networking
Industry
Internet
Virtual Community
Internet Networking
Case Study
Future
Bibliography
THEORY: NETWORKING
Manuel Castells: The Rise of the Network Society(2OOO)
Networks constitute the new social morphology of our societies, and the diffusion of networking logic substantially modifies the operation and outcomes in processes of production, experience, power, and culture.
…dramatic reorganization of power relationships.
In a broader historical perspective, the network society represents a qualitative change in the human experience..
Mike O’Donnell:
…it is the information itself – knowledge building upon knowledge – that
is axial to the information age. (2000:71)
Introduction
Theory: Sociological
Theory: Networking
Industry
Internet
Virtual Community
Internet Networking
Case Study
Future
Bibliography
MUSIC INDUSTRY
Major Labels(International Federation of the Phonographic Industry)
85% US Market 7O% Global Market
Universal Music Group (France/USA) 25.5% Sony BMG Music Entertainment (Japan/Germany) 21.5% EMI Group (UK) 13.4% Warner Music Group (USA) 11.3% Independents 28.4%
Independents(LA Business Journal 2OO4)
% Share of US Market
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14
15
16
17
18
2001 2002 2003 2004 (1:4)
Introduction
Theory: Sociological
Theory: Networking
Industry
Internet
Virtual Community
Internet Networking
Case Study
Future
Bibliography
INTERNET MUSIC
Digital Downloading MP3s
: Downloads iTunes: 1 billion in less than 3 years p2p: 2-3 billion per month The level of file-sharing has remained the same for two years
despite 20,000 legal cases in 17 countries. (BBC.com) More than 100 countries supply files (Felix Oberholzer-Gee )
BroadbandAmerican Adults with
Broadband at Home
[Pew Report]
Introduction
Theory: Sociological
Theory: Networking
Industry
Internet
Virtual Community
Internet Networking
Case Study
Future
Bibliography
INTERNET MUSIC
Slumping Sales
(Sound & Vision Magazine, 2OO3)
Introduction
Theory: Sociological
Theory: Networking
Industry
Internet
Virtual Community
Internet Networking
Case Study
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Bibliography
INTERNET DISTRIBUTION
Challenge to traditional: “Industrialism to Informationalism”
(Castells, 2OOO:164)
: Bharat Rao (Rao, 1999:288)
Challenging the traditional distribution structures
: Eric Raymond (Rheingold, 2OOO:51)
Cathedral and bazaar
Robin MurrayEmphasis shifts from scale to scope.Organisations geared to respond rather than regulate markets.Frameworks for learning as much as instruments of control.Allows for specialist, niche production/consumption.The guerilla force takes over for the standing army.
(O’Donnell, 2OOO:74)
Introduction
Theory: Sociological
Theory: Networking
Industry
Internet
Virtual Community
Internet Networking
Case Study
Future
Bibliography
VIRTUAL COMMUNITIES
Gift Society Networks of Fans
: Combining Resources
Knowledge
Experiences
Why it works?: Richard Barbrook -Westminster University
By adding their own presence, every user is contributing something to the collective knowledge accessible to those already on-line.
: Manuel Castells -Sociological Genius …uninhibited discussion, thus allowing sincerity in the process.
(Castells, 2000:389)
: Marc A Smith -Microsoft Research Sociologist …it becomes possible for more people to pool resources.
And ‘more people pooling resources in new ways’ is the history of civilization seven words” (Rheingold, 2000:31)
Introduction
Theory: Sociological
Theory: Networking
Industry
Internet
Virtual Community
Internet Networking
Case Study
Future
Bibliography
INTERNET NETWORKING: BENEFITS
Established Acts Free promotion
: Radiohead ‘Kid A’ Huge buzz with little radio or promo
: Fiona Apple ‘Incredible Machine’ Highest chart debut, almost half million sold
: Prince - online albums Build-up to concert tours
: Public Enemy‘There’s a Poison Going On’
Live and Rare Recordings: Grateful Dead, Phish, Dave Matthews
Encourage recording and swapping of live performances to expand fan-base as well as consolidate support
: Beastie Boys release rare tracks via their online fan club
Introduction
Theory: Sociological
Theory: Networking
Industry
Internet
Virtual Community
Internet Networking
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Bibliography
INTERNET NETWORKING: BENEFITS
Emerging Artists: Fans can sample numerous songs: Network recommendation: Feedback loops: Intimate relationships: Labels: Fan-base already included
Michael Roberston, founder MP3.com:
"[w]e talk about a new middle-class of musician emerging, If a band sells 20,000 CD's now, they go hungry. But if they can do that through the Net,that's $100,000 just on CD sales. (Auslandermusic.com)
Introduction
Theory: Sociological
Theory: Networking
Industry
Internet
Virtual Community
Internet Networking
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NETWORKING IN ACTION
Case Study: Arctic Monkeys Networking in Action
: Promo CDs given away at shows Fans uploaded to file-sharing programs
: Myspace.com Personal contact with fans builds loyalty Word of mouth
Independent Smash: #1 Single in the UK: 36O,OOO albums sold, 1st week(BBC.com)
Fastest-selling British debut of all time
: Most visited band site in the UK(Hitwise) More than Oasis & Greenday
Introduction
Theory: Sociological
Theory: Networking
Industry
Internet
Virtual Community
Internet Networking
Case Study
Future
Bibliography
NETWORKING IN ACTION
Introduction
Theory: Sociological
Theory: Networking
Industry
Internet
Virtual Community
Internet Networking
Case Study
Future
Bibliography
THE FUTURE IS NOW
Artists Freedom of Distribution
: Total control Schedule Songs Leverage
Fans Interactive creativity
: Artist-to-Artist “musicians are working together, making friends and inspiring
each other within network communities.” (Barbrook) Grey album
: Fan-to-Artist Remixes contests
Introduction
Theory: Sociological
Theory: Networking
Industry
Internet
Virtual Community
Internet Networking
Case Study
Future
Bibliography
BIBLIOGRPAHY
Agger, Ben (2004) The Virtual Self. Blackwell, Oxford
Auslander music (1999) Auslander Music Manifesto(http://www.auslandermusic.com/manifesto.html) [Accesssed 10.3.06]
Barbrook, Richard (200?) Cyber-Communism: how the Americans are superseding capitalism in cyberspace. University of Westminster, Hypermedia Research Center. http://www.hrc.wmin.ac.uk/theory-cybercommunism.html
BBC.com (2006) Monkeys Let the Music Do the Talking. 24.2.06 http://news.bbc.co.uk/1/hi/entertainment/4644214.stm [Accesssed 3.6.06]
Castells, Manuel (2000) The Rise of the Network Society. Blackwell, Oxford
IFIP (2005) IFPI releases definitive statistics on global market for recorded music. Press Release: 8.2.05 http://www.ifpi.org/site-content/publications/rin_order.html[Accesssed 14.3.06]
O’Donnell, Mike (2000) Classical and Contemporary Sociology. Hodder & Stoughton, London
Rao, Bharat (1999) The Internet and the revolution in distribution: a cross-industry examination. Technology in Society #21, 1999. Pg. 287–306
Rheingold, Howard (2000) Smart Mobs. Basic Books, Cambridge, MA
Simons, Andrew (2004) Digging downloads: small labels making most of audience's access to digital music files. Los Angeles Business Journal, May 3, 2004http://www.findarticles.com/p/articles/mi_m5072/is_18_26/ai_n6036150 [Accesssed 14.3.06]