Music Downloading & the Development of the New Music Industry

Since the dawn of the internet and file-sharing, record companies began to see major losses in their profits. With the new technology changing the world of music distribution, the actors involved have yet to adapt. So far we have seen various responses from musicians and record labels…

Integrating products, software, and forced paid downloading
Some software require a paid membership for unlimited downloads, while other companies such as Apple, produces an MP3 player that requires you to use the Itunes software in order to transfer music to the device. The hardware generates a demand for paid downloading. This is a merging of big corporations in technology and media.
Musicians cut out the middle man and distribute the music themselves
We have seen small “under ground” musicians who do their own promoting, distribution, and touring. In other words, the modern musician handles both the business and artistic sides of their band. We have also seen some big artists experimenting with the idea of adaptation, such as Nine Inch Nails. There are many online resources to do this with as well. This is a decentralized industry, and it comes with more competition.
Using television shows to build a market for music
We have seen the Naked Brothers Band, Hannah Montana, Cheetah Girls, and Jonas Brothers… they all came out of a Disney show, and once successful, they began to air music videos. Children are more likely to buy merchandise off of their favorite shows. This changes television to become key advertising for a product such as music.
Ad sponsored and paid memberships
This will provide the funds for reimbursing the record labels. This is a moderate change from the traditional structure of the music industry.
Destroying the community
Record companies can mass-upload blanks, viruses, and poor quality files to the major download sources. This will make the search more difficult and the paid downloading more appealing. Record companies can also file complaints to public uploading websites and threaten to shut down their operations.

So in the changing world, the music industry has yet to restructure itself while free music download is still flourishing. What will ensue out of the anarchy in the meantime should be interesting to watch. What has been successful so far? What has failed?

Another aspect that may prove interesting is the new technologies that may influence the future of music distribution (based off speculation and paranoia):

Music recognition software
Verizon Wireless has this new software that can recognize songs. It is currently being used to assist customers in searching for a song that they heard on the radio or etc., so that they can purchase and download it as a ringtone. This can also be potentially used for restricting music uploading on community-based uploading sites. That is, if the uploading process can also include a song or video recognition…
Re-implementing the old restrictions
Upload quality restrictions, file size restrictions, and file extension restrictions… however, it would not work without an organized effort between major websites, and even if they did group together, music downloading and streaming will simply de-centralize into a bunch of smaller sources.
Restricting internet access
This would be on internet service providers’ (ISP) part. This could benefit the bank accounts of ISPs, but would face resistance from those who support internet neutrality and global connectivity. This may also face opposition from those who feel that ISPs should not use their technological power in an inappropriate area (such as political and indirect influence on other industries).

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