[Industri Musik] The Evolution of the Music Industry in the Post-Internet Era

Ashraf El Gamal, Claremont McKenna College (2012)

Internet’s impact towards traditional record sales

It contributed to a significant decline in physical and digital record sales by changing consumption patterns and challenging traditional revenue models

What event marked a turning point in digital music distribution and industry changes?

The launch of the Apple iTunes Store in April 28th 2003, which introduced legal digital distribution and contributed to market transformation

A trend that emerged in the music industry despite declining record sale

An increase in live performance revenues

Music Festival’s influence to the live music sector

Provided more small performances and attracting online audiences

How effective is legal measure’s role in combating music piracy?

Only partly effective, with technological adaptations and new distribution channels helped sustaining industry growth

An occurring major shift in the music industry

The shift from a focus on record sales to a performance-focused model, with artists earning more from concerts and merchandise

How has consumer behavior changed due to the Internet?

Consumers now prefer on-the-go listening, favoring mobile devices and alternative formats, which influences demand patterns

Traditional music industry structure before the Internet

Oligopolistic, dominated by a few major labels controlling distribution, promotion, and sales

How do artists leverage the Internet for promotion and distribution?

Artists can directly promote and distribute music, sometimes releasing free content to increase live concert attendance

What are the predicted future trends for the music industry?

An increased reliance on live performances and digital engagement as primary revenue sources, marking a business model shift

Potential negative impact does social media marketing have on record sales

Providing free entertainment, which may hurt sales by reducing consumers' willingness to pay for music