The digital music landscape has undergone major changes in recent years, thanks in large part to streaming platforms such as Spotify.
Digital music
Digital music has created tremendous added value for your businesses and others. In fact, it was able to stimulate the development of different industries. It is no coincidence that we are talking about “creative disaster”, or rather an industrial change process that revolutionizes the economic structure from within, destroying the old and creating a new one, including those that are more and more suitable for commercializing products. technologically, such as mp3 players, smartphones or tablets. On the other hand, Edgar Berger, President and CEO of Sony Music, said in an interview with the BBC: “What is a smartphone without music? Take half the fun. ”
THE HISTORY OF MUSICAL PURCHASE
The release of the musical material began in the mid-1940s with the advent of the vinyl record, in the 78, 45 and 33 rpm versions: the memorization of the sounds took place in analog form through grooves on the surface of the disc. Then it was necessary to listen to recorded music even outside the house and so Stereo8 was born, whose function was based on recording on a magnetic tape that was enclosed in private cassettes.
The real revolution, however, is represented by the cassette, which can be used on different devices: with a reduced price, small size and the ability to record, it has been established in the market as a queen mother. In 1982, the small disc (audio CD) was first used by the music industry, which was rapidly expanding: in fact, it offered greater practicality in use and better sound quality. The CD has been unmatched for more than a decade and has replaced almost any other type of music medium.
THE APPROACH OF THE INTERNET AND DIGITAL MUSIC.
The advent of the Internet and digital has marked the first decade of the 21st century and has had a strong impact on the rotation of major record companies, as evidenced by the Global Music Report 2016, created by IFPI in collaboration with Nielsen, which describes El estado from the music market worldwide, highlighting innovation and investment in the sector.
The transport service continues to be the highest source of revenue in the sector: revenue increased by 45.2%, or $ 2.9 billion, and has more than quadrupled in the last five years. With the proliferation of smartphones and the increased availability of high quality subscription services, the flow represents 19% of the global turnover in the industry, compared to 14% in 2014. Premium subscription services have expanded in recent years: in 2016, For example, about 68 million were paid for music subscriptions, compared to 41 million in 2014 and only 8 million in 2010. However, download services remain a significant offering, equivalent to 20% of the sector’s revenue, or $ 1.4 billion. , height $ 983 million in 2010 and $ 1.3 billion in 2011.
Revenues from transmission (ie, public execution of a program, ed.) Also increased by 4.4% ($ 2.1 billion). This flow now accounts for 14% of total music industry revenue compared to 10% in 2011.
THE REDUCTION OF INCOME.
However, declining revenue began with declining CD sales, despite growing demand for music. Methods of use have changed: the flow of music has, in fact, reduced the revenue margins of the recording industry. The tendency to use it for free, and often illegally, developed in the late 1990s. The mistake that discography companies made was to focus resources exclusively on the main market, completely ignoring the capabilities of MPEG (Moving Picture Expert Group, ed ) or MP3, the new digital form that has resulted in the compression of audio files a period of ten times shorter than that of a CD, in order to allow Internet transmission, which has led to the cleansing of digital music.
