The Impact of the Digital Landscape in the Music Industry

It isn’t breaking news to hear how drastic of an impact the Internet has been to music industry, much less to the world. As Jay Cooper, a music lawyer, puts it, “We’re in the biggest sea change ever in the music business”. It is important to understand, not only know of, the digital age and its effects in the music industry.

After Napster, the decline on CD purchase took a plunge. Less and less music videos were being played on MTV, the “Music” television. Labels, artists, songwriters, producers, engineers, etc. were no longer being paid, but the demand of music was, and still is, at an all time high. Everyone is watching videos, listening to music and downloading songs for free. It is easier and cheaper to obtain, which is why music is consumed now more than ever. The following is a chart from Digital Music News. Click on the image and watch its animated version.

When referring to music as a business, the digital age has permitted unrestricted access to the product. If music is being downloaded without paying a dime, how do the professionals and artists in the music industry get paid? When asked what was the biggest challenge right now in the music industry, Jay Cooper responded that the entire industry is concerned with the economics portion. Labels and companies are desperately trying to create an economic model to allow artists to survive.

Jay Cooper went on to describe the possibilities of the “ultimate economic model”. Would music be paid for per stream? Download? A possible combination of the two? Another idea he mentioned was a monthly subscription, something similar to television. The fee for music will most likely be discreet, but there will be one.

We will see in a near future if Jay Cooper’s ideas for the “ultimate economic model” come to realization, or if something else will be innovated. This is the digital age, and it has effected the music industry in major ways besides economical. There is much more to discuss such as the discouragement of technological sector in the music industry, as well as liabilities such as copyright laws. The digital landscape is massive, and this post barely scratches the surface.