Social Networks the Latest Music Biz Threat
After waging a fierce and concerted battled against peer-to-peer networks and people who have used them over the past decade, the music industry has a new enemy that’s threatening its economic model: social networks.
Apparently, social networks such as MySpace and BeBo have emerged as a new and popular way to distribute music - albeit by people who aren’t paying for it. The survey suggests piracy has rebounded because consumers still find music expensive and the fear of legal action has subsided.
John Enser, head of music with Olswang, which conducted the survey with Entertainment Media Research, told the Telegraph that:
“The music industry needs to embrace new opportunities being generated by the increasing popularity of music on social networking sites. Surfing these sites and discovering new music is widespread with the latest generation of online consumers but the process of actually purchasing the music needs to be made easier to encourage sales and develop this new market.”
Is it me but haven’t we heard this kind of statements before about the music industry and its need to encourage sales and leverage new markets? Of course, every time the music industry looks like it’s taking a step forward (i.e. growing iTunes sales, the shutdown of AllofMP3.com), it seems to take a step backward (new, higher royalty rates for Webcasters).
Update: Speaking of iTunes, Apple said today it has sold more than three billion songs.
July 31st, 2007 at 9:55 am
That’s nothing, check this out for sharing music…
http://www.seeqpod.com
July 31st, 2007 at 10:04 am
[...] Mark Evans suggests that the music industry no longer needs fear peer-to-peer networks. It’s social networks that are sharing illegal music. [...]
July 31st, 2007 at 11:15 am
Mark,
I heard last week that some record companies want to go after hair salons that play music all day and make them pay royalties!
I think the money was pouring in far too easily for too many years and it’s time that the music industry stopped crying foul and join the party. They would make even more money if they focused on the technology and what is driving the sales these days Vs. always focusing on the negative.
July 31st, 2007 at 3:11 pm
I doubt it is really threatening its economic model. But it sure is making its distribution and licensing model look archaic. I’d buy music from an industry-supported “AllOfMp3.com” in a second. I just want the music I want at an affordable price (US$0.20 a track sounds right) in the format/quality I want. Is that so much to ask?