The music industry-globalizing in many ways Essay

This essay has a total of 1861 words and 9 pages.

The music industry-globalizing in many ways

Edi K.
THE MUSIC INDUSTRY - GLOBALIZING IN MANY WAYS

The music industry is in a time of growth at this very moment. The environment for its
growth has been increasing rapidly on many geographical boundaries and has been
established through information technology and Internet. In this paper I will analyze how
the music industry not only has been affected by Globalization as an economic institution
but also that it has become a worldwide-globalized commodity. First, I will begin by
analyzing how the music industry, though its consumption is not a necessity, it is
affected by large economic factors and has become a large Music Market. Furthermore I will
analyze how the music market has globalizing tendencies for the consumers.

People get into their cars and listen to music, you walk into a shopping center and they
are playing music; walk into a restaurant and they are playing music too, people listen to
music in their work place as well. Runners listen to music as they exercise, you can even
listen to music while you are sitting on the dentist chair. Everybody listens to music!
Everywhere at anytime! Try to go on line and among other links on Travel, Stock Quotes,
Sports or Entertainment, you'll find a link on Music. There are so many companies that
advertise music on line. Every day mass emails are sent that offer music on line. Did you
know you can get 12 CDs for only one penny ? All you have to do is join one of the online
music distributors : it doesn't matter whether is BMG or Columbia House, the ‘package'
is the same. It doesn't matter either if you are in the United States or not, they deliver
internationally! Music is not a necessity but everybody is using it.

Kadi 2
The production and consumption of music has become a market of its own that has been
growing and getting stronger every single day. Many companies have found their fortune in
the music industry and have become part of the globalization by entering the worldwide
market and economy.

The following is a table of some Economics data of Popular Music in 1996
Netherlands United States United Kingdom
Revenues recordables, gross (US $) 660,100,000 12,297,700,000 2,709,800,000
Total Sales, recordables (pieces) 38,000,000 1,044,800,000 234,500,000
Sales Recordables, per capita (US $) 42.6 46.3 46.4

Concerts (Dutch guilders) 550,000,000 n.a n.a


(Source: National Music Publishers Association (NMPA), 1997. International Survey Of Music
Publishing Revenues. New York: NMPA.)

The popular music industry in the late 1990s was dominated by a small number of integrated
corporations with headquarters in Europe, the United States and Japan. This music market
starts simply with an artist and moves along through many steps to the consumer.
Everything has its start when a musician presents his music to a music manager, and if
he/she finds the music promising, a contract is signed between the two, recordings are
made and a marketing plan is drafted for the different consumers. Then the final product
is introduced to the public through many mediums: super markets, music stores, on-line
stores and others. The major 7 Record Companies that control the music market, with their
nation of origin and reported 1990 sales are: EMI (Thorn U.K., $1.88 billion), Warner (
Time Warner, U.S., $2.9 billion), BMG ( Bertelsmann Media Group,

Kadi 3
Germany, $2 billion), Polygram (Netherlands/Germany, $2.6 billion), MCA ( U.S., $1
billion), Virgin ( U.K., $500 million) and Sony (Japan, $3 billion), total 1990 sales
$13.88 billion; which all of them share market-shares of the Music Industry. Much of the
music industry for the past decade has been controlled by many technological developments
and Internet; and remarkably on line music revenues have been expected to increase from
$179 million in 1998 to $2,800 million in 2002, or almost eight percent of the total
industry. More people then before now own CD players, MP3 players and the number of CD
players and PCs for household has been growing; thing that has created a demand for more
music products. More copies of CDs are put into the market, not only of popular artists
and bands, but of anybody who made it into the recording stage.

There has been a vast demand for music, and its availability is increasing and becoming
much easier and faster to obtain; new forms of music have been emerging and will continue
to emerge quickly; and it has become very hard to control these developments. One reason
for this is that record stores no longer have as much power in deciding what we listen to.
Before, they would only sell the most popular styles of music, which would guarantee them
a good profit. Many artists or bands whose records would not normally be sold or found in
a normal popular music store are now finding exposure through other mediums. Mitchell and
Stahl said that music that once would only attract a minor audience might now develop a
much broader and diverse audience. If in the past years, only some of the people could
afford to buy the recent CDs offered in the market, now a larger audience can get a hold
of virtually every song ever recorded via Internet access. The consumption of music has
been taking a new direction for the past years.

Kadi 4
Thanks to new technologies, this diverse audience - or consumers of music, have become
less dependent on TV stations, radios or magazines when it comes to finding out about

recent developments on the music industry. If in the past the consumers had to stay in
tune to listen to the news on TV or buy a magazine, now all they need is access to the
internet and they can find out at any time what artist or band is releasing their new CDs,
the cost and why not the lyrics of the songs.

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