The online music market in the United States

下面为大家整理一篇优秀的assignment代写范文- The online music market in the United States，供大家参考学习，这篇论文讨论了美国的在线音乐市场。在线音乐市场的产品是从企业由流通部门传递至消费者的。数字音乐产品通过在线音乐提供商从唱片公司传递至消费者。与传统市场不同的是，这里没有货物的运输，同时电子支付和下载构成了支付手段和产品分配。在线音乐提供商的这些特定的媒体管理权限是由唱片公司赋予的，作为回报，唱片公司可以从在线音乐提供商那里获取版税。

Modern technology has driven the development of online music market in the United States. It shows people the bright prospect in the era of digital music, but in the process of development, the online music market is also facing challenges and opportunities.

Like the typical market, the products of the online music market are also delivered from the enterprise to the consumer by the circulation department. In order to be concise and clear, since the record companies have both the copyright and distribution rights of music products, it is most reliable to use the record companies to represent the producers of music industry. Digital music products are delivered from record companies to consumers via online music providers. Unlike traditional markets, where goods are not shipped, electronic payments and downloads form the means of payment and distribution. The whole flow process is as follows: the user experiences the music sample on the website of the online music provider, and purchases the right to download the required music through electronic payment. Online music providers can control users' consumption behavior through media management technology, such as whether music is allowed to be burned to CDS, whether music is allowed to be copied, whether music is allowed to be downloaded on different computers, and so on. These specific media management rights are granted by the record company to the online music provider in return for royalties from the online music provider.

America's online music market is huge and ranks first in the world. In 2008, sales of music's on-demand download and ordering services are expected to reach $1.8 billion, up tenfold from $187 million in 2004. Despite the impact of free file sharing on music, these Numbers suggest that the online music market is growing rapidly. The success of apple's iTunes music store shows that consumers are willing to pay for music online so that they can listen to high-quality music and enjoy a rich service anytime and anywhere.

In 2002, total sales of paid music downloads and online orders for traditional music products on aol were just over $1 billion. Informa Media forecasts that it will reach $3.9 billion by 2008. Of that total, "ordering" downloads and bespoke services alone generated $1.8bn, with the rest coming from online orders for traditional music products.

Although the above data is encouraging, the music industry still cannot ignore the performance decline brought by piracy to music retail and other industries. After peaking at $14.5 billion in sales in 1999, music's retail business slipped into a 9% annual decline. In 2003 the recording industry association of America reported a loss of 6% on sales of $11.9 billion. At the same time, sales of traditional music product units have suffered the same decline, from $1.2bn in 1999 to $800m in 2003.

Globally, the ifpi estimates that piracy cost the music industry $4.6 billion in 2002, 7% more than in 2001. Informa Media says that if private share of music were taken into account, the estimated losses would be higher, costing the music industry almost $2.4bn in 2004 alone.

In an effort to curb unauthorized sharing of music products, the recording industry in the United States announced in 2003 that it would seek legal action to require Internet service providers to provide relevant consumer information when it found illegal music file sharing. Through these personal contacts, the recording industry association of America will take the unprecedented step of taking individuals to court or negotiating out of court. Interestingly, in the first few weeks of this announcement, private sharing of music decreased rapidly, but after a while, it reached its previous level.

In the current market, the music industry in addition to piracy, the most targeted another entity is P2P file sharing network. Although Napster, the technology's inventor, died in 2001, it is still used by more than four million users a day in the United States. According to a report by BigChampagne, a file-sharing research firm, in 2003 there were around 820m music's on the network; by 2004 it had one billion. Most importantly, the digital music is free to distribute and download.

In the eyes of online music providers, users' behavior of seeking free music products is eroding the market of record companies and online music providers. Their price competition is only fee competition and free competition, and they have to bear the cost of royalties of music products, which is a kind of losing game. Therefore, it is more important to limit free file delivery than to reduce product costs.

For record company, on the pros and cons of music sharing difficult to definite conclusions, the recording industry association said in a long time ago music files on the network transmission of illegal reduces the music product sales, but at the same time it came to the "user after download the free music produces later buy music CD's motivation" such a seemingly contradictory conclusions. In addition, in 2002, harvard business school in the United States free downloads of music album and album of the comparison of actual sales data, studies have shown that no obvious statistics to prove that free download reduces the music product sales, further analysis shows that the file sharing the impact on the album sales, in fact, the more successful album actually benefit from file sharing, 150 downloads will produce 1 album sales.

If we accept harvard's findings, the music industry need not worry. For its most successful companies, file-sharing should be welcomed, not rejected. It needs to be faced that although the recording industry association of America is currently in the legal way to curb, but the network file sharing behavior is still active. The legal battle ended Napster in 2001, but countless underground sharing networks are still being created that will operate in ever more diverse and hidden forms. Therefore, for online music service providers, the best strategy should be to develop exclusive high-quality content that cannot be found on the P2P network to differentiate the market and attract consumers. Don't limit listening, burning, copying, etc.

Faced with such a situation, now many music enterprises start to find a new way, focusing on how to provide users with better paid music service and set a reasonable price for song download. The most successful example is apple's iTunes music store. With over 1 million songs and the support of 5 major record companies, iTunes has created a huge business opportunity and painted a bright future for the development of digital music.

Despite the file-sharing problems, Informa Media expects the national online music market to grow to $3.9 billion in 2008. This figure includes traditional music products and custom services sold online, but excludes purely digital music track sales. Meanwhile, overall music product sales will reach $32.5 billion and online sales will account for 12%. That includes $1.8 billion for on-demand downloads and music subscriptions. Under the premise of improving features and services of online music providers, users will increasingly favor online music consumption, and the overall sales volume of online music is expected to get faster development. Menu-download and subscription spending will grow by 91% a year. Globally, digital downloads and subscriptions will overtake hard media's market share by 2008, while America will continue to lead the online music market with 44% of global online sales.

The continuous popularity of apple's iTMS shows that as long as the online music provider can continue to provide competitive prices and relatively loose digital rights management policies, then the digital music market will have greater development. Since the purchase is equivalent to the use, consumers will be inclined to pay for music, and the consumption of ordering downloads will exceed the subscription service. With the deepening understanding of music industry and the promising sales opportunities of pure digital music, the industry will usher in more new entrants, and the competition between customers and money will become increasingly fierce.

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