Music Macro Environment
Taking classical music as an example the complete opposite can be observed. Here, only 1 1 % of young people listen to it, whereas it is the second highest n he 65+ category’. (Taylor, 2009) Figure 2.  (Taylor, 2009) This is important for the music industry to know, as there is a change of generations in our society today. While the earth’s population is getting older and older, but not enough children are born, there might be a change in music interests. However, it is not empirically proven that as soon as one gets old, one automatically starts listening to classical or country music.
The first category generation in the figure below, will most likely take their music tastes with them and the generation after that will probably have different tastes. Regulatory In the Netherlands, the law allows downloading. People can copy a CD, DVD etc. , but that’s only for personal use. Watching a downloaded movie with a group of people is not allowed.
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Even though the downloading is legal, the use of it is sometimes illegal. (Mixed.
Nil, 2004-2009) Stitching Brain is an anti-piracy organization that fights for the rights of authors, publishers, performers, distributors and producers of music, film, books etc. BRAIN, 201 1) In the Netherlands there is a music copyright organization called Bum/Stemma. It consists of two organizations: Bum association and Stemma Foundation. They each have their own board, but they have their meetings together. Music is property of composers and writers. If people want to use their music, they have to pay for it. Burn/Stemma receives this money and gives it back to the affiliated music composers and writers.
Bum/Stemma is founded to protect music copyright. When someone makes a new and original song, it’s his or her intellectual property.Music copyright needs to be covered by this concept of intellectual property. Music authors have the right to exploit their music so that they can earn money. They have to give others permission to use their sic. Music authors are allowed to ask for money if others use their music. Music authors have a personal connection with their music.
They can object someone who wants to change the music drastically or if someone uses their music in a movie that they think is dubious. The performing artists and the producers also have their rights.They can ask for compensation if someone else performs their song, if a song is involved when CDC and records are produced, and if their song is played on the radio. These rights remain for fifty years after the first performance or production. Music copyright remains until seventy years after the death of the music author. (Bum/Stemma, n. D.
) According to section 13 of the Copyright Act, downloading of copyrighted digital content is like copying. Every form of downloading is making a copy. The right holder must give permission if someone wants to copy his content.Downloading is legal if someone wants to use it privately. It is regulated in sections bob and ICC Of the Copyright Act. Consumers are allowed to download content from peer to peer networks, websites and social networks, without the permission of the right holder. Anyone is allowed to make a copy or private use only if it fulfills the following conditions: Firstly, the content must be made by natural persons and not by businesses, institutions or organizations.
Secondly, the content may not be for direct or indirect commercial aim. Thirdly, the content must be only for private practice, study or use.Also, the number of copies is limited. (Hugged et al. 2009) Economic It is a truth universally acknowledged that a lot of people use peer-to-peer file sharing and illegal downloads to obtain wished albums or singles and one could wonder how this influences the music sector. In general, the change room the physical distribution to digital distribution can be observed clearly throughout the years. In 2006, 307 million Euros were made by selling CDC (could also contain Alps and tapes), whereas in 2011 it had declined by 7.
4 % to 201 million Euros.At a closer look, one can see the biggest decline in the singles market where the total of sold singles only made a 1 million Euros profit. Compared to 5 years earlier, music videos also declined a lot; to 21 million Euros compared to 53 million 5 years earlier. There has also been a change with the albums, but not as radical as with the other two parts of the hysterical market Even though the amount earned on albums in 2011 is almost half of what was made in 2005, it is safe to say that people still like having an actual physical thing in their hands. Figure 2. (PricewaterhouseCoopers, 2009) As stated above, the opposite can be observed with the digital distribution. Compared to the Start Of the Internet era in 2005, the increase Of music bought online is major.
The sales went from 5 million Euros to 40 millions, which means an increase of 200%. This total is divided into two parts, namely the Internet and mobile phones. As stated in the chapter about the genealogical changes, not only the Internet has become more prominent, but the opportunities that phones now provide us with enable us to buy and download music through these mediums, too.This means that in 201 1 10 million Euros were gained through purchases via mobile phones. (PricewaterhouseCoopers, 2009) Figure 2. 4 (PricewaterhouseCoopers, 2009) It should be noted that the figures used from 2009 and further on are only estimations and not actual figures. Technological New technology has been responsible for the growth of the music industry.
First it was the LIP that everybody wanted, after the LIP the stereo dominated. A whole new market came to life with prerecorded cartridges and cassettes. But in the beginning of the 21st century, CDC dominated unit sales, leaving cassettes and Alps behind.But since the last four years, Internet is a big part of buying music. But it is not only buying music. Internet is also used for downloading the music illegally or only listening to the music on the Internet. (Cigarillo’s ; Scheme, 2003) The digitization of the consumption of music is still growing.
The increase in the digital market is very important. Digitization has been influencing consumption, production, creation, striation, and also the artist, record company, publisher, live entertainment and consumer.The behavior of the consumer has changed because of technologies. Because of digitization, there is more globalization. The Dutch music industry benefits from the economies of scale of countries like the United States and Great Britain, who have been very successful internationally. Long tail and niche markets are easily accessible and inexpensive. Digital files are 24/7 on demand available for the consumer.
Upcoming talent can upload tracks. The costs for the production of digital according are much lower.Retail costs can be saved by direct sale to consumers (online stores, download portals, artists websites) and online selling (tracks, CDC, DVD’s, rhinestones, realtor’s, wallpapers, tickets, merchandise). Internet distribution is almost for free and environmentally friendly because products don’t have to be transported. Promotion can also be used in a cheaper and easier way (social media, blobs, e-marketing). More and more artists are actively using international digital opportunities. They launch themselves through social networks such as Youth, Twitter, Backbone, Linked.
The fans can just as well be living abroad. Through these social networks, fan sites and music sites, the consumer is accessible. There is new and direct contact. The consumer has opportunities for individualizing and customizing (buy individual tracks, make playbills, make CDC with their own personal choice of music, upload their own content or participate in a co- production). Foreign music is already available, fans don’t need to wait for the release in their own country. It is possible to experience digital performances (bedposts, voodooist, audio or video streams).An active fan can provide rendition for the artist via the Internet.
(Karaoke ; Fiction, 2009) Figure 2. 5. 1 (Exam, LILTS, 2007) Socio-Cultural The music industry has a lot of targeted genres that appeal to different kind of people. Those genres often subdivide. For example, rock music can split into soft rock, pop rock, heavy metal, modern rock, alternative rock, industrial, techno, punk, ask and jam bands. Music is one of the instances in which audiences are able to see and hear cultural products from outside the country. English pop and rock have had a strong presence and influence since the sass.
It’s easier for musicians from the Netherlands and other countries to break into the biggest music market in the world, the US market, because they are able to use social media and the Internet. People have more access to listen to different genres. They don’t have to rely on the radio or the music shop. (Starboard et al. 2011) Figure 2. 53 (Exam, LILTS, 2007) Figure 2. 5.
2 (Exam, LILTS, 2007) Lots of music has influences from earlier music. There is also a lot of music that is influenced by new sources of music such as African and Asian music. Many cultures have their own styles of classical music and popular music.