The Rise of Digital Music

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The rise of digital music In 1997, the world music industry belonged to the Big-Four (including four record labels: Sony-BMG, Warner, EMI and Universal) achieved 45 billion dollar in revenue, a figure unprecedented in history. However, since the two software sharing P2P (peer-to-peer network) Kazaa and Napster launched in 1999 and 2004, the label has started witnessing their heyday down slope. Since 2000, global music sales have dropped to levels 25-30 billion per year. With this rate of decline, by 2009, global music sales are only from 21-23 billion. Digital music in 2007's era is unlike from digital music in 2000, not only download music from Napster and listen to on a personal computer. Music of the 2007 is through the format of music to bring everywhere. The expansion of iPod generations and online digital music stores such as Apple has reached 2 billion in revenue in 2006. In 2007, this number was 3 billion. Total songs downloaded from the internet reached 5 million with more than 500 digital music stores worldwide. From this success, the social network has moved gradually into the music business model based on online advertising. However, that strong growth tended to slow over time. In the circumstances, CD sales were strongly declining. That is why in 2007 it was the survival time for the Big Four: tried to convert most business models from CD to digital music to save them before it was too late. In reality, those big record labels have significant changes such as digital publication for all the music, diversification in music formats and distribution channels, bypassing DRM, and implementation of the business model in that digital music does not charge listeners. The downfall of DRM wall DRM (Digital Rights Manag... ... middle of paper ... ...rk can upload and listen to music for free. Business model based on advertising have also been implemented by a number of digital music stores like Napster or Rhapsody: it is free for you to listen to the music and you will be charged only when you download those content. In 2007 also saw the recovery of those websites that play online music (web-radio) after the RIAA copyright lawsuit. This shows that respect the copyright of music is the best way to ensure long-term benefits for all three parties: the listeners, the service providers and music companies. The giant record labels also created separate social networks for fans, as well as listening to music services separately, typically as Sony-BMG's MusicBox. From now on, the big record labels have started moving from indirect form (through retail system) to direct form (directly approach to the consumers).

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