Traditional media institutions feel threatened by new media- "if they don't keep up, they will die" (Luhrs, 2007). How far do you agree with this statement?

Institutions are finding it hard to keep up with the audiences demands. They no longer want the most talented artists but the most popular, with the biggest brand image. Most importantly they want easy access to these songs.

Conglomerates like UMG struggle to get their audiences to buy their music legally as they can get it for free online. When a song is played on the radio the customer wants to buy it, but legal downloads and CDs are often not released for a few weeks. Therefore they customer will go on to the internet and get it straight away for free. This is causing problems for media institutions all over the place, as they are relying on their customers to buy the songs from them legally.

Different media institutions have seen the problems these illegal downloads are causes so have tired lots of way to stop it. For example:

• CDs were encoded using DRM (digital rights management) so songs couldn't be copied
• Illegal downloaders were fined £1000s
• Napster and other sites were taken down
• Tracks uploaded to YouTube were taken down

By doing all this they were cutting down on the amount of people who downloaded song illegally but they also were losing customers. One example of this is that UMG had the internet providers send letters out to people illegally downloading, threatening to take away their internet. This worked well as 80% of people stopped doing it. But the internet providers didn't like doing this as they were losing paying customers by taking their internet away.

Labels everywhere are trying to keep up with the fast moving media and keep their audiences interested. Conglomerates are realising that they need to move with the times and provide ways for customers to enjoy their music while still maximising revenues. For example more streaming websites (spotify) will charge moderate subscription and share revenue with the labels.

Survey on music audiences

http://www.surveymonkey.com/s/HLW6HQ5

"The online revolution has proved as damaging to independent labels as to multinational companies" Do you agree?

Both multinational and independent labels has been damaged by new technologies. Both these labels rely on the artist's music to provide them with money but as music is so easy to get hold of they are both losing out on their income.
People used to buy a record, tape or CD to listen to music. Now a days you can hear songs all over the radio, TV, find them on the internet (such as on YouTube) or download them off website for your ipod. Why buy a CD when you didn't listen to half the songs on it and it costs you money, when you could just download any song you feel like listening to off the internet? Labels lose out on lots of money as illegal websites allow you to download songs for free. Also places, like Itunes, sell them cheaply, for example, 79p.

I think the online revolution has damaged independent labels, such as Domino, slightly more than multinational labels, such as UMG. This is because they rely on a more traditional structure of making money. By using other companies to handle the other aspects of the production, such as the marketing and promotion, they just focus on the song writing and music sales. However multinational companies and don't just get money through song writing and publishing but through many things such as:

• Promoting and marketing
• Recording
• Having one of their songs in a film
• Songs featured in an advert.
• In a mobile deal
• Having a radio deal
• Selling hardware

A multinational company is much more likely to have one of their artists make a sound track for a film as they:

• Have more money
• Better reputation for their music
• Music would be more suited as bigger companies have more genres of music to offer
• Artists are international so liked everywhere
• Have many contacts unlike a independent label

Not only has the online revolution made it harder to earn money but it is damaging other things. For example we used to buy a CD and get all kinds of things inside as well as the music, such as the booklet of lyrics and images of the artist. But now we can just looking on the internet and find all of that for free. We no longer want or need the CDs and we know longer get excited about when an album comes out in a shop as it is on the internet weeks before that.

Convergence

Technology convergence benefit and damages the music industry in many different ways. A few of these are:

Benefits:

• It narrows the gap between the produces and the audience
• Allows the audience to access content instantly, therefore they can listen to music anywhere and easily.
• People buying the music can do whatever they wish with it, like put it on an ipod so can listen to it where ever they are.
• Opens up opportunities for artists to promote their work as there are so many way in which the can advertise their songs now.
• Free distribution, this is good as the artist does not have to spend extra money on getting their CD or Album out into shops.
• The artists songs are more likely to be heard as people are willing to listen to them on the radio or internet for free, if they like it they may be more likely to go out and spend money on it.
• Artists can set up blogs and twitter accounts so become more interactive with their audience. This is good for promoting them as well.

Damages:

• It allows the audience to steal the songs off illegal websites and send them to each other via things like bluetooth. This means that the artist and record label companies do not get money for the song.
• We no longer have all of the extra things you get with the CDs, like the lyrics, as people no longer buy them as it is easier, quicker and cheaper to download the songs.

Island and Fascination Records

Island Records:

Fascination Records:

UMG uses these subsidiaries to maximise success of specific genres because they are both aimed at completely different audiences. Island Record’s website, looks older more unique. This is suggested but the old fashioned TV and the record in the top. The bright colours and palm tree logo make you think of holidays and chilling out.

Where as on Fascination Record’s website there are only a few colours and these are duller shades. The website looks very professional compared to Island Record’s website which looks like a messy shelf. Looking at the unique abstract look to Island Record’s website, you can tell that they have a more unique and specific audience, their music is older and abstract like the website. It also has a vintage look, which narrows down the audience to the people that will be interested in that kind of music.

Fascination Record’s is aimed at a younger audience. The website suggests this as it is modern looking. Most teenagers and young adults would be interested in looking at this website so keeps its target audience.

Both websites have a video playing when you open the page, this shows you what artists they have straight away. They also have links to the most popular artists on the home page. This gives you an idea of what kind of music they have. Also it ‘s good advertising for these artists as the kind of people who listen to one artist on their website would also like the other artists as they mostly have the same style of music. Having subsidiaries makes it easy to break down all the different kinds of music into specific genres.

Universal Music Group

Universal Music Group:
Who owns the company?
• Vivendi SA

Where is it based?
• New York city

What other countries does it have offices?
- Has offices in 72 countries:
• Argentina
• Austria
• Australia
• Baltics
• Belgium
• Brazil
• Canada
• Chile
• China
• Colombia
• Czech Republic
• Denmark
• Finland
• France
• Germany
• Greece
• Hong Kong
• Hungary
• India
• Indonesia
• Ireland
• Italy
• Japan
• Korea
• Malaysia
• Mexico
• Netherlands
• New Zealand
• Norway
• Polska
• Portugal
• Romania
• Russia
• Singapore
• Spain
• Sweden
• Switzerland
• Taiwan
• Thailand
• Venezuela

Is it part of the same company as:
- a music publishing group – YES – Universal Music Publishing Group
- a music distribution company – YES – Universal Music Group Distribution
- a film or television studio – YES – Canal Plus Group
- a radio station – NO
- a company which makes hardware/software – NO
- a video games company – YES – Activation Blizzard
- a telecommunications company – YES – Global Village Telecom

Record Sales:
• $6.14 billion (2007)

Record Labels Bought By Universal Music Group:
• Interscope Geffen A&G
• Verve Records
• Decca label Group
• Island Def Jam Music Group
• Universal Motown Republic Group

How far do you think developments in technology have changed the way the music industry operates?

Music is now available practically everywhere, you can listen to it on the radio, music channels on the TV, downloads songs on the internet or buy a CD in a shop. But it wasn't always like this, before technology was improved music was only played on the radio and sold in shops as records or tapes.

There are many advantages to the developments in technology, such as artists who are not signed or are not very popular can put their music out on the internet for anyone to listen to for free. Many artists now are days are getting more fans by putting their songs onto YouTube. As more people hear them and tell their friends, the artists fan group increases.

Also for the audience there are many advantages, you can listen to music whenever you want and get hold of it in some way different ways. Most people download songs off illegal websites, this is free and has mostly new songs on so you don't have to wait for them to be release on CD. Song used to be played on the radio and more recently the TV but now there are so many channels and radio stations, the songs are played on the channel aimed at that particular audience.

There are disadvantages to the changes, such as the artists are no longer getting money for their songs as they are on the internet for free. If they don't put their song up on the internet then they may lose some fans. Also shops lose some of their income as less people are buying CDs and records.

Most artists want a record label, as they provide many services for the artist, they pay for the recording and manufacturing of the albums, they help promote and advertise them and develop their music. But now a days there is less need for a record label as with all the developments of technology new artists are making it on their own.