Question

Describe three major historical developments in the music industry. Describe the impact of technology and radio on the rapid growth of the music industry. Describe music as an economic model. Explain each of the three music revenue streams: publishing/songwriting stream, performance stream and recording stream.

Answer 1

The three major historical developments in the music industry are as follows:

1. in the year 1894, the first flat disc record appeared and its sales let the beginning of the recorded sound format.

2. In the year 1928, recorded transcriptions were first introduced for the programs on radio.

3. MP3 digital encoding came into place which brought the most widely used audio format.

The impact of technology and radio on the rapid growth of the music industry can be attributed as under:

a. First of all, radio is one of the most stable parts in the industry and it is one of the most popular platforms that provide the most number of listenership. Furthermore, radio also plays an active role in helping an artist gain popularity.

b. Technology, on the other hand, helped music to reach more number of people and it became more accessible other than the radios. People were able to listen to their favorites anytime, anywhere through the internet. One can even stream music content.

Music can be used as an economic model and the important fact is that purchasing online music copies, or streaming it on the smartphones all come under the economic model. Furthermore, artists can sell their work either on online or offline stores. Furthermore, works are also seen on the online streaming websites that largely focus on the number of listening to their work.

Publishing/songwriting stream- payments are made to the composer or the songwriter who is part of a publishing deal. The publishing company pays to the songwriter.

Performance stream- revenue generated when the works of an artist are played over the internet radio or are streamed.

Recording stream- Paid to the artist as per the deal made before recording.

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