Today’s music industry looks much different than the music industry of 20 years ago. There are a lot of reasons, most of them due to digital technology.
Free music web sites, such as mp3.com and download.com offers digital media that are interactive because people want music that they can burn to CDs, share and use as they please.
People want their music in easier consume formats. MP3s are easier still since you can put thousands of songs on a relatively small and portable iPod or mp3 player.
The current state of music industry
If you look at how people are getting their music these days, you will realize that record companies are battling over for the people who pay for music and consequently, get a tiny share of the music market.
It is clear that convenience wins over fidelity in music industry. (more info here)
Plenty of artists (U2, R.E.M, Radiohead) have streamed their albums before release. A current example is Portishead, an English band that released their new album on a music streaming service Last.fm from 21 April, a week before it goes on sale. It is free to listen to the tracks online, but users have to pay to download the tunes to the computer.
The idea here is that the artistic creation — the album — pays for itself by functioning as a medium for other business, such as fans rewarding them by buying tickets to shows and merchandise. What is the benefit for musicians on web sites such as last.fm? The service is funded through on-screen banner advertising. Artists get paid each time a track is played.
Natalia


