The Online Revolution

The Online Revolution has had a lasting, profound effect on today's music industry, affecting all those involved i.e. the record labels, the companies and the artists themselves. More and more people in society today are gaining access to the internet and with almost 2 billion frequent internet users across the globe, the music industry is reaping the benefits but also suffering the consequences.

Internet users today can access the web through normal laptop or desktop computer which appears to be the desired way of using the net. However, recent developments in technology and use of convergence has meant that people around the world can gain internet use through a variety of different devices. The launch of the iPhone and iPod Touch has enabled buyers to access the internet within the palm of their hand, ensuring that within seconds they are able to surf the net wherever they are in the world, be it a theme park, a restaurant or whilst sitting on a train. This easy way of browsing the web is becoming increasingly popular and more people across the globe are catching on to this leading technology.

With internet users rapidly increasing and more than half of the UK using the internet on a daily basis, the music industry has suffered catastrophically. It would seem natural to say that with all the easy access to the internet, the publicity and promotion that follows for music would be benefitial, however it does not seem to be the case. Although people can listen to music for free via YouTube and Spotify, they follow through by going one step further and resorting to illegal downloads in order to have the music for themselves. Converter websites have become increasingly popular in the past 2 years, with internet users converting YouTube mp4 video files, into mp3 music files, the rate of illegal downloading has risen dramatically. It was reported by IFPI (The International Federation of the Phonographical Industry) that in 2008 over 40 billion songs were illegally downloaded, having a severe knock on effect to all those involved in the music industry. This costly figure accounts for a whopping 95% of all online downloads made, slashing profits for record labels and companies, leaving only a mere 5% profit. In simplistic terms, online file sharing and illegal downloads are costing the music industry an equivalent of a loss of around £45 billion. In response to this great deal of losses made, iTunes made an increase in song price from £0.79 to £0.99 in hope of generating more of a profit, however this has a negative effect for the public as they believe it is too much to pay for a single track, and instead resort to illegal downloads. This becomes a vicious cycle both for the consumer and the music industry.

Although the music industry has suffered major set backs, large companies such as Universal Music Group who are part of 'The Big Four' are developing newer ways to promote their artists and sell their music.

• Web 2.0: Web 2.0 allows artists to create online social networking pages such as Facebook, MySpace and Twitter. The benefits of sites like these allows the audience to feel more associated with the artists and involved in their music. These sites often integrate latest music videos and a selection of songs from past and present albums within the page, enabling the audience to sample the music before making the decision wether to legally purchase the tracks. These web pages often include hyperlinks to a legal downloading facility such as iTunes which makes downloading quick and convenient for the consumer.
• Vevo and YouTube: YouTube has often been a bustling hub for music lovers across the globe. However, due to file sharing and illegal converter websites, consumers are now resorting to convenient and illegal ways to gain the music for themselves. As a result, Vevo was launched early 2010. Vevo allows the audiences to listen to the music whilst watching the artist's video at the same time. This enables the consumers to recognise the visual attraction of the artist as well as enjoying the track itself. Vevo does not consent to illegal downloading and instead offers the audience a chance to merely sample it, however offers quick and easy links to legal and affordable downloading facilities.

After reviewing and analysing how the Online Revolution has impacted the music industry, it is clear to say that in order for record labels and companies to enhance benefits, they need to be creative and understand what the consumer's wants and needs are. In today's society, music lovers want to access their music within seconds and be able to download it more conveniently and affordably, the use of hyperlinks on social networking sites and Vevo to iTunes is a way of responding to the customer's needs.