Running Head: IMPACT OF TECHNOLOGY ON MUSIC INDUSTRY

The Cultural and Economic Impact of Technology on Music Industry
[Name of Author]
[Name of the Institution] Abstract
Technology has played a pivotal role in evolving every industry at global scale, music industry is also influenced by technology. The impact of technology on the music industry has a mix reaction from the cultural and the economic domain. In this paper I will critically analyze the research on impact of technology mentioned in different journals, books, articles and papers. In order to compile this report a simple hierarchy has been followed. The impact in the cultural domain will be examined, its proposed solutions will be highlighted and alternative research methodologies will be defined. Then impact on the economic sector of the music industry will be critically reviewed in the evidence of different papers. Role of governing authorities will be examined and then proposed solutions will be defined. Table of Contents
Abstract 2
Introduction 4
Discussion 5
Cultural Impact of Technology on Music Industry 5
Negative Impact 6
Economical Impact of Technology on Music Industry 7
Positive Impact 7
Negative Impact 7
Conclusion 8
References 10

Cultural and Economical Impact of Technology on Music Industry

Introduction Music is a form of art essentially created for the purpose of entertainment. It has now evolved as a resource of expression for multiple human activities ranging from religion, education, political activities, promoting peace and bridging gaps. Music is used as a tool, to express social disputes of racism, status quo, political violence, expression of love and uniting societies together (Ambert, 2003, p. 1). It does not require language to convey its message. It cannot be limited by regional or national boundaries; in fact, it has played a significant role in promoting culture and globalization. In the cultural domain, music has played a pivotal role to promote the traditional heritage of societies not only nationwide but internationally. It is an intellectual property created by geniuses and loved by masses. It has played a positive role in promoting national and regional culture to other parts of the world. Cultural music is a historic symbol of regions and countries on the basis of a certain music type like UK has served as on the originator for nursery rhymes it was one of the leading countries to promote rock music. Subcontinent has been primarily responsible for classical music. Similarly, origination of musical instruments is also a part of culture and heritage like Italy was responsible for piano’s origination, saxophone got popular in France. In recent times, flute is an Indian musical instrument and Daf is a Pakistani musical instrument not so common in the rest of the world. Music as a commodity or service has played a major role in strengthens the economy of all countries as multiple stake holders are directly related to the field of music. Sound recording is a globalised industry and was estimated to have worldwide sales of $US 37 billion (thousand million) in 2000 (Towse, 2003, p.14). Music creates multiple job opportunities for both the educated and the uneducated sectors throughout the world. The people directly related with the economics of the music industry are originators; who are composers and lyricists. Agents; who sell their music to publishers. Publishers; publish the music with the aid of performing artists. Performing artists are the vocalists or dance performers who lend their voice for this task. Record companies provide the platform for recording, market the album and sell it. Manufacturer produces the copies of the original content to cater the demand of local and international market. Broadcasters are the television and radio production companies who introduce the product on the market. Except these primary stake holders, multiple other jobs are created directly in effect with the music industry (Einarsson, 2008, pp. 27 - 30). Since the emergence of commercial computer and internet in the mid 1970’s technology has changed the landscape of every industry of the world, but the commercial use of internet in the 1990s with the origination of mp3 format has an impulsive effect on the music industry. The effect on the music industry has been positive and negative in some cases reducing the monopoly, decreasing the bottleneck of talent launch, connecting the consumer to music more easily but it has also brought in severe adverse effects on the music industry as well, both culturally and economically (Blanchette, 2004).

Discussion
Cultural Impact of Technology on Music Industry The cultural music industry has been favored in many aspects by technology. Technology has bridged the gaps between local musicians and international listeners there by increasing the fan following and star power of a vocalist or a musician. It has promoted artists like The Beatles, Pink Floyd, Madonna and Michael Jackson from their originating country to all parts of the world. Their music has played a prominent part in revving other countries music industry. Mega stars like Kishore Kumar and Nusrat Fateh Ali Khan who are famous for their cultural style of singing have humongous following in U.K., USA and other European nations just because technology has globalized the music industry and provide complete access to all listeners of every part of the world. Another advantage, which arose from this globalization, is that modern day stars like Imran Khan, Jazzy b and Veronica creates music which is a fusion of Indian and U.K. music styles, they mix hip hop or jazz with classical Indian music style (Ambert 2003, p 7 - 11).

Negative Impact The adverse effects incorporated by the cultural sector of the music industry are also multiple and they threat the existence of the cultural heritage of music. The advent of musical databases has been a serious threat for instrument players. Wedding planners now incorporate DJ’s who have built in tunes for every single instrument or composed melody for certain occasions and has seriously damaged the existence of orchestra bands of wedding and other occasions. Initially recording studios and performing artists used to hire different instrument players for live performances and sound recording but with the advent of digital databases of all instruments has badly affected the market for all folk music players, threatening their very existence in the profession of the music industry as an instrument player. The availability of all resources built in home computers has reduced the importance of music festivals which acted as a platform for fresh talent. In recent times a unknown artist creates his music video uploads it at a social networking or cloud site, gets the immediate response and becomes a star overnight, this has extinguished the impact of talent hunt platforms, people related with these platforms and the history associated with these platforms (Swash, 2011). Solution Catering the cultural impact is something which will be a difficult. In order to preserve the cultural heritage, the whole community will have to take reasonable steps to counter balance the effect. Government should take responsibility of preserving living hood rights of instrument players, folk artists and performing artists crossed their peaks. The broadcast groups of television and radio should promote talent hunt program to discourage self made online albums. Broadcasting groups should associate instrument players on salaries for their channels and shows to help them earn a livelihood, free lance contractual jobs should be discouraged by the sound recording companies and instrument players and band artists should be hired as permanent employees. Non – governmental organizations should promote charity activities and events for these people.

Economical Impact of Technology on Music Industry The economics of the music industry is much more complex than the cultural impact, gain of one person is the loss of other but overall the economic loss has been a great one. The economic advantage associated with the music industry has been a clear one; initially a lot of capital was required for the launch of every new music artist. It included human resource in terms of instrument players rent of recording studios, aid from a producer, and the whole route to enter in the music industry was very complex and difficult to achieve, but now the game has totally changed. A new comer can launch his music video upon social networking and cloud sites like YouTube and become a youth sensational overnight just with the response, but this does not support the artist financially until music company, or an event management firm helps him to launch his or her album or concerts. The overall cost of production has dynamically reduced with separate recording of every tune, vocal voice and other elements of the album. The final role of the composer is to mix them through the software. Positive Impact The cost of broadcasting has been significantly reduced as no overseas shipment is required to trade music albums. The videos are launched online and can be accessed by all listeners globally, later the files are available for download on respective sites with certain regulations applied and the overall cost of a certain album for the listener is significantly reduced. Negative Impact In 2000, IFPI announced that the global recording industry was under severe strain. In
1996, the total wholesale value of the global music industry was US$39.8 billion and the
Global music industry grew by 4 per cent in terms of the total volume of unit sales,
Whereas global sales of recorded music fell by 1.3 per cent in value and 1.2 per cent in
Units in 2000 (Ambert, 2003, p. 4). The major economic loss which has been associated with the music industry due to technology is the advent of peer to peer file sharing site and illegal downloading websites. It has brought the sales of cassette tapes, audio CDs and DVDs to a dramatic low. The manufacturing of pirated CDs and DVDs have also increased as listeners prefer creating self customized albums rather than purchasing company generated original albums for a particular song. The major stake holders who are at a loss with this illegal use of intellectual property are the sound recording companies who invest a significant chunk of capital to produce a certain music album. According to Lehman (2005, p. 5) the piracy content makers serve as terrorists for the music industry. Solution The impact of technology has more or less both elements of positivity and negativity, but overall when you analyze the situation the adverse effect is greater on the music industry rather than being a positive one. In order to reduce the impact, the governing authorities and international policy makers for internet and music will have to play a vital role in preserving the cultural heritage and the economic losses rendered by the music industry. The major economic problem is the peer to peer file sharing and in order to cater this problem the implementation of copyright laws should be executed firmly by every controlling body in every part of the world. Programmers should be hired by the telecommunication authority, to create security checks over the internet to stop illegal file sharing. International authorities regarding internet should ban those IPs which are providing illegal file sharing and download, uncompromising actions should be taken against the owners of these web site owners. Awareness campaigns should be held amongst youth about illegal download and pirated CDs they should be addressed with respect to the loss at the state level of these crimes (Towse, 2003, pp. 2 - 11). Solutions provided by Valencia (2008, p. 16 – 22) for the recording industry to incorporate social media for selling their albums is very justified, to provide the end user his desired product legally and helping the economy of the industry as well.

Conclusion As we have traced the solutions proposed by fellow researchers, it is evident that the current dilemma faced by the music industry and its stake holders can be resolved to a certain level. Although the methods proposed do not provide solutions to all the problems as the copyright law has been enforced since quite a long time and websites like napster are also blocked by the governing authorities. We find a significant area of research to cater the problems of recording industries. We will focus our prime research in areas to use technology as an asset to boost sales of music industry and deliver the creative art in every part of the world, rather than focusing of how to stop the misuse of internet and other music related technologies.

References
Ambert, Cecile (2003). Promoting the Culture Sector through Job Creation and Small Enterprise Development in SADC Countries: The Music Industry, pp 7 -14 retrieved from http://www.ilo.org/wcmsp5/groups/public/@ed_emp/@emp_ent/@ifp_seed/documents/publication/wcms_117682.pdf
Blanchette, Kasie (2004).Effects of MP3 Technology on the Music Industry: An Examination of Market Structure and Apple iTunes retrieved from http://members.iinet.net.au/9E2DD78A-FEEE-4472-BB8E-1421346F0112/FinalDownload/DownloadId-A2A8F49546C4BE56D2999731CE0DEEA9/9E2DD78
Einarsson, Ágúst (2008). The economic impact of public cultural expenditures on creative industries under increasing globalization, Bifröst Journal of Social Science — 2, pp 27 - 30 retrieved from http://bjss.bifrost.is/index.php/bjss/article/viewFile/18/41
Lehmann, Ass. I. V. (2005). Copyright in the Music Industry. pp. 5 -8 retrieved from http://www.emle.org/_data/Volker_Lehmann_-_Copyright_in_the_Music_Industry.pdf
Swash, Rosie (2011) Music industry dances to technology's tune retrieved from http://www.guardian.co.uk/culture/2011/mar/17/sxsw-music-technology-soundcloud
Towse, Dr Ruth (2003) Assessing the Economic Impacts of Copyright Reform in the Music Industry pp. 2 -11 retrieved from http://www.recida.org/downloads/towse6.pdf
Valencia, Jazmine A. (2008) the impact of technology on the music industry. Pp 1 -83 retrieved from http://digitool.fcla.edu///exlibris/dtl/d3_1/apache_media/L2V4bGlicmlzL2R0bC9kM18xL2FwYWNoZV9tZWRpYS81ODAxMw==.pdf