20th Century record companies made money by selling a tangible product like a vinyl disk or a CD.
You would own music by having a disc collection in your house. It would be like something that is
collectable and priceless.
Internet and the music industry had to adapt as CD sales were falling each year. Many music stores
e.g. HMV, Blockbuster etc have closed down. By those music stores closing down money stops coming
in for the artist but things like concerts and tours are other ways of an artist making their money. As
well as merchandise e.g t-shirts, hoodies etc. Music product is now bought online as a single song or album,
and exists only as on item on an iPod, mobile phone or computer. In 2009 95% of music was downloaded
online and done illegally. People may download music instead of buying them because it is free even though
it is illegal.
The music industry claimed a victory in 2009 when four men behind a file-sharing site (Private Boy)
were sentenced to a year in year and ordered to pay a £2.5m in damaged for helping internet users
download music, films and computer games without paying for them. However this action may have
been to stop downloading but people will still try and find a place to download music for free illegally.
Chief Executive Simon Fox said the 'within three years technology would become its single biggest
product category ahead of both CDs and DVDs. About 25% of the floor space to MP3 players, tablet
computers and headphones as the CD goes the way of other defunct formats such as vinyl and tapes.
The headphone market is worth £150m with Dr Dre's Beats selling for more than £100m. Now £1billion
after being bought by Apple.