Music Application or Digital Storefront and the Policy Framework, Essay Example

The advent of technology has radically disrupted the economics of the contemporary music industry. Ever since the emergence of the Internet, music can now be shared freely. On the other hand, the industry significantly faced significant challenges following the onslaught of some of the latest technological developments, specifically in web technology. This remains a phenomenon that has seen platforms such as Napster significantly allow users to access, download, and share music at the cost of the copyright owners, thus encouraging piracy. Several business analysts reiterated the end of the industry. Against all odds, the industry continues to survive. Therefore, considering the aforementioned aspects, it is assumable that the music industry is bound to experience a period of recession.  It is equally notable that the latest mix of varied digital platforms and technologies and the Internet has significantly proven to be a challenge to the music industry than an opportunity.  To this effect, I seek to hold a conversation with a friend who will be referred to here as Mr. X for privacy reasons. My friend, a male aged 48 years, is a Chiropractor by profession. In an effort to understand the increasing caseloads on matters of copyright infringement, he decided to hold a talk to gain a better view and perspective of the intricacies of the music industry.  This interview, therefore, provides a transcript of the conversation held between my friend and I held on many issues within the music industry.

Did you know that FM radio in America doesn’t pay artists for airplay, but the rest of the developed world does? What do you think of that?

Yes, I am aware that FM radio stations in America do not pay artists for airplay, and there are two sides to this coin. According to Mr. X, the entertainment industry follows through a set of standard conduct measures regarding radio airplay. The United States, among other countries such as China, North Korea and Iran, are among a handful of nations that do not pay the recording artists and their labels when their content is played on FM radio. From my perspective, this may seem discouraging as it denies the copyright owners the luxury of enjoying the benefits of their content. However, according to my understanding, the stations often pay the songwriters as well as the music publishers. This, therefore, means that the recording artists and their labels are, in turn, compensated partly by an airplay beneficial effect through the sales of their records. However, I am opposed to these efforts and structures since they contribute to the rot in the industry (Hansmann & Santilli, 2001).  I believe that there is a need to impose performance royalties specifically on the radio stations that play artists’ content through a taxation approach. From another point of view, making these payments would result in job cuts, a factor that may equally endanger some of the smaller and locally owned radio stations. For example, the songwriters are paid a little honorarium. At the same time, the record labels and the performers are accorded free publicity through radio airplay that often translates into the sales of thousands of albums, hence a win-win situation.

Did you ever use Napster or torrents to download music without paying for it?

I once used Napster during my early years of College to download and share music. However, I currently refrained from using this platform after realizing its detrimental effects on the music industry. File sharing, from my view, substantially undermines and undercuts intellectual property rights to digital goods. Secondly, file sharing has resulted in a far-reaching decrease in records sales as it allows the free sharing and exchange of copyrighted content (Stern, 2000). Consumers do not need to purchase music, a factor that has significantly watered down the music business. Lastly, I believe that the distribution of music through the Internet and without the consent of a copyright owner significantly harms the artists’ future and careers since record entities would make limited sales. This factor translates to the payment of low royalties. In light of this, the music industry needs to address the issue of file sharing.

Do you think companies like Comcast or Verizon should be able to play favorites with what content gets preferential treatment online?

Curating favorite playlists limits the musician’s dependence on online radio stations besides limiting the enjoyment of music among fans. I do not think that companies such as Comcast and Verizon to play favorites with content that gets preferential treatment online are feasible. In other words, understanding the downsides or bottlenecks of only playing favorites spurs the need to ensure that all content is treated fairly as this limits the others opportunities to develop strength and grow within the industry. Typically, I believe that playing favorites by organizations such as Comcast and Version dents the copyright owner’s professional growth and development as attention and focus are only drawn on the preferred content (Laing, 2009). Inclusivity, therefore, remains fundamental in ensuring that all content is equitably played on platforms such as Comcast and Verizon. Comcast and Verizon may, in this case, focus on creating editorial capacities that promote the playing of varied content through different online platforms as opposed to the giving of preferential treatments.

Some artists feel that streaming royalties are too low. Do you? If so, how might that be addressed?

From a personal point of view, I believe that the streaming royalties are slightly low compared to the artists’ efforts in the production of content. On the other hand, huge upfront payments and imbalanced artistry contacts are attributed to reducing the amounts that the artists earn. Secondly, streaming significantly has a bad reputation on the musicians and artists. This is attributed to the lack of transparency, low payouts, and the shady deals that some major recording labels push, especially on independent labels. Thirdly, a look at the entire music industry reveals that artists are dismally paid from streaming services as they are forced to get billions of streams to make the smallest amount of money (Marshall, 2015).  Establishing an equitable remuneration system remains key in addressing these challenges. On the other hand, creators and artists may resort to creating rights that are later traded for income. Moreover, the government may play a fundamental role in fixing this issue by increasing the rates instead of lowering the established streaming bars on a radio base.

What should the government’s role be in the digital music and entertainment marketplace?

From a personal view, the government plays a fundamental role in the regulation of the digital music and entertainment marketplace. This is primarily achieved through the creation of legislation on exclusive rights on content and streaming services as opined in the views of Mr. X. In the recent past, songwriters and other content creators turn out to be the most regulated individuals within the music industry, Close to 75% of the revenues and income generated from the industry are controlled primarily by the federal government (Kenny, 2011). On the other hand, the government indirectly regulates digital content through controlled licensing of businesses such as stadiums, restaurants, and bars that play music. This way, the government ensures that it controls and protects the values of the artists and content creators.

References

Hansmann, H., & Santilli, M. (2001). Royalties for Artists Versus Royalties for Authors and Composers. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.261392

Kenny, A. (2011). Mapping the context: insights and issues from local government development of music communities. British Journal of Music Education, 28(2), 213–226. https://doi.org/10.1017/s0265051711000088

Laing, D. (2009). World Music and the global music industry. Popular Music History, 3(3). https://doi.org/10.1558/pomh.v3i3.213

Marshall, L. (2015). “Let’s keep music special. F—Spotify”: on-demand streaming and the controversy over artist royalties. Creative Industries Journal, 8(2), 177–189. https://doi.org/10.1080/17510694.2015.1096618

Stern, R. (2000). Napster: a walking copyright infringement? IEEE Micro, 20(6), 4–5, 95. https://doi.org/10.1109/40.888696