The Record Industry is a group which is largely affected by the use of filesharing. As they were the traditional medium between artist and audience, there is no longer a need for distributors or intermediaries as they become increasingly irrelevant (Flew, 2000, p.107). The internet and other new media devices deliver a technology which lets artists communicate to their fans, decreasing the need for middle men. Filesharing allows a number of people to use the same files by a combination of being able to read, view, write or modify, copy or print.
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In terms of music, disintermediation refers to the break-down of intermediaries [in the form of record industries] and is instead replaced with direct channels of communication and information distribution from the artist to its respective audiences (Flew, 2002, p.107). According to recording artist, Prince, music file sharing technology translates into the lack of necessity for record industries (Flew, 2002, p.107). This is already evident as the cost of music distribution and marketing music has, as Ruth Towse (2002, p.76) describes lowered entry barriers to the market. This in turn witnesses emerging artists publishing and distributing music via the Internet (Towse, 2002, p.76). Consequently, although this technology is arguably beneficial for emerging artists to reach an audience, the record industry, it seems, will have to find innovative means of fighting this threat (Towse, 2002, p.77).
The law in regard to copyright and royalty fees is slowly beginning to make changes to filesharing sites in order for them to operate legally. In recent months, record companies have had a win in court against illegal download sites. In Sydney, Australia a September hearing in the Federal Court ruled that the file-sharing technology Kazaa had illegally infringed artist’ copyrights. Major labels such as Universal, EMI, Sony BMG and Warner, and 26 other labels sued Sharman Networks, the Sydney based developer of Kazaa. It is the first ruling of its kind in the world.
Increasingly, the record industry and major and independent labels are finding ways which to use filesharing legally. They are joining with legal filesharing sites such is iTunes and MashBoxx to make the technology both reach new markets and also be profitable. But it is the independent labels who will most benefit from filesharing technology, as underground bands are able to showcase their music alongside the artists that are signed to a major. The traditional model of ownership and exclusive control over their creative output which has made recording companies profitable is now changing (Lessig, 2001, p.128).
Artists which operate under the major labels may not agree on actions taken by their companies, or record industry bodies such as the Recording Industry Association of America (RIAA). The RIAA blame free music filesharing networks for robbing artists of their intellectual property (Menn, 2003, p.141). One artist, Courtney Love from Hole, has lashed out at recording industries for taking monetary claim of their creative talents (Alderman, 2001, 126).
Making music a profitable industry for its artists and surrounding businesses in the new economy has become a different system. Because of this Flew (2002, 159) believes that there is a strong possibility that multinationals will play the de facto regulators in the issues related to music filesharing. The music industry has been tagged along my new media distribution methods over the years and Peach (2005, 4) believes they are, “committed to doing all that it can to create an environment in which such businesses can establish and prosper to the benefit of both creators and consumers of music.�?
Alderman, J. (2001) Sonic Boom: Napster, MP3 and the New Pioneers of Music, USA: Perseus Publishing. ISBN 0738204056
Flew, T. (2002) New Media: An Introduction, South Melbourne: Oxford University Press. ISBN 0195508599
Lessig, L. (2001) The Future of Ideas: The Fate of the Commons in a Connected World, New York: Vintage Books. ISBN 0375505784
Menn, J. (2003) All the Rave: The Rise and Fall of Shawn Fanning's Napster, New York: Crown Business. ISBN 0609610937
Peach, S. (2005) Music Industry wins, Australian Financial Review, 27 September 2005, p.4
Towse, R. (ed.) (2002) Copyright in the Cultural Industries, UK: Edward Edgar Publishing Limited. 1840646616
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Music File Sharing Effects on Business- Napster Case Study
Bronwyn Hooton 00:04, 28 Oct 2005 (EST)
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