MUSIC INDUSTRY IN INDIA AND GLOBAL

Vaishnav T. V., V. C. Jishnu, & Sumanth N. R.

First year MBA, College of Management and Commerce, Srinivas University, India.
Email: vaishnavtv2000@gmail.com, jishnujj2000@gmail.com & sumanth99.nr@gmail.com

ABSTRACT
The Music industry includes individuals and organizations that make money by writing songs
and compositions, creating and selling recorded music and musical composition, presenting
and supplying music composers. Over the past 30 years, the way music has been produced and
distributed has changed dramatically. The emergence of the web since the late 1990s has played
a critical role in how music is consumed globally, setting the event of inadvertently affecting
how musicians and artists are compensated. This paper gives us an overview of the music
industry. And this paper analysis the evolution of music industry; current situation; future of
industry; Top companies in music industry in Global & India; contribution to GDP; influence
of music on people; SWOT analysis; Products and services; roles in the music industry. We
highlighted the impact of technology in the music industry and how the internet helped the
growth of the industry. The purpose of this paper is to provide an in-depth analysis of the
foremost economic developments in the music industry. This paper analyzes industry
transformations caused by digitization. It discusses how digitization, aggregation, and the use
of music, vale networks and business models. The paper focuses on music companies and
covers the distribution and distribution of recorded music and thus the competition that the
music companies face from other online music providers. It involves the organization of live
performances and thus the exploitation of music copyrights, although information on how these
activities contribute to the arena is less systematically available. In last 2 years, we are going
through a pandemic situation and how that affected the music industry.
Keywords: Music industry, IMI, Evolution, Songs, Composers, Digitization, Sony, Spotify,
Covid 19

1
1. INTRODUCTION:
We usually buy the product from a store owner that the store owner buys from a distributor. In
addition, the product reaches the distributor from the manufacturer. The manufacturer has
produced this product from raw materials available to it. this could be the way the industry
works. The industry is usually a large number of organizations that are involved in producing
and producing a portion of similar services and products. Usually, industries are involved in
the second product manufacturing process. There are many types of second-hand jobs that
convert raw materials into products that give more value to people. Industry, group of
productive enterprises or organizations that produce or supply goods, services, or sources of
income. In economics, industries are generally classified as primary, secondary, tertiary, and
quaternary industry.

2. ABOUT MUSIC INDUSTRY:

The music industry is a popular term for all the parties worried in the advent, performance,
recording, promoting, and control of the enterprise of tune. The difference of calling this
network of enterprise partnerships ''the music industry'' in preference to ''the music business,''
is more primarily based at the stigma related to the latter time period than any technical
distinction. At one point, whilst the label of ''the music business'' changed into regularly used,
artists often skilled exploitation from individuals who made exorbitant earnings from their
paintings. today, numerous companies exist to shield the rights of musicians, composers, and
performers. The industry also includes more than a few professionals who assist singers and
musicians with their song careers. those consist of, skills managers, artists and repertoire
managers, commercial enterprise managers, amusement attorneys; folks that broadcast audio
or video song content (satellite tv for pc, internet radio stations, broadcast radio and television
stations); song newshounds and tune critics; DJs; track educators and teachers; musical device
producers; in addition to many others. similarly, to the businesses and artists there are
businesses that still play an essential function, which include musician's unions, now not-
forearnings overall performance-rights corporations and different associations.

3. RELATED WORK:
The below table reviews the findings in the field of Music industry by different authors across
the world.

Table 1: Related publications on Music industry by different researchers

S. Area of Study Focus Reference
No.
1 Innovation and Innovation and Diversity in the Popular Paul D. Lopes (1992)
Diversity Music Industry [1]
2 Internet and Music The internet is changing the music Lam, C. K., & Tan, B.
industry C. (2001) [2]
3 Cloud storage and The music industry: Music in the cloud Wikström, P. (2020)
Music [3]
5 Global jukebox The global jukebox: The international Burnett, R. (2002) [5]
music industry

2
 6 Music in India Music in India: An Overview Evans, A. E. (2016)
[6]
7 Economic issues and Music industry in India: Economic and Srivastava, M. (2012)
challenges Legal issues and challenges. [7]

8 Online music retail Online music retail in India Singh, P., &
Kothavale, P. (2011)
[8]
9 Copyright Copyright, politics and the international Laing, D. (2004) [9]
music industry
10 Innovations in digital Innovations in digital technology and Balagopal, B. (2021)
technology creative destruction in the music [10]
industry

4. OBJECTIVES OF THE STUDY:

The objective of this report is to offer an in-depth analysis of the major economic developments
in the music industry.
1) The report analyses the transformations of the industry brought about by digitization.
2) It discusses about the impact of covid-19 pandemic on the Music industry. And also
looks at the strengths and weakness of Music industry.
3) The report focuses on music companies, and encompasses the production and
distribution of recorded music, including online distribution, and the competition which
music companies face from other online music providers.
4) It also covers the organisation of live performances and the exploitation of music
copyrights, though data on how these activities contribute to revenues in the sector are
less systematically available.
5) The analysis integrates data from this project’s statistical report and includes a database
of the major music publishing companies.

5. RESEARCH METHODOLOGY:
Based on the secondary data, this study is developed and published sources are taken into
account for data collection. The analysis integrates data from this project’s statistical report
and includes a database of the major aspects regarding Music industry. The study is based on
a review and synthesis of the available literature and reports and on official and unofficial data
on the music industry. Using the information collected from journal articles, search engines,
and business websites including the official website of Indian Music Industry, detailed
evaluations are presented.

6. STRUCTURE OF THE INDIAN MUSIC INDUSTRY:

With its primarily young, rapidly growing population currently at 1.3 billion many music
professionals are now looking to India as the music industry’s next great frontier. The revenues
of the Indian music industry are on a rapid rise for the last few years primarily driven by the
country's growing online population. However, India’s massive film industry still plays an
outsized role in the music business with 80% of the country’s music revenue reportedly
generated by soundtracks for Bollywood films. That is for various reasons, which we'll explore
down the road but for now let’s start with a couple of quick statistics to underline the structure

3
of the market and get everyone on the same page. First, we need to review the revenue of the
industry, split between 3 main core business: recording, live and publishing [6].

Sources: IFPI, PwC, VISION 2022, IPRS

Fig. 1: Indian Music Industry Revenue by Source, 2018

6.1 Live Industry :

As usual, the estimation of live revenues is by far the trickiest part of sizing the industry. Due to the
fragmented nature of the live business, comprehensive, accurate quotes are hard to come by.
• Drawing on the information disclosed throughout the Indian Music Convention, PwC
data, and industry discussions the total revenues of live business can be put at around
$280 million.
• In line with PwC estimations, ticket sales accounted for 30% of all live revenues, while
the rest is split up between brand sponsorships, private events, merch sales, and so forth
.
6.2 Recording Industry :

4
 • According to IFPI, the recording industry generated $153.1 million in 2018, up 17,1%
from 2017.
• In 2018, streaming revenue went up 22,3%, with streaming accounting for 69% of all
recording revenues.
• Reportedly, around 80% of music consumption is attributed to film music.

6.3 Publishing Industry :

• The publishing in India is still in its cradle: up until 2012, the Music Copyright Act of
India assigned copyrights to film producers instead of the actual songwriters.
• Although the necessary amendments have been made, the publishing pipeline is still
extremely underdeveloped, and most of the artists don’t earn any royalties.
• Royalties to songwriters and composers made up less than 1% of the total industry’s
revenue, or $4 million.
Summing up the revenues across the three main sub-industries, we estimate the scope of the
Indian music market at $443 million.
With the country positioned 15th in the 2018 IFPI rankings, local music professionals are
aiming to break the market into the top 10 by 2022. That means that the industry will have not
only to keep up its current growth but accelerate continuously in the coming years.

7. INDIAN MUSIC INDUSTRY STATS: INDIA'S DIGITAL REVOLUTION BY THE

NUMBERS:
In 2018, India became the 5th biggest economy in the world in terms of the current GDP. It’s
the fastest-growing economy out of the top-10, projected 7% CAGR up until 2023. This almost
unprecedented economic growth is powered by the population of 1,35 billion people, which
keeps on rising India is expected to overtake China in total residents and become the world’s
most populated country by 2027. At the same time, that population is extremely young:
according to the 2011 census, more than 52% of India’s population was under 25-year-old.

Source: The World Bank, ICUBE

Fig. 2: Internet users in India, 2000-2018, Million people
5
Near-record economic growth, young population (and we all know what’s music industry’s
primary demographic) that’s all good news for the Indian music professionals. However, there
is a single trend in India that means more to the music business than anything else the country’s
rapid digitalization. Back in 2016, a new 4G telecom service Reliance Jio has entered the Indian
market. Its mission statement was to “provide broadband for every Indian”, mirroring the
Digital India initiative, launched by the government earlier the same year. To achieve that, Jio
hit the market with an extremely aggressive strategy, starting a price war amongst the local
telecom providers. Just two years later, in 2018, India became the country with the cheapest
mobile internet in the world. According to Cable, 1 GB of mobile data in India now costs just
$0,26 for comparison, the average in the US is 47,5 times greater at $12,37/GB. In three years,
from 2015 to 2018, the country’s internet population grew more than 60% to 566 million.

8. LIVE PERFORMANCE AND BRAND SPONSORSHIPS:

So, let’s take a closer look at those alternative revenue streams, starting with the live business.
The first thing to know is that although the GDP per capita has grown 450% in the last 20 years,
the live market has not yet reached the stage where shows can turn a profit off the back of ticket
sales alone. Based on our analysis as well as the industry discussions, only 30% of the live
revenues are generated by direct ticket sales, and even that can be an overstatement. According
to some industry insights, the share of ticket sales might be as low as 10% and here’s why.
First and foremost, it all comes down to the spending power of the Indian consumer and the
price-sensitivity of the market. Promoters have to bring prices down and engage with “buy four
tickets get one for free” type of deals to make the offer a bit more exciting, undercutting the
total revenue generated. Whether it be the standalone concerts of the local acts or big festivals,
relying on bringing down major international laws (which is expensive in terms of logistics),
the amount that consumers are ready to spend on tickets can rarely recoup the costs of putting
on a show. That situation is starting to resolve itself as the ticketing market is getting mature
and the customer’s spending grow, but for now, the live industry has to rely on sponsorships
and brand money to sustain itself. Thankfully, live events have a lot to offer to brands that want
to associate themselves with artistic values and reach the younger generations of concert-goers.
To put it in perspective, the local beer brand Bira 91 planned to put together 50 hip-hop shows
in the country throughout 2019 and that’s just the events directly organized by the brand, while
live sponsorships can take all shapes and sizes.
Forming a vicious circle, reliance on sponsorships brings about a second significant factor
undercutting the ticketing revenues. Historically, the live industry in India has been influenced
by the country’s VIP culture: that is to say that all the people that are somewhat connected with
the live show from officials dealing with licenses to journalists and sponsors expect to get all
the tickets they need for free. In the end, a considerable share of tickets is just handed out to
“important people”, which inevitably makes the people who actually go and buy the tickets
seem like second-class citizens. The lost revenues are the smaller part of the VIP malaise —
the primary problem is that it makes purchasing tickets something embarrassing. That leads to
a paradoxical situation where most of the time the actual paying customers are just an “added
benefit”, a secondary market of the live industry [11].
Quite often a show can do without the tickets sales altogether. Frequently the show will be
hosted by a free admission college festival that relies upon sponsorship deals, or, on the
contrary, a closed-off private event like a wedding, a corporate show and so on. In either case,
the ticket sales are simply non-existent, and that’s how a substantial part of the live shows
works.

6
9. OPPORTUNITIES FOR INTERNATIONAL MUSIC:
Besides, the local market presents a growing opportunity for international artists and not just
the triple-A acts, like Ed Sheeran and Justin Bieber, who’ve been touring India for years now.
The market still has its challenges, of course including its remoteness, lack of spending power,
the VIP culture, and so on. However, despite all that, the tier-1 Indian cities have recently seen
a wave of successful shows.
In the end, it all comes back to the digitalization of the market. Consider this: in 2018 alone,
the internet population in India grew by more than 100 million. 52% of that crowd are under
25-year-old. Those people are coming online and log into the streaming services, discovering
new international acts and new music, and as a result, the local music market is opening-up to
many international acts. Following the usual pattern, EDM artists were the first to go on
successful Indian tours and by now Indian audience got a chance to see all of the world’s top100
DJs. Now, however, the local industry sees more and more mid-range acts especially the ones
who’ve “planted the seeds” beforehand. Building upon his trip to India as an opening act for
Ed Sheeran’s tour back in 2017, Lauv sold out his Mumbai show in 2019. Jacob Collier’s gig
in Mumbai was sold out in under 24 hours so that promoters had to announce a second night
to supply the demand. Just a month ago, Cigarettes After Sex played two back to back shows
at the Royal Opera House. Those are, of course, just isolated cases, but in line with industry
discussions, those are the first signs of the new era in the history of the Indian market, where
independent international artists can successfully tour the country. For now, in Mumbai but
that’s just a question of time (and economic growth) until more tour destinations sprout up.
The streaming services across the world have already recognized the vast potential held by the
Indian market it’s time the artist and music professionals do the same the ones who get in there
early on might get themselves quite a sweet spot on the 1,3 billion people market [10].

10. THE IMPACT OF TECHNOLOGY ON THE MUSIC INDUSTRY:

Over the years, technology has played a key role in shaping the music industry. Consider the
progression from the phonograph and analog tape machines to digital recording software and
internet-based streaming services. The past two decades of rapid innovation in digital
technologies have particularly disrupted the music business at every level. Technology has
changed how people create music. Composers can produce film scores from their home studios.
Musicians can play for fans around the world through livestreamed performances. Songwriters
can record albums and release them on digital distribution and streaming platforms without
ever landing or signing a record deal. For the music professional, the ins and outs of modern
music business and music technologies is must-have knowledge. Southern Utah University
offers an online Master of Music with an emphasis in Music Technology degree program. With
options to focus on performance, studio, or game audio technology, this program offers
students the technical and business skills they need to navigate the complexities inherent in the
music industry today.
Advancements in digital technologies led to monumental shifts in most aspects of the music
business. Early digital recording hardware and software made the recording process cheaper
and simpler, to some degree. Compact discs ostensibly improved the quality of audio for
consumers and minimized manufacturing and distribution costs. Digital technologies led to
growth in the music industry at first. Then came Napster. The internet became advanced
enough that users could share and download music online. Pirating music no longer demanded
dubbing tapes and burning CDs. People could download virtually any song they wanted
through file-sharing platforms for free. This caused revenue in the music industry to plummet.
7
Paid digital distribution platforms, most notably iTunes, followed shortly after Napster and
revolutionized the monetization of digital downloads. Streaming services like Spotify have
more recently revolutionized how people consume music. However, while these platforms now
constitute the bulk of music industry sales, revenues still haven’t returned to levels prior to the
age of Napster.
While the digital music revolution inarguably hurt music industry giants in terms of sales, it
also levelled the playing field between big music businesses and smaller ones like indie record
labels. Advancements in home recording software allow musicians to record at low cost.
Digital distribution platforms also let artists and small labels sidestep larger industry-controlled
distribution channels. Social media and video streaming services enable artists to connect with
fans directly, reducing the need for expensive PR campaigns. In general, the digital era has led
to a democratization of the music industry, improving opportunities for artists and professionals
of many types. Innovative music technologies are also integral to the creation of a lot of modern
music. Software-based virtual instruments and MIDI technology allow people to use millions
of sounds in the production of their music, which musicians can program and manipulate in
complex ways. This offers a great deal of creative potential to the tech-savvy composer or
producer.
Musicians and music businesses have had to diversify revenue streams in creative ways to make
up for lost sales. The live music industry has always been an important source of income for
performers, audio engineers, venues, promoters and other professionals. Thus, many people in
the music industry began to focus more on live music as the digital era decimated album sales.
Before COVID-19 hit, live music saw steady growth over the last two decades. During the
pandemic, musicians have been monetizing livestreamed performances over social media
platforms using donation links or paid access services. Recording artists and publishers are also
focusing on placing music in TV shows, films and commercials to generate revenue from
licensing and royalties. Professionals who are savvy with music technologies like digital
recording platforms, MIDI composition and audio-visual programming software are exploring
new lines of work in booming industries. Video-streaming is one such industry, with services
like Netflix constantly creating and releasing new content. The video game industry is also
seeing wild growth, dwarfing all other entertainment industries. Composers, sound designers,
audio engineers, and audio programmers are essential in these audio-visual industries, which
creates important income opportunities. The digital era has been tough on the music industry,
but it has also opened the door for emerging artists who might otherwise never have gotten the
exposure they deserve. This democratization and proliferation of music through technology is
a boon for music lovers, as is the opportunity to watch a performer live online from thousands
of miles away. Advancements in music technology have spurred growth and innovation in
music creation, which is, after all, the point of art.

11. DIGITAL MUSIC DISTRIBUTION:

Music distribution is as old as the music industry itself. Even when the sheet music publishing
companies ran the business, they needed someone to print out the scores and deliver them to
the stores. That was (and still is) the role of the distributors: getting the music into the stores.
Simple as that. However, while the core role of music distributors stayed the same for over a
century, their workflow and business models have been a subject to constant change. Those
changes had a massive effect on the music industry as a whole. From the pre-2000s “era of
CD” to “the era of streaming” that we enjoy (or suffer) today we still use the dominant
distribution medium to define the stages of the industry's development.

8
How Does Digital Music Distribution Work?
Today, making a song available to listeners all over the world is as easy as uploading a file on
the internet. So, why is there still a need for the distribution intermediary: can’t the artist just,
you know, “Do It Yourself”? Well, not really. The distributors are still an integral part of the
recording chain, taking upon themselves three core roles:
11.1 Distributing Releases to DSPs:
Sure, there are genuinely "direct artist platforms" out there like Bandcamp or SoundCloud.
They don't require a distributor: set up the artist page, upload your music — and you’re good
to go. However, they are just a fraction of the plethora of digital distribution resources, from
streaming services of Spotify, Apple Music, Deezer, Google Play Music, Pandora and Tidal to
social media platforms like Instagram, TikTok, Facebook, and everything in between. In
today's digital environment, a well-oiled tech pipeline is a must to make sure that the release
will be available to (1) all your listeners, (2) across all platforms, and (3) on the day of the
release. In fact, most of the DSPs out there don’t allow for direct music upload at all, forcing
the artist to go through distributors/aggregators. Even Spotify has recently closed off its direct
upload program after about a year of beta-testing, stating that “music distribution is best
handled by partners”. The truth is that DSPs would rather work with distributors than with
artist’s directly to save themselves the headache of dealing with unstandardized metadata and
pay-out distribution.
11.2 Royalties Allocation:
The second core role of a distributor is allocating the royalties due back to the rights owners.
As the music market turned digital, straightforward “deliver a batch of CDs to the store and get
paid” deals were replaced by a flexible payout system. In the world of streaming, music
consumption and purchase are inseparable and the right owners now earn money the very
moment the user press play. The value of that stream will depend on dozens of factors, so we’ve
covered them in a separate article on how streaming services pay the artists check it out if you
want to know more. Either way, the royalty calculation is complicated as is now, imagine if
Spotify, Amazon Music or Apple had to pay out those royalties directly to every single artist
on the platforms. Even if they’d managed to get all the metadata and banking details correctly,
the administrative costs would go through the roof. Besides, the right owners themselves
wouldn’t be all too excited about getting their pay separately from each of the digital platforms.
So, the distributors fill that gap, serving as a sorting plant for royalties floating from DSPs to
rights owners, and making sure that every “master” dollar finds its way back into the recording
industry (while the composition/publishing royalties go through a separate pipeline of CMOs,
PROs, and publishers). Those are the two core roles of the distributors — getting the artist’s
music out there and passing down recording royalties back to rights owners. However, that
doesn’t mean that all of the distributors stop there. On the contrary, most players on the market
have expanded their offer far beyond these basic aggregation services [12].

12. INDIA TRENDS 2021:

After a hiatus in 2020, the Indian Recorded Music Industry has bounced back and shown
significant growth of 20.3% in 2021 viz last year. Further, the Indian Recorded Music Market
has been growing at an annual compound growth rate of 15.78% over the past five years.
India’s recorded music industry revenues increased to ~INR 1620 Cr in CY21.
India retained its ranking of 17th in the world, per IFPI metrics. Mirroring the global growth in
streaming revenues, India has seen increasing traffic towards legitimate sources of music

9
(audio OTT platforms, video streaming platforms, etc.) driven by an increase in smartphone
penetration and low data rates. The penetration of music services to tier II and tier III cities,
along with an increasing subscriber base of internet users, suggests that the scope for growth
for audio streaming consumption (and therefore, revenues) remains large – as emphasized by
the increasing competition in the audio OTT industry.

Source: Indian Music Industry

Fig. 3: Ranks of different segments in India 2020

Source: Indian Music Industry

Fig. 4: India recorded music revenues by segment 2020

10
Table 2: India recorded music revenues by segment 2020
Segment Revenue

Physical INR 22 Cr. (1.4%)

Streaming INR 1408 Cr. (86.9%)

Other digital INR 43 Cr. (2.6%)

Performance INR 61 Cr. (3.8%)

Synchronization INR 86 Cr. (5.4%)

The recorded music industry played a pivotal role in helping people deal with the pandemic
last year when restrictions were at their peak. Non-film music and independent artists gained
traction. The burgeoning demand for music is met through large investments in talent, content
creation, marketing and promotion, and active licensing policies to online and broadcasting
platforms.
Following a hit during the pandemic, Physical Revenues did a pivot this year as they showed
an increase and contributed 1.4% to the overall revenues. Sync revenues accounted for 5.4%
of the total revenue.

13. TRANSITION OF GLOBAL MUSIC REVENUE:

Digitalization of production and distribution of music content has directly affected the global
music industry's revenue over the last twenty years. Table 1 shows the trends of the total
revenue of the music industry as well as the trend of revenue to certain categories. Revenues
from the global music industry have been steadily falling from 1999 to 2014. In 2015, this trend
is changing and revenue is growing. Over the past three years, revenues from the global music
industry have grown rapidly. Most of the revenue of the “old” music industry, as well as the
“old” media industry, came from sales of physical music and media content holders. Table 2
shows the results of the analysis of the income of the music industry over the last twenty years.
Sales revenue from physical content holders dropped from $ 25.2 bn in 1999 to $ 5.2 bn in the
last analysed interval. The average drop in revenues was 8.3 percent year-onyear, or the total
drop in revenue of 2017 compared to 1999 was 79.4 percent. Income from the sale of physical
content carriers continues to be the dominant part of the revenue, compared to other revenues,
but is less than five times compared to the period of twenty years ago. The decline in revenue
from sales of physical products could not be offset by the growth in revenues from other
categories of revenue. In 2001, the music industry reported for the first time the revenues from
the sale of broadcast rights to performers with whom it has a contract of representation.
Revenues grew on average 9.2% per annum or 400% in the analysed period. In addition, the
music industry gains the right to use music in other creative industries, public performances,
concerts, etc. These are revenue from synchronization. In this category, revenue grew steadily
and stabilized and did not show the tendencies of change [5].

11
Table 3: Global recorded music industry revenues 1999-2017 (US$ bill.)
Physical Digital Streaming Performance Synchronisation Sum
right

1999 25,2 - - - - 25,2

2000 23,4 - - - 23,4

2001 23,8 - - 0,6 - 24,4

2002 21,9 - - 0,7 - 22,6

2003 20,1 - - 0,8 - 20,9

2004 19,5 0,1 - 0,9 - 20,5

2005 18,1 1,0 - 0,9 - 20,0

2006 16,3 2,0 0,2 1,0 - 19,5

2007 14,1 2,7 0,2 1,2 - 18,2

2008 11,9 3,4 0,3 1,3 - 16,9

2009 10,4 3,7 0,4 1,4 0,3 16,2

2010 8,9 3,9 0,4 1,4 0,3 14,9

2011 8,2 4,2 0,6 1,4 0,3 14,7

2012 7,6 4,4 1,0 1,6 0,3 14,9

2013 6,7 4,3 1,4 1,8 0,3 14,5

2014 6,0 4,0 1,9 1,9 0,3 14,1

2015 5,7 3,8 2,8 2,0 0,4 14,7

2016 5,5 3,2 4,7 2,3 0,3 16,0

2017 5,2 2,8 6,6 2,4 0,3 17,3

12
14. SWOC ANALYSIS:
Strengths, Weaknesses. Opportunities, and Challenges (SWOC) analysis is a method of
determining a industries strengths, weaknesses, opportunities, and challenges. Music Industries
will be able to map the present business environment and identify internal strategic aspects
such as strengths and weaknesses, as well as external strategic factors such as opportunities
and challenges, using this technique. Here we discuss in detail the Strength, Weaknesses,
Opportunities, and Challenges of the Music industries.
14.1 Strength:
• Strong grip in the entertainment sector.
• Rapid growth in the industry.
• First major record label to create website for various music genres.
• Irreplaceable commodity for fans.
• Access to a vide network of international distribution.
• Can influence radio playlists.
• Own distribution and publishing companies.
• Management and proper use of information technologies.
14.2 Weakness:
• Major label lacks the ability to adapt as quickly as independent.
• Continuously needing to develop business models and strategies to adapt to technology
changes.
• Changes in the CD format to digital format.
• Legal problems and issues in countries.
• Difficult to navigate in some situations.
• Lack of education model to prevent ongoing piracy.
• Poorly developed business models for digital content and application.
14.3 Opportunities:
• Growth of niche markets, new customer segments, retiring competitors.
• Genres and cultures of music collaboration.
• Nurture new talent and artist development.
• Live touring.
• Brand marketing.
• New artists.
• New technology creating new applications for music i.e. ring tones.
• Shifting nature of global competition.
14.4 Challenges:
• Competitors.
• Operating in an increasingly competitive global and digital market.
• Online music piracy.
• Changes in the music culture.
• The vast majority of artists makes no money.
• Industry monopolies and paid promotions.
• Difficulty promoting unknown artists.
• Lack of funds.
• Trend of merging major multinationals threatens the creative diversity.

13
14. COVID-19 IMPACT:
In absolutely every aspect, the public sector has been severely affected by COVID-19.
Unemployment is reaching heights unseen in years and the anxiety filling the atmosphere is
smothering us all. No market or sector is safe, and the music industry is no exception. SXSW
was the first major music event to go. Scheduled to take place in Austin, Texas between March
13th and 22nd, the annual event typically draws 400,000 punters. Local officials declared a
“local disaster”, ordering a cancellation issue. According to last year’s sales, the loss for 2020
comes in at around $356m. This announcement was soon followed by the postponement of
Coachella, itself worth over $1bn globally. Spain’s Primavera Sound Festival, due to be held
in Barcelona between June 3rd and 7th, has also been postponed. Meanwhile the UK’s
Glastonbury followed suit on 18th March, cancelling what would’ve been its 50th anniversary
event. 135,000 people had already paid £50 deposits. General admission costs £265, and tickets
for 2020 sold out in 34 minutes, with over 2.4 million people registering. The Irish Times have
completed a comprehensive list of confirmed cancellations and postponements of events that
were due to take place on our own home soil. For now, the nation turns its lonely eyes towards
boutique festivals old and new in wait of the inevitable.
Of course, it’s not just financial loss affecting the music industry. Touring musicians are most
active during the summer and festival season usually comes with the promise of guaranteed
income. The opportunities for up-and-coming acts during this busy period are invaluable.
Unfortunately, this year’s absence could prove to have the most devastating impact on the
industry. Although public health and safety is paramount, these announcements are no less
upsetting for any artist that thought this year would be the one to launch their career.

15. RECOMMENDATIONS AND SUGGESTIONS:

The start of the COVID-19 spread across the world in late 2019 and early 2020 caused
businesses in every sector to suspend activities. One of the first industries to stop - and the last
to return - was music. The arts suffered greatly during the pandemic with live shows being shut
down, concerts and festivals cancelled, movie premieres postponed (or moved to streaming
services), music productions suspended, and art workers losing their jobs with no prediction of
when they would be able to return. To ensure the growth of music industry following
suggestions are recommended.
15.1 Higher rates for streaming and YouTube views:
The rates creators and rights owners earn from streaming and views are currently fractions of
pennies. A songwriter or rights owner needs to see millions of streams/views to make any
substantial income from this revenue stream. Streaming services and YouTube are the biggest
platforms for consumers to listen to music, but those that make music are not able to make a
sustainable living solely off income from those sources. The rates need to be higher so that
those who create music for a living are actually able to earn a living.
15.2 Music publishers need to be paid more:
In a similar vein, music publishers earn less than record labels from YouTube, Spotify, and
other streaming and digital services. There is no music – and no recordings to be made of music
-- without the creation of a musical composition first. When music publishers are paid less than
record labels, not only are music publishers earning less, but the songwriters signed to those
companies are earning less. If songwriters cannot make a living writing song, then song writing
will become a hobby instead of a career. Even though labels are making more than music
publishers, the amount that the artists make is still substantially small due to the contractual
14
terms with the labels. Again, the artists bringing songs to life are not making sufficient money
based on their performances and interpretations of songs, and they will not be able to sustain a
career that is financially inadequate. Creators need to be properly compensated and this should
be recognized by anyone who values music in their life.
15.3 Cooperation between the law and the internet:
When the copyright law was last written in 1976, the internet was not used by the public let
alone as a way to consume music. Therefore all user-generated content websites, including
YouTube, etc. are operating in a way not contemplated by the law when it was first written.
The law needs to be updated to address how works can be licensed in a way that cooperates
with the digital world while fairly compensating those who create the works being used. There
also needs to be a better way to deal with online infringements. Most online infringements are
dealt with via DMCA (another area of law needing reform) takedown notices, although
YouTube is now allowing content owners to share in revenue from infringing videos through
their content management system. Again, the amount of money shared in this scenario is so
small that it is not a sustainable model and goes back to the need for increased rates.
15.4 Support for fractional licensing within the music industry:
The music industry has always operated on a fractional licensing basis where each writer or
that writer’s representative controls the respective shares of the songs that writer has written.
This model was threatened in 2016 by the Department of Justice that mandated performance
rights organizations ASCAP and BMI move to a 100% licensing model, thereby potentially
making millions of songs unlicenseable. BMI sued the DOJ and won, but the DOJ has appealed
the decision and the outcome is pending. An upheaval of the fractional licensing model would
wreak havoc on the music industry and cause creators and creators’ representatives, both within
the US and abroad, to be compensated even less than they are now, or make their works
unlicensable. This is an unacceptable solution and would be a massive blow to not only
creators, but to the music business as a whole.

16. CONCLUSION:
The music industry is not exempt from changes in technology. If anything, the music industry
bears the brunt historically whenever there are ground breaking changes in technology. For the
music industry to survive beyond this point as a commercial venture, it will need to adapt its
systems to fit the current circumstances. The sudden rise in revenue from streaming caused a
dramatic change within the global music industry. The revenue growth most reflected on
segment recorded music. Further development of convergence within the music industry will
affect the growth of live music revenue, as in the video music segment. The growth of revenue
was mostly attributed to the consumer habits of Generation Z. The postmodern society dictates
habits that are significantly different from the habits of consumers before the emergence of
internet and digital forms of production and distribution of media content. Within mixing styles
and habits, the demand for vinyl returns again. Just the combination of streaming revenue
growth with the return of vinyl demand points to cross cultural habits within the global music
industry. In the coming time we can expect further revenue growth from streaming to the
recorded segment, as well as revenue growth from live music and video segment.

15
REFERENCE:
1. Lopes, P. D. (1992). Innovation and diversity in the popular music industry, 1969 to
1990. American sociological review, 56-71. Google Scholor

2. Lam, C. K., & Tan, B. C. (2001). The internet is changing the music industry.
Association for Computing Machinery. Communications of the ACM, 44(8), 62-62.
Google Scholor

3. Wikström, P. (2020). The music industry: Music in the cloud. John Wiley & Sons.
https://books.google.com/books?hl=en&lr=&id=1nDJDwAAQBAJ&oi=fnd&pg=P
A
1938&dq=music+industry&ots=VIJxH0u6XK&sig=CAKWgFr21XxlSARmh8F5tu
9 aliY

4. Peterson, R. A., & Berger, D. G. (1971). Entrepreneurship in organizations: Evidence

from the popular music industry. Administrative science quarterly, 97-106.
https://www.jstor.org/stable/2391293

5. Burnett, R. (2002). The global jukebox: The international music industry. Routledge.
https://www.taylorfrancis.com/books/mono/10.4324/9780203137772/globaljukebox-
robert-burnett

6. Evans, A.E..(2016). Music in India: An Overview.

https://digitalcommons.cedarville.edu/research_scholarship_symposium/2016/podiu
m_presentations/7/

7. Srivastava, M. (2012). Music industry in India: Economic and Legal issues and
challenges. Available at SSRN 2149853.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2149853

8. Singh, P., & Kothavale, P. (2011). Online music retail in India. Indian Journal of
Marketing, 41(4), 3-14.
http://indianjournalofmarketing.com/index.php/ijom/article/view/37655

9. Laing, D. (2004). Copyright, politics and the international music industry. Music and
Copyright, 2, 70-85.
https://books.google.com/books?hl=en&lr=&id=kVfqnpODc1oC&oi=fnd&pg=PT11
2&dq=music+industry+in+india&ots=ynxeK821Mc&sig=euSPsKmZt9ch4OvKaQR
0ErSXkm4

10. Balagopal, B. (2021). Innovations in digital technology and creative destruction in the
music industry. International Journal of Indian Culture and Business Management,
24(3), 303-318.
https://www.inderscienceonline.com/doi/abs/10.1504/IJICBM.2021.119737

11. IvyPanda. (2019, April 6). The Music Industry. https://ivypanda.com/essays/themusic-

industry/

16
12. Lozic, J. (2019). Digitalization creates a new paradigm of the global music industry:
The traditional music industry is under pressure of the streaming platforms. Economic
and Social Development: Book of Proceedings, 179-190.
https://r.search.yahoo.com/_ylt=AwrxwP4u8XRiZWkA7Qu7HAx.;_ylu=Y29sbwNz
ZzMEcG9zAzEEdnRpZAMEc2VjA3Ny/RV=2/RE=1651859886/RO=10/RU=https
%3a%2f%2fwww.bib.irb.hr%2fprofile%2f31662/RK=2/RS=JKCM69ZuU6nLr4.7oe
HNaN7tsXQ-

**********

17