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How to kill the music industry

During the trial of The Pirate Bay, the music industry be responsible for the decrease of their income on the shoulders of people who share files. His logic is clearly wrong, but could influence the verdict in the absence of other explanation is presented. So if piracy is not to blame, then what is actually * killing the music industry?

According to Per Sundin, president of Universal Music, the decline in music revenue in the last eight years can be attributed solely to illegal file sharing. If that were true, in fact, many of us might even respect his decision to prosecute hackers as hard as the music industry is being done. However, the last 8 years there have been many changes in the landscape of home entertainment Sundin will not admit it, and some of these changes have had a considerable impact on the profitability of music – Much more than the amount of piracy.

Let's refresh our memory and take a look at what really happened during and just before the last eight years:

1. First, the explosive growth of computer and console games. This "third competitive element has emerged in the field of entertainment, both music beaten as Movies on the sidewalk and had a significant reduction in income in the music industry. Consumers do not have infinitely deep pockets, and billions of "Entertainment dollars" that used to go almost exclusively to music, now in the game

2. International trade agreements have allowed consumers to buy their music across borders, rather than accept local prices music based on the "relative wealth" of nations in instead of the actual product value.

3. New forms of media for distribution, MP3 CDs, but also specifically cultivated. These new media do not degrade over time and rarely break at all, what makes the music a thing of the past repurchases and allow the flea market music in development – both of which have a reduced income early music industry.

4. Radical technological innovation took place in the field of musical creation, processing, mixing and mastering. recording equipment, CD burners, music software, media and encoders have evolved to the point where most artists can afford decent quality equipment to make their own recordings and production. In addition, what has helped thousands of small, specialized studies that call into question the "Big 4? with lower prices, better conditions for artists, knowledge gender specific, etc can now successful artists leave the major labels and create their own record held on modest budgets. Naturally, the super- stars like the Beatles or Frank Sinatra has always had this option, but recent technological advances have significantly reduced bar. This development is depriving the Big 4? many of the older cows, which now use the leading brands for advertising and distribution infrastructure alone.

5. The World Wide Web has become a dominant force in the world, enabling economic distribution of end to end digital music, more and more distributors cut the music business, dealing with trucks and CD pockets, instead of bytes and bandwidth. With iTunes on the head (with great success, "competes with free, I might add), billions songs purchased and not digitally and physically, requiring distribution of the major labels.

6. The total number of radio stations, TV channels and other music streaming music sources has grown exponentially, giving fans a wide selection of music free (and legal) music options. Satellite Radio, DAB and Internet radio have been trivial to consumers simply log onto a transmission channel exact sub-genre of music want to hear (you can even have a feed created for them dynamically, for example, Pandora), by * * Buy the music completely optional for the listener casual.

7. A wide selection of entertainment solutions (home computers, game consoles, mobile devices, etc) have emerged at home, effectively marginalizing the music as an activity. 15-20 years ago, young people move to the other only for music in general today is almost unthinkable without some kind of activity, like playing Guitar Hero or Rock Band, or dancing at a concert.

8. Finally, the music industry itself has taken the possibilities of digital media, finally defraud consumers * * Buy individual songs at a time rather than forcing album "charges" in them. As for sales figures of the RIAA itself in the last 10 years, there is a direct correlation between the detachment * album sales and the introduction and increased digital track sales. In terms of actual numbers, it is clear that the vast majority of consumers never buy full albums in the first place, but were simply limited by the lack of means to track individual at affordable prices. Now that the digital revolution has arrived, countless millions of record sales 16 issues are transformed into 1 – or 2-track sales, decimating income * age in music. This is the real reason the music industry is hurting.

In other words, the "common sense" argument that trade in the music industry in its attempt to link the decline in income piracy, simply does not hold. It is so obvious that the industry believes that the real reason for the decline is something that still are willing to face, but will face sooner or later:

The fact is that revenues from the music industry have artificially inflated during decades due to consumer choice limited. The last 15 years of innovation have increased restrictions, effectively leaving the music industry with an outdated economic model of production technology Forced monopolized defective group album, and virtually no competition in home entertainment. What is happening now – the fall the benefits of music and piracy witch hunt by the music industry – it is simply the struggle of a business model panic of dying, the refusal of convenience sector to accept a role in reducing the digital world. Hackers are not the cause, and the descent is not the disease. What is the remedy.

This is a guest post by Jens Roland. Jens is a computer training, but a technology forecaster by trade. He has worked internationally as a think tank researcher and consultant in emerging technologies and has written over 300 articles and a book on subject.

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U.S. $ DATA: Value Net music included in billions

7.83 1991
9.2 1 992
1993 10.0
1994 1.12
1995 3.12
1996 5.12
1997 2.12
1998 7.13
1999 6.14
2000 3.14
2001 7.13
2002 6.12
2003 09.11
2004 3.12
2005 3.12
2006 8.11
2007 4.10

(Source: Annual reports www.ayubs.weebly.com)

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