Introducing 

Prezi AI.

Your new presentation assistant.

Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.

Loading…
Transcript

The Recording Industry Association of America (RIAA) is the trade organization that supports and promotes the creative and financial vitality of the major music companies.

Origin of Music Sharing

Napster (1999)

Online Music Sharing Site

Negative Effects

Low sales = Fewer artists being signed

The Pirate Bay & Kim Dotcom's Megaupload

"The more revenues slump, the less labels are willing to sign new and innovative acts."

Able to provide free file downloads to consumers on the Internet

HOW: Make money by selling ad space to companies (Google)

Evaluating economic profit

Loss of hard-copy sales (records/CDs) = Stores closing

RIAA

Hurting music executives and musicians

Decreases royalties for artists

(Financial Profit decreases - TR decreases,TC remains the same)

Affects legal businesses (ie. Spotify)

Pays artists $0.004 per play

The Big Question

Live music decline

How does illegal file sharing affect the music industry?

Positive Outcomes

Conclusion

Illegal downloads have essentially no negative effect on number of legal downloads

Legal purchases would be about 2 percent lower without illegal downloading available

Technology is constantly evolving, making it a challenge to police piracy over the internet

Illegal downloaders were active in music consumption during more than twice as much of the year as legal-only consumers

(including being more active on legal sites)

Number of Buyers

Determinant of demand

Competition promotes a healthy market

Remove monopoly service

How does illegal file sharing affect the music industry?

Negative - hurting musicians, executives, and music businesses

Positive - increasing number of buyers and consumption (publicity)

Possible Reasons/Solutions

Regulation

"I think there is a place for regulation too, in order to make piracy an even worse experience and more hassle than it’s worth"

Trying to increase opportunity cost of consumers (increase hassle of piracy)

Artists - some looked into giving away songs (rely on increasing publicity for tours/live)

Increase use of legal music websites

Spotify, iTunes

The Effects of

Illegal Downloading in the Music Industry

Learn more about creating dynamic, engaging presentations with Prezi