Monday 28 March 2016

(58) The eagle dares: Independent goes out of print on a scoop

Link: http://www.theguardian.com/media/2016/mar/26/eagle-dares-independent-newspaper-final-print-edition-scoop

The first and last editions of the Independent newspaper, which began in 1986.
 
Summary:
 
The final print edition of the Independent was greeted with a fond farewell from journalists around the world as it hit the stands on Saturday, its last day before the title moves to a digital-only format. The paper ends with an exclusive story about a British connection in a plot to kill a Saudi king, and a striking image of train passengers being evacuated during an anti-terrorism operation in Brussels, on its final front page. A special wraparound says simply “STOP PRESS”. Referring to the demise of the paper in print as a “bold transition” in its final editorial, which it says “history will judge as an example for other newspapers around the world to follow”.
 
Key data/statistical information:
 
  • The paper was launched by a group of journalists led by Andreas Whittam Smith in 1986
  • It enjoyed initial success rising to a circulation passing 400,000 by 1988, and a Sunday title was launched in 1990 with Stephen Glover as editor
  • The company said it would create 25 new jobs at the online-only Independent, and a further 34 editorial roles would transfer to Johnston Press as part of the regional publisher’s acquisition of the i
  • The paper had seen “some of the best journalistic writing in Britain in the 20th century”
 
What's my view?
 
I think the Independent made a wise decision as we are now living in the era of new and digital media. Therefore by focusing on keeping their on-line website in place, they will increase their popularity as people prefer to receive news on-line rather than reading it or watching it on TV.

(57) Fake Brussels YouTube videos prove ease of digital disinformation

Link: http://www.theguardian.com/media/2016/mar/23/fake-youtube-videos-brussels-attacks-facebook-twitter

A YouTube video that was claimed to be CCTV footage from the Brussels attacks.
 
Summary:
 
Within a couple of hours of news breaking of Tuesday’s attacks in Brussels, video emerged on YouTube that was claimed to be from CCTV showing an explosion at the city’s Zaventem airport. The footage rapidly spread across social media, and was reported by at least one major national news site. It was followed by further footage supposedly showing an explosion at the Maelbeek metro station near the European Parliament, and another video claiming to be from the airport. However, none of the footage was what it was claimed to be. They were all recordings from 2011, two from an attack on Moscow’s Domodedovo airport, one from a bombing of a metro station in Minsk, the capital of Belarus. The grainy CCTV clips were turned from colour to black and white, flipped horizontally, relabelled and posted as if they had emerged fresh from the day’s events. The misleading videos are examples of a phenomenon that is becoming increasingly common during almost every major news story featuring violent, fast-moving events. False or misleading reports spread rapidly across social media and are picked up by reputable news organisations, further obscuring an already incredibly confusing picture.
 
Key data/statistical information:
 
  • During the Paris attacks last November pictures circulated claiming to be from the scene which were in fact from the Charlie Hebdo shootings the previous January. Images from 2 days earlier at a show in Dublin by the Eagles of Death Metal, who were playing when militants attacked the Bataclan Theatre where 89 people were killed, were shared claiming to be from that night’s gig.
  • Alastair Reid, managing editor of 1st Draft, a coalition of organisations specialising in verifying information on social media that is backed by Google, said part of the problem is that anyone publishing on platforms such as Facebook has the ability to reach as large an audience as a news organisation.
 
What's my view?
 
One of the downsides of the increase in new and digital media and the internet revolution is that some information on-line will be inaccurate besides unreliable. People are trying to find different ways to troll or to reach a large audience which is possible through social media.
 

(56) Sun ordered to admit British Muslims story was 'significantly misleading'

Link: http://www.theguardian.com/media/2016/mar/26/ipso-sun-print-statement-british-muslims-headline

The Sun masthead

Summary:

The Sun has been ordered to print a statement acknowledging that its claims that one in five British Muslims supported people who have gone to Syria to fight for jihadi groups such as Islamic State were significantly misleading. The Independent Press Standards Organisation (Ipso) said a front page article from 23 November last year – as well as more coverage inside the paper – misrepresented the results of the poll on which they were based because the relevant question in its poll did not support the claim. But, while Ipso upheld the complaint it investigated, the paper was spared having to print notice of the adjudication on its front page. The watchdog said the newspaper had agreed to publish the notice on page two of Saturday’s edition, having been ordered to place it no further back than page five.

Key data/statistical information:


What's my view?

Its good that the Sun was forced to print a statement acknowledging that what they said was misleading and perhaps inaccurate. On twitter, many hashtags were trending that were taking the mick out of what the Sun about "1 in 5 Brit Muslims'...". The force that social media have nowadays could have potentially made it essentiel for the Sun to print the statement as the hashtags achieved its purpose on making people aware of what the Sun had done.

(55) Netflix races ahead of Amazon and Sky with 5m UK households

Link: http://www.theguardian.com/media/2016/mar/22/netflix-amazon-sky-uk-subscribers-streaming

Claire Foy in The Crown.
 
 
 
Summary:
 
Nearly a quarter of UK households subscribe to Netflix, with 1.4 million joining the streaming service in 2015 alone to watch popular series such as House of Cards, a report has said. Netflix is far ahead of competitors such as Amazon’s Prime Instant Video or Sky’s Now TV, and is continuing to grow faster than the other services. Now TV is seen as a response by Sky to growing interest in cheaper internet-based video options, but the broadcaster says it is primarily aimed at consumers who would not sign up for a Sky subscription.

Key data/statistical information:

  • More than 5 million households, or 24% of the total, subscribed to Netflix at the end of 2015, compared with 14% in 2014
  • According to the data, there are about 1.6 million households subscribing to Amazon’s service in the UK, up about 300,000 over 2015, and fewer than 1 million signed up to Sky’s Now TV.
  • more than 6.5 million households are signed up to some sort of video-streaming service
  • while 82% of Netflix households only subscribed to one streaming service, about half of both Amazon and Now TV subscribers were also signed up to another provider
  • the figures also show that almost a fifth of households that do not have a TV do subscribe to a video-streaming service

What's my view?

It is clear that there is a competition between Netflix, Amazon and Sky. These streaming services are all searching to provide a better experience for their audience so as to become more popular. This is due to the rise and new and digital media as people are now more interested in watching their favourite shows on streaming services rather than normal TV.



 


Monday 21 March 2016

Independent NDM case study: Up-to-the-minute web research

The telegraph- Music streaming just became a billion-dollar industry 

http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/digital-media/11881158/Music-streaming-just-became-a-billion-dollar-industry.html

Revenues from streaming music online have surpassed $1bn for the first time. Digital downloads of songs continued to fall out of favour in the first half of the year, while free and paid music-streaming revenue kept growing, even without much of a bump from the launch of Apple Music. Streaming revenue as a whole surpassed $1bn in the first half of the year for the first time. While streaming music revenues continued to grow healthily, the rates being paid to labels and artists for streaming music do not always equal fair market rates. But the level is far below the industry peak in 1999 of $14.6bn, when compact discs were dominant.
  • Overall music industry revenue fell a half percentage point to $3.2bn
  • Revenue from paid subscriptions to services like Spotify and Rhapsody grew 25pc to $478m, while revenue from free services like Pandora grew 22pc to $550m
  • Download sales revenue fell 4pc to $1.3bn, while physical disc sales dropped 17pc to $748m
  • The rise of digital streaming has helped the industry maintain annual revenues of around $7bn since 2010, offsetting the decline in revenue from digital downloads of single tracks that began in 2013


The Guardian- Imogen Heap: saviour of the music industry?

http://www.theguardian.com/music/2015/sep/06/imogen-heap-saviour-of-music-industry

When was the last time you bought a CD or a record? Chances are, you’re listening to more music than ever, but buying less of it. In 2012, for the first time, digital sales of songs – such as iTunes – surpassed physical sales. More likely still is that you were on YouTube or Spotify, which host hundreds of thousands of songs, played billions of times. It’s a golden age for music.
Music is in many ways a bellwether for the digital revolution. The products of many creative industries – art, music, books, papers, films – which were once solely physical objects, shipped, bought and carried home, are now digital files available on demand at next to no cost. Because digital files can be reproduced and shared infinitely and easily, the result in almost every industry has been more consumption and lower average returns, fuelling fears about how the people who make this stuff – the writers, artists and musicians – will get paid for it.
The modern music industry was created at a time when it made economic sense to produce a million copies of one vinyl record, and copyright could be successfully enforced. But as the industry went digital, the whole way music was made and sold changed. In the early 00s, many feared the music industry would soon wither away as free streaming services and pirated content made music, de facto, free.

  • Spotify has paid $300m (£196m) in royalties in the first three months of 2015. YouTube has paid out more than $1bn (£654m) since Content ID started seven years ago.
  • David Byrne, of Talking Heads, estimates that only 15-20% of Spotify’s payments make it through to the artists.

 


The Guardian- Free streaming is 'killing music industry': Ministry boss

http://www.theguardian.com/technology/2015/mar/11/ministry-of-sound-streaming-switch-off-free

The reality of some of the bigger streaming services is that 75% of their user base are free, which has a horrific impact on the music industry and its ability to invest in talent going forward.” Presencer also attacked streaming services for being beholden to their investors rather than musicians and rights holders. Unrest over free streaming was at the heart of Spotify’s dispute with Taylor Swift in 2014, when she pulled her music off the service in protest at the company’s refusal to allow her to make it available only to paying subscribers. The reality is that on-demand music is a consumption medium, and giving it away for free just kills the industry.


The Guardian- Why the music industry is fighting the wrong copyright battle

http://www.theguardian.com/technology/2015/jun/19/why-music-industry-fighting-wrong-copyright-battle

It took until 2014 for the UK to have a private copying exception, legalising what everyone assumed to be possible: making copies of content you have legally bought for purposes such as backups, cloud storage and format-shifting. To fairly compensate rights holders for the dubious “harm”, other European countries have extracted a private copying levy for things like blank CDs, MP3s, printers and smartphones. The amounts vary from a few cents to several euros. It is clearly unsatisfactory that our freedoms over the use, sharing and transfer of digital media should be narrower than with physical media. By chasing levies on legal content, the real issues about copyright in the digital age are being overlooked.

The Guardian- Daniel Ek: Spotify and free music will save the industry, not kill it

http://www.theguardian.com/technology/2015/jun/07/daniel-ek-spotify-free-music-save-industry-not-kill-it

The chief executive of Spotify, Daniel Ek, has predicted that the free online music service will help the industry grow to as much as 10 times its current size, in a future where old distinctions between providers break down. Spotify will have to win over its doubters first, including convincing them that it can turn more of its 45 million free users into paying subscribers – it has 15 million of the latter – and thus increase the money earned by artists and songwriters, via its payouts to the labels and publishers that represent them. Some artists, most famously Taylor Swift, have been criticising Spotify’s “freemium” approach, which allows people to listen for free to its basic, advertising-supported service.The boss of the world’s largest music label, Universal Music, called free streaming “not something that is particularly sustainable in the long term”. With industry rumours of Apple egging major labels on to restrict Spotify’s free service, Spotify is feeling the heat.“The entire recorded music industry has somewhere between $14bn and $15bn in trade-sales value. Now look at the radio industry, which in the US alone is around $16bn in revenue and globally is about $80bn – four times the size of the music industry,” said Ek. “If we’re able to transition the traditional radio behaviour online, you’re looking at a music industry that’s much larger than it’s ever been. If you do that, and also add subscription to the mix, especially at Spotify’s conversion rate, you’d be looking at a music industry that would be $100bn to $160bn in size. That’s the key argument that I think gets lost here.” The downside to this is resources: Spotify reported revenues of €1bn in 2014, compared with Apple’s $199.7bn and Google’s $66bn. The costs of running a streaming music service – Spotify reported a loss of €165m in 2014 – are a drop in the ocean for hardware and search-engine businesses.

The Guardian- No such thing as bad PR: Is social media saving or damaging the music industry?

http://www.theguardian.com/music/2016/feb/19/social-media-damaging-music-industry-pr-twitter-kanye-west

The impact of social media has had a profound effect on how the job is done; the way a news story is spread or a song is shared is now defined by social media, with the tradition of securing editorial coverage no longer being the end of the process but the beginning. Now that many of the industry’s biggest stars decline interviews their creative output and their social media accounts are the only ways in which fans can learn about an artist’s every move, every new tattoo. Cultivating an audience on social media does, of course, have its benefits. Artists can hotwire ideas and newly recorded material to fans who give real-time feedback, and others can gradually expose a curated version of themselves that quashes any tabloid rumours.

The Guardian- Taylor Swift takes a stand over Spotify music royalties

http://www.theguardian.com/music/2014/nov/04/taylor-swift-spotify-streaming-album-sales-snub

Yet this week was also marked by Swift’s decision to remove her entire back catalogue from music streaming site Spotify, arguably the biggest growing source of music consumption in the world. It boasts more than 10 million paying subscribers, across 58 countries, on top of the 30 million who access the streaming service for free. The move has been condemned by some as shortsighted and applauded by others as a savvy way to drive up her album sales. The singer was one of Spotify’s most popular artists, with 25% of listeners having streamed her songs. Her songs were on 19m playlists and the lead single from 1989, Shake It Off, went straight to number one on Spotify. But the singer’s relationship with the site has always been rocky – Swift initially refused to release her 2012 album Red on Spotify, critising the fact that artists receive between just $0.006 and $0.0084 per song play. Swift is not the first artist to withdraw music from spotify. Radiohead’s Thom Yorke called for a boycott of the service over unfair payment practices, removing all his solo projects from the site and describing it as “the last desperate fart of a dying corpse”. The Beatles, AC/DC and The Black Keys are also not available to stream on Spotify. Taylor has probably sold over 1.3m copies of her album in the first week and nobody has done that since Eminem in 2002. She is one of the few artists today who can really drive sales and not just streams, so I don’t think this is a move that will hurt her at all. I think you could count on one hand the number of artists that could pull this off and remain popular – as digital download sales are in freefall. I do think eventually every artist is going to have to be on a streaming service … Over time, if artists want their music to be heard in any meaningful way, they need to be on a streaming service.Spotify is growing in importance for all artists as it represents a cultural change in the way people consume music. We don’t see it as a negative platform – obviously like anyone we’d prefer to see the monetisation of streaming be higher.

The Guardian- Taylor Swift criticises 'shocking, disappointing' Apple Music

http://www.theguardian.com/technology/2015/jun/21/taylor-swift-criticises-shocking-disappointing-apple-music

Swift has joined independent labels in attacking Apple’s plans not to pay royalties during the three-month free trial of its new Apple Music streaming service.

 “I’m sure you are aware that Apple Music will be offering a free 3 month trial to anyone who signs up for the service. I’m not sure you know that Apple Music will not be paying writers, producers, or artists for those three months. I find it to be shocking, disappointing, and completely unlike this historically progressive and generous company.”

Swift praised Apple for moving the music industry towards a “goal of paid streaming” and urged the company to change its Apple Music policy before the service launches on 30 June.

The Guardian- Tidal: 10 things you need to know

http://www.theguardian.com/music/2015/apr/05/tidal-10-things-you-need-to-know-jay-z-madonna-music-streaming

Tidal is a music streaming service that originally started in Scandinavia in 2009. It was called WiMP then, launched by technology firm Aspiro and retailer Platekompaniet – Norway’s equivalent of HMV. In October 2014 Aspiro rebranded WiMP as Tidal for its UK and US launch, with its main selling-point being its “lossless” (higher-quality) streams. It also added music videos and deeper editorial, albeit for double the price – £19.99 a month – of rivals such as
Spotify, although it has now launched a non-lossless £9.99 version too. Aspiro had 500,000 paying subscribers at the end of 2014, and was bought for $56m last month by a company controlled by Jay Z.
Tidal is under new ownership, and those owners are musicians. Not just Jay Z, but Arcade Fire, Beyoncé, Calvin Harris, Coldplay, Daft Punk, Deadmau5, Jack White, Jason Aldean, J Cole, Kanye West, Madonna, Nicki Minaj, Rihanna and Usher.
The big message from Tidal’s launch was its new owners’ determination to restore the value of music in the eyes (or ears) of listeners, which means making them pay for it, rather than listening for free, as they can on the advertising-supported tiers of rivals Spotify and Deezer. “People are not respecting the music, and [are] devaluing it and devaluing what it really means. People really feel like music is free, but will pay $6 for water,” said Jay Z in an interview with trade magazine Billboard.
Tidal is claiming it will pay more, but that may not be as easy as it hopes. One of Tidal’s key tactics for standing out from the streaming crowd will be exclusives: the promise that you will be able to hear some music on Tidal before it is available anywhere else. This is a game being played by Spotify too, though, as well as Apple, which is preparing to relaunch its US-only Beats Music streaming service globally later this year.
YouTube is the world’s most popular music streaming service, with a large chunk of its 1 billion monthly viewers watching music videos – especially younger users. It is trying to get people to pay for music too: it’s launching its own Spotify rival, YouTube Music Key, with a similar model of a free, ad-supported tier then a £9.99 monthly subscription with more features. But YouTube is already a free way to listen to almost any song ever recorded. Some in the music industry fear that if Spotify’s free tier is restricted or even shut down, listeners will drift away to YouTube – which pays much less per stream – rather than subscription services.
Google v Apple v Spotify v Tidal v Deezer… but there’s another trend worth watching, which is the growth of fan-funding and direct sales sites, such as Bandcamp and Patreon, for independent musicians. Bandcamp helps artists sell their own music and pays out $3.5m a month to its network of musicians. With Patreon, fans commit to paying a small amount whenever an artist releases something new: it pays out $2m a month. If Tidal represents big artists seeking more control of digital music, these sites fulfil a similar role for independent musicians. Better partnerships with them may even be the way for Tidal, Spotify and other streaming services to show themselves as truly artist-friendly.

The Guardian- Jay Z’s music-streaming service Tidal struggles despite celebrity fanfare

http://www.theguardian.com/technology/2015/apr/22/music-streaming-service-tidal-struggles-despite-celebrity-fanfare

 The app has dropped out of the iPhone top 700 downloads chart. Talking about his vision for the service , the Jay-Z said he and his roster of celebrity supporters wanted Tidal to be the first artist-owned music streaming platform that would pay 75% of its revenues back to the music industry (compared with the 50% paid by Spotify and Pandora). To begin with, Tidal comes with a higher price tag than its rivals, costing $20 a month, and does not have the free, ad-supported option offered by services such as Spotify. For this higher subscription fee, Tidal users have access to 25m tracks, about the same number as Spotify, but it also offers a lossless high-fidelity sound quality that its competitors don’t have, as well as HD music videos and music playlists curated by musicians such as Jay Z and Beyoncé. The main issue, he added, was that not even Jay Z’s name and hip-hop credentials were enough to make people pay more money to stream music.Lily Allen has also expressed concerns that the high price of Tidal will only encourage people to pirate more music. Writing on Twitter, the singer said: “Tidal is so expensive compared to other perfectly good streaming services. He’s taking the biggest artists, made them exclusive to Tidal … People are going to swarm back to pirate sites in droves. Up and coming (not yet millionaires) artists are going to suffer as a result.”

The Guardian- Adele's new album 25 will not be streamed on Spotify

http://www.theguardian.com/music/2015/nov/19/adele-new-album-25-not-stream-spotify-apple-music

Adele, who is poised to have the bestselling album of the year when her third record, 25, is released worldwide on Friday, will not make it available on streaming services such as Spotify and Apple Music. Hello, the lead single off of 25, debuted at No 1 on the Billboard Hot 100. Over the course of a week, the song was downloaded 1.1m times.

BGR- SNL sketch roasts Tidal as Ariana Grande impersonates Rihanna, Britney Spears and more

http://bgr.com/2016/03/14/ariana-grande-saturday-night-live-tidal/

To be honest, I was a little bit surprised that Tidal – the music streaming service backed by Jay-Z – would even be considered popular enough to warrant being mocked by Saturday Night Live. But who knows, perhaps Kanye West’s recent Twitter tirades and sporadic references to his new album being exclusively available on Tidal gave the service a temporary publicity boost. Whatever the reason, Ariana Grande over the weekend, along with the rest of the SNL cast, mocked Tidal in a sketch. As for how Tidal continues to perform as a business, the service did see a discernible uptick in popularity when Kanye West’s The Life of Pablo album was released, but the company still managed to mismanage the album launch amid reports that many users who paid for the album were unable to access it. Not only that, but some users even reported that they were being charged multiple times.

The Guardian- Will Tidal be the next music streaming service to drown?

http://www.theguardian.com/music/2016/mar/03/tidal-next-music-streaming-service-drown

Another music streaming service that has been generating the most negative headlines over the past year: Tidal. The star power of its co-owners – Jay-Z, Beyoncé, Madonna and more – hasn’t spared it from criticism and derision. Yet this is a streaming service that managed to bag those exclusives on the two hottest albums of 2016 so far. It also claims to have grown from 500,000 paying customers in March 2015, to one million by October, and now reportedly 2.5 million in February 2016 after a Kanye-fuelled surge – even if it is unclear how many of those new subscribers are on a free trial.

Monday 14 March 2016

(54) Mashable launches French-language site with France 24

Link: http://www.theguardian.com/media/2016/mar/08/mashable-avec-france-24-google-digital-news-initiative

Peter Cashmore, CEO of Mashable.
 
 
Summary:
 
Mashable has struck a deal with France 24, the international news and current affairs public service broadcaster, to launch a French-language version of the social media news site.
The new website, which will be called Mashable avec France 24, will be equally financially backed by the two companies as well as receiving support from Google’s innovation fund set up as part of its Digital News Initiative to support publishers. The site aims to combine Mashable’s content with the broadcaster’s in-depth local coverage, existing digital audience and video distribution capability. “Launching in France is a big moment for Mashable as we continue to expand globally and form strategic partnerships that can accelerate our growth in new markets,” said Adam Ostrow, chief strategy officer at Mashable. “France 24’s long track record of excellence in both video and news makes them the perfect partner.”
 
Key data/statistical information:
 
  • France 24 broadcasts three channels globally – French, Arabic and English – with a weekly audience of 50 million viewers across 180 countries
  • The deal marks Mashable’s 3rd partnership with an international media company to enter a new market
  • In 2014, Mashable opened an office in the UK, its largest market by audience outside the US, its 1st international office
 
What's my view?
 
It is clear that the news industry need some help in order to keep the business running as new and digital media has made receiving news through social media more appealing. The fact that France 24 will be partnering up with Mashable, a social media news site, it will help the business to keep striving in a generation where people are no longer interested in getting news through newspapers or TV. Also, since France 24 is a french news broadcaster, this will help Mashable to be globalised as people from France will start to know more about the site. This shows globalisation and how, in a long term, it will bring benefits two both sides of this partnership.


(53) BBC and ITV in talks to launch a Netflix-style streaming service

Link: http://www.theguardian.com/media/2016/mar/10/bbc-and-itv-in-talks-to-launch-a-netflix-style-streaming-service

Shows, such as Top Gear, could be shown on a new BBC/ITV streaming service
 
 
Summary:
 
The BBC is understood to have held talks with rivals including ITV about launching a Netflix-style video streaming service. The service is likely to mostly focus on providing older, archive TV content, not the first-run of shows, although it is understood there would be a certain amount of original commissions. Older content can be accessed on a variety of services including pay-TV service UKTV, in digital format through the recently launched online BBC Store, DVDs, as well as Netflix, which has shows such as Top Gear. The corporation and ITV, which also has a 30-day digital TV service and huge scope to exploit an extensive programme archive, have noted the success of services such as Netflix in extending the commercial life of such programming content. Adam Crozier, the ITV chief executive, has targeted digital content exploitation as a key growth driver to continue to reduce the broadcaster’s historical reliance on traditional TV advertising revenue.

Key data/statistical information:

  • While Britons pay £145.50 per year for free access to BBC content, including on the BBC iPlayer, content moves off the service after 30 days.
  • Netflix has more than 75 million subscribers globally. Since launching in the UK in 2012, it has attracted more than 5 million users paying £5.99 a month.
  • If the service does get off the ground, it could open up a crucial way of further monetising BBC content, an important strategy as the corporation looks to find £800m in annual savings.
  • The broadcaster has invested heavily in building its production arm, ITV Studios, which saw revenues grow a third to £1.2bn and profits up 27% to £206m.

What's my view?

It seems that TV broadcasters are now trying to adapt to the changes that new and digital media has caused. Since people are now more inclined to watch their favourite shows on-line or on streaming services such as Netflix, BBC and ITV seem to be adapting to their audiences likings so as to keep up-to-date on what the people want. By doing this, they are keeping their platform relevant to this new and upcoming era but also help maintain the business. From a pluralist viewpoint, it can be said that this shows that the audience has the power to make changes to the way things work in society. New and digital media has provided the audience with the power and is slowly decreasing the amount of power that the elite people use to have years ago.


Tuesday 8 March 2016

Independent NDM case study: Media Factsheet research

24 Music Industry


  • The Internet has now provided artists and individuals the opportunity to launch independent record labels known as Net Labels. These companies operate by distributing music primarily through digital audio formats via web sites on the internet. The MP3 format has allowed for easier distribution of music by individuals and the use of global websites such as My Space are playing a big part in promoting new bands.
  • Major recording companies are using on-line distribution of music and social networking sites to reach potential audiences in a new way.
  • The internet is used for:
• The sale of traditional physical formats
• The marketing of music recordings
• Netcasts and live performances
• The sale of music downloads
• The management of official websites of recording artists and record companies

  • Once an artist has created their recording, it is then distributed and marketed in order to attempt to make a profit and cover the cost of its production. It is the record label’s responsibility to promote and distribute the product.
  • The mass media, specifically the Internet, radio, television and the music press play an important role in the distribution and marketing of music to the intended target audience.
  • Synergy is another way in which record companies generate income via advertising and marketing their artists in association with other brands or products. For example, two unrelated brands such as The Black Eyed Peas and Pepsi worked together to target a broader audience and this collaboration benefited both the band and the soft drink.


67 Lady Gaga and the music industry


  • The growth and popularity of the internet has challenged the power of conglomerate control within the industry in a number of ways. The music industry has had to respond to the advent of the digital revolution due to its impact on production, distribution, artists and audiences.
  • The rapidly increasing trend of internet file-sharing has resulted in both positive and negative outcomes for both artists and fans.
  • Artists are rewarded with free ‘viral marketing’ where word of mouth spreads ‘like a virus’ amongst users, generating free publicity and ‘buzz’ around an artist, video, album or single. However, this has the potential to increase music piracy and illegal downloading of music which in turn can contribute to massive financial losses for record labels as users are able to download or stream music for free rather than purchase a physical copy.
  • Artists have taken ownership of key industry processes such as marketing and distribution, processes usually carried out by the record labels themselves.
  • As conglomerates becomes less dominant, audiences gain more choice over the types of music they want to hear and access, rather than being restricted by the type of music distributed by record labels.
  • The digital revolution has enabled audiences to move from passive to active, leading to a participatory culture as audiences get more of a say in what music is produced and which music succeeds.
  • Lady Gaga offers a new business model by successfully combining traditional industry practices (being signed to and financed by a major record label) with new media forms. She utilises the power of a major conglomerate whilst embracing the development of digital technology.
  • Since the Gaga phenomenon began, her music has been available to access for free via streaming on her many on-line profiles, including those on Vevo and Myspace. Rather than reduce record sales, this move has proved financially beneficial for the institution as fans are also paying to download the music via iTunes.
  • The rapid growth and popularity of the internet and new technologies means that fans are becoming more active consumers, able to interact with their subject in a variety of new ways.
  • By embracing social network media platforms, musicians and record labels are able to utilise an interactive relationship with fans that is beneficial to both producers and audiences.
  • The rise in digital technology has seen an increase in on-line video consumption. This can create free word of mouth for producers, with the number of viewings per video providing a sign of audience engagement with a product. Fans can view videos on YouTube and share clips with other fans by embedding them into blogs, Facebook or MySpace.
  • Fans can leave video comments, post a video response or spoof and upload music to their own social network profile. These forms of user generated content illustrate the changing relationship between producers and audiences in a move towards a ‘demand led’ music industry where fans themselves have the power to influence what is produced.
  • Richard Dyer (1985) offers a definition of escapism stating that ‘entertainment offers the image of ‘something better’ to escape into or something we want deeply that our day to day lives don’t provide’.
  • The digital revolution is both challenging the power of the music industry as something that is conglomerate controlled, and transforming the role of the audience by giving them more power over the way they consume and respond to media products.


104 Audiences in the digital age



  • Digitalisation has impacted on all areas of the media and has led to a range of changes in the way audiences access media texts and how they interact with these texts and each other. Institutions have had to identify different ways to reach audiences to offer them gratifications that reflect changes in audience behaviour and expectations.
  • Traditionally, the relationship between audience and institutions was seen as one-way, where institutions were in charge of the construction of texts and audiences were merely passive observers.
  • This relationship means that power is in the hands of an audience as a mass rather than with individual audience members.
  • A media institution produces media texts, has to distribute them to the audience and the method of viewing/reading (exhibition) has to be considered.
  • Traditional Distribution/Exhibiting
    • Radio (and music television) would construct play-lists and radio shows would be broadcast live.

    • Music video could only be seen when broadcast or if purchased on video/DVD collections 

    • Radio programmes could only be accessed via a radio.
    • Music could only be bought as ‘hard copy’, the most successful being vinyl records, cassettes and then CDs.
    • The music press was published in print and employed professional journalists.

    • Digitised Distribution/Exhibiting
    • Spotify offers a vast library of music that is available at any time.
    • Music videos are available anytime on YouTube and can be downloaded and played on      mobile devices.
    • Digital radio can be listened to on computers and mobile devices.
    • Music is available as electronic data files.
    • Bloggers can set up their own versions of the music press offering reviews and commentary.

    • Digital media has provided more choice in terms of how and when media products are accessed.
    • Audiences can be seen to have more of an impact on production and can even be part of the production process themselves. Some see this as a positive move that reduces the amount of power held by institutions.
    • Audiences have easy access to the means of production. Videos can be made and edited at home and uploaded to YouTube. Music can be produced at home and made available via social networking where it can be sold or offered for free download.
    • Audience generated material is always cheaper than that produced by professionals and so institutions also benefit from the move towards including more user generated content.

    122 The Changing Face of the Music Industry


    • The music industry wants to protect their position of dominance.
    • Developments in technology and the emergence of the Internet mean that artists have the potential to reach audiences without the need for a major company and where once recording equipment was expensive it was out of reach for the average person; it is now widely available at a low cost.
    • In many cases artists are able to promote and distribute their music digitally without the assistance of a record label. Unsigned artists can sell their music on iTunes, have it streamed on Spotify or Soundcloud and produce their own videos for YouTube.
    • In an era of fragmented platforms, file sharing, and non-traditional routes to market, the music industry is facing various challenges. It has had to react to change: new formats, new technology and new business models mean an industry in a constant state of transformation. This has been particularly obvious in the way that audiences are dictating how they want to consume their music, but having more ways you can listen to music is not necessarily the same thing as having more choice.
    • One of the most problematic issues that the industry is facing is the ‘culture of free’.
    • In recent years consumers are less willing to pay for their music and as a consequence piracy and file-sharing have seen the industry lose billions over the last decade. According to the Institute for Policy Innovation global music piracy causes $12.5 billion of economic losses every year.
    • In order to combat this music streaming services such as Spotify have worked in conjunction with the industry to try offer audiences the opportunity to listen to music but not actually download it, which means it is not being shared YouTube has also placed ID content censorship on videos to stop music being downloaded. However, these are only temporary measures and the industry has had to find more ways to prevent this.
    • The Internet was meant to weaken the dominance of superstar artists in the music industry and enrich the smaller, niche music creators. But new research suggests that this “long tail” theory is wrong: superstars are capturing the vast majority of music revenues and their share is increasing – not decreasing – because of the rise of digital services like iTunes and Spotify. The top 1 per cent of artists the likes of Rihanna and Adele accounted for 77 per cent of recorded music income in 2013.
    • In this illusion of choice consumers are overwhelmingly listening to the ‘hits’.
    • Artists like Amanda Palmer are trying to circumvent the big labels and do things differently by using the idea of crowdsourcing. This is where an artist asks their fans or anyone who may be interested to fund their project and be given something special in return.
    • What is clear is that in a trans-media age where changes are brought about by the developments in technology at a rapid pace the interrelationship between the artist and consumer is evolving beyond the traditional models, but whether they will ever challenge the monopolies is yet to be seen.

    MEST3 Independent case study: New and Digital Media

    Case study research tasks

    The basics


    Your chosen industry: 

    Music
     
    Your chosen case study (i.e. text/institution etc.):

    Spotify
     
    Have you received approval for this case study from your teacher?

    Yes
     

    Audience


    1) How has new and digital media changed the audience experience in your chosen industry?
    Instead of buying CD's to listen to music, new and digital media has made it possible for people to download music on-line, illegally and legally. There is also the possibility of listening to music on YouTube, Spotify and Tidal. Also, artists are now going on tour so that means the audience get to experience live concerts from their favourite artists.
    2) Has new and digital media changed the way the audience consume your chosen product?
     
    The audience has now turned to downloading music instead of buying CD's in order to consume music.

    3) Has the size of the audience changed as a result of new and digital media?
     
    Due to illegally downloading music, more people find it easy to listen to music which has increased the size of the audience who listen to music. CD's can cost up to £10 or more and not everyone can afford to buy CD's from every one of their favourite artists. Therefore, they take advantage of the possibilities that new and digital media offer and download music.

    4) What are the positive changes new and digital media have brought to the audience of your case study? (E.g. greater choice, easier access etc.)

    We can now listen to music without carrying a CD player along with different varieties of CD's and we no longer have to constantly change CD's if we want to listen to another artists. We now can listen to music on our phones and have a vast amount of choice to listen to from one device. We can also listen to music whenever, whether and on the go. Downloading music and platforms such as Spotify has helped to provide the audience with these benefits.

    5) What are the negative changes new and digital media have had on your chosen audience? (E.g. quality of product etc.)
     
    There are issues with illegally downloading, file sharing and the fact that artists are losing money because of this. Since artists are loosing money, staff are at risk of losing their job because the artist can no longer afford to keep them. 

    6) What about audience pleasures - have these changed as a result of new and digital media?
    The audience now take pleasure in using concerts from their favourite artists as a means for diversion. Live concerts and tours is now a necessity for artists in order to keep their career going and this has changed the audience pleasures. Also, social media has become a big part to an artist career because it is one of the key ways they can advertise their new album but also keep a personal relationship with their fans
     
    7) What is the target audience for your chosen case study? Write a demographic/psychographic profile.
    My target audience covers a large range of people. It can be both female and male from the ages 12-35.
     

    Institution


    1) How has new and digital media had an impact on ownership or control in your chosen industry?
     
    Artists have taken ownership of key industry processes such as marketing and distribution, processes usually carried out by the record labels themselves.
    2) What impact has new and digital media had on ownership in your chosen case study?
    Swift’s decided to remove her entire back catalogue from music streaming site Spotify because of the fact that artists receive between just $0.006 and $0.0084 per song play. Swift is not the first artist to withdraw music from Spotify. Radiohead’s Thom Yorke called for a boycott of the service over unfair payment practices, removing all his solo projects from the site and describing it as “the last desperate fart of a dying corpse”. The Beatles, AC/DC and The Black Keys are also not available to stream on Spotify.

    3) How has new and digital media changed the way institutions produce texts?

    New and digital media has now provided artists and individuals the opportunity to launch independent record labels known as Net Labels. Independent music is flourishing in the digital age, with the democratisation of production and distribution brought about by the internet. Independent radio has also found its home on-line, helping guide and shape the non-mainstream audience towards ever changing, ever weirder musical styles. In many cases artists are able to promote and distribute their music digitally without the assistance of a record label. Unsigned artists can sell their music on iTunes, have it streamed on Spotify or Soundcloud and produce their own videos for YouTube.

    4) How has new and digital media changed the way institutions distribute their product?
    Before music could be distributed through the following ways. Radio (and music television) would construct play-lists and radio shows would be broadcast live. Music video could only be seen when broadcast or if purchased on video/DVD collections. Music could only be bought as ‘hard copy’, the most successful being vinyl records, cassettes and then CDs. The music press was published in print and employed professional journalists.

    Now, new and digital media has changed the way institutions distribute music.
    Spotify offers a vast library of music that is available at any time. Music videos are available anytime on YouTube and can be downloaded and played on mobile devices. Digital radio can be listened to on computers and mobile devices. Music is available as electronic data files. Bloggers can set up their own versions of the music press offering reviews and commentary.

    5) How might new and digital media threaten your chosen industry?

    The growth and popularity of the internet has challenged the power of conglomerate control within the industry in a number of ways.The digital revolution has enabled audiences to move from passive to active, leading to a participatory culture as audiences get more of a say in what music is produced and which music succeeds. The increase in internet file sharing has paved the way for the audience to receive free music and causing artist, as well as the music industry, to lose money and try and find new ways to make money.

    6) How has new and digital media changed the way your chosen industry is regulated?

    The music industry wants to protect their position of dominance. Developments in technology and the emergence of the Internet mean that artists have the potential to reach audiences without the need for a major company and where once recording equipment was expensive it was out of reach for the average person; it is now widely available at a low cost. In many cases artists are able to promote and distribute their music digitally without the assistance of a record label. 

    UGC


    1) What examples of user-generated content can you find in your case study?
     
    Bandcamp and Patreon are sites for independent musicians. Bandcamp helps artists sell their own music and pays out $3.5m a month to its network of musicians while with Patreon, fans commit to paying a small amount whenever an artist releases something new: it pays out $2m a month.
    2) How has UGC changed things for audiences or institutions in your chosen case study?
     
    Fans can leave video comments, post a video response or spoof and upload music to their own social network profile. These forms of user generated content illustrate the changing relationship between producers and audiences in a move towards a ‘demand led’ music industry where fans themselves have the power to influence what is produced. Audiences can be seen to have more of an impact on production and can even be part of the production process themselves. Some see this as a positive move that reduces the amount of power held by institutions. Audiences have easy access to the means of production. Videos can be made and edited at home and uploaded to YouTube. Music can be produced at home and made available via social networking where it can be sold or offered for free download. Audience generated material is always cheaper than that produced by professionals and so institutions also benefit from the move towards including more user generated content.
      

    Marxism, Pluralism and Hegemony


    1) What would be a Marxist perspective of the impact of new and digital media on your chosen case study?

    In this illusion of choice consumers are overwhelmingly listening to the ‘hits’. The audience listen to the music that they are shown through streaming services such as YouTube and Spotify and therefore are indirectly being persuaded to what music they should listen to. This can be likened to the hypodermic needle model where media is being fed to the audience by the elite people. 
    Cultivating an audience on social media does, of course, have its benefits. Artists can hotwire ideas and newly recorded material to fans who give real-time feedback, and others can gradually expose a curated version of themselves that quashes any tabloid rumours. This shows the two step flow theory as the audience will be convinced to believe the values that their favourite artists, the opinion leaders, believe and therefore control their opinions.

    2) How would a pluralist view the impact of new and digital media in your chosen industry?
     
    The digital revolution is both challenging the power of the music industry as something that is conglomerate controlled, and transforming the role of the audience by giving them more power over the way they consume and respond to media products. Power is in the hands of an audience as a mass rather than with individual audience members. A media institution produces media texts, has to distribute them to the audience and the method of viewing/reading (exhibition) has to be considered. Audiences can be seen to have more of an impact on production and can even be part of the production process themselves. Some see this as a positive move that reduces the amount of power held by institutions. As conglomerates becomes less dominant, audiences gain more choice over the types of music they want to hear and access, rather than being restricted by the type of music distributed by record labels. The digital revolution has enabled audiences to move from passive to active, leading to a participatory culture as audiences get more of a say in what music is produced and which music succeeds.
     
    3) Are there any examples of hegemony in your chosen industry or case study?

    The Internet was meant to weaken the dominance of superstar artists in the music industry and enrich the smaller, niche music creators. But new research suggests that this “long tail” theory is wrong: superstars are capturing the vast majority of music revenues and their share is increasing – not decreasing – because of the rise of digital services like iTunes and Spotify. The top 1 per cent of artists the likes of Rihanna and Adele accounted for 77 per cent of recorded music income in 2013.

    Yet it is not just consumers that Tidal has struggled to convince; the service has also garnered criticism from numerous musicians, who claim it only helps the Madonna's and Jay Z's of this world, and smaller bands and emerging artists will not reap any benefits. More seriously, nobody on the day talked about why Tidal would work better for small artists who didn’t have equity in the company, leaving it open to accusations of being just a rich-stars-get-richer club.

    It was reported by TechCrunch, however, back in 2009, that the major labels had received an 18% equity share in Spotify, and were receiving more favourable terms than indie labels. In creating its platform, has Spotify simply restored the business model of the pre-digital music industry, where major labels wield all the power and artists get short shrift?

     

    Globalisation


    1) How has globalisation impacted on your chosen industry or case study?

    People today consume diverse music offered to the global market by multinational media and entertaining industry. For example, on Spotify, you are able to browse music of different genres and cultures.
     
    2) In your opinion, has globalisation had a positive or negative impact on your chosen industry and case study? Why?

    Positive because people the increase relationships among culture from music has helped Spotify to become the great music provider to a large amount of audience that it is today. People from different countries can listen to music on Spotify which makes it a world wide music provider, which increases its popularity. Also, people from different ends of the world can create their own music and post on YouTube which adds diversity to the music industry.

    3) Can you find examples of cultural imperialism in your case study or industry? (The 'Americanisation' of the world)
     
    If we examine where the most popular types of music comes from, we can see that a vast of consumed music comes from the US or the UK. The authentic, traditional forms of music are being replaced by the mass produced songs from the great branches like Britney Spears and The Spice Girls, which are sold by large firms of the western music industry to people in the world. The process of loss of local music traditions can be seen as a loss of authentic, cultural identity. In many parts of the world, people are trying to preserve the traditional forms of music through the creation of schools and institutions for culture-based education. This people fight against the overwhelming influence of the big global music businesses.
     

    Social media


    1) How has your industry or case study used social media to promote its products?
     
    Major recording companies are using on-line distribution of music and social networking sites to reach potential audiences in a new way. By embracing social network media platforms, musicians and record labels are able to utilise an interactive relationship with fans that is beneficial to both producers and audiences. Fans can view videos on YouTube and share clips with other fans by embedding them into blogs, Facebook or Myspace. For Dandelion Radio, being an on-line station means that the listeners are able to connect to the artist heard on the station much more quickly. If you hear a tune you like, you can click a link to the artist’s Last.fm page to find out more, follow links from there to official sites or Bandcampor or Soundcloud pages, make friends on Facebook and follow them on Twitter, and often legally download their whole back catalogue for free to your device before the song is over.
     
    2) Provide examples of how your case study has used social media and explain the impact this would have on audiences.
     
    • Sites has famously launched careers, including that of Lily Allen. Allen was actually signed to a record label at the time her massive popularity on MySpace broke. However, as the first high-profile artist successfully to promote themselves via the site, she highlighted the importance of the medium. Allen’s story is a good example of how early-adopters can use the free technology available at their fingertips.
    • Lady Gaga offers a new business model by successfully combining traditional industry practices (being signed to and financed by a major record label) with new media forms. She utilises the power of a major conglomerate whilst embracing the development of digital technology. She uses social media in order to keep an active relationship between her and her fans.
    • Artists such as Selena Gomez, Ariana Grande and Rihanna use social media such as Instagram and Twitter so as to promote their upcoming tours or new album releases.

    3) Is social media an opportunity or a threat to your industry and case study?
     
    Social media provides great opportunities to the music industry. As music fans, most of us turn to Twitter or Facebook to keep updated about our favourite bands, whilst new tracks or videos will 99% of the time get their launch on social channels. Furthermore, social media is where music audiences naturally congregate, forming their own communities and sharing their experiences of bands and artists.
     
     

    Statistics


    1) What statistics can you find to illustrate the impact new and digital media has had on your industry or case study? For example, in news, the UK newspaper industry sold more than 12m copies a day in 2001 but in 2014 it was below 7m.

    • The music rights organisation PRS for Music reported this year that CD and DVD revenues fell by £8.7 million in 2009, but digital revenues grew by £12.8 million.
    • Spotify’s user base has doubled since 2013 but the proportion of users on the paid tier – 25% – looks to have stayed roughly the same.
    • Neilsen SoundScan’s global figures reveal that 70% of the music consumed in the first half of 2014 was streamed or downloaded – with streaming up a staggering 52% from the previous year.
    • 50 million songs were streamed in January 2015 (double the previous January’s), and that from February 2015
    • Overall music industry revenue fell a half percentage point to $3.2bn
    • Revenue from paid subscriptions to services like Spotify and Rhapsody grew 25pc to $478m, while revenue from free services like Pandora grew 22pc to $550m
    • Download sales revenue fell 4pc to $1.3bn, while physical disc sales dropped 17pc to $748m
    • The rise of digital streaming has helped the industry maintain annual revenues of around $7bn since 2010, offsetting the decline in revenue from digital downloads of single tracks that began in 2013
     
    2) Looking at these statistics, what impact has new/digital media had on institutions in your chosen industry?

    It seems that new and digital media has decreased the amount of CD's that I brought. Music is now being streamed or downloaded and the percentage of how many people do this is increasing.
     
    3) What has the impact been for audiences? These may be positive and negative.
     
    Positive- CDs can be quite expensive and annoying to carry around in order to listen to music. Also a CD music player would need to be present to listen to the music. However, streaming services such as YouTube and Spotify offer music for free.
    Negative- Free streaming services provide free music but this means there are ads that will interrupt the music from time to time which can be annoying for the audience. Downloading music can also be a problem for instance, it can take up a lot of storage when downloaded on your phone.

    Theories


    1) What media theories can you apply to your chosen industry and case study? Select THREE media theories and explain how they are relevant to your case study. Note: these can be ANY of the theories we have learned over the whole of Year 12 and 13.
     
    Richard Dyer (1985) offers a definition of escapism stating that ‘entertainment offers the image of ‘something better’ to escape into or something we want deeply that our day to day lives don’t provide’.
     
    Two step Flow theory- An audience's favourite artist can influence the audience to follow their values and ideologies.

    Hypodermic needle- The music industry injects dominant ideologies onto the audience.

    Moral Panic- The media produce inactivity and since most young people are obsessed with music, it brings the panic that students are failing because of music.
     

    Issues/debates


    1) What media issues and debates can you apply to your chosen industry and case study? Select THREE media issues/debates and explain how they are relevant to your case study.
     
    • The reality of some of the bigger streaming services is that 75% of their user base are free, which has a horrific impact on the music industry and its ability to invest in talent going forward.
    New and digital media has made so that streaming services can try and find ways to stop the audience from illegally downloading music for free on-line. One of these ways is by giving some music out for free.
    • The modern music industry was created at a time when it made economic sense to produce a million copies of one vinyl record, and copyright could be successfully enforced. But as the industry went digital, the whole way music was made and sold changed. Digital downloads of songs continued to fall out of favour in the first half of the year, while free and paid music-streaming revenue keep growing.
    CD's are no longer popular because people have grown to prefer downloading music on-line or listening to music on streaming services. This doesn't provide artists with a lot of money compared to the amount they were receiving when CD's were popular.
    • Streaming services such as Spotify that provide free music to users who are not monthly subscribers are practically giving away music for free and are not only disrespecting the artist who make music for them to sell but also ruining the way the music industry is run. Some artists, most famously Taylor Swift, have been criticising Spotify’s “freemium” approach, which allows people to listen for free to its basic, advertising-supported service.
    Spotify, my chosen case study, is being critised for providing free music to users. Spotify claims that in a long term, the free users will turn into paying customers and that they are making enough money to pay artists fairly. 
     

    Wider examples and secondary texts

     
    1) What other texts or institutions are also relevant to your case study? What would be good secondary texts or examples to use to support the findings of your independent case study?

    Tidal is a music streaming service that originally started in Scandinavia in 2009. It was called WiMP then, launched by technology firm Aspiro and retailer Platekompaniet – Norway’s equivalent of HMV. In October 2014 Aspiro rebranded WiMP as Tidal for its UK and US launch, with its main selling-point being its “lossless” (higher-quality) streams. It also added music videos and deeper editorial, albeit for double the price – £19.99 a month – of rivals such as Spotify, although it has now launched a non-lossless £9.99 version too. The big message from Tidal’s launch was its new owners’ determination to restore the value of music in the eyes (or ears) of listeners, which means making them pay for it, rather than listening for free, as they can on the advertising-supported tiers of rivals Spotify and Deezer.

    YouTube is the world’s most popular music streaming service, with a large chunk of its 1 billion monthly viewers watching music videos – especially younger users. It is trying to get people to pay for music too: it’s launching its own Spotify rival, YouTube Music Key, with a similar model of a free, ad-supported tier then a £9.99 monthly subscription with more features. But YouTube is already a free way to listen to almost any song ever recorded. Some in the music industry fear that if Spotify’s free tier is restricted or even shut down, listeners will drift away to YouTube – which pays much less per stream – rather than subscription services.