Technology and Music Consumption- An introduction to Technology!

Technology has been one of the greatest developments of our time. Now life without the Internet, smart phones, social networking and iPads would seem pretty dull. We love technology. Feeling constantly connected to our social worlds and instant access to an overwhelming content of information, news, videos and music at our finger tips. Technology has completely changed the way we live, communicate and do business.

Over the years the music industry has had to cleverly adapt and change to keep up with advancing technology.  Initially artists made money from record sales, album sales, and touring. Before ‘the digital age’ fans would have to walk into a music store, and buy the vinyl record or album to listen to the great quality sound in the comfort of their homes, as they lacks the ability of easy transportation. However micro-music developed throughout the 90’s and music became almost completely digital. This opened the doors for sits and software like LimeWire and Napster to enable people to stream and download music for free directly to their computers. With little to no barriers this meant the masses had incredibly quick easy access to music they wanted. Eventually many of these sites got shut down for copyright infringements and IP lawsuits and the industry was left wondering how to continue charging for goods still available for FREE online?

Welcome to the ‘Apple’ era…

Music on the move has been available to us since the early 90’s, and artists were able to utilize CDs and smaller vehicles of music playback such as Walkman or CD Players. However Apple and its ‘i’ products took the music industry by storm with a world renowned status and arguable saved the music business by provided a legal music downloading system iTunes.  This provided a new platform, keeping up with the industry advancements, for record labels and artists to sell their music completely digital. Now we don’t have to go to a store to purchase a new single or album. We can simple hear it on the radio and jump straight onto our Apple product, whether it be our ‘iPhone’ ‘iPad’ or ‘iPod and download it straight to our account. Apple has made music so… available to us!

Illegal downloading still happens and combined with streaming sites like YouTube, Vevo and SoundCloud and legal download site iTunes in-store record sales are suffering. Now, youngsters especially, are growing up in a world where you aren’t proud of your CD collection and owning that album, being able to flick through the album leaflet isn’t enough to want to OWN the physical copy.

Research in recent years has shown;

• Only 53% of young people have purchased music or video in-store over the last 12 months. This is partly attributed to the popularity of downloading and streaming via the internet (Mintel, 'Youth technology-UK-2010). 
• The number of people buying CDs year on year fell for the third time in 2011, despite approximately half of consumers in Mintel’s exclusive consumer research preferring to own a physical copy of their content (Mintel, 'Media Consumption - UK- July 2012').
• The BPI (British Phonographic Industry) estimates that online copyright infringement cost the UK music industry around £200 million in 2009. New legislation has now been passed (the Digital Economy Act) to discourage illegal file sharing,  but it is not clear how successful this will be and the likelihood is that new tools for piracy will emerge (Mintel, 'Paid-For vs. Free- Consumer attitudes to pricing in Media and Music- UK - April 2010).

HMV goes into administration…

Having been around since 1921, HMV has struggled to complete with online retailing, supermarkets and digital downloads. Despite diversifying into live venues, festivals, ticketing and promoting, and artist management operations, increasing its product range, as well as having a digital site powered by 7digital offering download services, the music store still went into administration in January 2013. Shares were suspended from the London Stock Exchange. With declining sales and share price as well as debts HMV had to announce they would be closing around 100 stores to try and save the company from total collapse.

Even many of us who haven't stepped into a HMV for years ourselves still probably hold a soft sport for the record store we grew up with. UK artist, Wretch 32, posted this image on his Instagram site expressing his sorrow witnessing the iconic white dog disappearing from our high-streets...

However this month brought a little light to HMV as many branches were sold to Hilco (already owning HMV Canada). This is set to save 141 outlets, saving jobs and giving some areas their local music store back. The future for the UK’s last surviving national music retailer still however looks uncertain.

Technology has allowed artists to engage on a more personal level through the development in technology and social media. Now we can follow and chat to our favourite artists on Twitter and Facebook, we can get an insight into their lives through their eyes on their Instagram and Keek accounts, all which add value to the relationship fans develop with their much-loved performers.

Technology despite having its harmful effects on the industry has also forced and enabled a wave of creative experimentation with new business models and opportunities to distribute music.

Check out our next blog post for examples of innovative and exciting new ways music lovers are able to share and discuss music thanks to technology…