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Future Of The Music Industry

 

This essay seeks to analyse the history and development of the key UK music industry structures.This essay will for the sake of brevity and clarity focus on three key structures, however it should be noted that there are a multitude of key structures within the music industry.The author has chosen to identify three main structures that are relevant to the music industry today.Firstly, live music and it's increasing important role in generating funds and sales for artists and record companies.Secondly, the impact of digital distribution on the music industry and the consumer.Thirdly, accounting for past, present and future developments within the UK music industry, what are some emerging new business models that are influencing the way artists and record companies do business.Finally, taking these structures into account, the author discusses the developments that are changing the landscape of the music industry.According to the results of the 2015 Measuring Music report, there were 0.5 billion visits to live music events in the UK in 2014, whilst live music tourism contributed approximately £3.1 billion to the local economy.25,100 people are directly involved in the live music industry out of a combined total of 117,000 who are currently employed in the UK music industry.According to Creative Industries website,.The major concerts and music festivals that take place in the UK attracted more than 9.5m music tourists in 2014, including approximately 550,000 visiting the UK from overseas for its music attractions. Direct spend by music tourists – buying tickets, paying for transport and accommodation – was worth £1.9 billion.From these figures, it is apparent that record companies and artists are focusing more and more on live music for income generation, as sales of CDs have declined steadily since 2000.Before 2000 record companies in the UK focused primarily on CD sales.In the 90's live music ticket prices were comparative to CD prices.However, this all changed with the dawn of the digital age.Since 2000 record companies and artists have placed more emphasis on the live music scene, as it has grown into a substantial revenue generator for the UK music industry.Ticket prices have increased dramatically, tour time has dramatically increased, new tour locations have been added,with mega tours lasting years for some bands.Some bands likeThe Rolling Stones are renowned for extensively touring and more recently One Direction is another case of a band getting burnt out from the demands of touring.Gibson and Allen(2007)state,Although sales of CDs are falling sharply, British artists are riding the crest of creative wave - live music has never been more popular, festivals are selling out in record time and brands are paying millions to associate themselves with up and coming acts. It is a new music marketplace where the artist's brand is becoming as valuable as their recorded output.Another development since 2000 has been the increase in the number of live music festivals in the UK and the expansion of existing festivals at Glastonbury, the Isle of Wight and Reading.The number of people attending these events has increased dramatically.Festival organisers have had to increase the size of festival venues and facilities accordingly.The author visited Glastonbury festival several years ago and was surprised at the scale of the event which turns a local farm into a mini city for about two weeks, although the main event takes place over a weekend.According to Warman J(2010),Music festivals have grown from nothing to a sizeable industry in 25 years, and the industry is one of the few sectors to have fared well in the slump.[...]There are currently more than 670 events in Britain and the top 200 festivals contribute £450m to the economy in ticket sales, travel, accommodation and food.

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