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Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet Networking Case Study Future Bibliography THE INTERNET’S.

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Presentation on theme: "Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet Networking Case Study Future Bibliography THE INTERNET’S."— Presentation transcript:

1 Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet Networking Case Study Future Bibliography THE INTERNET’S CHALLENGE TO THE MUSIC INDUSTRY John Perry Barlow “we are now creating a space in which people of the planet can have [a new] kind of communication relationship: I want to be able to completely interact with the consciousness that’s trying to communicate with me.” (Castells, 2OOO,386) PRESENTED BY: BEN FORTNEY OO6 GLOBALISATION AND CULTURE

2 Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet Networking Case Study Future Bibliography INTRODUCTION  New communication networks have enabled greater communication and information sharing.  These new networks have challenged a stagnant music industry.  Innovators are moving ahead of the curve to take full advantage of these new communication concepts. Communication decisively shapes our culture. (Castells, 2OOO:356)

3 Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet Networking Case Study Future Bibliography THEORY: SOCIOLOGICAL Music Industry  Fordist : Hierarchical  Top-down : Planned  Controlled Internet  Post-Fordist : Democratic  Bottom-up : Decentralized  Chaotic

4 Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet Networking Case Study Future Bibliography THEORY: NETWORKING Laws of Networking Power  Metcalf’s Law : As powerful as the # of users  Reed’s Law : As powerful as the # of users 2 But, not all users are equal Diane Stone: A network amplifies and disseminates ideas, research and information to an extent that could not be achieved by individuals or institutions alone. Moreover, a network mutually confers legitimacy and pools authority and respectability in a positive-sum manner. (Global Networks Journal, 2002:3)

5 Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet Networking Case Study Future Bibliography THEORY: NETWORKING Manuel Castells : The Rise of the Network Society (2OOO)  Networks constitute the new social morphology of our societies, and the diffusion of networking logic substantially modifies the operation and outcomes in processes of production, experience, power, and culture.  …dramatic reorganization of power relationships.  In a broader historical perspective, the network society represents a qualitative change in the human experience.. Mike O’Donnell: …it is the information itself – knowledge building upon knowledge – that is axial to the information age. (2000:71)

6 Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet Networking Case Study Future Bibliography MUSIC INDUSTRY Major Labels (International Federation of the Phonographic Industry)  85% US Market  7O% Global Market  Universal Music Group (France/USA) 25.5%  Sony BMG Music Entertainment (Japan/Germany) 21.5%  EMI Group (UK) 13.4%  Warner Music Group (USA) 11.3%  Independents 28.4% Independents (LA Business Journal 2OO4) % Share of US Market

7 Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet Networking Case Study Future Bibliography INTERNET MUSIC Digital Downloading  MP3s : Downloads  iTunes: 1 billion in less than 3 years  p2p: 2-3 billion per month  The level of file-sharing has remained the same for two years despite 20,000 legal cases in 17 countries. (BBC.com)  More than 100 countries supply files (Felix Oberholzer-Gee )  Broadband American Adults with Broadband at Home [Pew Report]

8 Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet Networking Case Study Future Bibliography INTERNET MUSIC Slumping Sales (Sound & Vision Magazine, 2OO3)

9 Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet Networking Case Study Future Bibliography INTERNET DISTRIBUTION Challenge to traditional : “Industrialism to Informationalism” (Castells, 2OOO:164) : Bharat Rao (Rao, 1999:288)  Challenging the traditional distribution structures : Eric Raymond (Rheingold, 2OOO:51)  Cathedral and bazaar Robin Murray  Emphasis shifts from scale to scope.  Organisations geared to respond rather than regulate markets.  Frameworks for learning as much as instruments of control.  Allows for specialist, niche production/consumption.  The guerilla force takes over for the standing army. (O’Donnell, 2OOO:74)

10 Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet Networking Case Study Future Bibliography VIRTUAL COMMUNITIES Gift Society  Networks of Fans : Combining  Resources  Knowledge  Experiences  Why it works? : Richard Barbrook -Westminster University  By adding their own presence, every user is contributing something to the collective knowledge accessible to those already on-line. : Manuel Castells -Sociological Genius  …uninhibited discussion, thus allowing sincerity in the process. (Castells, 2000:389) : Marc A Smith -Microsoft Research Sociologist  …it becomes possible for more people to pool resources. And ‘more people pooling resources in new ways’ is the history of civilization seven words” (Rheingold, 2000:31)

11 Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet Networking Case Study Future Bibliography INTERNET NETWORKING: BENEFITS Established Acts  Free promotion : Radiohead ‘Kid A’  Huge buzz with little radio or promo : Fiona Apple ‘Incredible Machine’  Highest chart debut, almost half million sold : Prince - online albums  Build-up to concert tours : Public Enemy‘There’s a Poison Going On’  Live and Rare Recordings : Grateful Dead, Phish, Dave Matthews  Encourage recording and swapping of live performances to expand fan-base as well as consolidate support : Beastie Boys release rare tracks via their online fan club

12 Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet Networking Case Study Future Bibliography INTERNET NETWORKING: BENEFITS Emerging Artists : Fans can sample numerous songs : Network recommendation : Feedback loops : Intimate relationships : Labels: Fan-base already included Michael Roberston, founder MP3.com: "[w]e talk about a new middle-class of musician emerging, If a band sells 20,000 CD's now, they go hungry. But if they can do that through the Net, that's $100,000 just on CD sales. (Auslandermusic.com)

13 Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet Networking Case Study Future Bibliography NETWORKING IN ACTION Case Study: Arctic Monkeys  Networking in Action : Promo CDs given away at shows  Fans uploaded to file-sharing programs : Myspace.com  Personal contact with fans builds loyalty  Word of mouth  Independent Smash : #1 Single in the UK : 36O,OOO albums sold, 1st week (BBC.com)  Fastest-selling British debut of all time : Most visited band site in the UK (Hitwise)  More than Oasis & Greenday

14 Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet Networking Case Study Future Bibliography NETWORKING IN ACTION

15 Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet Networking Case Study Future Bibliography THE FUTURE IS NOW Artists  Freedom of Distribution : Total control  Schedule  Songs  Leverage Fans  Interactive creativity : Artist-to-Artist  “musicians are working together, making friends and inspiring each other within network communities.” (Barbrook)  Grey album : Fan-to-Artist  Remixes contests

16 Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet Networking Case Study Future Bibliography BIBLIOGRPAHY  Agger, Ben (2004) The Virtual Self. Blackwell, Oxford  Auslander music (1999) Auslander Music Manifesto (http://www.auslandermusic.com/manifesto.html) [Accesssed ]http://www.auslandermusic.com/manifesto.html  Barbrook, Richard (200?) Cyber-Communism: how the Americans are superseding capitalism in cyberspace. University of Westminster, Hypermedia Research Center.  BBC.com (2006) Monkeys Let the Music Do the Talking [Accesssed ]  Castells, Manuel (2000) The Rise of the Network Society. Blackwell, Oxford  Hitwise.com (2006) Arctic Monkeys & Viral Marketing – Update hopkins/2006/01/arctic_monkeys_viral_marketing.html [Accessed ] hopkins/2006/01/arctic_monkeys_viral_marketing.html

17 Introduction Theory: Sociological Theory: Networking Industry Internet Virtual Community Internet Networking Case Study Future Bibliography BIBLIOGRPAHY  IFIP (2005) IFPI releases definitive statistics on global market for recorded music. Press Release: /site-content/publications/rin_order.html [Accesssed ]http://www.ifpi.org /site-content/publications/rin_order.html  O’Donnell, Mike (2000) Classical and Contemporary Sociology. Hodder & Stoughton, London  Rao, Bharat (1999) The Internet and the revolution in distribution: a cross-industry examination. Technology in Society #21, Pg. 287–306  Rheingold, Howard (2000) Smart Mobs. Basic Books, Cambridge, MA  Simons, Andrew (2004) Digging downloads: small labels making most of audience's access to digital music files. Los Angeles Business Journal, May 3, [Accesssed ]  Stone, Diane (2002) Introduction. Global Networks Journal, Vol. 2 #1,


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