Presentation on theme: "Anthony Bonanni. Introduction Traditional way for artists to make money was by revenue from album sales. Album sales are decreasing yearly. One."— Presentation transcript:
Introduction Traditional way for artists to make money was by revenue from album sales. Album sales are decreasing yearly. One of the main reasons for this is the illegal sharing and downloading of music.
Napster Napster was a free, online service used to share music between members. Violated copyright laws, were liable for copyright infringement.
Copyright Laws Current copyright laws say that the writer of the songs have the right to them. No need for conformation with copyright office. The law says that the copyright owner has the right to sell the songs for profit, or to license someone else to (record labels).
Costly Marketing A record label’s primary duty is to promote albums and help artists gain popularity. Costs around $400,000 to get one song on the radio. Other costs that an artist has to pay are studio time, people employed to help produce album, and initial money from label to produce album.
Marketing For Free Free music online can be available for anyone to listen to and try out. Fans that like the music can tell other people, so they can also try it out for free. This increase in fan base can lead to higher revenues.
Concerts Generally the highest revenue method for less popular bands. More people will buy tickets after listening to the artist’s free music online. 2007 was the 9 th consecutive year that North America saw all time highs in gross revenue for all concerts.
Merchandise Brings in less revenue than concerts, but offers more options to customers. One option could be to hire a design company to make the artists clothes. With more appealing clothes being worn by fans in public, other people will see the artist name and will most likely look them up online for downloads.
Conclusion Free music allows artists to have a cheaper and more effective way of marketing their product. Allows more people to listen to different artists that they probably would have never known to listen to if they had to buy albums. Concerts and merchandise are much better sources of revenue for a band. It is only useful to have one copy of an album, whereas it is normal to go to many concerts and buy many merchandise items.