Wednesday, April 30, 2008

The Music or the Misery

For as long as there has been music, there have been pirates. But really, what effect, if any, does piracy have on an industry that has been in existence for so long and as of yet has shown no serious detriment suffered? Is piracy really that bad for the music industry? What, exactly, is piracy? How can the industry successfully combat what it perceives as its greatest threat?

Piracy is said to be the unauthorized and illegal infringement of the copyright on audio-visual material. According to the Recording Industry Association of America, music piracy “generally refers to the illegal duplication and distribution of sound recordings”. The most common perception of music piracy in modern times is that of peer to peer (P2P) hared networks, where music is uploaded and shared onto the internet in clear violation of copyright regimes the world over. Part of the music culture is sharing, and P2P software is essentially just that. So, from this, the question must be asked is there a decline in the music industry, and how much effect does piracy and peer to peer sharing has on the industry?

The truth is, the music industry is not dying; it is thriving. The Recording Industry Association of America claims that the world music market is estimated at $40 billion, and the International Federation of the Phonographic Industry puts it at $32 billion, neither a figure to scoff at. The perceived mortality of the music industry belies its ability to both survive the moral panics it itself creates. Media moral panics or a reaction by a group of people based on an exaggerated opinion that a certain action, group or idea is detrimental to society. This kind of moral panic is commonplace. The music industry has survived the copying of cassettes and the Napster fiasco – it can survive piracy.

As a result of the so-called “death of the music industry”, the industry itself has developed a new revenue model to help combat what many see as its decline. While compact disc album sales are still strong, the singles of physical CDs have declined drastically in comparison to their digital counterparts, to the financial damage of neither medium. Ones sales are decreasing, ones are increasing. This new emphasis on the digital single as opposed to the physical single is one that will serve the music industry well as a whole. The digital single is the natural successor to the physical single, and this new market is replacing the previous one, not taking away from it. Similar arguments were made when cassettes replaced vinyl records, when CDs replaced cassettes and when DVDs replaced VHS. This is not the death of an industry; it is their rebirth in a new medium.

The problem, however, with this new revenue model for a new medium is that it does not take into account the stringent security measures put in place by corporations to protect their product. This Digital Rights Management system, despite being draconian in nature, is designed to ensure that only the user that purchases the product has access to it. In actuality, this puts more and more limits on the rights on the individual to do whatever they want with their legitimate purpose, driving many audiophiles to download music just to be able to have that freedom. With such severe limitations placed on rights of digital music owners, listening to music has now become a privilege.

In fact, because of DRM, it seems all digital music listeners are infringing on the copyright of music corporations. Lemi Baruh discusses the development of a “permissions culture” where “the usage limits imposed by the changes in the legal and the technological infrastructure that governs use of digitized music creates an environment within which music enthusiasts will be stripped of their already limited ability to determine and/or anticipate which types of content use are "kosher." Music piracy does not cost the music industry any money, and a large majority of case, actually leads to legal sales of their product. However, Baruh states that “every time an individual purchases a CD or downloads a song from a different online store, a new set of standards regarding appropriate uses of content are presented to her. Buying cultural products and buying software and hardware to consume cultural products increasingly resemble going through an airport security check point when the terror-alert level is orange. You never know what will prompt alarms. As a result, every [end] user will increasingly wonder whether she is doing something wrong.” However, if a person downloads, listens to and likes a song, it is possible that he or she might seek out the band and legally purchase their CD. Stranger things have happened.

What really terrifies the music industry as a whole is that no matter what, the music will live on. With the advent of the internet, it is possible for artists and bands to upload their music and bypass the middle-men. No more agents, publishers, distributors, promoters and recorders. The music goes straight from the composer to the listener, and the industry gets no slice of the action, to their financial detriment. The industry, while acting in the interests of self preservation, has not acted in the interests of its customers, driving many of them away in droves over their staggering overreaction to the perceived threat of music piracy and copyright infringements. It is not enough that they seek to protect their own investment; they need to offer the consumer a reason to stick by them while they weather the storm they themselves have created to justify this draconian regime.

2 comments:

Daniel Koppenol said...

I found this post very interesting, as I myself am an avid music fan and ‘user’ within today’s digital landscape. Although you make some very intelligent and valid points, I did find myself questioning some of your arguments. You posed the question, “is there a decline in the music industry, and how much effect does piracy and peer to peer sharing has on the industry?” From your perspective, there is no decline whatsoever, merely a shift from old media (CD’s) to new media (Internet). Although this in itself is correct, I believe the music industry and those within it have taken a considerable hit from piracy and peer-to-peer applications such as Limewire and BitTorrent. Evidence of this can be seen through huge profit losses that have led to a number of national and international legal battles (see http://www.theage.com.au/articles/2008/04/25/1208743215717.html).

In saying that, I have to disagree with you that music piracy does not cost the artists and record lables money. As such, the industry is not in fact “thriving”. To combat the effects of piracy and illegal downloading, the Rudd Government is actually considering a “three strikes and your out” attitude towards the practice. Under this policy, a warning would be first issued to offenders who illegally share files using peer-to-peer technology to access music. The second strike would lead to the offender's Internet access being suspended; the third would cancel the offender's Internet access (see http://www.smh.com.au/articles/2008/02/16/1202760662778.html).

Unfortunately, your arguments lacked any sense of academic integrity. By doing so you would have supported the key points of your post, and helped provide a more in-depth discussion regarding music piracy. After reading your post I discovered an interesting scholarly article by Fetscherin and Zaugg that outlines some of the key issues regarding piracy and peer-to-peer networks, here is the link http://ieeexplore.ieee.org/xpl/freeabs_all.jsp?arnumber=1287343.

I do agree with you that musicians and record labels can survive the detrimental effects of piracy. To do so however, they must embrace new mediums such as iTunes. A recent example of this that you failed to mention is the free downloads on offer from bands such as Radiohead and Gnarles Barkley, which were quite successful in their conception. Overall you have provided a very insightful and intelligent discussion concerning an issue that will continue to cause conflict within the new media economy. Next time however, try to use other people’s opinions to validate your statements and give them credibility.

Jean said...

Hi Matt

You've given me a lot to work with here! I completely agree that the music industry has so far taken a backwards approach to copyright and the rise of internet technologies. And really, what do they have to be concerned about? It seems to me that music is more popular than ever - there are multitudes of festivals; bands are constantly touring, if not reforming and touring (hello Led Zeppelin!); and every second person seems to own an ipod.

I think that music is becoming a bigger marker of identity, precisely because of advances in technology that have allowed music to become manipulable, compact and transportable. No more carrying around clunky records, or scrabbling with cd cases! Nowadays, people can tailor playlists to suit their personality, they can tell the world on facebook what their favourite songs and artists are, and they can spend hours online finding out information about their favourite bands.

Music is stronger than ever, but not in the way that the music industry would want it to be. It does seem like the music superpowers are slowly coming around (for such powerful figures, they have shown a shocking lack of insight). Hopefully they can find a way, like itunes has, of working with their loyal, if not tragically devoted, customers.