Future of Music Industry

[Name of the institute]Future of Music Industry

Introduction

Music nurtures the soul and pleases the ears and mind. Music forms relationship with individuals through beats, music and guitar. There are many people for whom their guitar is their best friend. Music has endless possibilities; therefore, the relationship of music and individuals is common. Music also helps people to reflect what they think and their ideologies. The mood that is built after listening to music is unmatched. When a person is furious over something or is upset, music is the best remedy. This is why people love music because it has remedy for almost all and every situations. It helps in exploring the world and tells us that there is no end to the possibilities in this world. Music has endless possibilities; therefore, the relationship with music has been very effective for people and has proved to be the best partner. Because of all of these reasons music industry grows and works. But, over the period of time there are certain changes that took place that in turn has caused changes in the music industry and people begin to think about the future of the music industry. The aim and objective of this paper is also to undertake discussion about the future of the music industry.

Discussion

From the period of 2008 to the year 2010 the music market in United States faced a period of decline. It was in the year 2011, that the music business recovered. There are expectations that the period of 2012 and 2013would also be the years of decline. However, in 2014, there are expectations that the business would recover. This can be said because of the revenues recorded related to the business of music over the years (DataMonitor, 2011A). This is not only the case in United States rather this pattern can easily be observed all over the globe. The US music & video market had total revenue of $21,117.9 million in 2011, representing a compound annual rate of change (CARC) of -6.9% between 2007 and 2011. In comparison, the European and Asia-Pacific markets declined with CARCs of -2.7% and -4% respectively, over the same period, to reach respective values of $18,565.4 million and $10,304 million in 2011 (DataMonitor, 2011B).

Now the main question that arises is that what are the factors that are causing this decline in the music business and what are the factors that can still be found as supportive for the music business.

Factors that are Causing Decline

There are a number of factors that have broken the backbone of the business of the music industry. These factors are as follows:

Technological Advancement

In a nutshell, it can be said that the storm of the technology have drastically changed the functioning and the level of profitability of the music business. This process started back in 1982 when for the first time CDs came in the market. The introduction of the CDs enabled us to digitize and encoding the music. In addition to the CDs there came the ...