Technical Transformation of

music industry
Team:
Anit Bhandari
Srikanth Chintalapuri
Soumya Ghatak
Swati Urval
Dhanaya Vijayakumar
Dixit Udayakumar
Jagadeesh
 Introduction
• Music – United the world, evolved through the
eras.
• Impact of Music across Eras:
– The Renaissance (1420 to 1600)
– The Baroque Age (1600 to 1750)
– The Classical Period (1750 to 1820)
– The Romantic Era (1820 to 1900)
• Old music economy to new music economy:
– fun, amusement & leisure-activity to the modern
usage of data science
– Stakeholders of new music economy: Artist, User,
Consumer, Content Industry,Government etc.
 Introduction continued…
• Technology has played a key role – new technology has
increased the reach of music to worldwide audience.
• Advent of digital technologies
• Every second, every hour – a new revolution is on the cards.
• Impact of Internet
• Creativity & Innovation: Apple, Amazon, Dolby, Amazon,
Google, MTV etc.
• Our efforts: digging deep into the technological
transformation of music across the eras, dissecting how and
why the transformations kicked in & studying the impact on
the society from a microeconomic point of view
 1800s to 1950s
• Patent monopolies by Edison’s Phonograph
and Graham Bell’s Graphophone in early years
• Victor talking machine offered disc players and
Berliners’ gramophone enabled mass
production of sound recording
• First decade of 1900s dominated by “Big
Three” – Colombia, Victor and Edison
• Threat due to emergence of Radio in 1920s.
 1800 to 1950s continued
• Edison folded in market crash of 1929 but in
1930 Decca emerged as another big player
• By 1950, Decca and Edison claimed 67% of Top
Records chart
• After war, return of war soldiers boosted
economy with spill over in music industry as well
• Capitol, MGM and Mercury emerged as new
major labels after war
 1970-90s
• “Compact Audio Cassette (CAC)
or Musicassette (MC)” – a brief history
• Rise and fall of cassette sales
 1970-90s continued…
• Compact Discs(CDs): A brief history
• Rise and fall of CD sales:
 1970-90s continued…
• Combining cassette & CD sales:

• Revenue shares:
 1990 – 2000
• Major Switch From Vinyl to cassette form of music recording &Distribution
contributing to 60 % of revenues for commercial recording labels .

• Dawn of digital music – MP3 Format of Compressing and decompressing

an easier way of storing and transferring music content .

• Piracy Concern - was non-existent in analog times as quality of songs

reduced with each copy made whilst digital copies could be replicated
many times without any distortions raising serious threats to music
industry as a whole.

• CDs though introduced mid 1980s were widespread only post 2000 .
 The era of 2010
• Streaming Services
• The era of streaming services
• Advent of Apple iTunes, YouTube, Spotify
• Individual Songs rather than buying an entire albums
• Free services to subscription bases
• In 2017 the streaming sources accounted for 38.4 % of $17.3 bi
revenue in the music industry overall globally taking it to $6.6b
• Subscription-based model with subscription base touching 176
2017.
• Spotify had a blockbuster IPO with a market valuation of $26.6b
April 2018
The International Federation of the Phonographic Industry
 Technology Trends
Block chains and Cryptocurrency in the Music Industry:
• Proper reach of royalties to the artist
• Estimating the valuable aggregate data of the users
• Copyright infringements & maintaining a ledger system on all transactions
• Solution to the law suits faced by streaming companies on copyright
infringements.
• Startups like “UJO”, “Mycelia”,” Ethreum” are driving this by providing platforms
• Block chain along with cryptocurrency payment would establish a direct
interaction between the artist and the listener
• GRMTK token presented by Gramatik an acclaimed DJ & Musician named Denis
Jasarevic, PEARL token by a London based independent artist named Casey
Pearl, A-RAYZ produced by a hip-hop artist
• The artist gets much more freedom because the funding and distribution is
taken care by themselves and fans also would get a part of participation in the
music production and the success thereafter.
 Technology Trends
Virtual Reality and Virtual Instruments
• Immersive experience
• Live performances in VR platform in the confines of your home
• Augmenting the experience with 3D,2D animations
• Long term prospects of becoming a major revenue gainer
• Live nation a specialist in live concert has teamed up with Next VR and Citi
Bank to create a series of VR events.
• Google has teamed up with VR content developer Enosis VR to create
immersive video experience of legendary band Queen
• Popular artists like Taylor Swift, Bjork, Rihanna, David Guetta have all
released their VR enabled productions
• Instruments itself becoming virtual in nature. The factor which led to these
instruments are the fact that you do not need to bother on the area or
space constraints
• Aerodrum,Enhancia
 Into the future
AI,Apps
• There are special innovative instruments like Roland Go Key, Roli’s
block system, Ableton link which would enable platforms to
produce own music and collaborate ,JAM with others in the
confines of a room
• The cost effectiveness is enabling creations of many independent
artists
• Companies like “AMPER MUSIC” and “AI MUSIC” are producing
music through machines thus providing affordable music to the
consumers to use.
• AI and Data Analytics helps music industry to define finer
marketing strategy, getting more insights on the trends,
preferences by the listeners, better customer data which helps to
maximize the profits.
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