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The Social Evolution is here to stay

Subscription services are taking a social approach to stand out in the crowded music streaming realm. iTunes’ attempted Ping, was not received too well, due to its lack of Facebook integration. However, the plethora of music-focused social networking services like SoundCloud, Bandcamp, ReverbNation, and others make it clear that the social evolution is here to stay. For instance Spotify, Pandora, and iHeartRadio have accumulated over 200 million users collectively. In just over a year, the popularity of internet radio has exploded.

Their huge success is due mostly to their customizable stations, which give users the ability to hear exactly what they want to and block anything they don’t. And the social aspect of it is in the profiles. Whether paid members or not, users make profiles, connecting them with friends worldwide. Everything users listen to, like, and suggest is shared with their network of friends. Those with similar interest, who are not already connected, are suggested to one another by the sites and, to further expand the interaction, the services include integration with Facebook, Twitter, and several other networks. That way Facebook users who have never even tried Spotify will see posts in their newsfeed about how “Javon listened to Kanye West on Spotify”. These sites continue to expand, making millions and sending off the royalties to record companies.

Illegal online distribution

The internet facilitated the sharing of media. This also made the illegal distribution of media significantly easier. Anyone with an internet connection can upload or download music at any given time. This gave rise to The Digital Millennium Copyright Act (DMCA). This act made the distribution of copyrighted media punishable by law; furthermore, it also makes ISP (Internet Service Providers) liable for not report illegal actions. 

Copyright Laws

U.S and other governments have place copyright laws to protect artist’s work.  The No Electronic Theft Act of 1997 made copyright violations punishable by law. Offenders could be fine up to $250,000 and five years in prison.

Online Piracy Effects On The Industry

Online piracy has caused a major decrease in sales in the music industry certain industry music sales have dropped 30% from 2004 – 2009

CDs  sales fell by about 16 percent worldwide causing the music industry revenue to drop to about 15.8 billion in 2009 from 17.5 billion in 2008

That also is a result of our generation becoming more wise with technology since now 27 percent of the industries revenue come from digital sources which is a 21% from a year ealier