Record companies gave been in existence for a very long time and they have been instrumental in providing hits after hits over the years. Many artists have benefitted from the services of record companies; service that they themselves would not have been able to provide for themselves. However, the turn of the 21st century has brought on board technology in the music industry. Technology is quickly changing record companies and by large the music industry. Here are 10 trends that are strangling record companies;
The internet has made it easier for people to download single songs and whole albums on the internet without paying a dime. There are many torrent and download sites that deal in pirated works and which are slowly suffocating the revenue line of record companies and artists around the world.
Blogs and media sites
Gone are the days when top executives in the record companies would use their influence to get music videos of their artists played on MTV or such sites. Nowadays, any artist can simply post their video or music online and rely on publicising it through tech blogs all over the internet.
Adoption of virtual music
Initially record companies relied on having most of their songs and albums on CDs. However over the years, this has changed and more music is being consumed in digital form where people download the content onto their devices. Therefore record companies are losing on their CD sales.
Cheap and high quality recording facilities
Artists nowadays don’t need expensive studios to record their songs as there are cheaper and high quality equipment alternatives that can allow them to do at the comfort of their home. Therefore, more artists are using affordable technology to create their music and distribute it to their fans without having to sign for record companies.
Sales and royalty
Due to the fact that most recording companies require artists to give up their ownership rights to them, artists are now resorting to shunning record companies and distributing their music on their own. This way, they don’t have to settle royalty issues whenever revenues start flowing in.
Onset of streaming companies
There are many streaming companies that have been set up and which are in direct competition to attract more users on board. With artists uploading their songs on these sites, it means that they have platforms that can allow them to distribute their work easily to their fans.
Artists can also make use of download sites to place their music and earn from every download.
This refers to sites such as Google that place music as ads and whereby the artists get compensated for the ad play. This creates an alternative vehicle of making money without having to be signed by a record label.
Social media presence
It is easier nowadays to create an online presence and have your own site up and running. Artists can therefore create their own music and have people download it from their sites easily. They can also sell tickets to their concerts online as well.
With their sites up and running, artists can be able to create compelling campaigns online to get more fans hooked to their products easily. Website analytics helps them to gauge whether their campaigns are running successfully.
Record companies definitely face a lot of competition from technology and unless they change, more artists will opt to use technology on their own in order to reach masses or people.