Next step:wider research

Music is being sold as digital MP3 format, this is able to help the producers sell the music at a cheaper distribution price as raw materials are not needed to make cds, it’s faster for the audience to get the music. It is fast, easy and cheap to buy.

YouTube have direct payment to record labels for playback rights, therefore producers are still able to make profit even if the audience are watching the videos for free. The audience are using the internet instead of buying records, this is beneficial for them as it is free music.
Radio has been replaced with online radio, this is beneficial for the audience as the quality is better and the audience can listen to past shows that they have missed out.

Website such as MySpace are establishing new artist, this is better for producers as they don’t have to invest huge amount on A&Rs to go and find new talent. The internet has given artist the power to gain the right amount of money and percentage that they earn, this is beneficial for the producer as they are getting all the rights that they deserve.

Artist can be a part of the audience and get closer to them, this brings the producers in the aduience’s seat, by doing this the producers are able to easily follow the trend without having to invest into R&D. For example, Twitter allows fans to keep up and talk to the artist in real time. Twitter has allowed the audience to get closer to the artist and has allowed them to interact with the artist.

Sites such as YouTube has allowed artist to aim at a bigger and larger target market, allowing them to go global, this is beneficial for the producer as they can expand their target market. Audience are able to generate their own music on YouTube and listen to other user generated content. The audience have become the producers.

Audience have stopped buying music as they can get it for free, this is shutting down major retail stores such as HMV and major labels, this is beneficial for the audience as they are getting free music however a draw back for the producers.

Customers get more choices of artist as the audience themselves are producing music. The audience have more power of their UGC and what they listen when ever they want. Jessie J and Justin Bieber have been able to be gain recognition from major record label.