This paper delves into the dynamics among artists, producers, labels, platforms, and consumers, exploring their impact on the music industry’s evolution. The survey of the recording and publication sectors is based on one economic model, during which we investigate power relations between creators and distributors, which allows us to look into the symbiotic relationship between these entities.[1]. Through exploration, the industry’s complexities during its ancient and modern history are highlighted; therefore, people understand the pitfalls and prospects observed from different periods.
This paper explores how copyright laws and contracts influence the music industry’s global response to the digital revolution. We’ve gone from making music distribution digitally possible to re-drawing the boundaries restricting fan-artist interactions, and our transformation was achieved through digital innovation.[2]. Reviewing recent advancements, this paper delves into how technology shapes the music industry’s timeline, presenting challenges and opportunities.
The unique economy of the recording and publishing industry has been established and thrived based on its different historical and structural backgrounds for a very long time. In the past, however, there was a booming recording industry due to scarcity; for instance, vinyl records, compact discs, and cassettes were the essential physical media.[3]. Besides giving a chance to the winning records to rake in more profits through sales, the existence of such a barrier to entry necessitated that any artist’s interest in the industry is accompanied by immense stamina and determination. Analyzing the power imbalance in the music industry, one can be sure that with limited options to reach a wide demographic, the established record labels held a firm grip over which artists were exposed to mainstream audiences. Therefore, the industry created a state wherein business success was held with great worth, but at the same time, company success was hard for many to achieve.
Contrary to publishing exploration of music reasonably separately, the exploitation of musical compositions through the performance rights and licensing deals. To get their songs published, writers and composers usually had to rely on publishing companies as a platform for spreading their melodies to musicians, broadcasters, and other media outlets. Those businesses were the pioneers of music licensing arrangements.[4]. It was used for live performances or playbacks on the radio, as well as synchronizing music with visual media. Using performance royalties, they could obtain a payment for the play of their compositions in public settings and thus guarantee that they generated earnings beyond the sales of the compositions themselves.
While creators tended to prefer artistic expression, tribulations of commercial viability were promoters’ concern amid the industry’s symbiotic balance between artists and music distributors. While artists needed more creative freedom and desired to get rightly recognized for their work, labels and distributing companies had a prominent role in boosting those artists’ reach and generating more capital.[5]. This partnership was a vivid beginning of this field, a linkage between the market and artistic fields in which works of art and commercial success were closely connected.
Finally, the competition between the recording and publishing sectors provided many different business models within the music industry, with a possible explanation.[6]. While the recording industry aimed to deliver audio recordings of performances, the vital part of publishing was the rights of the copyrights. This worker division would give way to specialty and excellence in different parts of the industry, again growing the music sector’s closet.
The music industry’s legal framework, which consists of copyrights and contracts, isn’t just an aspect but also a fundamental building block that protects the intellectual property of artists and composers. Copyright laws in the past usually put exclusive rights in the hands of creators of these music works, such as reproduction, distribution, and public performance.[7]. Such rights allow artists to regulate their music’s use and derive income from their talent through such a mechanism.
Nevertheless, the digital age has brought with it other issues that are now being considered by tiresome copyright laws. Amid the expansion of digital sources and online platforms, the distribution and exposure of music have become increasingly collateralized and generalized. File-sharing networks, survival services, and streaming platforms revolutionized the music-sharing process, blurring boundaries and creating legal issues regarding ownership and infringement of rights.[8]. Subsequently, copyright laws have had to evolve to support the media platforms in which these works are being delivered due to the struggle between the rights of makers and the interests of consumers and technology companies.
Directions to these complexities: the music contract industry is getting more intricate and complicated with the ever-changing ways of music in the digital landscape. The record labels, publishers, and artists must come to terms with comprehensive contracts that deal with commercial music, distribution, and making money in diverse situations and formats.[9]. Such agreements are the bare ground on which artists are assured of fair remuneration for their work, stating the share, revenue share, and licensing terms.
Beyond that, the evolution of digital technology has resulted in the fact that DRM (Digital Rights Management) and content provision have been included in musical contracts as essential items. Digital Rights Management (DRM) is employed to prevent the illegal reproduction and distribution of digital musical data files, which helps maintain the financial interests of these rights/ copyright holders in digital ecology. On the one hand, DRM has facilitated individuals around the globe access to copyrighted digital works.[10]. At the same time, it has raised arguments over consumer rights and access to digital content, underscoring the significance of incorporating copyright protection and technological innovations.
The Digital Revolution ushered in a seismic shift in the music industry, an upheaval that pertains to the music business’s existing revenue models and distribution channels. When the internet and digital technologies were introduced, music consumption changed from buying physical things to streaming online, which led to a radical (paradigm) shift in how music is made available and financially compensated.[11]. This move has been the access over the ownership type of service, where consumers prefer to opt for streaming subscription services like Spotify and Apple Music, where they can conveniently access an extensive music library for a monthly fee.
As the Digital Revolution changes reality, the main thing affected is the technology of calculating and sharing royalties. Royalties conventionally have been mainly tied to physical sales of albums and songs, with the performers and rights owners getting their percentage of what was made with each sale.[12]. Yet, from how royalties are generated in the digital age, as streaming counts now define royalties, creators and publishers are exposed to these new challenges and the opportunities of the increased number of streams and popular songs. Even though streaming platforms have the possibility of reaching a global audience and commercialization, they nevertheless fuel the controversy concerning the issue of artists’ compensation because the revenue per stream is meager compared to revenue per sale.
In addition, instead of narrowing the artist’s access to labels, the emergence of record streaming platforms has made it possible for artists to break the hurdles of gatekeepers in the industry and reach their audience directly. Moreover, the distribution processes have been democratized through digital platforms and social media. Hence, it means that now, independent artists have ample room for self-expression and decision-making without necessarily the record labels or publishers’ participation.[13]. Consequently, we have witnessed the evolution of non-mainstream music scenes and the diversity of musical genres and types from different artists, as the money-making aspirations of major label brands are no longer controlling artists.
So, while the Digital Revolution has opened up a whole new range of opportunities for indie artists, it has, in some aspects, also come with problems for industry players. Record labels and publishers should develop a viable approach to keep previously recorded music content profitable in such extensive competition.[14]. Furthermore, copyright breaches and digital theft have intensified in the digital age as the duplication and distribution of digital files have become easy among millions of individuals who can quickly click and share.
In contemporary music, bottom-up music production and dissemination have produced a new art of legal problems and perceptions, mainly copyright breach and fair disposal. Advanced digital tools have provided people with unlimited opportunities to record music and simultaneously share it via the internet for free.[15]. Therefore, the authenticity and copyright issues have become unclearer and unclearer. It is also the source of increased incidents of copyright infringements when people not only illegally but also intentionally use material with appropriate copyright protection.
Besides that, the cross-jurisdictional character of the net entails further difficulty in replying to copyright laws separately. As tunes are transferred and used worldwide, jurisdictional issues and copyright input across borders are being raised. Different approaches to interpretation generate problems when it comes to copyright laws.[16]. This platform poses difficulties for intellectual property rights holders in safeguarding their assets in a global world where boundaries are no longer an issue.
Digital data creates much less distorted analog copy; instead, the opposite argument has emerged concerning copyright terms and agreements. The old distribution and licensing models of music, and the ones applied in the digital age, may no longer fit. Hence, new strategies and agreements can be created that can be conveniently used while adopting technology while protecting creators’ copyrights.[17]. For example, streaming services like Spotify and YouTube incorporate agreements with rights holders into their systems to guarantee that recording artists are compensated for their work while meeting the needs of consumers and platform workers.
To this end, the music industry’s stakeholders seek ways to creatively and legally protect intellectual property rights so that the artists get adequate compensation and sustain this ecosystem. It may rest on using technological tools like Digital Rights Management (DRM) Systems to stop the unauthorized copying and top distribution of music.[18]. Another important one is the work of industry associations and policymakers to make changes in copyright laws and international treaties to address the problems of digital distribution and consumption that are occurring worldwide.
While the music industry today struggles with various legal issues and implications involving the democratization of music production and distribution, it still manages to overcome the electronic. With a focus on visionary planning and shared efforts, the participants can proactively build a legal machinery characterized by the desire to promote the right holders, creators, and consumers in the new digital era.
Technological development and the dominance of the internet in the modern music scene must be addressed since they have changed how music is shared, created, and marketed. Technological innovation has had at least one significant effect: it has made the phenomenon of democratization, thus enabling up-and-coming musicians to produce good-quality music utilizing inexpensive instruments and software.[19]. The increase in production software development has become the basis for small-scale studios where individual artists can educate themselves about sound and structure their music aesthetic.
Additionally, the virtual world has miraculously transformed the redistribution of music from physical sales to digital platforms like the web. Today, services such as Spotify are frequently played, and Apple Music and YouTube are the platforms that people most often use to listen to music.[20]. The range of songs to listen to can now be accessed at your fingertips. This model transformation has restructured revenue streams with simple payment and torn down the original distribution channels.
Social media platforms also have a lot of importance in promoting music among the general public and artists. Artists find the ability to connect with their fans in a personal and personalized way, sharing new music through their social media platforms like Instagram, Twitter, and TikTok and even building a hyper-loyal following.[21]. Social media allows artists to find their way to the audience and create their brand image, promoting the connection between a creator and a fan.
In addition, the internet has developed new forms of song appreciation engagement that surpass geographical limitations, resulting in global, web-based music groups of enthusiasts. Now, social media and online forums where there are streams of fan clubs allow fans to keep in touch with their favorite artists and other fans, which usually develops a sense of belonging to a group of people.[22]. As artists and fans are connected now well, the distinctions between creators and audience members have become increasingly blurred, and thereby, more active roles have been placed in the hands of the audience to shape the music industry.
In conclusion, nowadays, the music industry is a vivid and multi-layered ecosystem built on traditions, legal models, hi-tech inventions, and market economy laws. The key to dealing with disruptive digital is finding a way for stakeholders to collaborate in a collaborative environment. Change can best be faced with foresightedness and adaptability while encouraging creative entrepreneurship and fair participation in adjacent activities. While constantly aware that the music business includes different aspects, it must be ready to face a dynamic environment and thus continue to prosper, filling our life with music and being a tool for better sacrificing.
Crews, Kenneth D. 2020. Copyright Law for Librarians and Educators: Creative Strategies and Practical Solutions. Google Books. American Library Association. https://books.google.com/books?hl=en&lr=&id=usXGEAAAQBAJ&oi=fnd&pg=PP1&dq=Global+Solutions+to+Prevent+Copyright+Infringement+of+Music&ots=o3_bX6j20w&sig=Lrnv1U-9KFIKL8A1wm_2tTvXPJc.
Cross, Ian. 2023. “Music in the Digital Age: Commodity, Community, Communion.” AI & SOCIETY, April. https://doi.org/10.1007/s00146-023-01670-9.
Dolata, Ulrich. 2020. “A Service of Zbw the Digital Transformation of the Music Industry. The Second Decade: From Download to Streaming.” https://www.econstor.eu/bitstream/10419/225509/1/1737439786.pdf.
Etefe, Juliet. 2022. “Fostering the Artist-Fan Relationship in the Digital World.” The Business & Financial Times. October 30, 2022. https://thebftonline.com/2022/10/30/fostering-the-artist-fan-relationship-in-the-digital-world/.
Frenneaux, Richard. 2023. “The Rise of Independent Artists and the Paradox of Democratisation in the Digital Age: Challenges Faced by Music Artists in the New Music Industry.” DIY, Alternative Cultures & Society 1 (2): 275387022311742. https://doi.org/10.1177/27538702231174200.
Geurts, Amber, and Katharina Cepa. 2023. “Transforming the Music Industry: How Platformization Drives Business Ecosystem Envelopment.” Long Range Planning 56 (4): 102327. https://doi.org/10.1016/j.lrp.2023.102327.
Group, Planetary. 2024. “Why Understanding the Business Side of the Music Industry Is Key to Success as a Musician.” Planetary Group. January 16, 2024. https://www.planetarygroup.com/why-understanding-the-business-side-of-the-music-industry-is-key-to-success-as-a-musician/.
Guo, Yiqian. 2023. “The Comeback of the Medium: The History and Contemporary Revival of the Vinyl Record Industry.” Edited by J. Hj Ahmad and J. Guo. SHS Web of Conferences 155 (02015): 02015. https://doi.org/10.1051/shsconf/202315502015.
Gürfidan, Remzi, and Mevlüt Ersoy. 2021. “Blockchain-Based Music Wallet for Copyright Protection in Audio Files.” Journal of Computer Science & Technology vol. 21, no. 1 (April). https://sedici.unlp.edu.ar/handle/10915/118060.
Handke, Christian. 2020. “Music Industry.” Www.elgaronline.com. Edward Elgar Publishing. March 16, 2020. https://www.elgaronline.com/abstract/edcoll/9781788975797/9781788975797.00046.xml .
Jacoby, Elan. 2023. “Reshaping Music Royalties: Technology and the Quest for Equitable Compensation.” Rolling Stone. April 14, 2023. https://www.rollingstone.com/culture-council/articles/reshaping-music-royalties-technology-and-quest-for-equitable-compensation-1234714400/.
Ji, Shulei, Jing Luo, and Xinyu Yang. 2020. “A Comprehensive Survey on Deep Music Generation: Multi-Level Representations, Algorithms, Evaluations, and Future Directions.” ArXiv:2011.06801 [Cs, Eess], November. https://arxiv.org/abs/2011.06801.
Lee, Jin Woo, and Soo Hee Lee. 2022. “The Legitimation of Young and Emerging Artists in Digital Platforms: The Case of Saatchi Art.” The Journal of Arts Management, Law, and Society, June 1–23. https://doi.org/10.1080/10632921.2022.2080136.
Li, Yanghuan, Jinhui Wei, Junbin Yuan, Qingzhen Xu, and Chengying He. 2021. “A Decentralized Music Copyright Operation Management System Based on Blockchain Technology.” Procedia Computer Science 187: 458–63. https://doi.org/10.1016/j.procs.2021.04.084.
MUSICIANS INSTITUTE. 2021. “Social Media’s Critical Role in the Music Industry | Musician’s Institute.” Musicians Institute Hollywood. April 14, 2021. https://www.mi.edu/in-the-know/social-medias-critical-role-music-industry/.
Pastukhov, Dmitry. 2020. “Soundcharts | Market Intelligence for the Music Industry.” Soundcharts.com. February 10, 2020. https://soundcharts.com/blog/music-copyrights.
Stanimirovic, Uros. 2023. “A Publishers Guide to DRM: What Is DRM, How It Works, and When Publishers Need It.” Target Video. April 11, 2023. https://target-video.com/what-is-drm/.
Stein, Tom. 2021. “How Music Publishing Works with ASCAP & BMI to Get Artists Paid.” Music Careers | Expert Advice – Careers in Music. May 27, 2021. https://www.careersinmusic.com/music-publishing/.
Yellowbrick. 2023. “Mastering Music Rights Management.” Yellowbrick Marketing. August 8, 2023. https://www.yellowbrick.co/blog/music/mastering-music-rights-management.
Youmans, Sam. 2022. “Scholarly Commons @ Ouachita Scholarly Commons @ Ouachita Grasping the Intangible: The Perseverance of Physical Music Grasping the Intangible: The Perseverance of Physical Music Media in a Digital World Media in a Digital World.” https://scholarlycommons.obu.edu/cgi/viewcontent.cgi?article=1844&context=honors_theses.
[1] Dolata, Ulrich. 2020. “A Service of Zbw the Digital Transformation of the Music Industry. The Second Decade: From Download to Streaming.” https://www.econstor.eu/bitstream/10419/225509/1/1737439786.pdf.
[2] Geurts, Amber, and Katharina Cepa. 2023. “Transforming the Music Industry: How Platformization Drives Business Ecosystem Envelopment.” Long Range Planning 56 (4): 102327. https://doi.org/10.1016/j.lrp.2023.102327.
[3] Guo, Yiqian. 2023. “The Comeback of the Medium: The History and Contemporary Revival of the Vinyl Record Industry.” Edited by J. Hj Ahmad and J. Guo. SHS Web of Conferences 155 (02015): 02015. https://doi.org/10.1051/shsconf/202315502015.
[4] Stein, Tom. 2021. “How Music Publishing Works with ASCAP & BMI to Get Artists Paid.” Music Careers | Expert Advice – Careers in Music. May 27, 2021. https://www.careersinmusic.com/music-publishing/.
[5] Ji, Shulei, Jing Luo, and Xinyu Yang. 2020. “A Comprehensive Survey on Deep Music Generation: Multi-Level Representations, Algorithms, Evaluations, and Future Directions.” ArXiv:2011.06801 [Cs, Eess], November. https://arxiv.org/abs/2011.06801.
[6] Handke, Christian. 2020. “Music Industry.” Www.elgaronline.com. Edward Elgar Publishing. March 16, 2020. https://www.elgaronline.com/abstract/edcoll/9781788975797/9781788975797.00046.xml .
[7] Pastukhov, Dmitry. 2020. “Soundcharts | Market Intelligence for the Music Industry.” Soundcharts.com. February 10, 2020. https://soundcharts.com/blog/music-copyrights.
[8] Gürfidan, Remzi, and Mevlüt Ersoy. 2021. “Blockchain-Based Music Wallet for Copyright Protection in Audio Files.” Journal of Computer Science & Technology vol. 21, no. 1 (April). https://sedici.unlp.edu.ar/handle/10915/118060.
[9] Group, Planetary. 2024. “Why Understanding the Business Side of the Music Industry Is Key to Success as a Musician.” Planetary Group. January 16, 2024. https://www.planetarygroup.com/why-understanding-the-business-side-of-the-music-industry-is-key-to-success-as-a-musician/.
[10] Stanimirovic, Uros. 2023. “A Publishers Guide to DRM: What Is DRM, How It Works, and When Publishers Need It.” Target Video. April 11, 2023. https://target-video.com/what-is-drm/.
[11] Dolata, Ulrich. 2020. “A Service of Zbw the Digital Transformation of the Music Industry. The Second Decade: From Download to Streaming.” https://www.econstor.eu/bitstream/10419/225509/1/1737439786.pdf.
[12] Jacoby, Elan. 2023. “Reshaping Music Royalties: Technology and the Quest for Equitable Compensation.” Rolling Stone. April 14, 2023. https://www.rollingstone.com/culture-council/articles/reshaping-music-royalties-technology-and-quest-for-equitable-compensation-1234714400/.
[13] Lee, Jin Woo, and Soo Hee Lee. 2022. “The Legitimation of Young and Emerging Artists in Digital Platforms: The Case of Saatchi Art.” The Journal of Arts Management, Law, and Society, June 1–23. https://doi.org/10.1080/10632921.2022.2080136.
[14] Frenneaux, Richard. 2023. “The Rise of Independent Artists and the Paradox of Democratisation in the Digital Age: Challenges Faced by Music Artists in the New Music Industry.” DIY, Alternative Cultures & Society 1 (2): 275387022311742. https://doi.org/10.1177/27538702231174200.
[15] Li, Yanghuan, Jinhui Wei, Junbin Yuan, Qingzhen Xu, and Chengying He. 2021. “A Decentralized Music Copyright Operation Management System Based on Blockchain Technology.” Procedia Computer Science 187: 458–63. https://doi.org/10.1016/j.procs.2021.04.084.
[16] Crews, Kenneth D. 2020. Copyright Law for Librarians and Educators: Creative Strategies and Practical Solutions. Google Books. American Library Association. https://books.google.com/books?hl=en&lr=&id=usXGEAAAQBAJ&oi=fnd&pg=PP1&dq=Global+Solutions+to+Prevent+Copyright+Infringement+of+Music&ots=o3_bX6j20w&sig=Lrnv1U-9KFIKL8A1wm_2tTvXPJc.
[17] Cross, Ian. 2023. “Music in the Digital Age: Commodity, Community, Communion.” AI & SOCIETY, April. https://doi.org/10.1007/s00146-023-01670-9.
[18] Yellowbrick. 2023. “Mastering Music Rights Management.” Yellowbrick Marketing. August 8, 2023. https://www.yellowbrick.co/blog/music/mastering-music-rights-management.
[19] Geurts, Amber, and Katharina Cepa. 2023. “Transforming the Music Industry: How Platformization Drives Business Ecosystem Envelopment.” Long Range Planning 56 (4): 102327. https://doi.org/10.1016/j.lrp.2023.102327.
[20] Youmans, Sam. 2022. “Scholarly Commons @ Ouachita Scholarly Commons @ Ouachita Grasping the Intangible: The Perseverance of Physical Music Grasping the Intangible: The Perseverance of Physical Music Media in a Digital World Media in a Digital World.” https://scholarlycommons.obu.edu/cgi/viewcontent.cgi?article=1844&context=honors_theses.
[21] MUSICIANS INSTITUTE. 2021. “Social Media’s Critical Role in the Music Industry | Musician’s Institute.” Musicians Institute Hollywood. April 14, 2021. https://www.mi.edu/in-the-know/social-medias-critical-role-music-industry/.
[22] Etefe, Juliet. 2022. “Fostering the Artist-Fan Relationship in the Digital World.” The Business & Financial Times. October 30, 2022. https://thebftonline.com/2022/10/30/fostering-the-artist-fan-relationship-in-the-digital-world/.