The Breakdown of the Physical Music Distribution System BY Manama The breakdown of the physical music distribution system Over the last 15 to 20 years, the most significant events taking place in the music industry that led to the breakdown of the physical music distribution system are summarized In the table at Appendix 1 . 1 More detail of the breakdown The music industry has seen unprecedented change during the last 15 to 20 years. Initially the pop music business exploded In numerous directions.

So many different and new innovative distribution channels opened up, such as compact CICS, video and music channels like MET. A record year for record sales was experienced in the mid offs_ The biggest percentage gain since 1920 occurred and industry revenues skyrocketed 20%. In 1 994, $12 billion was the worth of yearly shipments of music videos and pre-recorded music. Only three years later in 1997, a smaller retail foundation and the expansion of particular market movement, consisting of record clubs, mall order, and non-music retailers, endangered the industry.

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A 6. 5% decrease in the U. S. In overall net shipments was reported compared with 1996. The response was at the retail level with record companies introducing tougher inventory controls, so products were delivered much faster for onward sale to customers. That said, the consequences of these advances have been somewhat minor in relation to the impacts on the music industry compared to the evolutions in technologies which started a decade or so ago and are still evolving today. Music is made available free on the internet The creation of MPH (a program which reduces the size of digital audio files Into a compressed format,) greatly enhanced and expanded the distribution of music files n the internet due to the fact that they are easier to spread as their smaller size makes them quicker and easier to store. Earlier formats needed specific sound reproduction equipment to allow the consumer to listen to the music however with MPH you do not.

New developments in computer technology and, on the face of it, free distribution of music via ;peer-to-peer (POP) systems such as Anapest and its descendents made threats to demolish this trade, or at the very least upset Its existing Income model. Downloaded music files could be stored on a computer’s hard drive or transferred to another device such as a portable MPH player (e. G. An pod). These files could then, of 1 OFF music industry over subsequent years was enormous.

For example, the total music sales in the U. S. Was $6. 3 billion in 2009, a figure that was over double that at $14. 6 billion ten years previously. As a result the music industry had to adapt the way music is marketed in order to create the opportunity for the consumer to purchase music in a method no more difficult or unappealing than downloading it directly from the internet. Appendix 1 I YEAR 11990- digital cassette.