Afraid of Technology?
Major label response to advancements in digital technology
DOI:
https://doi.org/10.1558/pomh.v3i2.149Keywords:
Recording industry, MP3's, Peer-to-peer networksAbstract
Advancements in media technologies have had a profound impact on the production and distribution of recorded music. Digital audio editing technology such as Pro-tools and Audicy have allowed for cheaper and faster production of recorded music. The distribution of music has also been impacted by technological advancements (MP3’s and Peer-to-peer networks) which allow for faster and cheaper distribution of recorded material via the Internet. While these technologies were seen as an avenue to revolutionize the production and distribution of recorded music, recording industry stalwarts (consolidated major labels) were less then enthusiastic about the advancements. The major labels were concerned about the possible economic implications of the change on their business models. This study examines the response of the consolidated major labels to the new technological improvements via the ‘Stages in Media Institution Responses to New Technologies,’ posited by Napoli (1998). The model notes that there are four distinct institutional responses to technological advancements: complacency, resistance, differentiation and diversification. The results of the paper highlight the response of the major labels as they moved through each stage of the model and the impact of their response on labels, artists and the consumers of popular music.
References
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Chang, S. 2004. ‘Record Companies Must Embrace Changing Digital Era’. Billboard (March 6): 42, 46.
Christman, E. 2001. ‘Labels Laud Internet: Analysts Ask, “Who’s Minding the Store?” ’ Billboard (December 1): 1, 86.
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Cooper, J., and Harrison, D.M. 2001. ‘The Social Organization of Audio Piracy on the Internet’. Media, Culture & Society 23/1: 71–89. doi:10.1177/016344301023001004
Dahl, E. 2003. ‘Online Music: New Hits and Misses’. PC World (September): 119–24.
Dane, C., and Laing, D. 1998. ‘The UK Music Industry: Some Recent Developments’. Cultural Trends 31/1: 3–23.
Das, S. 2000. ‘The Availability of the Fair Use Defense in Music Piracy and Internet’. Federal Communication Law Journal 52/3: 727–48.
Delaney, E. M., Goldstein, C. E., Gutterman, J., and Wagner, S. N. 2003. ‘Recording Industry Responds to Congressional Inquiry Regarding Campaign to Target Individual Copyrighted Infringers’. Intellectual Property & Technology Law Journal 15/11: 15.
Dritsas, D. 2000. ‘The Three Ring Circus of MP3, CE and SDMI’. Dealerscope 42: 12–15.
Droney, M. 2003. ‘Getting Noticed’. Mix (May): 106–10.
Dunmore, T. 2000. ‘Can Net Music Help Sell Your Products?’ Marketing (September 14): 39–40.
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Fitchard, K. 2004. ‘Verizon Gains Upper Hand in RIAA Subpoena Ruling’. Telephony (January 12): 14–15.
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Fox, M. 2004. ‘E-commerce Business Models for the Music Industry’. Popular Music and Society 27/2: 201–20. doi:10.1080/03007760410001685831
Fox, P. 2003. ‘RIAA Stance Sounds Off-Key’. Computerworld (September 22): 22.
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Gallaway, T., and Kinnear, D. 2001. ‘Unchained Melody: A Price Discrimination-based Policy Proposal for Addressing the MP3 Revolution’. Journal of Economic Issues 35/2: 279–88.
Garcia, B. E. 2004. ‘Ring Tone Songs Sound Like Cash Register’. The Star Ledger (March 14): 8.
Garrity, B. 2001. ‘Distant Profits or “Pipe Dreams”?’ Billboard (November 24): 1, 89.
—2002. ‘The Piracy War Wages on with New Emerging Strategies’. Billboard (July 13): 71–6.
—2004a. ‘Coming of Age: The Legitimate Online Music Market Grows Up’. Billboard (April 17): 43, 50.
—2004b. ‘What a Digital Year That Was!’ Billboard (April 17): 44, 50.
Garrity, B., and Christman, E. 2002. ‘NARM Debates Burning Issues’. Billboard (March 23): 1, 78.
Gomery, D. 1989. ‘Media Economics: Terms of Analysis’. In The Political Economy of the Media, eds P. Golding and M. Graham, 33–50. Brookfield, VT: Edward Elgar Publishing Company.
Gomes, L. 2000. ‘Napster Strikes Out “Fair Use” Defense of Music Sharing’. The Wall Street Journal (July 5): B2.
Gray, J. 2000. ‘Silence is Golden: The Record Industry Sees Big Bucks in Controlling the Net’. Canadian Business (November 27): 125–6.
Graziano, M., and Raine, L. 2001. ‘The Music Downloading Deluge’. Pew Internet & American Life Project 8 (April 24): 1–8.
Grimm, M. 2003. ‘…’Bout your g-g-generation’. American Demographics (September): 38–41.
Harmon, A., and Schwartz, J. 2003. ‘The Problem with Sharing’. The New York Times Upfront (November 17): 18–20.
Hickey, N. 2001. ‘Enter CNN’. Columbia Journalism Review 40/4: 88–9.
Hill, R. 2000. ‘Pirates of the 21st Century: The Threat and Promise of Digital Audio Technology on the Internet’. Santa Clara Computer and High Technology Law Journal 16: 311–43.
Holland, B. 2003. ‘RIAA: Amnesty Nets Calls’. Billboard (September 20): 1, 78.
Ihnatko, A. 2003. ‘High Fidelity’. Macworld (September 23): 85.
Jackson, B. 2003a. ‘Surround Salvation’. Mix (May): 56–68.
—2003b. ‘A Fine Mess’. Mix (May): 34–41.
Jones, S. 1992. Rock Formation: Music, Technology, and Mass Communication. Newbury Park, CA: Sage Publications.
Kretschmer, M., Klimis, G. M., and Wallis, R. 2001. ‘Music in Electronic Markets’. New Media & Society 3: 417–41.
Kusek, D., and Leonhard, G. 2005. The Future of Music: Manifesto for the Digital Music Revolution. Boston: Berklee Press.
Kushner, D. 2002. ‘Digital Entertainment Post-Napster’. Technology Review (November): 57–60.
Lam, C. K. M., and Tan, B. C. Y. 2001. ‘The Internet is Changing the Music Industry’. Association for Computing Machinery 44: 62–9.
Leonard, D. 2001. ‘The Music Men are Out of Tune’. Fortune 143/12: 144–8.
—2003. ‘Facing the Music’. Fortune 147/6: 91–7.
Leyshon, A., Webb, P., French, S., Thrift, N., and Crewe, L. 2005. ‘On the Reproduction of the Musical Economy after the Internet’. Media, Culture & Society 27/2: 177–209. doi:10.1177/0163443705050468
Lightman, A. 2000. ‘The Extinction of Profit’. Internet World (September 1): 70.
Lunseth, J. B. 2001. ‘E-Commerce Disputes: Legislation and Litigation are the Brave New World’. Defense Counsel Journal 68: 280–99.
MacArthur, K., and Cuneo, A. Z. 2004. ‘McD’s Pact Tunes on Menu’. Advertising Age 75/11: 1–2.
Marshall, L. 2004. ‘The Efects of Piracy Upon the Music Industry: A Case Study of Bootlegging’. Media, Culture & Society 26/2: 163–81.
Mathews, A. W. 2000. ‘Can the Record Industry Beat Free Web Music? Industry’s Public Relations Blitz Includes Pop Stars, Speeches, Appeals to “Good Citizenship”’. The Wall Street Journal (June 20): B1.
McCourt, T., and Burkhart, P. 2003. ‘When Creators, Corporations and Consumers Collide: Napster and the Development of On-line Music Distribution’. Media, Culture & Society 25: 333–50. doi:10.1177/0163443703025003003
Moglen, E. 2003. ‘Pay Artists, Not “Owners” ’. The Nation (October 27): 31–2.
Napoli, P. M. 1998. ‘Evolutionary Theories of Media Institutions and their Responses to New Technologies’. In Communication Theory: A Reader, ed. L. C. Lederman, 317–29. Dubuque, IA: Kendall/Hunt Publishing.
Oppelaar, J. 2002. ‘Same Old Broken Record?’ Variety (October 7-13): 98.
Phillips, W. 2002. ‘Music and New Technology: Making Music in the Digital Age’. In R&B Rhythm and Business: The Political Economy of Black Music, ed. N. Kelley, 302–318. New York: Akashic Books.
Rhode, L., Ferranti, M., and Costello, S. 2000. ‘The E-music Trap’. Infoworld 22/34: 24–6.
Shapiro, E. 1999. ‘Online: Race is on to Foil E-music Pirates’. The Wall Street Journal (January 22): B1.
Sherman, C. 2001. ‘Music on the Internet’. The Brookings Review 19/1: 35–8.
Shorto, R. 2004. ‘The Industry Standard’. The New York Times Magazine (October 3): 50–58.
Smith, E. 2004a. ‘Music Companies to Launch Format with CD, DVD’. The Wall Street Journal (August 25): B7.
—2004b. ‘Music Industry Struggles to Get Cell Phone’s Number’. The Wall Street Journal (September 14): A12.
Smith, F. L., Wright II, J. W., and Ostroff, D. H. 1998. Perspectives on Radio and Television. 4th ed. Mahwah, NJ: Lawrence Erlbaum Associates.
Snider, M. 2004. ‘The Online Battle over Copyright’. MacLean’s (January 12): 22–3.
Sterling, C. H., and Kittross, J. M. 2002. Stay Tuned: A History of American Broadcasting. Mahwah, NJ: Lawrence Erlbaum Associates.
Strauss, N. 1999. ‘A Chance to Break the Pop Stranglehold’. The New York Times (May 9): 1, 51.
Sullivan, J. 2000. ‘Cracking the Code Musically’. The New York Times (November 5): 6.
Sylva, J. B. 2000. ‘Symposium: Legal and Business Issues in the Digital Distribution of Music. Digital Delivery and Distribution of Music and Other Media’. Loyola of Los Angeles Entertainment Law Journal 20/2: 218–41.
Tapper, J. 2002. ‘Up with Downloads’. New York Times Magazine (July 28): 13.
Taylor, C. 2003. ‘Downloader Dragnet’. Time 162/5: 42.
Toney, J.T. 1999. ‘You’ve Got Mud on your Face: Have MP3s Turned the Middleman into Road Kill?’ Hastings Communications and Entertainment Law Journal 22: 127–52.
Veverka, M. 2002. ‘Plugged in: Music Industry Disses Customer’s Digital Desires’. Barron’s 82/15: T3.
Vickers, G. 2000. ‘The New Music Men’. Management Today (June): S6–S10.
Wade, J. 2004. ‘The Music Industry’s War on Piracy’. Risk Management Magazine (February): 11–15.
Walker, R. 2000. ‘Between a Rock and a Hard Drive’. The New York Times Magazine (April 23): 75–7.
Wigfield, M. 2003. ‘Probe of Web Music Ventures Ends’. The Wall Street Journal (December 24): B4.
Wolf, M. J. 2003. ‘In the Fray: The Music Industry is Getting its Act Together at Last’. The Wall Street Journal (November 11): D8.
Zatorski, D. 2004. ‘Download This’. USA Weekend (September 10-12): 14.
Alexander, P. J. 2002. ‘Peer-to-Peer File Sharing: The Case of the Music Recording Industry’. Review of Industrial Organization 20/2: 151–61. doi:10.1023/A:1013819218792
Amicone, M. 2004. ‘Apple Took Big Bite out of the Market’. Billboard (April 17): 44.
Anonymous. 2004. ‘Report Gives Hopeful Signs for Legal Music Downloads.’ New Media Age (January 29): 16.
Benz, M. 2002a. ‘Losses Mount for Music Industry’s Digital Services’. Billboard (April 6): 1, 85.
—2002b. ‘Skepticism over Music Subscriptions’. Billboard (June 22): 1, 80.
Berenson, A., and Richtel, M. 2000. ‘Heartbreakers, Dream Makers: Despite Digital Upstarts, Big Labels Still Rule the Music Industry’. The New York Times (June 25): 1, 6.
Brull, S. V. 2000. ‘The Record Industry Can’t Stop the Music’. Business Week (May 15): 50.
Callmann, R. 1942. ‘He Who Reaps Where He Has Not Sown: Unjust Enrichment in the Law of Unfair Competition’. Harvard Law Review 55/4: 595–614. doi:10.2307/1334825
Castelluccio, M. 2001. ‘Intellectual Property Online—a Landmark Case: Will the Copyright Survive Cyberspace?’ Strategic Finance (February): 52–7.
Caulfield, B. 2000. ‘Internet Technology: Peer-to-Peer Searching for Something New’. Internet World (November 1): 69–74.
Chang, S. 2004. ‘Record Companies Must Embrace Changing Digital Era’. Billboard (March 6): 42, 46.
Christman, E. 2001. ‘Labels Laud Internet: Analysts Ask, “Who’s Minding the Store?” ’ Billboard (December 1): 1, 86.
Ciletti, E. 2003. ‘Maintenance and the Music Business’. Mix (May): 86–90.
Clark, D., and Mathews, A. W. 2000. ‘Key Change: Napster Ruling Shifts Balance of Web Power Back to Music Industry’. The Wall Street Journal (July 28): A1.
Coleman, M. 2003. Playback: From the Victrola to MP3, 100 Years of Music, Machines, and Money. Cambridge, MA: Da Capo Press.
Compaine, B.M. 1979. Who Owns the Media? White Plains, NY: Knowledge Industry Publications.
Cooper, J., and Harrison, D.M. 2001. ‘The Social Organization of Audio Piracy on the Internet’. Media, Culture & Society 23/1: 71–89. doi:10.1177/016344301023001004
Dahl, E. 2003. ‘Online Music: New Hits and Misses’. PC World (September): 119–24.
Dane, C., and Laing, D. 1998. ‘The UK Music Industry: Some Recent Developments’. Cultural Trends 31/1: 3–23.
Das, S. 2000. ‘The Availability of the Fair Use Defense in Music Piracy and Internet’. Federal Communication Law Journal 52/3: 727–48.
Delaney, E. M., Goldstein, C. E., Gutterman, J., and Wagner, S. N. 2003. ‘Recording Industry Responds to Congressional Inquiry Regarding Campaign to Target Individual Copyrighted Infringers’. Intellectual Property & Technology Law Journal 15/11: 15.
Dritsas, D. 2000. ‘The Three Ring Circus of MP3, CE and SDMI’. Dealerscope 42: 12–15.
Droney, M. 2003. ‘Getting Noticed’. Mix (May): 106–10.
Dunmore, T. 2000. ‘Can Net Music Help Sell Your Products?’ Marketing (September 14): 39–40.
Eliot, M. 1989. Rockonomics. New York: Franklin Watts.
Fitchard, K. 2004. ‘Verizon Gains Upper Hand in RIAA Subpoena Ruling’. Telephony (January 12): 14–15.
Flynn, L. J. 2004. ‘The Cell Phone’s Next Makeover: Affordable Jukebox on the Move’. The New York Times (August 2): C4.
Fox, M. 2004. ‘E-commerce Business Models for the Music Industry’. Popular Music and Society 27/2: 201–20. doi:10.1080/03007760410001685831
Fox, P. 2003. ‘RIAA Stance Sounds Off-Key’. Computerworld (September 22): 22.
—2004. ‘The Day the Music Store Died’. Computerworld (May 24): 16–17.
Frith, S. 1987. ‘The Industrialization of Popular Music’. In Popular Music and Communication, ed. J. Lull, 53–77. Newbury Park, CA: Sage Publications.
—1988. ‘Copyright and the Music Business’. Popular Music 7/1: 57–75. doi:10.1017/S026 1143000002531
Gallaway, T., and Kinnear, D. 2001. ‘Unchained Melody: A Price Discrimination-based Policy Proposal for Addressing the MP3 Revolution’. Journal of Economic Issues 35/2: 279–88.
Garcia, B. E. 2004. ‘Ring Tone Songs Sound Like Cash Register’. The Star Ledger (March 14): 8.
Garrity, B. 2001. ‘Distant Profits or “Pipe Dreams”?’ Billboard (November 24): 1, 89.
—2002. ‘The Piracy War Wages on with New Emerging Strategies’. Billboard (July 13): 71–6.
—2004a. ‘Coming of Age: The Legitimate Online Music Market Grows Up’. Billboard (April 17): 43, 50.
—2004b. ‘What a Digital Year That Was!’ Billboard (April 17): 44, 50.
Garrity, B., and Christman, E. 2002. ‘NARM Debates Burning Issues’. Billboard (March 23): 1, 78.
Gomery, D. 1989. ‘Media Economics: Terms of Analysis’. In The Political Economy of the Media, eds P. Golding and M. Graham, 33–50. Brookfield, VT: Edward Elgar Publishing Company.
Gomes, L. 2000. ‘Napster Strikes Out “Fair Use” Defense of Music Sharing’. The Wall Street Journal (July 5): B2.
Gray, J. 2000. ‘Silence is Golden: The Record Industry Sees Big Bucks in Controlling the Net’. Canadian Business (November 27): 125–6.
Graziano, M., and Raine, L. 2001. ‘The Music Downloading Deluge’. Pew Internet & American Life Project 8 (April 24): 1–8.
Grimm, M. 2003. ‘…’Bout your g-g-generation’. American Demographics (September): 38–41.
Harmon, A., and Schwartz, J. 2003. ‘The Problem with Sharing’. The New York Times Upfront (November 17): 18–20.
Hickey, N. 2001. ‘Enter CNN’. Columbia Journalism Review 40/4: 88–9.
Hill, R. 2000. ‘Pirates of the 21st Century: The Threat and Promise of Digital Audio Technology on the Internet’. Santa Clara Computer and High Technology Law Journal 16: 311–43.
Holland, B. 2003. ‘RIAA: Amnesty Nets Calls’. Billboard (September 20): 1, 78.
Ihnatko, A. 2003. ‘High Fidelity’. Macworld (September 23): 85.
Jackson, B. 2003a. ‘Surround Salvation’. Mix (May): 56–68.
—2003b. ‘A Fine Mess’. Mix (May): 34–41.
Jones, S. 1992. Rock Formation: Music, Technology, and Mass Communication. Newbury Park, CA: Sage Publications.
Kretschmer, M., Klimis, G. M., and Wallis, R. 2001. ‘Music in Electronic Markets’. New Media & Society 3: 417–41.
Kusek, D., and Leonhard, G. 2005. The Future of Music: Manifesto for the Digital Music Revolution. Boston: Berklee Press.
Kushner, D. 2002. ‘Digital Entertainment Post-Napster’. Technology Review (November): 57–60.
Lam, C. K. M., and Tan, B. C. Y. 2001. ‘The Internet is Changing the Music Industry’. Association for Computing Machinery 44: 62–9.
Leonard, D. 2001. ‘The Music Men are Out of Tune’. Fortune 143/12: 144–8.
—2003. ‘Facing the Music’. Fortune 147/6: 91–7.
Leyshon, A., Webb, P., French, S., Thrift, N., and Crewe, L. 2005. ‘On the Reproduction of the Musical Economy after the Internet’. Media, Culture & Society 27/2: 177–209. doi:10.1177/0163443705050468
Lightman, A. 2000. ‘The Extinction of Profit’. Internet World (September 1): 70.
Lunseth, J. B. 2001. ‘E-Commerce Disputes: Legislation and Litigation are the Brave New World’. Defense Counsel Journal 68: 280–99.
MacArthur, K., and Cuneo, A. Z. 2004. ‘McD’s Pact Tunes on Menu’. Advertising Age 75/11: 1–2.
Marshall, L. 2004. ‘The Efects of Piracy Upon the Music Industry: A Case Study of Bootlegging’. Media, Culture & Society 26/2: 163–81.
Mathews, A. W. 2000. ‘Can the Record Industry Beat Free Web Music? Industry’s Public Relations Blitz Includes Pop Stars, Speeches, Appeals to “Good Citizenship”’. The Wall Street Journal (June 20): B1.
McCourt, T., and Burkhart, P. 2003. ‘When Creators, Corporations and Consumers Collide: Napster and the Development of On-line Music Distribution’. Media, Culture & Society 25: 333–50. doi:10.1177/0163443703025003003
Moglen, E. 2003. ‘Pay Artists, Not “Owners” ’. The Nation (October 27): 31–2.
Napoli, P. M. 1998. ‘Evolutionary Theories of Media Institutions and their Responses to New Technologies’. In Communication Theory: A Reader, ed. L. C. Lederman, 317–29. Dubuque, IA: Kendall/Hunt Publishing.
Oppelaar, J. 2002. ‘Same Old Broken Record?’ Variety (October 7-13): 98.
Phillips, W. 2002. ‘Music and New Technology: Making Music in the Digital Age’. In R&B Rhythm and Business: The Political Economy of Black Music, ed. N. Kelley, 302–318. New York: Akashic Books.
Rhode, L., Ferranti, M., and Costello, S. 2000. ‘The E-music Trap’. Infoworld 22/34: 24–6.
Shapiro, E. 1999. ‘Online: Race is on to Foil E-music Pirates’. The Wall Street Journal (January 22): B1.
Sherman, C. 2001. ‘Music on the Internet’. The Brookings Review 19/1: 35–8.
Shorto, R. 2004. ‘The Industry Standard’. The New York Times Magazine (October 3): 50–58.
Smith, E. 2004a. ‘Music Companies to Launch Format with CD, DVD’. The Wall Street Journal (August 25): B7.
—2004b. ‘Music Industry Struggles to Get Cell Phone’s Number’. The Wall Street Journal (September 14): A12.
Smith, F. L., Wright II, J. W., and Ostroff, D. H. 1998. Perspectives on Radio and Television. 4th ed. Mahwah, NJ: Lawrence Erlbaum Associates.
Snider, M. 2004. ‘The Online Battle over Copyright’. MacLean’s (January 12): 22–3.
Sterling, C. H., and Kittross, J. M. 2002. Stay Tuned: A History of American Broadcasting. Mahwah, NJ: Lawrence Erlbaum Associates.
Strauss, N. 1999. ‘A Chance to Break the Pop Stranglehold’. The New York Times (May 9): 1, 51.
Sullivan, J. 2000. ‘Cracking the Code Musically’. The New York Times (November 5): 6.
Sylva, J. B. 2000. ‘Symposium: Legal and Business Issues in the Digital Distribution of Music. Digital Delivery and Distribution of Music and Other Media’. Loyola of Los Angeles Entertainment Law Journal 20/2: 218–41.
Tapper, J. 2002. ‘Up with Downloads’. New York Times Magazine (July 28): 13.
Taylor, C. 2003. ‘Downloader Dragnet’. Time 162/5: 42.
Toney, J.T. 1999. ‘You’ve Got Mud on your Face: Have MP3s Turned the Middleman into Road Kill?’ Hastings Communications and Entertainment Law Journal 22: 127–52.
Veverka, M. 2002. ‘Plugged in: Music Industry Disses Customer’s Digital Desires’. Barron’s 82/15: T3.
Vickers, G. 2000. ‘The New Music Men’. Management Today (June): S6–S10.
Wade, J. 2004. ‘The Music Industry’s War on Piracy’. Risk Management Magazine (February): 11–15.
Walker, R. 2000. ‘Between a Rock and a Hard Drive’. The New York Times Magazine (April 23): 75–7.
Wigfield, M. 2003. ‘Probe of Web Music Ventures Ends’. The Wall Street Journal (December 24): B4.
Wolf, M. J. 2003. ‘In the Fray: The Music Industry is Getting its Act Together at Last’. The Wall Street Journal (November 11): D8.
Zatorski, D. 2004. ‘Download This’. USA Weekend (September 10-12): 14.
Published
2009-07-17
Issue
Section
Articles
How to Cite
Furgason, A. (2009). Afraid of Technology? Major label response to advancements in digital technology. Popular Music History, 3(2), 149-170. https://doi.org/10.1558/pomh.v3i2.149
