The online revolution has proved as damaging to independent labels as to multinational companies. How far do you agree?
Independent labels such as Domino's target a smaller target audience whilst Multinational companies such as UMG target a larger audience due to the artists signed and available funding.
The online revolution has effected both kinds of labels for a variety of reasons, for example alot of music is now available on the internet which may have a positive effect for independent labels because therefore artists signed to their label will become more recognised within the music industry, which will then infact increase sales revenue, thus creating a good name for the independent labels.
Whereas the online revolution has a negative effect for multinational companies, for example UMG, A subsisdairy, meaning they own alot of different independent labels and the fact that music is now available online for free due to file sharing websites, e.g Napster, this has enabled the target audience to listen and download the songs from the artists signed to multinational companies with ease. Thus, decreasing album sales revenue.
The online revolution has helped promote and expand the target audience of many artists, for example the Artic Monkeys. They used social networking sites like YouTube to promote their music and they also set up their own website where fans could keep update with new material. They later realeased an album with Domino's, going straight to no1, putting Domino's on the map.
Illegal downloading has helped promote artists, giving their target audience the freedom to choose if they purchase the song or not because if the target audience listen to a song they do not like, they will not purchase it.
Illegal downloading has also decreased the sales revenue of record companies due to the fact that the target audience does not need to purchase their songs because they have downloading the song for free.
Multinational companies have other revenue streams in order to increase profits, for example a world tour, enabling artists music in films.
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