Therefore record labels can consider acquiring

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Therefore, record labels can consider acquiring artistes management firms or set up an artiste management arm of their own to obtain a share of the pie. However, this path does have its potential pitfalls.
Technology in a Changing World Shahi & Pang (Editors) -27- Potential Pitfalls The first pitfall is the difficulty record labels will face in acquiring artiste management firms. Today, many management firms are coping well, with new ones springing up from time to time. Seeing the bright prospect of the business in the future, shareholders are unlikely to sell the firm to the record labels without a huge premium. Secondly, there might be a conflict of interest between record labels and recording artistes if the recording artistes are managed and have their songs distributed by the same record label. For example, some recording artistes may want to expand their career into acting or movie making. However, record labels would incur an opportunity cost if the liberty to expand into other businesses is given to the recording artistes. That is one reason why most recording artistes would likely be unwilling to be managed and have their productions distributed by the same record label. The Business of Concerts Another move for record labels could be to expand their scope into the business of organizing concerts. While CD sales have been decreasing, attendance to live music concerts have been increasing (Meyer, 2006). As the trend goes, concert earnings make up the largest percentage of the total earnings of top recording artistes. Therefore, it might be feasible that record labels move in that direction to diversify their sources of income. Some Steps Taken However, given the direction that the record labels are moving, it seems they are trying to protect the old framework of producing and distributing music to the consumers. As music piracy increased, record labels tried re-privatize songs using DRM technology (Roughlydrafted, 2007). It was a technology incorporated into music CDs that prevent consumers from copying music from the CD to computers and other music players. Songs could only be played on the CD player. Consumers‘ rights to play the music they bought on computers and music players restricted. This did not result in a reduction in music piracy. Instead, consumers who insisted on buying music CDs were punished for supporting the music CD format. As a result, the temptation to obtain music for free and play using the computer and music players becomes greater. Even though DRM was
Technology in a Changing World Shahi & Pang (Editors) -28- eventually abolished in 2007 (Marechel, 2007), it had already done much more damage than good in relation to the piracy problem. Conclusion Advances in technology helped create the music industry of the 20 th century. As technology continued to redefine the industry by churning out new gadgets and creations such as the cassette, the CD, MP3 player and other new digital technologies, the enjoyment of high quality music becomes easier, more convenient and cheaper. Technology has made listening to good music a

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