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The Impact of Online Streaming on the Music Industry and U.S. Copyright Law

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Introduction

Streaming is defined as communicating information or delivering content in form of audio or video through mobile devices or computers. When streaming music, an individual listen to songs in real time rather than downloading or storing the songs or file for usage in the future. Music industry has undergone major changes during 1990.This period was introduced and driven progressive by a new set of technologies such as digitalization, data compression and the Internet. The first free online music was launched or introduced by Internet Underground Music Archive. This organisation has provided unsigned musicians an opportunity to share music, communicate with directly with audience, and distribute their music to people who are interested in listening to their songs. Pradio is the music company which has introduced a rebranding effort for Music Genome Project with the purpose of utilising algorithms and a complex song sorting program to develop individualised radio stations based on listener's preferences.

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The purpose of the report is to analyse the effect of online streaming on music industry. Project also have focus on identifying the influence of online streaming on U.S copyright law.

Main Body

Analysing the way music streaming has changed the music industry business

Music streaming has changed the way people listen to content or song. The music streaming commercial enterprise has speedily become a fundamental portion of the larger music industry. Many professional in film industry perceives that streaming as the necessary future of recorded music.The music industry is always been criticised, continue to grow with the support of artists those who felt manipulated by record labels who wanted more control of artists. In January 2008, online music store was introduced by the Bandcamp, which has provided smaller as well as independent artist a chance to share their music and communicate directly with fans. It has also enabled to share their information and identify the audience perception about their performance in music industry. Development in technology has provided various advantages for the artists but at the same time it has also bought some threats as well as challenges. One of the major issue which is related to the use of online streaming by artist is problem of music piracy,This factors has adverse effect on the profits earned by the artists. As the singer will receive only part of a royalty payment each time their song is streamed. Due to the emergence of online platform music streaming became more popular and there has been tremendous growth in the music industry. The introduction of online music streaming platform has given rise to intense competition in an industry. There are many artists in music sector those who felt unsatisfied streaming payment structure. Launch of online music streaming has lead to decline in sales of company operating in music industry. This factors also has negative impact on the sales as well as profit earned by artists. Online music streaming has provided service user a chance to play or listen their own favourite tracks. The online streaming has provided film industry an opportunity to do more recordings, play continuous tracks and communicate a message in exchange for a united vibes that is sufficient of a deviation between songs to make audience feel like they’re not listening to the same. Emergence of the online streaming has force an organisation operating in music industry to bring change at workplace. This factor also effected the existing business practices or activities within an industry. The present changes in music or film industry has lead to the emergence of new market, it has also generated opportunities for new companies those who are planning to enter into music or film industry (Stonard, Bowen, Walker & Price, 2017)

Determining the way online streaming has affected the functions of agents, music publishers.

The emergence of online streaming has majorly affected the function of record label. As the role of record label is to retail control with the support of legal actions. Record label emphasizes on protecting as well as preventing digital copyright precedents in order to reduce risk. Many big companies introduced their online sales channel , to avoid illegal distributor.

With the development in music industry event promoters, radio stations and distributors had become involved with the labels. The role of these people force records through to radio, stores as well as stage tours by making them able to ensure the success of most of their acts. Now the function of labels is to controlled the distribution of music. Role of record labels is to present as well as work related to recording of sound. The function of publishers is to publish the content written by song writer. It is the duty of song writer as well as publisher pitched songs to the managers and labels of recording artists. As per the agreement the labels is required to make payment for and protect these recordings, produce copies, distribute to stores, customers in the market,radio and media. Labels act as bank for the musician. As labels are the people those who make investment on artists and in recording the song sing by singers. Sales generated by the industry allows Labels to recover the cost as well as earn higher rate of return on investment. Due to the emergence of online music streaming Labels have to invest less to alleviate recordings. Function of publisher is to conduct interview release the song sing by the singer and publish the content to online blogs and offline magazines (Evans,2017)

Identifying the way online music streaming has impacted the copyright law in context of licensing and royalty

As there has been tremendous advancement in technology, the government in U.S is facing difficulty in implementing copyright legislations. When online music streaming streamlining was introduced, artist in film as well as music industry were more concerned about the issues related to piracy. The same situations have been faced by the film as well as music industry when there was launch of VHS device in the market. When new laws were developed by the government by considering the piracy issue the condition has been kept relatively under control, and both the music as well as film industry have been able to take benefit of new recording formats. But now it has been identified that to the launch of MP3, there is threat of losing all control on intellectual right by music or film industry. MP3 is considered to be as a quicker as well as simpler method to receive music tracks in electronic form. Emergence of new technologies or electric devices has drive film as well as music industry towards worse situation. Introduction of these devices in the market has restricted the growth of industry. Some legislations have been developed by legal authority in US , to provide artist as well as music industry protection against copyright infringement (Adams & Holland,2018)

For instance, the Digital Millennium Copyright Act was implemented with the purpose to protect the interest of songwriters, movie directors and artists. Authority in parliament has delegated government an authority to execute copyright protection on the Internet. Legal authority has also implemented safe harbour provisions. The purpose of these legislations to protect singers, director or artists from being susceptible for copyright violation if files were being passed between users of the service. General fact is that courts always intends to avoid the obligation of the copyright holder to implement agreement with copyright law (Litman,2017). 2017)

Analysing the way online music streaming effect copyright law in terms of licensing and royalty payments.

As earlier before the evolution of online music streaming it was much easier for singer to keep the record of their earning. For instance, when customer purchase compact disk for 10 $ and a few dollars used to be appear months later on the star's royalty sheet. But with the evolution of online music streaming, singer or artists are facing difficulty in tracking their earning. Subscription services are provided by taking the charge from the customers. These charges are taken in form of subscription fee which is required to be paid by subscriber on monthly basis. Income generated by the music industry in form of subscription charges are utilised for making royalty payment to artists or singer. As per the contract, it is required by singer to share half portion of the payment with record label. Manager chan changes the royalty amount as per the popularity of singer. After the emergence of online music streaming the distribution commission has decided to reduce the payment of singer. Before the evolution of online music streaming big distributors used to provide accounts details on the quarterly basis. But the emergence of online streaming has limited the potential of label to report to the artist, as it is unachievable to render quarterly account details to an artist when statements from distribution only come in two times in a year. As per the law which is created by the US government, holders of copyright can allot licenses to others singers or people for using of their song, for which in exchange they get payment (Jacques, Garstka, Hviid & Street,2017)Copy right act dictates the limitation as well as exceptions for a range of utilisation of copyrighted material which do not required licence or permission from the right holder.

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The legislation also dictates that few licenses have to be expressly required to be obtain as well as others are obligatory and have to be given as determined by legislation. These laws typically has established fixed royalty rates for this sort of licenses (Swartz, 2017)

Identifying the way streaming different from buying a CD or a copyright standing

Buying or purchasing compact disk means that an individual have access to listen songs for as long as copy of compact disk purchased by customer is in good condition. Making purchase of compact disk is to be the ideal way to retain absolute control over collection of favourite songs. An individual can listen to song if they have specific device to run the compact disk. On the other hand, streaming, enables person to access library which consists of list of favourite song from anywhere without any further acquisition or without wasting time on waiting for configuring servers. By using the online streaming, audience or service user can download large number or variety of songs.

The another difference between buying CD and streaming is that, by playing song on compact disk does not require internet connection. An individual can play song offline. Whereas, streaming requires internet or online connection.

Network error or loose connectivity can lead to barriers in playing songs. On the other hand, no such problems arises in playing music using the compact disk (Lin,2017)

Discussion on copyright infringement in streaming and required licenses for streaming

Streaming is considered to be as a big concept which has been originated from the development of technology. Design, copyright as well as patent act is developed by the government in relation to re-broadcasting. This regulation states that music industry have permission to re-broadcast previous work but they have to take permission from the owner of the work. It is required by Artists, producers and directors to facilitate negotiation with owner of the work related to reproducing their content. Company has to form a licensing agreement with the owner of the work in order to avoid legal obligations (Jones,2017)

Identifying the way copyright office responding to this issue

The copyright officers have developed some plans as well as strategies to control the issue, these are:

The officers have planned to keep as well as maintain the record of copy right owners, these will be those people who wants to obtain licence. Officer also has decided to keep track record of documents such as details about the transaction conducted by the copyright owner, scope of copy right, security interest, terms of expiration of protection etc. As per the norms formulated by government in the country records also carry certain benefits and presumption.

Copyright officers has also planned to delivered business to business services. As this will help copyright officers as well as companies in sharing of information. They have also adopted the strategy to incorporate industry records into Office database (Danaher, Smith & Telang,2017)

The copyright authorities have decided to provide services to customer as well such as timely inspection and comprehensive search report. As this activity will assist in enhancing tracking capabilities to locate records as well as deposits on site and off site.

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Copyright authorities has also developed the strategy to realign the staff as well as several procedures to fulfil the needs and demands of users (Dilmperi, King & Dennis,2017)

Conclusion

The report has concluded that the several norms in the country has great impact or influence on the music or film industry. Emergence of online music streaming has major as well as significant impact on the growth of music industry. It has been concluded from the project that advancement in technology has force music industry to facilitate change. Assignment has successfully demonstrated the way online music streaming has impacted the copyright law in context of licensing and royalty. It has also highlighted the role as well as responsibilities of publisher as well as label in music industry. Study has explained in detail strategies or plans adopted by the copy right officers in order to deal with several issues. It has been concluded that emergence of online streaming has bought few opportunities as well as at same time has created the several challenges for music industry. Project has also concluded that in the future there will be the revision in the copyright law in United states which will provide the provisions or guideline related to the usage of technology. Producers as well as content users has to face changing technological innovation and speedy mercantile development in the future as well. The music as well as film industry is performing good and these both sectors will have positive growth in the future.

References

  • Litman, J. (2017). 2017 Postscript to Digital Copyright.
  • Danaher, B., Smith, M. D., & Telang, R. (2017). Copyright enforcement in the digital age: empirical evidence and policy implications. Communications of the ACM. 60(2). 68-75.
  • Jacques, S., Garstka, K. K., Hviid, M., & Street, J. (2017). The Impact on Cultural Diversity of Automated Anti-Piracy Systems As Copyright Enforcement Mechanisms: An Empirical Study of YouTube’s Content ID Digital Fingerprinting Technology.
  • Evans, G. (2017). Implementing e-government: An executive report for civil servants and their advisors. Routledge.
  • Stonard, K. E., Bowen, E., Walker, K., & Price, S. A. (2017). “They’ll always find a way to get to you”: Technology use in adolescent romantic relationships and its role in dating violence and abuse. Journal of interpersonal violence. 32(14). 2083-2117.
  • Adams, T. M., & Holland, C. C. (2018). Streaming Media in an Uncertain Legal Environment: A Model Policy and Best Practices for Academic Libraries. Journal of Copyright in Education & Librarianship. 1(2).
  • Swartz, M. (2017). Digital Copyright Law.
  • Lin, X. (2017). Music Individual Licensing Models and Competition Law. In Remuneration of Copyright Owners (pp. 189-205). Springer, Berlin, Heidelberg.
  • Jones, R. E. (2017). Keep it Local: Music Streaming & Local Music Communities (Doctoral dissertation, Miami University).
  • Dilmperi, A., King, T., & Dennis, C. (2017). Toward a Framework for Identifying Attitudes and Intentions to Music Acquisition from Legal and Illegal Channels. Psychology & Marketing. 34(4). 428-447.
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