Legal Implications

Internet users face having their computers seized and bank accounts locked as part of a massive European clampdown on illegal music downloading. BPI lawyers said that the 1988 copyright act would cover illegal file-sharing prosecutions because it reserves the right electronically to distribute any work to the owners of the copyright.

Impact of downloading on artists/music sales

Artists are being conned out of their money because their songs are being downloaded for free, instead of being purchased. In turn, this leads to a substantial drop in music sales because the illegal downloads are not counted.

Record companies actions

Record companies have been and still are, taking great measures in clamping down on users downloading songs. They have been uploading dead tracks and ‘fake songs’ onto the internet so when users attempt to download them, they don’t work, but also contain a virus which wipes all data off the users hard drive or does something drastic to their computer.

Impact of downloading on music retailers

The impact on music retailers is at large. Customers are now downloading music from the Internet both illegally and legally. This cuts out the ‘middle man’ (retailer), because when users legally buy music, they are shopping at Amazon, play.com, cduk.com etc, and not at HMV or Virgin for example. This is because music is available cheaper on the Internet.

Impact and growth of legal sites eg, OD2, Napster etc

In my opinion Apple iTunes will be the largest legal music download site for a long time. This is due to the fact that so many people already have iPods, and when the competitors emerge no one will want one because iTunes has the largest database of songs available to download, and are only compatable with the iPod. This is obviously a great attraction point for the iPod.
Microsoft are likely to build their own music download service into the next version of media player which they can offer for free download. But this will only put Microsoft on equal foot with Apples iTunes. Throw in the fact that iTunes has a massive head start and has already been installed on millions of windows PCs, plus with every iPod customer comes an automatic iTunes customer. Apple have it big time!
Microsoft has no way of tricking windows users into thinking that their music download service is the only one out there. The earliest they will be able to do that is when the new version of windows comes out, which is at least two years away, by that time it will be way too late.
I think that sites other than iTunes will not be that successful.

How the iPod could affect the role of DJ’s

The new iPod could affect the role of DJ’s by making their lives a lot easier. Apple are trying to find a way of allowing DJ’s to scratch and mix music without the aid of their standard decks. If it all works well, DJ’s won’t have to cart their LP’s about and they will be able to carry more tracks.

How I think the music Industry will look in 5 years time

It’s hard to say, but I think record companies may slowly disappear. Most artists have their own recording studios in which they can record their material. All it takes then is for the album to be pressed onto CD, published and distributed. Obviously to be successful they need money and ways of marketing, but it’s out there, with the Internet and the likes.