The International Federation of the Phonographic Industry reports
today that last year "global recorded music industry revenues rose by an
estimated 0.3 per cent to US$16.5 billion in 2012, the first year of
industry growth since 1999" with digital revenue growing 9 percent.
That's good news for the music industry, but also a sobering reminder
of the extent of the collapse. But what I think is really important to
remember is that this epic decline of the music industry has occurred
during a period of time when it's never been easier for music fans to
find new music to listen to. It's a great example of how the health of
an industry as a generator of profits can become completely detached
from actual human welfare.
I find Yglesias's argument on that point very persuasive. For example, there seems to be a lot of economists who think that loosening some of the stringent protections that come with patents could help innovation. Weaker patents would certainly hurt many people's incomes, but could still make affected industries work better for consumers.
ReplyDeleteI find the patent discussion to be very intriguing. I understand the need and desire to protect one's thoughts and work, but this unfortunately leads to market exclusivity, which is bad for us consumers. However, some companies don't patent their work out of interest for the public as a whole, which I think is really cool. For example, today's modern seat belt used in cars was developed by Saab. Once they came up with the design, they made the patent open so that all car companies could use it to make cars safer for everybody to use, which is really cool!
ReplyDeleteIt is nice to hear that the music industry is profiting again. It seems like they (and other organizations) have caught up with the "new" way music is listened to, bought and shared. With the wide variety of music that is being produced today as well as all of the methods of sharing it, it is good to see the industry change and adapt. This is encouraging because as a music consumer, I can hopefully expect a consistency in the music industry now as I continue to enjoy all of the music I want to enjoy. I do think it is important to note that this is the music INDUSTRY that has been losing money. Artists have been doing the same as always. In fact, the internet has made the music market much easier to enter and this means more supply in a market that will always demand.
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