Online music store

Online music service is a general term, but usually referred to commercial offers in the music industry can be obtained through the songs via download or as streaming media for normal music users in the form of online music stores. The price per song is the download usually between one and one and a half euros; an album (so-called bundle with booklet ) costs ten to twelve euros and is therefore often significantly cheaper than an audio CD. Music streams are usually offered as a subscription to monthly fee.

Development

Due to the emergence of the music download sites blurs the visible boundary between major labels (Sony BMG, Universal Music, EMI and Warner Music ), and the many small independent labels. Both parties were formerly very warlike against each other and it was frowned upon to cooperate with each other. As the cause of the blurring of the boundary applies, inter alia, that the availability of different budgets from both sides does not necessarily lead to a different perception of the Internet by the customers. The shop systems used are similar and structured. Gar is it so that the majors more and more try to portray themselves as independent label and stronger cover the niche markets try.

The very late start of a full-range platforms applicable in the Internet industry as a failure of the company, as they recognized the need for such offers too late and called for the establishment of DRM technology as a prerequisite for entry into this market. Around 2005, when then were appropriate technologies available, this development has turned over into its opposite, leading to a veritable pop up hundreds of different websites. The offers however are mostly based on the same technological base and draw their content from so-called aggregators, which there are relatively few worldwide. Mention may be made in Germany fine tunes, Feiyr, Paradise, MTunes and Zebralution, and in the international market OD2 (eg, MSN Music, MTV Track Tanke or Tiscali Music Downloads ).

First music portals were mp3.de, MP3.com, Besonic and virtual- volume. Particularly active music portal occurred mp3.de which is from his tradition, a promotion platform. A strong impetus for the online business made the iPod with the iTunes Store from Apple, which attracted the attention of a broad spectrum of consumers for the first time. Well-known brands such as Musicload continued to build the market.

In 2005, the IFPI reported a turnover of 1.1 billion dollars in digital downloads, and a share of 6 percent of total sales. 2006 's sales figures increased further to 2 billion dollars, about 10 percent of total sales.

Abandonment of DRM (2007/2008)

Increasingly, the major record labels turn away from the DRM systems. Universal testing with classicandjazz.co.uk from the consequences of unprotected content as pay download. The Board of Directors of Warner Music, consistent advocate of the copy, now admits to have made ​​mistakes. EMI has also provided in the summer of 2007, its catalog without DRM restrictions.

Platforms with a large range of DRM -protected and DRM - free content showed that the sales of unprotected content four times the corresponding protected. eMusic demonstrated that a great interest in quickly and easily accessible titles is available and, although the repertoire consists exclusively of small independent labels, look forward to good sales. Consumers who are interested in music, sold by these vendors, a high willingness is ascribed to pay for the purchase of songs and can not be avoided by sharing these costs.

In late 2007, Warner also DRM turned their backs and provides first through the MP3 service Amazon (U.S. only) all the tracks without copy protection on. 2008 could agree was the first European provider 7digital with Warner over the distribution of their songs without copy protection. Sony BMG proceeded to at least to sell part of its catalog without protective measures, among other things from Amazon in early 2008.

Parallel to this development occur different provider for so-called music subscriptions to, such as Napster and Last.fm. This criticism was loud, the music industry DRM now trying to introduce through the back door. Attention also attracted audiobook portals, because this niche market is experiencing through the online concept ( The Long Tail ) strong updraft. The first video portals take shape.

In 2007, the IFPI has a growth of 40 percent for the download market and the share of sales totaled $ 2.9 billion at 15 percent. There are more than 500 online shops worldwide. The increasing online sales can not compensate for the continuing decline in CD sales, however, can identify a trend reversal. For DRM -protected content, there is still a lack of acceptance by consumers, as a survey showed by Spiegel Online that, under these conditions, only 7 percent of respondents would buy a song for 99 cents, the barriers fall away showed 82 per cent of willingness to buy.

Overhauled in April 2008, the market share of Apple 's iTunes Store in the U.S., the Wal -Mart chain and thus becomes the largest local music dealer. Meanwhile, the majority of the major labels and Apple refuses to license the sale of music without copy protection. It circulates the conjecture this to happen to break Apple's dominance in the download market.

With the hotel's own MP3 Store musicbox.de mid-2008, Sony achieved as the third of the big four music users with its DRM waiver Europe. Best feature for this offer are playable free music videos in high quality compression. At the same time makes universal also in Germany a significant step towards the abolition of DRM and offers 215,000 songs from his repertoire on the download store electronics chain Saturn.

In adolescents, the consumption of music via CD takes place hardly, it outweigh MP3 players, computers and mobile phones, so the trend away from physical sound carriers prominent.

After long negotiations, Apple is on 6 January 2009 that the major music labels now make their titles DRM - free ready for purchase. In return, Apple leaves the labels more freedom in pricing. End of April 2009 the complete range of about 10 million songs were converted to formats without copy protection.

Further development

With the global economic crisis in the background, 2008, the total sales in the music trade continued to decline slightly and so the music download remained with an increase of 25 percent below expectations. Its market share is therefore 20 percent. Analysts at Forrester Research predict that digital distribution channels physical trade from 2013 übertreffen.Im 2009, sales increased worldwide in the digital music business by only 12 percent, the share of total sales rose to 27 percent. 2010, sales rose by 6 % to a 4.6 billion U.S. dollars; Music downloads now account for 29% of total sales. Illegal downloads ask for the music industry continue to represent a major problem

In Germany in 2012 made ​​music downloads from 85% of the single charts in the music albums, the proportion is 21%. In neighboring European countries, by contrast, the share of music downloads in the singles charts often is approximately 100 %.

Confrontation with Audio CD

Whether the download will replace the CD market is completely questionable. Because at present is expressed in many quarters that is lost by the abstract process of acquiring a file, the feeling of having bought something, as opposed to tangible CD. Considerable room for improvement in online purchase is the often inadequate addition of booklet lyrics and cover illustrations, which could benefit modern MP3 player with a graphical display and playback programs on the PC. Improvement of the technical side here is a new music file format that contains such content, create and fix the former deficit thus better.

The increasing shift to the Internet as the sale is also seen as critical in the area of ​​independent music, as the local scene is weakened because one way to real contact is lost. Furthermore, it is argued that only single hits instead of the entire work be purchased as an album.

When visiting a download stores falls directly on that Vorhörmöglichkeiten are given as opposed to mail order all titles, since the pieces are already digitized. Since no physical goods with appropriate storage and production costs exists, reduces the cost to keep a piece of music in stock. For example, larger repertoire of older or less frequently sought (Independent ) Music only be financially viable. This makes the buyer's interest and willingness to buy is increasing according to the Long Tail principle, because exactly the type of music he is available.

Due to lack of shipping, the willingness to shop already when needed only a few titles increases. Furthermore, the music is immediately available after a short download. A rib for enjoying the MP3 player is dropped, but instead CDs must be burned.

Presumably, the audio CD will play for a long time an important position as a music medium, even if they should be separated from its previously sole leadership role.

Types of offer

The new technology enables new offers. The most important are listed.

A variety of other forms of sales are possible. Some are based on the new possibilities with the DRM technologies and others use the low distribution costs of a digital offering. So the band Radiohead offered their album In Rainbows for arbitrary price as download. Whereas other free funded by advertising sales fathom. Furthermore, download services are very well suited for coupon promotions, as the customer can choose his product from a wide range.

Currently, the online music market offers little transparency. Every song and album is to be had at various fee-based providers for a different price, often changed this additionally over time. Since the beginning of 2009 caused more and more price comparison services that will inform the buyer of the large price differentials and give a brief overview of the current market.

Criticism of DRM and the music industry

Given the widespread use of file sharing and the simple reproduction of music files on a computer, the entertainment industry was looking for ways to prevent the kind in the future by a copy protection. The key to this is the digital rights management (DRM ) in which a software determines how a file may be used. For the consumer, it first has the advantage that it is not considered the paying stupid as is, while others create large collections illegally through P2P sharing networks.

Disadvantage of many file formats and copy protection method lies in the restrictive application of rights. For example, it is not guaranteed in all cases that DRM licenses easily transferred to portable player or can be converted into alternative formats. In some cases, the use license is also bound to a particular personal computer and may be forfeited when reinstalling the operating system or extend the hardware. Add to this the often complicated handling of DRM functions.

The DRM copy protection can be easily removed (eg Apple's FairPlay ), and it can therefore be considered as ineffective.