exemplar Student Essay - I&A Top grade (June 2010)

G322 June 2010

Question 2 (50 marks)

Exam Questions (June 2010)

Digital media technology continues to develop. How is this significant for media institutions and audiences?

Within this essay I will be comparing how the development of digital media technology has affected both a conglomerate record label Sony Music Entertainment, and an independent record label Innit For The Money.

Sony Music Entertainment (Sony ME) are a multinational conglomerate who monopolise the music industry as well as other areas (insurance, gaming, electronic devices). They employ millions of employees and provide a global service to a well-established audience. Sony ME have utilised digital technology through both their production of music and its distribution.

Sony Me own stages of the development of music, from production right through to distribution, an example of vertical integration. Because of this profits are kept in house, and Sony ME are able to be one of the Big 4 record label. Sony mass-produce their CD’s worldwide, but only if the artist is already well established and therefore bound to be successful. To ensure this, Sony utilise digital technology such as the Internet, where singles can be released digitally, such as through iTunes or social networking sites such as Myspace or Facebook. Sony ME have also recently signed a content deal with YouTube, allowing them to gain profits from people watching their videos on the site. This allows an audience to listen to the tracks and the artist to build an established fan base. Once this fan base is established, Sony release their CD’s for distribution, along with merchandise, to further advertise their artist and bring in extra profit, Sony ME often create websites for artists who have become well known, with links for fans to purchase their CD’s and merchandise from there, along with tour dates, biographical information and activities for the fans. These websites allow the fans to hear about all of the merchandise which they can also purchase and to book tickets for tour dates and gigs. As well as the site having links to main Sony ME site, which has a list of all the artist they represent. This allows the fans to find other Sony artists whom they also like, which then encourages more profits for Sony ME. Once a fan base is built, Sony then release the CD, where it can be purchased from shops such as HMV, or online from Amazon, iTunes etc. however, the emergence of sites like YouTube and the web 2.0 culture has taken care of part of the distribution process. 

Sony ME have become so successful that they are able to buy smaller independent record labels and run them under their company. They own hundreds of record labels, buying them when they get successful and are therefore perceived as a threat to Sony, these include, Columbia Records, Arista Records, RCA Records and Epic records. This is an example of horizontal integration.

Sony are also able to use their cross media ownership to increase their profits for example, Sony ME own ACDC and Playstation, and so produced a Playstation game, using ACDC music this example of synergy allows for more advertising for the band, as well as extra profits coming in to the conglomerate.

The independent record label I have studies, Innit For The Money (IFTM) have become successful locally, within the Somerset area but are aiming to expand their fan base worldwide through the use of the Internet. They are however always threatened by conglomerates such as Sony ME because they don’t have the funds to represent that many artists. IFTM however maintain their artists from start to finish, building them to success, however, once successful they are often poached by conglomerates such as Sony Me. One of IFTM’s successful bands are “You love her cos’ she’s dead” and they have appeared on popular teen drama Skins. Showing a prime example of convergence, as channel four and IFTM have collaborated together to increase the advertisement of ‘You love her cos’ she’s dead’ (and therefore IFTM) and Skins, because they are associated with one another. Because of this advancement in digital technology, IFTM have been able to become more successful and well known.

IFTM don’t own their own recording studies, because basically it is impossible, instead their artists find their own locations. ‘You love her cos’ she’s dead’ produced their first single in a closet, and their second in a bathroom, claiming that the acoustics are just as good as a recording studio but the DIY aspect means there is no expenditure to take care of, especially as they use their own editing software on their own computers.

IFTM aim their products at a niche audience, partly due to their small size and lack of funds for wider audience, and also because of their current status as only being known locally. However, the advancement of digital technologies has increased IFTM’s contacts, as they are able to forge communications with bands in Australia via Myspace. However, until they become a bigger company, it will be impossible for them to tour in Australia, due to the agent fees. On the other hand IFTM have become successful in France with them being able to send  ‘You love her cos’ she’s dead’ over there for gigs, and a tour. In this way, digital technologies have aided them in becoming more successful.

IFTM also have their own Facebook page, due to the main users of Facebook being 18-24 years old, this gives them a good way of assessing their niche audience and therefore makes it easier for them to know the demographic of them, and in general what they want to hear, IFTM also use Myspace as a form of distribution, so that their audience can pre-listen to music; therefore building up a fan base.

So far in this essay I have discussed the positive effects of the advancement of digital technologies, but there is in many ways a downside. Whilst the increased development and use of the Internet has aided advertisement and distribution for both Sony ME and IFTM, it also leads to a decline in CD sales. This has been seen by both companies, with Sony ME now only mass producing music by artists who are bound to sell big and IFTM are not able to mass produce IFTM only produce records on demand, mostly just 500 copies through Rough Trade. This is partly due to the decline in CD sales, (fallen 20% since 2006). Also because vinyl is far more collectible, and so they are able to sell it at a higher price. This decline in CD sales can be attributed to illegal downloading becoming more readily accessible; due to the development of digital technologies. During my research task on College I found 1 in 3 people (of a 600 people sample) get all of their music via illegal downloads meaning that no money is being paid to the record labels or artists. When asked, 100% of those people said that they downloaded illegally purely because music is too expensive.

It appears that the future for the music industry is global policing on illegal downloading, in order to prevent it from spreading, otherwise there isn’t any hope for record labels, particularly independent ones such as IFTM. Consequently, in order to try and prevent this from occurring, a new from of control called “copyright collectives” has been brought into force. This means that the artist and record labels receive a portion of the money gained from producing and distributing a track, so they still receive profits from their work, even if people are no longer purchasing as many CD’s unfortunately this wouldn’t occur for the independent record labels.

Consequently, the continuing development of digital media technology has led to a culture where an audience expects everything fro free, which could inevitably lead to the downfall of independent Record Labels, and the reduced activity of conglomerates such as Sony ME, unless global policing is brought into force more successfully. 

  

	Level 4
Explanation/analysis/argument	20	20
Use of examples	20	20
Use of terminology	10	10
Total	50	50

Examiners Report:

The area that the candidate has addressed is Music.  The response begins with a contextual introduction to Sony. This case study of Sony is sustained and developed using contemporary exemplification to demonstrate the candidate’s knowledge and understanding of the music industry, which is extensive from production to distribution and audience consumption.  This explanation, analysis and argument (AO1) is extended to deal with the size and scale of the media conglomerate and considers horizontal integration as a key concept within institutional practice.  

The candidate then seamlessly progresses to consider independent music companies with a case study of ‘Innit for the Money’.  The degree of sophistication to the candidate’s answer is embedded in the argument and exemplification of the development of the company through synergy and media convergence, itself a consequential trend with digital initiatives.  This quality in the response clearly signposts the award of a level four mark for both explanation, analysis and argument and the use of examples and further there is a clear command and debate of key media concepts. To the extent that the candidate has a full understanding of the nature of the music industry in address of the set question. This is an excellent response – see in particular the latter part of the candidate’s response in discussion of the global success of the company using digital initiatives and their assessment of the music industry using independent and conglomerate companies. There is good case study material within this answer offering a plethora of exemplification, for example, the response concludes with a discussion on illegal downloading and the implications of ‘copyright collectives’.