Knowledge Bank

Since the development of the first file sharing program, Napster, in 1999, the practice of illegal file sharing, or piracy, has received much, if not all, of the blame from the major recorded music labels for the dramatic decline of recorded music sales over the same period. In the first half of this paper, I investigate whether the industry’s claims are substantive. Based on the fact that the industry’s claims are not only based on unreliable and misleading data, but also ignore multiple other causes and explanations, I determine that the explanation for declining sales based on piracy is without merit. I go on to show that the decline in sales itself is not a concern, not only for the fact that production is nevertheless increasing, and that sales are predicted to rise. Considering these conclusions, I pose the question of why, despite the relatively groundless nature of the piracy claims and the apparently hopeful future for the industry, the major labels have pressed the narrative of piracy as the culprit. Taking into consideration the role that digital markets have played in the sales decline, I argue that the major labels fear that digital distribution allows for greater competition from independent labels and unsigned artists. In order to properly analyze the conditions and future of the recorded music industry, I deconstruct the industry narrative, examining the false assumptions it is based on. I then establish a new narrative, analyzing the technological, social, economic, and institutional parameters of the industry, and the goals of popular music production for both artists and society. I also take into account individuals’ goals for music consumption, based on data taken from a survey of Ohio State undergraduate students. Based on these conditions, I propose a series of alternatives to the current industrial production model and address their potential benefits to both artists and society.