View source for Norwegian Music Industry in the Age of Digitalization


'''* Thesis: The Norwegian Music Industry in the Age of Digitalization. Richard Bjerkøe and Anders Sørbo. Norwegian School of Management, 2010'''

URL = http://www.scribd.com/doc/168674763/The-Norwegian-Music-Industry-in-the-Age-of-Digitalization


=Summary=
''
In  this  thesis  the  authors  had  one  main  research  problem:  
How has digitalization and the consequent downloading of music changed  
the economic situation for the Norwegian music industry and for the  
Norwegian  record  artists  the  last  10  years? 

Extracts from pages 82,83
'''
1. What are the primary income sources for Norwegian record artists today?'''
 
The authors have through this research determined that the artists in the Norwegian recording industry have 4 main sources of income: live revenue,  state subsidization and grants, collection distributed to artists, and sales of music physically and digitally. It turned out the declining record  sales, which dominate the media picture, only amounted to about 19% of the total artist income in 1999. Today after many years of decline it is 11% of the  total  income  for  artists.  As  such  the  media  were right to point out that record sales are dropping and income will decline,  however  the  total  importance  of  this  income  source  was  never  more  than  20%.  This is a reflection  of  the  calculations  that  from  a  record  sold  from  producer to  retailer,  only  about  20%  in  average  of  the  sales  amount  is  returned  to  the  record  artists. Live  revenue  on  the  other  hand  has  an  artist  share  of  about  50%  from  all income and hence all income increases here will have a larger effect both  negatively  and  positively  if  the  total  amount  in  the  industry  changes.  

'''2. Has the total music related income for record artists today decreased compared to 10 years  ago?'''

As  figure 17 shows the  actual  total  artist  industry  income  in  all  four  different  income sources  have  increased  the  last  11  years.  However  so  has  also  the  number  of  artists,  as discussed  in  the  annual  report  section  of  the  thesis.  Many  more  artists  now  divide  the  total amount accumulated  and  in  average  the  actual income  has  increased  74%  adjusted  for inflation  in  the  period. 
From  this  it  is  possible  conclude  that  the  total  income  for  Norwegian  record  artists  has clearly  not  declined  in  the  last  11year  period.  On  the  contrary  it  has  increased  substantially,  even  when  adjusted  for  the  total  number  of  artists.  One  must  however  take  into  account  that the  figures  say  nothing  on  how  the  amounts  are  divided  between  the  artists.  The  insight  gained  from  the  interview  section  of  the  thesis  however  indicated  to  the  authors  that  a  lot  of  these  funds  are  not  evenly  divided.  Rather  the  Norwegian  music  industry  can  have  a  few  well known artists  who  earn  what  can  be  considered  a  very  good  living,  a  large  majority  of  artists  who  just  barely  manage  to  make  a  living  out  of  playing  their  music,  and  finally  a  group  of artists  who  have  the  record  music  industry  as  a  minor  part  of  their  income. 
''
[[Category:Research]]

[[Category:Business Models]]

[[Category:Culture]]

[[Category:IP]]

[[Category:Norway]]

[[Category:Music]]