EPQ
TO WHAT EXTENT IS THE MUSIC INDUSTRY DETERIORATING?
The spirit of the lord is heeeyeerrr
David
31 January 2023
A03 – Dissertation P301
To what extent is the UK music industry deteriorating?
David
31 January 2023
A03 – Dissertation P301
To what extent is the UK music industry deteriorating?
Content
Page number
1.
Introduction
2-3
2.
Economic factor
4-6
3.
Political factor
6-7
4.
Creative factor
5.
Conclusion
Introduction
This dissertation is centred around the UK music industry, particularly the genres of
Rap/drill, to answer the question, 'to what extent is the music industry
deteriorating?' UK Drill and UK rap are sub-variant genres of Hip-Hop and Rap in
America. It has gained much attention and popularity with younger generations
(Lamrhari, 2021)/ over the last few years, and it has conversely gained some
controversial viewpoints. This matter was chosen because of the music industry's
impact on social, economic, and creative factors that affect its ever-changing state. It
was fun researching and doing a dissertation based on the topic. The aim is to
illuminate the industry's economic, political, and creative states and answer the
ultimate question.
The word "music industry" refers to writing, producing, and distributing music
(Wiesen, 2022). This covers all music creation and marketing aspects, from
songwriting and composition to recording and production. The music industry
significantly contributes to the international economy - It is essential to people's
cultural lives worldwide. The way that people feel about the music business might
differ significantly. Some individuals may have favourable opinions of the sector.
They view it as a means for gifted musicians to spread their work and earn a
livelihood doing what they love. Others might hold more unfavourable opinions,
considering it too commercial or putting business success before creative integrity.
Another critical thing to acknowledge is that some people feel conflicted about the
industry, buying its advantages and disadvantages. Ultimately, a person's personal
experiences and ideals will determine their views on the music business.
The creative arc of this dissertation will debate the struggles that artists may face
with their creativity; it is argued that "if you cannot beat it, inquire who owns the
publishing license and then sample it heavy" (Pritchard, 2022); this is a very
controversial point right now in the industry as samples are being heavily utilised in
the making of songs. Does this suggest artists need to be more creative with their
songs? Are they losing the incentive to make good quality songs that get good
streams (which can crossover with the economic segment of this dissertation)?
During this dissertation, inspecting the cause and effect will be a prioritised focus
since one could argue that this is the most important factor towards the industry's
"deterioration"? In addition to that, the genres themselves, such as drill, have
controversial backgrounds, being depicted as "demonised."
Moving forward in the dissertation, it will explore, as mentioned before, the political
state of the music industry as a possible factor that may have a detrimental effect on
the industry's development or deterioration. Many political influences impact the
music business, which is complicated and diverse In the field of copyright and
intellectual property that gives creatives the right to have their works (songs,
recordings, images) protected (Youth music, 2022). one of the significant areas
where politics and the music business converge. Musicians and other artists depend
on copyright law to safeguard their works and ensure they get paid for their
contributions. The music business, a significant participant in the more extensive
discussion around intellectual property rights, has frequently advocated for more
onerous copyright regulations and more safeguards for creators. Thus, Regulating
and censoring are two more areas where politics and the music business converge.
Governments worldwide have long attempted to control the music industry, and the
UK has taken part in such initiatives, either to bolster public values or stifle political
ideologies.
The dissertation will discuss the economic state of the music industry - what and
how much it adds to the UK economy, the financial situation of labels and artists, do
artists get paid enough through streaming services. Is there a financial crisis within
the industry? Do brands exploit artists? What is the current state of the industry's
economy, especially after COVID? What costs held it back, such as marketing? It is
argued that no one is entirely sure how they would be able to sustain a creative
career as the industry landscape changes so dramatically (Willcox, 2022).
Moreover, the same economic factors that influence other areas of the economy also
affect the music business. For instance, the emergence of dominant multinational
organisations because of the industry's globalisation has drawn criticism for their
business methods and effects on lesser-known, independent musicians. One could
insist that the economy is correlated to Politics and can picture copyrights being
intertwined with the ability to make from streaming.
Subsequently, many political factors are at play in the music industry, which is a
complicated and varied world. Rules governing intellectual property and copyright,
for instance, EU law suspects that the private copying exception may lead to
economic harm for copyright owners, and copyright owners receive a 'fair
compensation' (UK Music, 2022). Politics significantly impact the music business,
from the rules that attempt to regulate music content to the economic pressures
that drive the sector.
Economic factor
Firstly, the economic factor involved is a critical idea to facilitate whether it plays a
role in the development of the music industry or reveals its potential deterioration.
Statistics extracted from UK music's "this is music 2022" report, an economic study
of the industry at the moment, confirm that the UK music industry contributed £4bn
to the economy in 2021. This was 31% lower than the pre-covid amount of £5.8bn.
Employment in the sector was steady at 145,000 jobs yet was still 26% lower than
the pre-covid record in 2019 of 197,000 jobs. Exports in 2021 were a steady £2.5bn
but were still 15% lower than 2019's record of £2.9bn. Distinctly, there is a common
element in these recordings: COVID. COVID-19 hit the UK economy by storm, it
affected the music industry in several ways, and many jobs were utterly wiped out
(Uk music, 2022). It is urged that there is “still some way to go to restore the jobs
and growth lost” (Njoku-Goodwin, 2022)
However, rap and drill's specific contribution to the economy increased in 2020 to
22%, accounting for all singles purchased in Britain. From this, one can insinuate
that there are benefactors of drill/rap
The UK music industry's economy has been declining in recent years for several
reasons (. The transition toward streaming as the primary method of music
consumption by consumers is a significant contributing element. While general
music consumption has increased due to streaming, the money made through these
services is much less than what is made from selling physical albums. The entire
music industry has seen a loss in revenue as a result. (Callahan, Rogers, 2017). An
interview with a musician and engineer, "King Vito," implied that it was arguably
more effective to have sold CDs as they have done in the past, 'let us say selling one
CD was equivalent to one stream, getting one person to listen to the song. One
stream on Spotify equals $0.006, contrary to being able to sell 1 CD for 50p or $1" this refers to the previous era of music before streaming services took over, of
course.
Artists often feel like they need to get paid more, and the distribution aspect of
music streaming is relevant in exploiting that. A million streams per month would earn
an artist £12,000 per year, and Spotify is believed to pay between 30.002 and 30.0038 per
stream, apple music about £0.0059, YouTube pays the least of £0.00052 per stream
(Mccallum, S.M, 2022). The streaming industry accounts for more than half of the
global music industry- music streaming in the UK brings in more than £1 billion in
revenue with 114 billion music streams, however artist only receive 13% of the
income generated.
Multiple people tend to be involved in the process of music making, and each stream
is split into royalties to pay each person involved in the process (producer, engineer,
songwriters, and distribution service like Spotify). Because 100 streams are only $4
negative effect also cause-bzz the UK government to lower the tax break for choirs
and orchestras from 80% to 25%. The COVID-19 epidemic has also had a substantial
effect on the music business, leading to the cancellation or postponement of live
performances and tours and a consequent loss of revenue for both the performers
and the company (UK music, 2022). A report by the official UK gov highlighted the
statistic elaborating that average royalty payments in significant deals for new
artists have consistently risen from 19.7% on average in 2012 to 23.3% on average
by 2021, from 8% in 2008, to 15% in 2021.
More contributing economic negative factors include. One of the main issues is the
high rate of VAT (Value Added Tax) on digital music downloads and streaming
services, which currently stands at 20%. This has made it more difficult for
consumers to access music online and reduced industry revenue. Additionally, the
UK's decision to leave the EU has raised concerns about the potential impact on the
ability of UK artists to tour and perform in EU countries, as well as the possible loss
of funding and support from EU initiatives.
On the other hand, there are some positive notes to consider about the music
industry economically. The UK has become a major exporter, with British music and
artists having a powerful global impact and being famous worldwide. We also do
have to acknowledge that its contribution to the economy is still enormous. The UK
music industry contributed £5.2bn to the economy in 2019 (BPI, 2019). Here and
there, there is support from the government and private servers through initiatives
such as the music export growth scheme and the establishment of music hubs and
incubators (UK music, 2019). The UK music business has seen development in its
digital market as streaming services have grown in popularity. This expands
audiences' access to music while giving artists and business professionals additional
options. Due to the ability of artists and business people to reach new audiences and
investigate new revenue sources through digital channels, the expansion of the
digital market is also assisting in fostering innovation within the sector. The
government is much conflicted about the future of the industry, MPs that do seek
towards helping the industry have suggested a complete reset of the market, in
order for musicians to be given a fair share of the £736.5 million that UK labels have
gained over the years.
Why is this a big factor to consider? To what extent does it contribute to the idea
that the music industry is deteriorating?
•
The UK music industry is acknowledged as a business, economic variables
also have an impact on the income of musicians and artists in the sector. One
could argue yes because of the domino effect it has, many artists in the UK
struggle to make a decent salary due to the high cost of living there. Political
and creative forces, in contrast, are crucial but follow economic reasons in
importance. The music business may be impacted by political issues such as
legislation and government initiatives (arguments/further description for
these will be explored in the next two factors) The microeconomy of the
music industry is arguably one of the most important factors to consider due
to the fact that, the industry is a business as a whole, the artists/record labels
provide a service (their music) as well as having employees and people work
in different sectors such as marketing, finance. And the service has
consumers, the listeners who wanted to be satisfied enough to pay towards it,
an as an artist, you need some sort of income, the overall income within the
industry has seen an upward trend however (Gotting, 2022). where record
labels may not be able to invest into studio time and equipment because of
the interest rates or costs, it costs between 500,000 to 2,000,000 for labels to
invest and give loans to artists (wiebe, 2020). A report from 'The Guardian':
the parliamentary report stated that music streaming needs a "complete
reset"
The political factor
Politics, particularly laws, tend to adapt to the changes and developments made in
the music industry. There are several laws in place to protect against copyright
infringement as well as stealing art to have the standard of legislation society's
music deserves (Dipple, 2015). One instance of issues with the law (a report from
UK music) was when BASCA, the musician's union, and UK music participated in a
court case to challenge the government's decision about introducing a private
copying exception which was penultimately determined as unruly by the high court.
This private copying exception bill allows consumers to copy art protected by
copyright law from node device to another without causing infringement
(Kretschmer, 2023).
Furthermore, Brexit has played a significant role in limiting tourism for artists; the
deal with the EU Failed t negotiate visa-free travel and Europe comprehensive work
permits for musicians, creating a glass ceiling which prevents rising and developing
talent from doing so (Trendell, 2022) - this results in an ever-increasing frustration
between the industry and the government as even MPs have argued that it could
“destroy British DIY music - arguably one of the UK’s greatest exports” (McKinnell,
2023). Touring has become complex and restricted, disabling artists from progress,
and bringing back the industry economically and creating further tension between
the industry and the government politically. UK music outlined. MPs that do seek
towards helping the industry have suggested a complete reset of the market, in
order for musicians to be given a fair share of the £736.5 million that UK labels.
Iain Archer proclaimed to MPs that their streaming model is ‘inequitable and
unethical’ (Iain Archer, 2021). Iain Archer made the remark in evidence to a
Westminster inquiry into the economics of online music streaming. Manyother
artist have called out the government several times. the Government will continue
working closely with music creators, record labels, and streaming services to
develop a work programme. This includes establishing a music industry contact
group with senior representatives from across the music industry, Launching a
research programme, alongside stakeholder engagement, in autumn 2021, with a
progress update in spring 2022. All from the DCMS committees report
•
The Government has directed the Committee’s recommendation for a market
study into these issues to the Competition and Markets Authority (CMA). As
an independent competition authority, it is for the CMA to decide how best to
use its resources to deliver its objectives in making markets work well for
consumers and businesses. (DCMS report, 2021)
•
The Government agrees that song rightsholders are an important part of the
music creation and music streaming process. As such, it wants to explore
ways in which new and upcoming songwriters, composers and independent
publishers can be better supported whilst ensuring it does not undermine the
ability of the various players in the streaming environment to freely enter
into commercial agreements. (DCMS report, 2021)
Furthermore, The sector suffers from issues with intellectual property rights, such
as piracy and illegal streaming, more than 1.9 million people are employed by
the creative sector altogether, which generates £84.1 billion for the UK
economy (UK gov, 2022) not paying reduces the funding for the music
industry ultimately, UK music’s ‘This is music 2022’ report calls out to the
government to protect intellectual property (UK music, 2022)
Why is this a big factor to consider? To what extent does it contribute to the idea
that the music industry is deteriorating?
One can notice that typically, the political and economic aspects intertwine very
often, economics and politics are distinctively. Government policy tends to
determine the output of an industry/business - thus Politics always support
economics and vice versa. Knowing this, Politics effects are detrimental and cleverly
has a knock off effect on the business altogether, as evidently mentioned. The UK
leaving the EU has made travel and international performances for artists very
difficult due to it not being free anymore, hence politics does affect the economic
status of it.
Moreover, within parliament, the level of priority the creative industry is always at
risk. The DMCS recommended a “a broad yet comprehensive range” of legislative
reforms to protect the rights of musicians and songwriters, who it says are getting
poor returns from streaming. The current situation of the government’s spending is
dire, and the industry may have to wait for such demands nonetheless, hence the
progression of the industry
Creative factor
For a long time, artists have used music as a form of expression; since biblical times,
currently, in this era of UK music, there have been several developments and
concerns. A documentary on the UK industry was released, identifying the current
situation for underfunded artists; some spoke out, viewing their artistry as a
“lifeline” or a “way out” (Kavo, 2022). The documentary was published as a youtube
original, featuring artists such as Kavo, Offica and crystal mills exploring their life
after the pandemic. Furthermore, the pandemic had a significant impact on the lives
of many, including artists, including reasons such as the downfall of its economy,
being unable to perform live shows and events, and ceasing a source of revenue for
them. It is already hard for artists to make money from streams online; it was
arguably easier to make money from selling CDs in the past compared to royalties
(Vito, interview, 2022). Hence, the incentive and inspiration for artists to produce
has arguably decreased, this is further elaborated by an artist called Catherin Wilcox
of the UK country-music duo Ward Thomas, told BBC news that it looks as if though
musicians are comfortable, financially. However, “with the decline in album sales
across the board and the rise in streaming, no-one is fully sure how they will
sustain a creative career as the landscape of the industry changes so
dramatically."
In terms of artists’ creativity, one must take into consideration that there has been a
steady increase in samples used in modern songs. Famous examples include “Lillz glad u came”, “Aitch - Baby”, Who sampled Ashanti’s song baby, and “Tion Wayne IFTK”, who sampled La Roux’s “in for the kill”. Listeners debate online whether this
hurts the UK rap scene or helps it grow. Nonetheless, its inevitable effect is
associated with nostalgia; being able to introduce old things to new audiences via
familiarity and the nostalgia cycle (Reynolds, 2011). It has arguably made artists
more efficient, as new talent such as bills use social media sites such as TikTok to
their advantage and receive the fame and attention they deserve - a powerful tactic.
Making yourself stand out. Especially in the UK drill/rap scene that is constantly
being looked at as demonic, drill kinds of music have created controversy due to its
violence being used in lyrics and imagery that glorify crime. This is further proven
by the fact that drill music is used in court cases. This is all surrounded by the fact
that drill music arguably fuels gang rivalries and a propensity for youth violence
(ciaran, 2022). Despite this negative viewpoint, one could also identify the idea that
it introduces a spark of creativity from the essence of an artist. DIgga D, a popular
drill artist has used old samples from music icons such as 50 cent, and uses his usic
to pay homage to him as he ‘grew up listening to 50 cent’ (Digga D, Apple music,
2022).
One could link Digga D’s situation to the rise in drill in the UK music scene, DIgga D
was one fo the first rappers to be given a criminal behaviour order which limited his
output of music (Apple music, 2022). But he didn’t stop, and successfully managed
to get his album ‘noughty by nature’ on the top of the charts (Billboard, 2022).
Why is this a big factor to consider? To what extent does it contribute to the idea
that the music industry is deteriorating?
The industry itself is made up of creatives that want to share to the world, it would
simply crumble if or be put to halt, each time artist’s lose inspiration. Inspiration,
motivation, innovation all plays a part into determining the success of an artist. For
years, the UK rap genre has been evolving in numerous ways, from Garage, to Grime,
to drill to its current sample season, and one of the goals of the music scene is to
stay original to themselves as artists. An interview from 2005 with Skepta, JME, Prez
T, Scorcher and Cookie, (some of the most remembered grime artist)), were
questioned whether they were inspired yb American music and they viciously
decline that idea, as they wish to stick in their own lane as UK artists. Grime was
difficult. from hip hop as it wasn’t the ‘norm’ in the beginning, these grime artists want to make
sure grime blew up as its own genre, aside from UK hip hop was the generalized name for the
genre. At the time, “everyone [needed] to be supporting the crime scene because its ours”
(Skepta, 2005). Throughout this interview, the culture itself was prompted as a big influence, and
the UK following its own culture, instead of America’s, was detrimental to the music industry
becoming what it is now. more than half of the public see the benefit of having music in their
everyday lives (UK music, 2022)
Conclusion
THE BIG QUESTION
Weighing up for and against arguments using the factors considered, one must take
into mind that the COVID-19 pandemic's effects on live performances, dwindling
physical record sales, and the emergence of digital streaming services are just a few
of the recent problems the music business has had to deal with. These difficulties
have sparked discussions regarding the state of the industry as a whole and whether
it is improving or deteriorating. Despite these difficulties, the music business
continues to play a large role in the UK economy and contribute significantly to the
cultural character of the country. As a result, it's critical to recognise both the
industry's current difficulties as well as its ongoing significance and room for
expansion.
BIBLIOGRAPHY
Wiesen, 2022: https://www.musicalexpert.org/what-is-the-music-industry.htm
https://youthmusic.org.uk/short-guide-intellectual-property-rights
https://www.childrenssociety.org.uk/what-we-do/blogs/culture-of-drill-music
https://www.ukmusic.org/news/uk-music-urges-government-to-protect-musicindustry-from-economic-storm-as-new-report-reveals-sectors-fragile-recovery/
https://www.bbc.com/news/entertainment-arts-54789339
https://www.theguardian.com/business/2021/jan/14/uk-music-industry-facesexistential-crisis-amid-covid-19-and-brexit-uncertainty
https://www.bbc.com/news/business-56154521
https://www.telegraph.co.uk/business/2021/01/14/uk-music-industry-facesexistential-crisis-amid-covid-19-brexit/
Kretschmer, 2023)
https://www.copyrightuser.org/understand/exceptions/privatecopying/#:~:text=However, UK Copyright Law contains, to another without
infringing the copyright.
Dipple, (2015).) https://www.ukmusic.org/news/uk-music-industry-wins-highcourt-copyright-case-against-government/
(UK Gov, 19/12/2022)
https://www.gov.uk/government/publications/meta-counterfeit-and-piracy-campaign/the-effectof-piracy
(Gotting, 2022) https://www.statista.com/statistics/321843/music-industry-income-in-the-uk/
(wiebe, 2020) https://www.musicindustryhowto.com/how-much-advance-do-record-labels-giveand-how-much-should-you-try-andget/#:~:text=Per%20IFPI%2C%20a%20record%20label,What%20is%20this%3F
(DCMS report, 2021) https://ukparliament.shorthandstories.com/music-streaming-mustmodernise-DCMSreport/index.html?utm_source=committees.parliament.uk&utm_medium=referrals&utm_campai
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