MAS 110 Online Essay
By Maddison Colgate (42870151)
Discuss
the phenomenon of digital media convergence in relation to Advertising and New
Media.
The
phenomenon of digital media convergence has detrimentally impacted on
advertising in the global music industry. Digital convergence has led to
artists and musicians becoming no longer dependant on the marketing function of
record companies to establish a strong fan base. The digital convergence of
information technologies and applications has caused fundamental advertising concerns,
including the illegal copying and downloading of music over the internet via
peer-to-peer file sharing programs. Advertising divisions, in order to remain
effective, must develop and implement new strategies in response to these
concerns in order to create value for consumers regardless of price. Methods include
free listening initiatives and the development of legitimate digital music
stores like Apple iTunes. Thus, the responsibilities of music advertising has
changed since the digital revolution, essentially since the mid 1990s when the
internet pioneered, and in order to adapt to new challenges, new marketing
business models must be employed.
Both
upcoming and renowned artists no longer rely on record companies to create publicity
and an established fan base. This is as a result of the digital applications
developed through digital convergence that provides all individuals with the
ability to “routinely create…share content” (Dwyer, T. 2010, pg.11) over the
internet. In terms of the production of music, the internet in combination with
home recording devices is equivalent to processes conducted in a recording studio
(Elliott, Rundle-Thiele &Waller 2012, pg.428). The advertising and exposure
of this content can be spread through podcasting, digital radio websites
including Triple J Unearthed, social
network sites Twitter, Facebook, Myspace and Tumblr, personal websites and through
video content using youtube. These digital tools are available through one’s
personal computer, mobile phone, laptop, Smartphone, Ipad and so forth. This
equal level of capability between music marketer and music consumer is a
significant outcome of digital media convergence which has significantly changed
the authority of record companies.
Digital
convergence has caused imperative concerns for music advertising, including the
illegal downloading of music via peer-to peer file sharing programs. Music
piracy is in fact responsible for an annual loss of approximately $1.6 billion
in the Australian music industry (Elliott etal. 2012, pg.51). Gayer, A &
Shy, O. (2005, pg. 478) claims that prior to
the digital revolution, different forms of information, whether print,
audio or video, were distributed via individual communication channels and
required distinct knowledge and equipment. However, the digital era caused these
independent media forms to converge, allowing all information to be distributed
and copied via the same platform, essentially through the internet.
Furthermore,
converged applications including the free peer-to-peer file sharing program Limewire is the means in which music is downloaded
on the PC, laptop or Smartphone. “Limewire is known to be the most popular such
network in Australia with Music industry Piracy Investigation Pty Ltd suggesting
it represents in excess of 60 per cent of file-sharing activity” (McKenzie J.
2009). It was the growth of the internet in combination with peer-to peer
sharing tools that ensured “that once an illegal copy of a song was online,
virtually everyone could obtain an illegal copy” (Elliott etal. 2012, pg.428),
triggering the internet file sharing revolution. McKenzie J. (2009, pg.297),
however, believes that “there is no agreed a priori foundation for suggesting
that illegal downloading necessarily helps or hinders legitimate sales and the
question subsequently remains an empirical one”.
In
response to illegal music downloading, music advertising needs to develop new strategic
plans that appeal to the needs, wants and desires of consumers that are used to
accessing free music products and services. Morrison D. & Sheehan K. (2009)
argues the importance of altering methods towards embracing the ‘confluence
culture’ rather than resisting its effects. For instance, free listening
initiatives attempt to reduce the capital lost from music piracy by increasing revenue
in other significant forms like merchandise, concert ticket sales, online music
magazines and so on. This is demonstrated in 2008 when “consumers could listen
to Oasis’s latest album Dig Out Your Soul free of charge on MySpace prior to
release”. Interaction between advertising and customers via social media is
used here in order to enhance the levels of sales.
Vaccaro
V. & Cohn D. (2011, pg. 48) state that “legitimate online digital music
services” are included in the new business model that responds to music piracy,
as shown through the introduction of Apple Computers iTunes in April 2003. Cuneo A. (2003) believes that Apple CEO Steve
Jobs transformed the illegal copying trend into a “marketing opportunity”
through the use of a “dual platform approach” that marketed the iPod in combination
with iTunes.
The
2004 Pepsi-Apple iTunes advertising campaign consisted of codes for a free song
download that were randomly placed in one hundred million Pepsi bottle caps (Graham,
2004). This importantly acted as the “first major convergent media promotion”
that connected traditional media with the internet (Vaccaro V. & Cohn D.
2004, pg.54) and furthermore built awareness of the simplicity of iTunes with
each song only costing $0.99, including a CD cover image. Fundamentally, the
development of Apple iTunes provided “the ease, flexibility,
and affordability that downloader’s are looking for without violating copyright
law” (Altschuller S. & Benbunan-Fich R. 2009 pg. 55). Alternatively,
Vaccaro V. & Cohn D. (2011, pg.48) also asserts that the “legitimate
downloading of music is still just a drop in the bucket compared to the
massive…usage of file trading via unauthorized…music services”.
Digital
media convergence has highly influenced the advertising of music products and
services. Convergence has provided all individuals, through social media, with the
opportunity to distribute music and create a fan base without the use of record
companies. A key issue that has arised from digital convergence and impacts
music advertising is the illegal downloading of music via the internet.
Subsequently, advertisers face the difficult challenge of persuading people,
who are used to accessing free content, to become paying customers. Whilst
successful initiatives have been implemented in reaction to this concern,
including legitimate online music stores and free listening strategies, it still
remains clear that the development of more innovative solutions is imperative.
References
•
Altschuller S. & Benbunan-Fich R. 2009,
Is music downloading the new prohibition?
What students reveal through an ethical dilemma, Springer Science & Business Media, 21/08/2012, http://www.springerlink.com.simsrad.net.ocs.mq.edu.au/content/42g3531nv41u17t4/fulltext.pdf
•
Cuneo A. 2003, ‘iPod and iTunes’, Advertising
Age, Vol. 74, Issue 46, 21/08/2012, http://web.ebscohost.com.simsrad.net.ocs.mq.edu.au/
•
Dwyer, T. (2010) Media Convergence,
McGraw Hill, Berkshire, pp 1-23.
•
Eldridge J. 2008, ‘The best things in life
are free’, Admap, 21/08/2012,
•
Elliott G, Rundle-Thiele S. &Waller D. 2012, Marketing, 2nd Edition, John Wiley & Sons Australia, Ltd,
Milton, Queensland.
•
Encyclopedia of Major Marketing Campaigns, 2007, The Gale Group, Michigan USA.
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Gayer, A & Shy O. 2005, ‘Copyright Enforcement in the Digital Era’, CESifo Economic Studies, Vol. 51, pg.
477-489, 23/08/2012, http://cesifo.oxfordjounals.org/
•
Ingham A. 2003, ‘Taming the Pop Idol
Phenomenon’, Admap, Issue 426,
21/08/2012,
•
McKenzie J. 2009, ‘Illegal Music downloading and its Impact on
Legitimate Sales: Australian Empirical Evidence’, The Author Journal compilation, pg. 297-306.
•
Sheehan, Kim and Morrison, Deborah (2009), ‘Beyond convergence:
Confluence culture and the role of the advertising agency in a changing world’,
First Monday, Vol. 14 no 3,
23/08/2012, http://firstmonday.org/htbin/cgiwrap/bin/ojs/index.php/fm/article/view/2239/2121
•
Vaccaro V. & Cohn D. 2004, ‘The Evolution of Business Models and
Marketing Strategies in the Music Industry’, International Journal on Media Management, Vol. 6, Issue 1-2, pg.
46-58, 21/08/2012, http://dx.doi.org/10.1080/14241277.2004.9669381
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