In this article we discuss the long and short term effects of the global economic recession on the music industry and how these changes have already affected music sales

The economic recession which has, according to the latest data, been ongoing for at least the last year, has caused many consumers to cut back on spending. The United States, one of the strongest consumer markets for entertainment products, has been hit particularly hard by the recession.

While new music continues to be marketed to the masses, the cutbacks in consumer activity are certain to have an effect on the way consumers choose to spend their dollars and whether music will be as viable a product as it has traditionally been.

From 2004 to 2007, online music sales went from a non-factor in overall sales to an impressive 30 percent of all music sales in the US. The potential for online music sales to be a force is certainly there, but the music industry remains stifled by some stiff competition that always offers its products at the best price: free.

Music piracy via online music sharing sites and software has long been blamed by the industry as the cause for the majority of their woes with little regard to what the infiltration of those services may tell the industry about their products.

New music is oftentimes very hard for consumers to come by. For many years, the music industry has followed a model of cloning the latest trends and releasing recordings of their very prepackaged artists in vast waves of sameness that seem to no longer entice consumers. Online music, as it sometimes does not go through the filtering and packaging process of major labels, tends to be riskier, more niche and more geared toward the individuals who enjoy the genre in question.

The proliferation of online music also begs the question of whether the slick packaging relied upon by record companies to sell their products is really worth it to consumers. After all, online music is downloaded bare-bones, with no cover, inserts or artwork.

Legal music sharing, as it has evolved, has become enough of a competitive service that it seems record labels, when they embrace the new technology rather than compulsively suing, have something to gain. Consumers who download pirated music always face the risk of viruses and other malicious software being downloaded with the music. Digital music sales from legitimate sources are generally not only easier for consumers to use, but carry with them the assurance of being from a source who has an interest in keeping their customer base.

Heavy-handed tactics such as intimidation, electronic anti-piracy devices and so forth seem to have done little. By 2007, when legitimate sales had become to be a measurable part of digital music sales, the companies had reached out to their consumers, offering products that were affordable, easy to use and packaged in such a way that the consumer did not have to feel as if they were purchasing marketing materials as opposed to music.

The recession is likely to hit all parts of the market. Music, as it is easily distributed online, can be compressed to formats that allow fast downloads while maintaining a high quality and, like everything in the world, now moves and changes much faster than it did in the past, is poised to be one of the products consumers can afford without violating their restricted budgets.

Moving from no measurable sales figures to 30 percent of market share in 3 years would be impressive for any product. For an entertainment product such as music in a time of economic recession, it shows that online music may now, more than ever, be the future of music entertainment.

Thanks for reading, I hope the article was informative and has helped you understand the potential effects that recession can have on music sales as well as how strong both the music industry and music lovers are when times get tough. For more information on new music and new bands visit OOiZiT.com

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