science

New Music Economy

New Music Economy is a science topic covered in the lgStudy science library. This page brings together a partial reference excerpt, illustrations, worked examples, real-world applications and a short study plan, so you can understand New Music Economy rather than just read about it. In short: New Music Economy is a term describing the emergent social, technical, political and economic context of the creative industries. This shift in context has been fueled by concurrent evolution within an ecosystem of interdependent technologies, institutions, and individuals; the result of which impacts the nature of creative property, identity, production, distribution and imagination.

Key takeaways

New Music Economy belongs to science; place it in that map before memorising details.
Learn the definition first, then one example that makes the definition concrete.
Connect New Music Economy to a quantity you can measure, compute or draw — that is where exam questions come from.
Reproduce the core statement of New Music Economy from memory before moving on to harder problems.

Reference excerpt

New Music Economy is a term describing the emergent social, technical, political and economic context of the creative industries. This shift in context has been fueled by concurrent evolution within an ecosystem of interdependent technologies, institutions, and individuals; the result of which impacts the nature of creative property, identity, production, distribution and imagination. The term New Music Economy is evolving out of new consumer behavior, methods of promotion and sales.

Term usage history Notable changes in the economic stability of the music industry started in the late 1990s with the advent of P2P file sharing. The Long Tail theory is a benchmark in the music industry for new economic concepts. The nuance of infinite shelf space opened up economic opportunity for independent record labels around the world. The term New Music Economy first emerged in 2007.

Tim Westergren (Founder & CSO, Pandora) & Gideon D'Arcangelo (New York University) lead an event March 13, 2007 in Palo Alto, CA titled "Social Interactions in the New Music Economy" Venture Capitalist Fred Wilson began using the term "New Music Economy" in his blog on April 4, 2008. The San Fran Music Tech Summit used the term "New Music Economy" as a title of a Marketing Panel on May 8, 2008. The Panel & Audience of thought leaders attempted to create a formal definition for New Music Economy. The group wrote a list with 12 necessary components in defining the term New Music Economy: Music Licensing Co-Marketing Branding with New Tools Non Traditional Retail Space Digital Distribution Internet-Specific Content Fan Artist Relationship Management Quality Control Content Management System Structures Legal Structures Live Performance Incorporation of Attention Economy Principles in Marketing Strategies Music Licensing Bands, artists & labels are able to utilize music licensing for opportunity. Businesses are legally required to pay for the music they use to promote their product. Music has a positive effect on consumer behavior. Co-Marketing Brands and bands joining to market their product in sync. Branding Bands, artists & record labels using digital tools such as widgets, social networks, avatars, and icons. Non Traditional Retail Space Selling music in businesses that don't normally sell music. Digital Distribution (For sale and marketing purposes), including music, merchandise, video, concert tickets. Internet Specific Content Creating and using content online to drive fans toward exclusive content of economic value to the band/ artist/ label. Fan Artist Relationship Management Creation, moderation and maintenance of fan groups, fan sites and fan activities which includes exchanges of data ranging from email addresses to shared taste in music. Increased interaction between fans and artists/ bands/ labels with the use of blogs, fan clubs, forums, SMS, geo tagging. Quality Control Boutique licensing agencies, promotional companies, licensees, record labels and broadcasters focusing on curation & quality. Content Management Systems Content Management Systems (CMS) for bands, labels & artists, building development platforms for artist content and aggregating data for artist usability. Legal Structures Exploration, interpretation and invocation of music law to accommodate real changes in technology (example: Digital Millennium Copyright Act (DMCA)). Live Performance Bands & artists utilize new tools to book shows, accrue audiences who will attend shows, communicate tour dates to fans, sell tickets to fans, broadcast performances to fans who are unable to attend, provide attendees with immediate recordings of live performances, perform in creative venues ranging from vineyards (Wente Vineyards) to virtual worlds such as Second Life. Incorporation of Attention Economy Principles in Marketing Strategies Monitoring attention of consumers online with new metrics and measurements of consumption, rating systems and time spent.

See also Music industry Copyright Concert tour Recording artist royalties

Notes

References Anderson, Chris (2006): The Long Tail: Why the Future of Business Is Selling Less of More, New York, Hyperion Wilson, Fred (2008): "Something Important Is On The Horizon In The Music Business", http://avc.blogs.com/a_vc/2008/04/something-impor.html Digital Millennium Copyright Act

External links Interactions in the New Music Economy http://www.baychi.org/calendar/20070313/ San Fran Music Tech http://sanfranmusictech.com

Worked examples

Example 1 — a first encounter with New Music Economy

Start with the simplest possible case. Write down what New Music Economy claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to New Music Economy before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about New Music Economy ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of New Music Economy

In research: New Music Economy appears in science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry: Engineering practice reuses New Music Economy in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom: New Music Economy is common in secondary-school and first-year university syllabi. It links to neighbouring topics Economics of the arts and literature, so understanding it makes those chapters shorter.
In everyday life: Look for New Music Economy outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.

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How to study New Music Economy in 20 minutes

Read the reference excerpt below once, without taking notes.
Close the page and write down what New Music Economy means in your own words.
Compare your version with the excerpt and mark what you missed.
Work through the three examples above with pen and paper.
Explain New Music Economy out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is New Music Economy in simple terms?

Why does New Music Economy matter?

Because it connects several science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study New Music Economy?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on New Music Economy.