The new age entangled with web net is here and escaping it or not addressing issues that arise from ever reaching internet and users sharing is a pityful strategy. 95% of of music sales in China are of pirated copies
In Russia the number of pirates is approximately equal to the number of users. There are dozens of websites that provide free downloads for registraition or for nothing. But if you would want to be a paying customer and use ITunes that's where you run into many problems. The question of payment methods while shopping at iTunes store is figured all out for residents of Europe and the U.S. But what about Russians? Credit cards though well few years into introduction to the consumers , are still extremely rare and pricing in dollars against low wages in Russia makes it unpleasantly out of reach.One way out could be the introduction of iTunes in the payment system widely used in terminals for cell phone credits. I believe that if a person wants to receive media content fair way, the providers of service need firstly provide hassle-free way to pay. Then the situation might change as a lot of russians endure happiness through consumption and paying for things like music makes us feel good.
Here is what Jake Smith from the department of customer support in a major music store TuneCore has to say about it "It is useless to deal with changes in consumer behavior. In the old days, the biggest threat were the cassettes, that recorded music from radio. Piracy stinks, but as long as the music is being recorded, there is a danger of theft. "
According to Smith, only producers and distributors who stop fighting and resisting the progress and concentrate on selling goods that cannot be stolen and the quality of goods rather than quantity,will lead musicians to success in this uneasy market.Bono published his statement on worldwide issue of internet piracy in New York Times
"A decade’s worth of music file-sharing and swiping has made clear that the people it hurts are the creators — in this case, the young, fledgling songwriters who can’t live off ticket and T-shirt sales like the least sympathetic among us — and the people this reverse Robin Hooding benefits are rich service providers, whose swollen profits perfectly mirror the lost receipts of the music business." And as much as the world loves everything Bono does, but even he himself was surprised how much of negative response he got from online crowd. The problem of free use seems to root deeper and deeper. Artists are struggling to get contracts with record labels. The revenues have fallen sharply. Enthusiasts who are trying to establish legit and acceptable means of earning money in the music world, are now steamed by piracy . According to the latest data from the International Federation of the Phonographic Industry (IFPI),(IFPI's mission is to promote the value of recorded music, safeguard the rights of record producers and expand the commercial uses of recorded music in all markets where its members operate) 95 percent of all downloaded music is illegally obtained. Record companies with a century long history in many countries, from Spain to Brazil, are nearing bancruptcy. Independent study, initiated by trade unions, informed us that the creative industries in Europe could lose more than a million jobs over the next five years.
If I would try to express crisis in the music industry over the past ten years in a singe word, that would be the word "free." The digital revolution has made music free. Now the same thing starts to happen to movies and books. For many years music business, musicians and creative businesses, governments and regulators are confronted with this new concept of "free". As consumers we love "free", but for creators seeking reward for their work, this word has become a nightmare. In recent years the music industry tried to fight "free of charge with free, looking for income from advertising, merchandising, sponsorships, and these efforts brought little success. "Free" is and will stay the biggest problem of the creative industry.
Tower Records and Virgin Records ceased to exist, and many independent shops are nearing the same bleak future.
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