Streming services have diminished piracy in Norway
The most common argument used against restrictive DRM and consumer-unfriendly policies in music business is that digital rights management technologies are responsible for uncontrolled piracy and profit loss. When music started to be offered online, like Napster did, the music industry had an aggressive reaction and constantly attacked each illegal service and refused to discuss with legal companies about creating services that consumers would like to buy. Nowadays, some data obtained from Norway sustains the fact that the piracy and availability are connected, but this may be just a small comfort to the worldwide music industry.
Here are some background data from Norway. Six years ago the piracy rates were above the roof as they could be found everywhere around the world. Because of the fact that the streaming industry appeared, those piracy rates have dropped down in a particularly strange fashion. So, if we consider the graph made until 2012, we will see that the data offered by Music Business Worldwide states the fact that piracy rates have diminished to only 4% for people under 30. The main reason is the fact that young people are those who led the transition to streaming services. Anyway, selling music through iTunes dropped 13%, CDs 15%, while streaming income and vinyl both rose by significant numbers.
The difficulties of the streaming conversion
Opting for streaming can kill music piracy and acknowledge the main position of the anti-DRM crowd, but there are many difficulties associated with the new allocation model. As an example, an artist can gain per play only a penny, which can be a frustrating challenge.
The newest data offered by Midia Research states the fact that the musical industry is like a superstar for economy in which 1% of all stars consume a total of 77% of the profit. As an example, if an indie group sells CDs at a local concert, they will probably earn much more income per disc than they will if they sell it through streaming sources.
Summing up, the music industry continues to endure many disadvantages due to CD sales. Streaming profits are not plenty to support the sea of artist that appeared nowadays and streaming services cannot provide sustainable incomes for those that are not popular or worldwide known.
So, we all know that for starters is very difficult to make a living from the music business. There is a small community of subscribers that actually pay for the streaming service, so the numbers are not a motif for happiness. iTunes or other services like it offered some profit once they were released. So, there are too many means to obtain music via Internet and some avoid paying money to a streaming service in order to obtain their favorite song. There are many artists that cannot live on what they sell via streaming services because they are not known or simply their music is found on piracy websites. The music industry is still fighting with the tremendous change from physical to digital distribution, the main problem being the fact that streaming services try to outrun each other.