regarding digital media and the transformation that has occurred in the
music industry has been the subject of many articles over the past
decade. While it is the hope of the industry that the digital formats
and sources will continue to increase and fill the void of the lost
physical format sales, it remains a fact that the overall income from
the sale of music has contracted. The value of the global recorded
music industry has dropped 31% over the years 2004-2010.
What is not often discussed is the impact that this
event, most notably the release of iTunes 1.0 in January of 2001, has
had upon the administration departments for both record labels and
music publishers.2 While income has decreased, the amount of licensing
and resulting data that must be managed has grown exponentially.
Employees in these departments are now required to possess basic music
licensing and accounting knowledge as well as advanced data management
and analysis skills.
This paper provides an overview of some of the
history of, and changes in, industry practices with respect to the
royalty administration of copyrights contained on both physical and
digital products and the administrative problems associated with the
rapid growth of new formats such as streaming, tethered downloads, and
subscription services. Each of these new business models represents a
radical change in the way music is monetized. Are music business
education programs adequately preparing the future entrepreneurs and
innovators in this industry?