Current Methods of Record Label Companies

2. Other Preventive Approaches

Digital Right Management

Apple was among many online music stores that used Digital Rights Management (DRM) in 2003 when they first launched iTunes. iTunes makes DRM-free tracks available for $1.29 versus the standard 99¢ for DRM-encoded tracks. Six years later in 2009, Apple removed this copyright protection wrapper from every song in its store due to ineffectiveness (Boutin, 2010). These wrappers might be convenient for distribution management but they are very troublesome to music buyers. A few online music stores continue to use it nowadays (Bangeman, 2007). The problem with the DRM songs is that purchasers can only play them on certain devices. They are impossible to be burned onto CDs at will.

Aggressive Pricing

Online music stores reserve more spaces for advertisings on their website interfaces. They try to yield revenue from sources other than to solely sell digital music tracks. These digital music stores also offer incentives for monthly to yearly subscribing packages. All these mechanisms aim at reducing online music prices, and incentivizing people who are well-aware of the copyright law (IFPI, 2010).

Another example of aggressive pricing strategy is TuneCore, a website started in 2006. This site allows music artists to distribute their products to different online music stores with a fee. (Greenwood, 2010). This mechanism brings artists closers to the marketplace and contribute partially to lowering prices. Previously, artists pay a significant fee for record label companies in order for these companies to distribute their own products. Nowadays,  sales revenues go straight to the artists. This is a very appealing method aiming at reducing music price. To many people that do not like record label companies because the artists are supposed to deserve the praise more than the distributors, this will also encourage them to purchase the legitimate song tracks in lieu of downloading for free.


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