Impacts on music piracy
In the future, the only way musicians will make money is by playing live. New federal legislation says universities must agree to provide not just deterrents but also "alternatives" to peer-to-peer piracy, such as paying monthly subscription fees to the music industry for their students, on penalty of losing all financial aid for their students.
When record companies appeared, services they were providing were necessary in order for people to listen to recorded music, making and selling records was a major undertaking. This was a starting point of development of recording techniques and record studios, at that time making recorded music available to masses required a significant capital and investments, which in turn required a legal structure that would provide stable profits and return on the required investment. Music industry used to provide people with tools that were essential to listen to recorder music and the difference between that time and our days is that record companies charge people for permission to use tools people already have that they did not provide, that in fact people paid someone else for, yet the legal structure that developed during the time when that services were useful remains. The legal structure says if you don’t pay you are breaking the law therefore you are criminal and the reason it has not been changed is because of “STARS” the entire structure of the record industry is built around their interests. Records produce good money for the industry and almost nothing goes to the pocket of musician.
This particular diagram is a good example of old model of music production chain, In our days there is no need of Publisher, Distributors and in most cases manufacturers, modern technology allows to burn CDs at home publish own records using internet distributing the material across the World Wide Web physically and digitally.
In old days, musician had to pay to almost every person in Music Production chain to record, studios, engineers, managers, labels, publishers, legal departments, distribution networks etc. in fact all of the departments and services belong to the same corporation and the record companies are not actually record companies at all.
“To begin with, we should note that the major “record companies” are not actually record companies at all but huge media conglomerates. Most “independent” labels are owned by a corporate label. Each “major” is in turn owned by an even bigger corporation, and so on up the food chain. At the top of the chain sit a tiny handful of media giants: Time Warner, Disney, Rupert Murdoch's News Corporation, Bertelsmann of Germany, Viacom (formerly CBS) and General Electric. These corporations are among the world’s largest. All are listed in Fortune Magazine’s “Global 500” largest corporations in the world. They have integrated both horizontally (owning lots of record labels, lots of newspapers, and radio stations) and vertically (controlling newspapers, magazines,...