Industry Impact Assignment: Effects of Social Media on the Music Industry Final Report
James Brown called it a man’s world, Gary Jules called it a mad world, but in this day and age it’s actually, a cyber-world. Don’t believe me? Just look at Facebook’s 750 million users, and Twitter’s 110 million enthusiasts and you’ll understand the magnitude of our investment in social media [1, 2]. One business in particular, which has been fundamentally changed by its interaction with social media, has been the music industry.
Social Media’s Impact on the Music Industry
When looking at how social media has impacted the music business, major changes in production and marketing were observed. With regards to production, artists can choose to emulate Justin Bieber, who got his start on YouTube before catching the eye of an industry insider and landing a deal . On the other hand, artists without representation can continue producing music on their own while using social media sites as a means of reaching fans.
Social media sites like Twitter, Tumblr and Facebook have also greatly influenced music marketing strategies by giving rise to free modes of self and fan promotion. Newest pop sensation One Direction, experienced the benefits of fan promotion when they arrived in North America to find an established fan base, despite never having done any promotion  This phenomenon was associated with the ability of social media to connect people in a way that enables them to introduce others to new music via word of mouth on their online accounts .
Social Media has also pushed record labels into survival mode, where they either adapt or die. In the past decade, we’ve seen labels operate by going on the attack as they try to stall progress through lawsuits for copyright infringements and file sharing .This hesitation to communicate and collaborate with social media sites, who are very much a part of the modern music industry, has led to negative consequences that close labels off to free advertising and thus potential profit .
Industry Opportunities vs. Threats
|Scouting Talent Online
||Labels can’t/don’t adapt to social media
|Worldwide accessibility and distribution of product 
|Negative word of mouth
|Music sharing online
|Free self and fan promotion campaigns online 
|Better quality music industry
|More control for artists
There you have it readers, it seems that social media has and will continue to alter the music industry, whether for better or worse you decide!
Until the next post!