cont Music Piracy

The artists are affected greatly from music piracy because they are the creators of
the music. It does not allow the artist to profit from their product. Music piracy
has the greatest emotional effect on the artist; because their lyrics and their work is being
stolen not and inhabits their creative being. "The most important component of a CD is
the artist's effort in developing that music. Artists spend a large portion of their creative
energy on writing song lyrics and composing music or working with producers and A&R
executives to find great songs from great writers. This task can take weeks, months, or
even years. The creative ability of these artists to produce the music we love, combined
with the time and energy they spend throughout that process is in itself priceless. But
while the creative process is priceless, it must be compensated. Artists receive royalties
on each recording, which vary according to their contract, and the songwriter gets
royalties too. In addition, the label incurs additional costs in finding and signing new
artists."4 (George Ziemann) However, the newer artist suffer the most because when their
music is leaked out onto the Internet they lose their potential fan base: since they are a
new artist most would rather Internet users Not download the CD’s because they don’t
have loyalty to them, because the new artist and consumer has not developed a
relationship. Compared to the veteran artist that already is successful they will most
likely continue to be successful because they already have a loyal fan base.
The next group that is affected is by music piracy is the music corporations; because they
invest in the music. They give the artist money to record; they publicize the music, put
the CD out, etc. music industry states that the major issue is "It's hugely important that
we fight piracy now," says Matt Grossman, (MacWorld staff director) of digital strategy
for the Motion Picture Assn. of America. "Only one in 10 films make its money from
theatrical release. Studios lost $3.5 billion in 2003 on the optical-disc piracy front."
Henry McGee, president of HBO Home Video, warns that the $20 billion U.S. DVD
industry "could all come crashing down if we are Napsterized." (MacWorld staff director)
Explaining that video sells make the majority of profit when it comes to the movie
industry; and if the Entertainment Industry is afraid that if they allow websites such as,
Kazaa, Gobster, and Napster, that it music piracy would be the end of the Entertainment
Industry. The Entertainment Industry also states that money and jobs are being lost all
because of music piracy. According to the Entertainment companies it is the Internet user
fault; that there is a "Total sales dropped 4.1 percent". (George Ziemann) this has upset
the Entertainment industry greatly.