The music industry is an interesting field to analyze. Hence, this paper presented the situations that existed within the business in year 2000. Based from the recommendation of the supposed Head of Strategy of a leading music label, Sony BMG, this paper stressed the need to adhere to the principle and practice of business partnership as what author Knopper presented in his book “Appetite for Self-Destruction. In doing so, the paper made the public realized the benefits of entering into industry deal such as the cited partnership between Sony BMG and Napster.
Strategic Recommendation for Music in 2000 It is year 2000 and today’s Age of Digital Technology rapidly turns music and practically the entire recording industry into a world where file transfer, sharing, swapping and distribution service flourish. The music industry digitally transforms, particularly improves or modernizes technologically. In fact, the contemporary setting of music now turns away from the structure of compact disc or CD files. This is due to a free, easier and more accessible means of getting and receiving songs which the business now calls downloading.
With such kind of industry evolution, it is empirical therefore not to fight the present system head on. The industry instead needs to adapt to the current working and effective framework. Hence, it is an essential strategy for major music labels or big recording companies to form partnerships with other fields. The said approach allows the existing and thriving downloading system works to the advantage and benefits of both the industry and its people. Such practical recommendation makes Music Company stronger and is able to survive whatever challenges that the future of the business holds.
This is the reality of music today. The world now experiences the advent of a new and more demanding period hence the situation calls for a strategic recommendation and decision. As 2000 signals the start of the fresh 21st century, such kind of condition facing the music industry requires for aggressiveness and adaptability or flexibility in terms of finding ways to fit into the present-day situation. To be more specific, Sony-BMG is one of the leading music organizations where such recommendation will work. This is because of the company’s adherence to and upholding of
its corporate responsibility. That is, Sony-BMG dedicates itself towards the continued development of the industry thus the need to consider the cited suggestion. With such business approach, the company needs to plan and undertake an agreement with concern field that is into or relative to the in-thing system of music downloading. In doing so, the new system of downloading, which the Digital Age introduces, serves its own interest while at the same time helps major music labels such as Sony-BMG and assists the music industry in general to preserve the business and continue serving its market.
The cited condition signifies the principle and practices of business partnership and merging which Steve Knopper (2009) clearly and effectively exemplified in his book “Appetite for Self-Destruction: The Spectacular Crash of the Record Industry in the Digital Age. ” Taking into consideration the pieces of information concerning the problems besetting the music industry, the book implies the need for major music labels such as Sony BMG to merge and form partnership.
Such strategic recommendation prevents any untoward event in the business particularly the “self-destruction” of the industry, with all its companies, workforce and public (Knopper, 2009). What the book recommends? The author discussed in the book the abrupt growth and collapse of the recording business that happened in a span of thirty years. Decades prior to year 2000 witnessed the changing of music styles or genres and most importantly, the extraordinary achievement of the compact disc or CD. This happened as CDs previously created the recording industry into a stunning and prestigious business worldwide.
Such is the condition until the emergence of the system of music downloading specifically the technology of file-sharing which significantly harmed the music industry (Knopper, 2009). To be able to undertake a sensible and efficient recommendation for leading recording companies like Sony BMG to consider, it is fundamental for Knopper to present the painful reality that happened to the industry prior to 2000. That is, after a successful transformation from long playing albums then to CDs, the industry was caught off-guard by the contemporary system of music downloading and eventually file-sharing (Knopper, 2009).
Prior to 2000, the music industry is in its heyday due to the success of the CD business. With the technology advancement in 2000, the author noted with concern how big recording companies including Sony BMG failed to adapt to the Digital Age which started on 2000. Hence, leading music companies like Sony BMG rejected the advent and significant implications of the technology of file-sharing. The industry’s denial specifically the wrong and harmful decisions that people behind recording companies did allowed for the arrival and eventual supremacy of technological advancement like file-sharing.
This is where the book discussed about Napster’s revolutionary style of music business. With the dominance in 2000 of the file-sharing technology, which is carried-out through downloading of songs from Napster and eventual copying and distribution through MP3 files, the CD business and entire industry succumbed to various debacles that included legal battles (Knopper, 2009). To address the existing problem concerning the new format which began in 2000, the book then hinted on the need for music companies to come together. The author signified that this requirement is achieved through merging and partnership within the industry.
To support such recommendation, Knopper cited the scenario when there was a need for industry rivals Sony Music and BMG to become friends. The author wrote: One of the first things Andrew Lack did as head of Sony Music was something that his predecessor almost certainly would have never…a friendship with rival. Rolf Schmidt-Holtz was chairman of BMG, which not so long ago, had fought like a prize fighter against Sony and the other major labels… (p. 205) While the book is a recent material, the solution that it has recommended is applicable to year 2000.
Hence, the recommendation for music companies to enter into partnership with other companies and even with Napster itself is a rational solution that could have prevented the eventual destruction of the industry (Knopper 2009). Emergence of Napster University drop-out Shawn Fanning introduced into the web a music file-sharing service that eventually revolutionized the entire music industry. The birth of Napster enabled people especially music-lovers to download software, free of charge, and eventually transfer share, swap and distribute songs.
A year after it began its operation, 2000 became a battle-laden year for Napster as it was engaged in several legal fights. These legal disputes included cases hurled by universities, music personalities like the rock band Metallica and of course, various music labels or recording companies for reported copyright infringement (“Napster’s High and Low Notes,” 2000). Napster’s online rule and into the music world became a success among down-loaders in 2000. Since it is the year when music was highlighted by raging rock, teen pop and hip-hop songs, Napster became an instant sensation especially among down-loaders.
Far from the concert venues and recording studios, the noise brought about by the industry was heard happening inside court rooms where cases against Napster are heard. However, it is worthy to note that despite the legal obstacles, Napster gained its legality in 2000, continued with its business and even formed partnership with music companies in an effort to show support to the industry (O’Hare, 2000). Of merging and partnership Beyond the issues and controversies that transpired in the music industry in 2000, it is to be noted that it was in the same year that probable solutions to the problems were identified.
O’Hare said that hours before Napster is to be shut down, The U. S. Court of Appeals ruled in favor of the company when it ordered the continued operation of the file-sharing on the Internet in 2000. The fight by major leading music labels such as Warner Brothers, Universal, EMI, BMG and Sony went naught as Napster shocked both the online and music industries when it was legalized (O’Hare, 2000). As Napster became a legal component of the music industry, it appeared that the online music service resorted to partnership in an apparent effort to the accepted as part of the recording industry.
O’Hare wrote that in October of 2000, the then only one-year-old company and its teen-ager owner got into an agreement with BMG’s parent organization, the Bertelsmann (O’Hare, 2000). It turned out that the purpose for the $50 million partnership is to accord an assurance that the market of Napster are assured of music downloading through the company. But this time, the deal specified a fee for artists’ royalties to be paid by Napster users. It was unfortunate though that the deal did not materialize as the market itself of Napster opposed the agreement. Aside from this, Napster continued with its legal battles in the succeeding
years. If only the partnership pushed through, it could have determined the feasibility and effectiveness of the principle and practice of merging and partnership within the recording industry and even among business rivals (O’Hare, 2000). Recommendation from Sony BMG Head of Strategy In order to understand better the above-mentioned conditions, principles and practices, it is valuable to apply such elements during the year 2000. Since it is the period when the industry witnessed various incidents, it is just essential to apply the presented facts on such phase of the music industry.
This is because in doing so, strategic suggestion may be formulated and eventually carried-out hence ultimately addressed, if not resolve, the whole situation presented before the recording business. First, it is useful to take note that it is year 2000 and the setting is currently taking place wherein the situation indicates that the Napster, with the rapid improvement of its online file-sharing service, challenges the peak of the CD business. Thereafter, Napster’s market is growing while the previous achievement of CD sales is nearing its end.
This is where I entered the picture as the head of strategy for Sony BMG. As such, I was tasked to recommend possible solutions to the present problem. Such function will be performed in a way that I have to create proposal in accordance to what Knopper presented in his book “Appetite for Self-Destruction. ” Cause and Effect To start with, it is logical for my recommendation to identify first what caused the downfall of the supposed success of the CD business prior to this year. After careful evaluation of the surrounding circumstances, it is now clear that the plunge of CD sales was
brought about by the failures within the industry itself. This means that the major music labels created among themselves their respective downfall. This is primarily because if their adamant denial of the arrival of a new or fresh form of music business such as the one introduced and being enjoyed by Napster. This factor aggravates the obvious damaging decisions currently being done by the people behind these recording companies. Aside from the refuting the existence of the Digital Age, the leading music companies and the industry itself fail to see both the threat and benefits of technological advancement.
In effect, these grounds are now being slapped on the faces of industry people and the music field in general. This can be done by immediately acknowledging the challenge being presented by Napster but most importantly, the advantages that it can definitely offer. Considering the current situation, it is now logical to accept and realize that Napster, with its introduction and control of the technology of online file-sharing, is presently revolutionizing the manner music was circulated years before 2000. There is now a need to correct the mistake of denying the existence and progress of Napster.
Hence, it is now necessary to recognize the enormous potentialities that the Digital Age has to offer particularly the technology of online file-sharing. It must be realized by the industry and its people that there is now an imminent danger that the CD technology and other music means before year 2000 are likely to become totally obsolete. This kind of cause and effect analysis will somehow help in eventually accepting that any business, the music industry for that matter, is vulnerable to challenges. At the same
time, it is valuable to always consider that the music industry is experiencing its low as far as the CD technology is concern but is definitely on its high level as regards the technology of file-sharing. It is through this approach that the industry specifically the recording companies will have an easier time at accepting and eventually supporting Napster’s contribution. Proposed Partnership and Merging Considering the above-cited principles and eventualities, I now therefore strongly recommend the practice of partnership and merging among recording companies.
The underlying principle for this suggestion is primarily based with what Knopper discussed in his book. In the said material, the author emphasized and made the public realized the need and the benefits of resorting to having deals or agreements within the business and among music labels. As one of the leading recording organizations, it will be a rational undertaking for Sony BMG to form partnership or merge with another company. In fact, it is also highly recommendable for Sony BMG to become a business partner of Napster.
This is because the said recommendation will not only pave the way for the company’s survival in the business but most importantly, Sony BMG will become part of the revolutionary effort to make the industry stable and competitive. As the one in-charge of the strategy of the corporation, it is now my recommendation for Sony BMG to aggressively push through with such plan of merging or partnering with other recording companies. If not with the rest of major music labels, it is suggested that it will be best for Sony BMG to enter into a business agreement or deal with Napster.
In doing so, not only will Sony BMG will be assured of continued existence but the company is sure to carry-on with its mandate to support and contribute to the evolution of the music industry. How the recommendation works? In any recommendation, a clear and effective formulation and implementation are necessary. This is primarily how the proposal works and succeeds. Hence for Sony BMG, it is fist required that the purposes or objectives of the partnership are clearly identified.
From there, I, as the head of the company’s strategy component, recommend that for year 2000, it is suggested that the aims of the proposed partnership between Sony BMG and Napster are limited into two. Thus, it is recommended that Sony BMG partners with Napster in order to save the company from eventual downfall while at the same time contribute with the effort to revolutionize the industry and the manner of serving the music public. After the creation of the objectives, it is now time to suggest on ways on how to carry-out such plans.
The initial proposal to merge or form partnership is in itself an effective implementation of the objectives. This is because there is definitely a need to perform the proposed objectives and this can only be done by being involve and being part of the undertakings of Napster. In fact, such attempt will be positively welcomed as it is evident also with Napster that there is a requirement to enter into joint business among the major music label. The initiative on the part of Sony BMG will then be taken as a positive effort thereby is expected to similarly yield beneficial implications.
In the implementation stage, it is my recommendation to Sony BMG to be open and flexible with many possibilities. As presented by Knopper in his book, even Napster itself manifests remarkable openness entering into further ventures with other fields that are also into the digital technology. As Knopper wrote, Napster did not hesitate to form partnership with other companies beyond the music industry such as its partnership with Nokia and other leading digital businesses (Knopper, 2009).
With such flexibility, it is lastly recommended that the partnership be done in such a way that both companies, Sony BMG and Napster, will benefit and continue with its respective business interests. Hence, the proposed partnership will be implemented in accordance with important elements such as objectives, manner of implementation, expected outcomes, time table and most importantly, the required success of the two companies as well as the benefits and contributions of the recommended partnership to the entire music industry. Conclusion
Business recommendation is directly aimed at working to the advantage of the system and its people. If we are to look at the situation of the music industry in year 2000, it is empirically essential to adhere to and uphold what Knopper presented in his book. That is, partnership among recording companies and revolutionary organization such as Napster is indeed beneficial for the entire field. With year 2000 as the period of discussion, it is practical to formulate and implement suggestions based on the requirements of the said phase of the recording business.
Hence, with the downfall of the CD business and the dominance of the online file-sharing technology, it is logical for leading music labels such as Sony BMG to deal a business with Napster. As such, my suggested partnership between Sony BMG and Napster is objectively in accordance to the book’s principle that, in fact, there is nothing wrong with joining businesses but that such effort eventually resolve any existing problem such as the plunge of the CD sales.
It is for this reasons that Knopper’s book and my recommendation ultimately serve their respective purpose and essence towards the benefit of the music industry in year 2000. References Business Week Online. (2000, August 14). Napster’s High and Low Notes. Business Week. Retrieved April 28, 2009, from http://www. businessweek. com/2000/00_33/b3694003. htm Knopper, S. (2009). Appetite for Self-Destruction: The Spectacular Crash of the Record Industry in the Digital Age. New York: Free Press. O’Hare, K. (2000). The Year in Music. Retrieved April 28, 2009, from http://www. infoplease. com/spot/00music1. html
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