Outline

With the growth of the internet, consumers have increasingly turned to online shopping instead of purchasing items in physical stores. According to research by Multiscope, books and audio CDs are among the most frequently bought items online, primarily due to their manageable shipping size. Although most online purchases are still physical goods, record companies and retailers have begun offering digital music downloads.

However, a significant portion of music downloads has been illegal, with no royalties paid to artists or record companies. This poses a serious problem for the music industry. Without revenue, record companies cannot invest in new talent, and established artists are less motivated to produce new music due to inadequate compensation. This scenario could lead to a decline in new music releases, which is undesirable for everyone involved.

To address this issue, it is essential not only to educate consumers about the impact of illegal downloading but also for record companies to provide attractive legal alternatives. The goal is to encourage people to purchase official music rather than resort to illegal copying and distribution. This paper aims to provide an overview of the current state of the record industry and offer recommendations for fostering a healthier environment where people buy music online legally.

Written by Wouter Haring (Fall 2000)