The music business is a tough business to work in. It’s even
harder to run a business of your own that is in the area of music. When
operating as a music management business, whether LLC, C-Corp, or S-Corp, the
people in charge have alot of risks to consider.
In today’s modern technology savvy society there are so many
ways to illegally download music rather than simply purchasing the actual
music. This issue, during these technologically advanced days, is the biggest
and most ubiquitous of all.
It began over a decade ago when Napster, the audio file-sharing
pioneer of the twentieth century, became the beacon for illegal music piracy.
It was the beginning of a nightmare for future album sales and digital music.
As a result of this pandemonium, management teams have to work overtime to
evade what a great myriad of music listeners do and that is illegally
downloading music. Although the illegal downloading of music does not inhibit
the fame of the celebrity, it does terribly ruin the revenue for the business.
According to Senator Ihenyen (2013) in an article from the Nigerian Law Today “In
the electronic age, digital transfer of information through the Internet has
simply become increasingly seamless.” As the management team they have to
assume the risks and persevere regardless. As aforementioned by the Recording
Industry Association of America “the accumulative impact of millions of songs
downloaded illegally – and without any compensation to all the people who
helped to create that song and bring it to fans – is devastating.” Despite the
overwhelming crime, the business, again must go on. The artists who are
extremely successful don’t struggle as much with getting by it as the team that
is backing them does. Needless to say this is one risk that has to be addressed
when operating a music management team.
