The STEP analysis of the Colorado Creative Music is aimed at analyzing macro-environmental factors of the music business the company is engaged into. These factors fall into political, inexpensive, social and technological organizations (Pearce, Robinson, 2000). Paris Music Backing Tracks
Politics factors affecting music business entirely and CCM in particular: strong political balance in the United Areas; regulatory and legal issues concerning music business including copyright laws for copyright laws protection of both music writing and recording, copyright-related legislation touching after the issue of virtual internet promotion and distribution, such as The Audio Residence Recording Act (1992), Zero Electronic Theft (NET) Take action (1997), “The Digital Efficiency Right in Sound Songs Act (DPRSRA) 1995, The Digital Millennium Copyright Take action, “Pending legislation: Music On-line Competition Act and the customer Broadband and Digital Television set Protection Act (CBDTPA)” yet others. Environmental regulations and career requirement do not have an effect on business CCM is involved into. As for the tax policy, in 2150, from total income of $216, 614. 05 the company were required to pay $4, 744, 97 of fees, which is not high rate and amounts to practically 2 percent from the total income. In whole, it ought to be noticed that political factors are good for music recording industry and for CCM especially.
Economic factors include indices in the macro economic system that can affect music recording industry. Here also, macroeconomic factors, such as monetary growth, interest levels and inflation rate are beneficial for CCM. Thus, the U. S economy stored growing steadily since 95. CPI falls down in 1997, 1998. Unemployment rate decreased slowly but surely from 95 to 2000.
Social factors, covering demographic and social areas of the environment exterior to music recording industry are rate of inhabitants growth, age distribution and carrier attitudes. The inhabitants growth in the Unified States is steady and age distribution also prefers the music recording industry. It should be mentioned that for music industry in whole, teenagers and 20-years-olds are primary customer segment, but CCM is designed at attracting people of 40-60 age range. Hence, the considerable share of American population fits this target market.
Technological improvements in music recording, advertising and distribution have several effects on it industry. One aspect of the problem is that performers are no longer determined by major recording labels to produce or distribute their products. (Viljoen & Dann, 2000) The MP3 software alternate to the CD becomes more popular since 98. In the space traditional audio tracks can fit doze to 15 audio tracks monitors; MP3 software can store approximately 150 music songs. “The move towards MP3 FORMAT as the new format to switch CD just as the CD replaced plastic albums have been enlarged by the frenzy of new lightweight MP3 players on the market – some for less than conventional Sony Discmans. very well (Viljoen & Dann 2k, p. 173). However, new digital technologies which came out in late 20 100 years not only facilitate the music recording, but make it considerably cheaper, providing the likelihood for multiple businesses with limited resources to the market. Hence, if in 1980s, professional recording studio with all recording equipment, working away at plastic or tape carriers, cost several million dollars and therefore was a website of 5 or 6th major recording companies, in 2000, assembling professional tracking studio could be taken out at cost of only $5, 000. Every the equipment and hardware, due to the global advancements in technology, are more affordable for an average artist or n entrepreneur.
2. Cost advantages with new technology arising from the digital revolution. Not only assembly of studio with all necessary equipment and hardware is less expensive, but duplication of Computer games, storage and shipping are much less expensive as well. Low priced of creation, duplication (duplication of five-hundred CDs ranges from $1. 90 to $3. 63, duplication of 2000 Cd albums costs about one dollars per CD), shipping and storage the actual last product less expensive and even more affordable for the customers, thus widening the range and scope of the target market.
* Placement of CCM in a distinctive market niche. CCM is microlabel recording company which specializes on traditional and traditional instrumental music.