external effects
Electric Shopping: Music, Headphones and More
WORDS BY JAMIE SORCHER
à Dirty Downloading What’s Going On: Piracy is nothing
new in the music industry. Remem- ber file-sharing site Napster back in 1999? At one point, the service had almost 80 million registered users before the Recording Industry Associ- ation of America (RIAA) shut it down. Since Napster, music sales in the U.S. have dropped 47 percent. Nowadays, the spotlight is shining brightly on the smartphone since most folks use that as the device to download their music. Mobile applications, online storage sites, and stream-ripping software are the easiest ways for people to get free music downloads, according to a new study from researcher NPD Group. According to the report, about 27 million people in the United States have used mobile applications to get at least one down- loaded song in the past year—and many of those downloads are believed to be unauthorized. How It Can Affect You: The music
industry is cracking down on piracy with smartphones to help keep the music busi- ness alive. What happens next remains to be seen—and also how that affects the
Not Enough Information
smartphone’s viability for music which is now a vital element in the car. The Google Play store, for example, has 250 apps for downloading MP3 files to smart- phones and tablets that are powered by its Android software. The most popu- lar app has been downloaded more than 10 million times, and offers free access to top songs on Billboard’s Hot 100 list. The RIAA requested that Google remove the app, but Google has not done so yet. Apple’s iTunes store, the world’s larg- est music retailer, has been compliant in policing its apps, according to music industry executives. According to the International Federation of the Phono- graphic Industry (IFPI), there are no numbers yet on the emerging threat of smartphone and tablet-based piracy as consumers migrate to those devices.”
An Apple With Dre What’s Going On: Apple is close to sealing a deal to
make its largest acquisition ever with the purchase of Beats Electronics, the company founded by Dr. Dre that makes headphones and has its own streaming music service, for $3.2 billion. The company hasn’t typically gone for acquisitions so this marks an interesting move for Apple. How It Can Affect You: There is no question Apple revo-
lutionized the music industry with its iconic iPod and with its iTunes music service, but already this year sales of digital downloads are declining in favor of on-demand streaming, according to recent Nielsen SoundScan reports. Apple may be looking for its next act. If Apple completes the purchase, it means Jimmy Iovine, entrepreneur and co-founder of Interscope Records, and Dr. Dre will become Apple executives. The next chapter for Apple will be an interesting one, as this opens many doors to go outside of its own world and impact both the mobile electronics and music worlds.
32 Mobile Electronics June 2014
How It Can Affect You: These incidents have prompted legislation that would require more disclosure from automakers. Two Senate Democrats recently unveiled a plan requiring automakers to share more information about fatal accidents in an effort to help federal regulators uncover defects. Automakers would be required to submit accident reports to the NHTSA when they learn of a fatality.
What’s Going On: This year seemed promising for General Motors. The auto- maker has a new CEO in place since last January, Mary T. Barra, the first woman to head up a major automaker, and a number of well-received new car intro- ductions. But things took a wrong turn, as the flawed GM ignition switch—linked to at least 13 deaths—was something the automaker said it knew about for more than a decade. When weighed down, the ignition switch can unexpectedly turn off the car and disable its electronic compo- nents, including the power brakes and air bags. The company recalled more than 2.6 million vehicles, including Chevrolet Cobalts and five other small models. Now GM faces even problems as it is consid- ered to be the worst big automaker to deal with, according to an annual survey just released by automotive consultant group Planning Perspectives Inc. Suppli- ers gave the company low marks on its overall trustworthiness and communica- tions skills.
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