Wednesday, February 23, 2011

Deregulation Changing the Industry for the Better

We have seen deregulation both positively and negatively affect the radio and recording industry. It has been a good thing for some larger recording companies because deregulation allows for them to acquire ownership of smaller companies. Thus expanding theirs business and becoming more successful. A beneficial outcome of the larger companies expansion has been an increase in product quality as well as revenue. Another benefit is a maintenance or increase in job opportunity. If the larger companies had not bought out the smaller ones many would go out of business, creating job loss.

Nevertheless, the deregulation in the recent years has also adversely affected the recording industry. It has hurt new artists who are trying to get a foot in the door. It is harder to jump in at the top level of something when as it is in most industries you have to start out at the bottom and work your way up. Without these small radio stations for artists to start at, many will find it difficult to become recognized artists.

Even with the negative affects that deregulation is having on rising artists. In the long run it is helping the recording industry. It is strengthening the existing companies and allowing for their success, which is sustaining the industry itself.

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