As technology has progressed throughout the years, more and more ways have been developed for dealing with the creation of music. As most things, this has both a positive and negative impact on the industry as a whole, depending on who is asked. Either way, it has been an essential part of the creation process for millions of musicians over the past thirty years, successful or otherwise.
The main and largest development in technology that has come to affect the creation of music is the invention of recording-based software packages. In the last ten years, we've seen computers and laptops develop significantly, and so their capacities are now much greater. With just one laptop/computer and one of these software packages, an artist could write, record, edit, mix and master a whole album and release it from their home.
An example of this would be the artist Daniel Bedingfield. In 2001, his single 'Gotta Get Thru This' reached number 1 in the UK charts, followed by his album reaching number 2 in 2002. The whole album was recorded at his own home, using recording software on his laptop. He made it all for next to no money at all, mainly using a synthesiser that his family bought him. He later went on to sign with a huge label, and has since had other songs in the charts.
This is fantastic for smaller, more independent musicians, as it means that they don't have to pay thousands of pounds to record their music in a recording studio with a producer. If someone has the skills required to use it properly, the can produce their whole album themselves, which works out much cheaper generally as it only requires a computer program. Although these programs can be quite expensive, the cost is generally lower than the cost of recording in a studio. Some, such as 'Logic Pro X' (https://www.apple.com/logic-pro/), will only cost the user around $200, whereas others can cost a lot more, such as Pro Tools (http://shop.avid.com/ccrz__ProductDetails?sku=9900-65220-00) which can cost up to $700.
This does mean, however, that many recording studios, especially smaller, more local ones, would suffer great loses. For a long time, recording bands and mixing and mastering music for them was the main source of income for a lot of smaller studios. Since the beginning of the 21st century, people started to get a hold of these computer programs, and so less and less people are willing to pay hundreds of pounds to go to a studio and record their music.
This means that many of them have had to resort to other means of making money. Take 'The Mushrooms' recording and rehearsal facilities in Birmingham, for example. They have become aware of the sudden decline in people using facilities like theirs to record, so now they offer the chance for people to record songs with friends as part of a birthday party deal. They may make less than they would if they had bands and artists frequently coming in to record their music, but at least they put their studios to use, and make enough money to get by as a studio.
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