The Move to Artist-Led Music Distribution: Explaining Market Structure Changes in the Digital Music Market.

• Main Authors: Bockstedt, J., KAUFFMAN, Robert John, Riggins, F.J.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2006
• Subjects: Digital goods; Digital music; E-commerce; Intermediation; Market structure; MP3s; Music distribution; Music industry; On-line music; Property rights; Value chains; Numerical Analysis and Scientific Computing
• Online Access: https://ink.library.smu.edu.sg/sis_research/2748
• Institution: Singapore Management University

New forms of digital distribution are dramatically transforming market structures in the recorded music industry value chain. We propose a model and theoretical perspective that take account both of the music industry's traditional value chain and distribution network, and the product characteristics of digital music as related to consumer value creation. The model highlights changes in the market structure from the perspective of the players in the music industry value chain. Utilizing a series of propositions, we characterize the forces at work in the market transformation and show how each player's role in the industry value chain is likely to change. We also examine the effects of market structure changes on intellectual property rights issues. Finally, we present a series of minicases that provide evidence in support of the proposed theoretical perspective.