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The Music Industry in the Digital World: Waves of Changes

Source: ite.poly.edu
Topic: Music Industry

Sort Desciption: The music industry was born about a century ago when technological innovations ... The music industry (Figure 1) is built around three major processes: ...

Content Inside: Â©1999, Mihir Parikh 1 The Music Industry in the Digital World: Waves of Changes The Music Industry in the Digital World: Waves of Changes 1 Mihir Parikh Assistant Professor of Management, Institute for Technology and Enterprise. mparikh@poly.edu First Version: June 1999 Revision: August, 1999 Introduction The music industry was born about a century ago when technological innovations allowed capturing, storing and replaying sound. Ever since, the industry has faced and adapted to many technological advances. Sound technologies evolved from mono to hi- fidelity stereo to DolbyÂ® surround sound. Storage media technologies evolved from vinyl (physical, vibration-based) to audiocassettes (magnetic) to CDs and mini-discs (digital). Replay devices evolved from gramophones to large, in-house stereo systems to compact and portable audio devices. During these transitions, industry players either quickly adapted to the changes caused by the newer technologies or simply vanished from the scene. (For a historical perspective on technological evolution in the music industry, read America on Road: A History of Recorded Sound, by Andre J. Millard, 1995, Cambridge Uni. Press) Today, the industry is again on the verge of major changes brought on by the rapid evolution of the Internet and the merger of audio and computing technologies. This paper discusses these changes and their possible impacts on the industry structure and its major constituents. The Current Industry Structure The music industry (Figure 1) is built around three major processes: 1 The author gratefully acknowledges the valuable comments of Prof. Barry Blecherman on an early version of this paper. Â©1999, Mihir Parikh 2 The Music Industry in the Digital World: Waves of Changes 1. Creation of music: Musicians, lyricists and recording artists (all combined as artists) with creativity and talent create music. This is a creative process, but it also requires collaboration and coordination among a dive ...

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