{
    "filename": "The-Music-Industry-in-an-Age-of-Digital-Distribution-Patrik-Wikstrom.pdf",
    "department": "Manager",
    "cleaned_text": "music industry age digital distributionthe music industry age digital distribution patrik wikstr\u00f6m patrik wikstr\u00f6m bbvaopenmindcomchnge key essays internet changing lives patrik wikstr\u00f6m music industry age digital distributionbbvaopenmindcomthe music industry age digital distribution patrik wikstr\u00f6m principal research fellow arc centre excellence creative industries innovation queensland university technologybbvaopenmindcom bbvaopenmindcom communication culture music industry age digital distribution patrik wikstr\u00f6m bbvaopenmindcompatrik wikstr\u00f6m patrikwikstromcom illustration emiliano ponzibbvaopenmindcom communication culture music industry age digital distribution patrik wikstr\u00f6m communication culture patrik wikstr\u00f6m principal research fellow arc centre excellence creative industries innovation queensland university technology australia dr wikstr\u00f6ms research primarily focused innovation learning creative industries author music industry music cloud polity press published research journals technovation international journal media management journal media business studies journal music business studies popular music society wikstr\u00f6m served faculty member northeastern university boston j\u00f6nk\u00f6ping international business school karlstad university sweden wikstr\u00f6m received phd media communication studies karlstad university graduate chalmers university technology gothenburg received masters degree school technology management economics academic career dr wikstr\u00f6m worked european media telecom industry held positions business development manager strategy consultant music industry age digital distribution patrik wikstr\u00f6m sites services changed life wikipediaorg amazoncom googlecom courseraorg napstercombbvaopenmindcombbvaopenmindcom communication culture music industry age digital distribution patrik wikstr\u00f6m music industry age digital distribution global recorded music industry experienced period growth lasted almost quarter century approximately one billion records sold worldwide end century number records sold three times high end nineties spirits among record label executives high music industry executives time expected team teenage internet hackers led shawn fanning time student northeastern university boston would ignite turbulent process eventually would undermine foundations industry shawn fanning created launched file sharing service called napster allowed users download share music without compensating recognized rights holders napster fairly quickly sued music industry establishment eventually forced shut service however string increasingly sophisticated services immediately followed suit even though traditional music industry used aggressive methods legal technical stop explosion onlinepiracy services napster kazaa limewire grokster dc pirate bay avail soon one file sharing service brought justice required cease operations new services emerged took place end sales physically distributed recorded music eg cassettes cd vinyl measured unit sales back relatively low levels early years passed since napster launched music industry completely transformed model ruled industry past century largely abandoned rapid transformation music industry classic example innovation able disrupt entire industry make existing music industry age digital distribution patrik wikstr\u00f6mbbvaopenmindcom communication culture music industry age digital distribution patrik wikstr\u00f6m industry competencies obsolete power influence prein ternet music industry largely based ability control physical distribution internet makes physical music distribution increasingly ir relevant incumbent major music companies required redefine order survive chapter examine impact internet music industry present state music industry age digital distribution three music industries order understand dynamics music industry first necessary recognize music industry one number different industries closely related time based different logics structures overall music industry based creation exploitation musicbased intellectual proper ties composers songwriters create songs lyrics arrangements performed live stage recorded distributed consumers licensed kind use instance sheet music background music media advertising television etc ba sic structure given rise three core music industries recorded music industryfocused recording distribution music con sumers music licensing industryprimarily licensing compositions arrangements businesses live musicfocused producing promoting live entertainment concerts tours etc companies sometimes recognized members music industrial family makers music instruments software stage equipment music merchandise etc however important industry sectors traditionally considered integral parts industrys core preinternet music industry recorded music biggest three one generated revenues aspiring artists bands traditional music industry dreamed able sign contract record label contract meant record label bankrolled professional studio recording allowed artist entry record labels international distribution system something bbvaopenmindcom communication culturecommunication culture music industry age digital distribution music industry age digital distribution patrik wikstr\u00f6m patrik wikstr\u00f6m otherwise beyond reach unsigned bands second music industry sectormusic licensingwas much smaller mundane recorded music industry sector music publishers oper ating business largely businesstobusiness industry without direct interaction audience main responsibility ensure license fees collected song used whatever context fees subsequently fairly distributed among composers lyricists third music industry sectorlive musicgen erated revenues sales concert tickets although live music long proud history came play second fiddle recording industry twentieth century record sales undoubtedly important revenue stream record labels generally considered concert tours way promote studio album really concerned whether tour profitable sometimes record label even paid tour support would enable bands go tour promote album even though actual tour running loss music industry structure including relationships three industries developed midtwentieth century deeply cemented internet emerged challenge entire system shortterm impact internet music industries primarily concerned distribution recorded music consumers means recorded music industry severely affected loss distribution control rampant online piracy two music industry sectors initially left less unaffected matter fact recorded music industry suffered past years two industries gained strength prominence several reasons shift balance happened one primarily reasons simply one revenue stream diminishing music industry required reevaluate busi nesses try compensate lost revenues recorded music increasing revenues music licensing live music instance revenues music licensing doubled dur ing past years due new active licensing practices also due fact media industries changed similar way music industry considerably television channels music industry age digital distribution patrik wikstr\u00f6mbbvaopenmindcom communication culture music industry age digital distribution patrik wikstr\u00f6m radio channels videogames internet websites outlets two decades ago outlets need music primary secondary content music publishers also general nimble record labels address demand new media outlets clear example music publishers changed business practices strive establish onestop shop musical tellectual properties media outlets clear music licenses single contract may sound like obvious service traditional music industry always case rather one legal entity holding rights composition another legal entity controlling rights recording musical work master music publishers age digital distribution increasingly control master composition makes licensing process efficient music licensing industry past years evolved profitable music industry sector often also considered innovative agile sector three music licensing profitable music industry sector live music developed largest music sector fairly straightforward explanation live music experienced surge dur ing past years live music simply easier control recorded music musical band demand grow revenues live music increasing number concerts raising ticket prices even though financial crisis put dent growth live music industry nevertheless surpassed recorded music industry size second half previous century largest music company record company internet transformation music industry worlds largest music company live nation usbased live music company spun clear channel marker changing power relationships music industry noted though boundaries three industries clear preinternet era music companies including live nation serve general business partner artists composers support activities regardless whether concern live concerts merchandise licensing distribution promotion recorded music consumers means longer entirely easy categorize music com pany one three industries nevertheless case bbvaopenmindcom communication culturecommunication culture music industry age digital distribution music industry age digital distribution patrik wikstr\u00f6m patrik wikstr\u00f6m live nation revenues still mainly generated via live concerts still makes relevant refer primarily live music company section presented three main music industry sectors affected introduction internet size strength routines relationships industry sectors transformed next section turn attention specifically recorded music examine new business models music distribution may able lead recorded music industry path toward recovery growing digital music market music industry went great lengths beginning century put stop online piracy however equally ambitious innovative developing new models legal online distribution certainly feeble attempts major record labels time important criterion development services seemed way threaten existing revenue streams add additional revenue companies majors succeed one goals new services compete existing physical sales however unfortunately services could compete anything especially online piracy first company able create successful online service legal sales distribution music music industry player allit apple computer called time apple able convince major labels music consumers would buy music legally offered extremely simple service allowed buy download music less dollar per track service called itunes music store one sense itunes radical change music industry first online retailer able offer music catalogs major music companies used entirely novel music industry age digital distribution patrik wikstr\u00f6mbbvaopenmindcom communication culture music industry age digital distribution patrik wikstr\u00f6m pricing model allowed consumers debundle music album buy tracks actually liked hand itunes also considered careful incremental innovation major labels positions power struc tures remained largely unscathed rights holders still controlled properties structures guided royalties paid per every track sold predictable transparent apple correct prediction consumer behavior itunes music store considered anything enormous success itunes music store worlds largest music retailer offline online sold billion songs since launch ser vice evolved substantially decadelong existence fig recorded music volume note digital includes fulllength albums singles split vinyl includes lps eps split music dvds included source ifpi digital music cassette compact disc vinyl bbvaopenmindcom communication culturecommunication culture music industry age digital distribution music industry age digital distribution patrik wikstr\u00f6m patrik wikstr\u00f6m number competitors using less business model entered digital download music market even though competition increased itunes remains top market share percent global digital music market figure indicates global recorded music market evolved since shows digital music market able partially compensate decline physical sales total recorded music market still lost percent sales since peak digital download services itunes music store introduce gradual change music business logic legal music services far radical thereby also far controversial services offer individual tracks purchase set price rather offer users access large music library able listen leisure users normally pay monthly subscription fee allows listen many songs library want often want may sound like appealing proposition legal access based music services struggled convince record labels license catalogs services well convince users possible enjoy music without actually buying owning copy track album considerable entrepreneurial activity segment music business services go live bust weekly basis many service providers still desperately looking business model attract music listeners satisfy rights holders challenges certainly considerable music service far received attention international music industry one could possibly found right path service called spotify spotify useful vehicle explaining logic music industry age digital distribution section present service drives music industrial transformation forward even eventually turns spotify unable create business model sustainable long term already able transform mindsets users rights holders likely music technological milestone magnitude walkman compact disc apple itunes music industry age digital distribution patrik wikstr\u00f6mbbvaopenmindcom communication culture music industry age digital distribution patrik wikstr\u00f6m emergence accessbased music services spotify founded daniel ek martin lorentzon ambition create legal adsupported music service free music listener generated licensing revenues copyright holders spotify means first attempt create legal service could compete illegal file sharing predecessors various reasons failed miserably projects may one reasonable explanation rights holders spotify negotiating particularly enthusiastic engaging another risky online music project despite initial skepticism october com pany announced two years discussions negotiations signed agreements music industrys leading rights holders distribute music audiences handful european countries order succeed many others failed spotify forced make number concessions addition offering major rights holders shares company also required implement fundamental change business model instead offering service solely funded ads also developed advanced ver sion service funded subscription fees spotifys model two different service versions basic version free advanced versions offered subscription basis usually called freemiuma play words free premium often profit margin free version low even negative expected subscription fees generate enough revenues make service profitable logic behind freemium service model users shall willing use service free using service gradually make behavioral emotional investments service increase costs efforts switch another service goal make many users free version convert subscription version order achieve goal free version number increasingly annoying features advertising lack key features ability use service certain devices removedavailable premium versions service challenge spotify freemium services balance different versions way bbvaopenmindcom communication culturecommunication culture music industry age digital distribution music industry age digital distribution patrik wikstr\u00f6m patrik wikstr\u00f6m stimulates right customer behavior entices users become paying subscribers date music services manage feat either free version good motivate customers upgrade service deprived features attract customers spotifys case achieved conversion rate approximately percent means percent total user base using premium version pay monthly subscription fee spotify received considerable amount attention mu sic industry across world attention largely based suspicion criticism toward business model meth ods criticism extent focused whether freemium model presented longterm sustainable even stronger criticism focused revenues shared rights holders different levels value chain least two reasons criticism emerged first music companies since decades back used royalty model licensee pays fixed amount per song sold played used whatever way model difficult apply accessbased service since revenues generated service based songs sold played used based number users service providers accessbased music servicesregardless services funded subscriptions advertisinghave argued rather paying fixed amount per track listened simply share whatever revenues gener ated rights holders without getting deep accounting detail scheme beneficial service provider transfer considerable part business risk rights holders rights holders argue revenues depend skills services advertising sales team simply get paid music distributed customers past number accessbased service providers required sign contracts generated fixed royalties per track rights holders however agreements make difficult get accessbased music service ground several pioneers accessbased music service market able survive long one reasons spotify considered milestone shaping new music economy com pany seems successfully convinced major music companies music industry age digital distribution patrik wikstr\u00f6mbbvaopenmindcom communication culture music industry age digital distribution patrik wikstr\u00f6m certain markets indeed share spotifys business risk instead taking fixed license fee per track take share spotifys revenue regardless high low spotify succeeded making number concessions negotiations instance fering major music companies opportunity buy minority share spotifys shares spotify reported percent revenues ads subscriptions paid royalties rights holders end company generated billion dollars rights holders around world according spotify proof model work however even though seems possible generate revenues ac cessbased music services new contract structure radical change music business attitude toward distributors means uncontroversial criticisms expressed artists com posers caused fact royalties primarily paid service providers music companies directly composers musicians artists creatives argue given fair share revenues even actively choose license music services spotify revenues end pockets almost ridiculously low want sup port corrupt unsustainable system one reason problem occurred debate clas sification royalties generated accessbased music services music companies ie case old record companies claim royalties shall considered unitbased music sales case would mean musicians receive percent royalties paid spotify music companies musicians claim hand spotify cannot compared traditional record sales rather categorized performance case would mean musicians entitled percent revenues rather conflict concerns great extent inter pretation agreements record companies artists established spotify even internet existed debate type royalty particular internetbased music service bbvaopenmindcom communication culturecommunication culture music industry age digital distribution music industry age digital distribution patrik wikstr\u00f6m patrik wikstr\u00f6m generate may seem like legal issue minor realworld implication absolutely crucial question determine structure future music industry much stake unlikely music industry players easily agree model perceived fair parties section discussed emergence accessbased music ser vices challenges encountered try enter digital music economy next section takes discussion one step forward reflecting services change audiences relationships music section argues accessbased music merely transitional phase evolution new music economy points indications industry increases reliance socalled context based features services realtime listening experience revenues recorded music fallen dramatically past years people across world listen less musicrather listen recorded music ever recorded music permeates every aspect daily lives legal accessbased music services combined illegal online file sharing services means less every song available everywhere time access explosion transforms way people use relate recorded music instance preinternet days recorded music expensive scarce music listeners chose record buy care growing record collection living room cabinets served diary lives told via number record purchases music listeners owned physical records way strong sense ownership physical objects books souvenirs furniture objects served tools identity formation communication music industry age digital distribution patrik wikstr\u00f6mbbvaopenmindcom communication culture music industry age digital distribution patrik wikstr\u00f6m institutions collection ownership become increasingly ir relevant age digital distribution ubiquitous access music light observation relevant question new role recorded music identity marker age digital distribution may retrospective record collection served identity marker preinternet age music listeners abandon physical collections required search new ways use recorded music tool communication identities friends world scenes increasingly used purpose onlinebased social networks facebook twitter etc accessbased music services commonly interconnected social network services thereby allow music listeners constantly announce world track currently listening stream information primarily interest advertising platforms clients since allows profile audience based listening habits send advertising messages adapted demographics interests shift retrospective collection realtime listening experience radical shift music listeners relationship music diminishes significance memory past music experiences moves focus interesting note kind structures behaviors emerge music consumption shifts ownership access collection playing amaral et al instance shown music listeners actively curate musiclistening feed order make sure reveal track fit image want exhibit access based music services even created privatelistening feature order enable users listen music without sharing experience world accessbased services still early days still actively search optimal service pricing structure al low compete survive currently competition services largely based size music catalogs availability different territories different mobile platforms etc however reasonable assume eventually services asymptoti cally converge toward similar music offering available platforms include less every song ever recorded bbvaopenmindcom communication culturecommunication culture music industry age digital distribution music industry age digital distribution patrik wikstr\u00f6m patrik wikstr\u00f6m according basic economic theory competition similar ser vices products based price profit margins eventually shrink large players eventually survive compete oligopolistic market accessbased music services words become commodity market behave similar way markets sugar oil market reached gloomy state room novation differentiation based pure access model less exhausted online music service providers likely look ways differentiate services keep profitability one way go beyond pure access model create services features provide context songs catalog context may instance enable music listeners way search easily find song looking particular moment may al low users share music experiences friends organize favorite music experiences convenient ways etc context based services provide less deterministic far expansive space innovation services based pure access model innovation within accessmodel framework leads toward ultimate goal universal access songs ever recorded innova tion within contextmodel framework lacks knowable outcome provider contextbased music service greater possibility create competitive advantage based unique innovative features possible within accessmodel framework today number contextbased services grows alongside access based music services often music service offers access music well range features allow users things music customer problem needs solved cus tomer needs access music rather navigate things music words customer value increasingly created providing audience tools allow things music rather providing audience basic access music shift providing access music providing services features based assumption access music already provided part similar general transformation music industry discussion focused distribution music shift music industry age digital distribution patrik wikstr\u00f6mbbvaopenmindcom communication culture music industry age digital distribution patrik wikstr\u00f6m content context also observed segments music industry value chain number artists composers recent years implement ed contextfocused model creative production musical works rather making polished recordings audience experience enjoy created services practices involve audience creative process allow fans things music british singersongwriter imogen heap one example trend heap actively encouraged fans upload sounds images videos production latest album used material work inspiration actual building blocks songs consequence heaps fans felt collaborating idol part communal creative experience billy bragg also singersongwriter britain different generation different genre heap bragg also established contextoriented experi ence fans albeit perhaps primarily driven fans bragg bragg reflects relationship fans explains provides social framework fans fans dont even like music enjoy part social community baym musical artists producers go way beyond traditional mat song create mobile applications allow users play music different ways londonbased rjdj san franciscobased smule two examples organizations developed ap plications challenge boundaries music interactive videogames tendencies raise fundamental questions definitions music industry music organizations tools software playing music become recognized vital part music industry fourth core sector industry next live music music licensing recorded music mean estab lished music companies artists composers live music music publishing became increasingly important industry sectors first years millennium traditional record labels reinvented selves built new capabilities allowed serve record labels music publishers management companies live music companies etc turned degree music companies placed equal emphasis bbvaopenmindcom communication culturecommunication culture music industry age digital distribution music industry age digital distribution patrik wikstr\u00f6m patrik wikstr\u00f6m three music industry segments contextbased services software continue grow importance music companies need add yet another new competency perhaps new business areas orga nizations enable capture increasing value created contextbased music services music industrial transformation continues recorded music industry radically transformed past years much remains industry takes definitive step leaves physical world behind chapter discussed aspects transformation continues accessbased music services play substantial role process chapter also touched upon recorded music becomes increasingly marginalized revenue source industry segments live music music licensing become increasingly significant finally also presented audiences relationships music change part transformation services features allow users play music rather merely play music move center stage music industry digital age music industry age digital distribution patrik wikstr\u00f6m communication culture music industry age digital distribution patrik wikstr\u00f6m references amaral adriana simone pereira de s\u00e1 marjorie kibby friendship recommendation consumption musicbased social network site presented aoir conference milwaukee wisconsin baym nancy k friends fans seeing social media audiences musicians participations wikstr\u00f6m patrik music industry music cloud nd ed cambridge uk polity press communication culture music industry age digital distribution patrik wikstr\u00f6m us open mind channelshare article author patrik wikstr\u00f6m related articles games internet fertile ground cultural change future opera robots people frontiers knowledge music notes read full book books bbvaopenmindcomenwhatisopenmind youtubecomuserbbvaopenmind bbvaopenmindcomenauthorpatrikwikstromenopenmind bbvaopenmindcomenarticlethemusicindustryinanageofdigitaldistribution music industry age digital distribution theres future visions better world values ethics st century innovation perspectives st century multiple faces globalization frontiers knowledge youtubehiaurcovu"
}