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The article The Move to Artist-Led Online Music Distribution: Explaining Structural Changes in the Digital Music Market (2005) by Jesse Bockstedt, Robert J. Kauffman and Frederick J. Riggins of the Carlson School of Management is an expository analysis of the future structure of the music industry and the role of digital technology players in the business value chain. The authors argue that current intermediary companies will have to reestablish their core competencies so that they reflect new value-added service potential created by digital distribution.

The article is effective in explaining potential applications of digital technologies over the proposed market structure, however some important technologies are not explored. The cost benefits of the proliferation of digital technology are based on a particular view of the future marketplace that is dubious. The authors also make subjective and non-evidenced assumptions and generalizations regarding the consumer. These deficiencies suggest a value judgment of traditional actors in the value chain. Moreover, the articles conclusions lack practicality due to the addition of an effective IP Rights Enforcement Body in the value chain as a significant contingency on which the rest of the proposed market structure is based. Read more…

Digital Music, Media Technology CD sales, digital distribution, Kazaa, music value chain, P2P, viral marketing

Dr. Bakker uses an objective tone, rational arguments and an abundance of references to show that the traditional music industry is defending its interests with inconsistent logic and rhetoric in “The end of the CD as we know it… Shifting consumer behaviour and changing business models in the music industry”. The article clearly explains the position of the music industry by citing reports by the RIAA and the IFPI that show declines in the sales of CDs, and a detailed explanation of the industries dialogue with the public.

The industry argues that “downloading music is illegal…and unethical, it is hurting the industry and artists… takes away the incentive for creativity… and is therefore harmful for national music cultures.” (Bakker, 2004) He then systematically “deconstructs” these “discourses” to show that although the industry “strengthens the argument that all kinds of illegal activities are harmful”, they “fail to reveal how much downloading contributes to the decline in music sales”. Read more…

Digital Music, Media Technology CD sales, CRIA, Digital Music, diversity, IFPI, RIAA, soundscan