The Recorded Music Industry: In Time of Change

Abstract

Beyond the definition of the music industry and the data-driven analysis of the music market, this chapter seeks to present some perspective and insight on the issues and challenges that will face the main players of the industry (“traditional” firms and new entrants) of music recording. The recorded music market is a complex one that has been affected by several different factors, including the new practices of many consumers, the technological advances, the intensely competitive players, and the supplier oligopoly of record labels. The digital revolution reinforces the risk of piracy, and this industry needs new standards of protection as illustrated by the illegal digital downloading music. This chapter analyzes the technology changes in the sector leading to a greater flexibility and diversity in the exploitation of artists' works. It shows the evolution of the international market structure towards an oligopolistic structure confronted with a competitive fringe.