Title: The music industry business model after internet: effects of innovation

Authors: Silvia Novaes Zilber; Odair Froes De Abreu Jr.

Addresses: Graduate School of Management, Univesidade Nove de Julho – UNINOVE, Av. Francisco Matarazzo, 612 – São Paulo, Brazil ' Graduate School of Management, Univesidade Nove de Julho – UNINOVE, Av. Francisco Matarazzo, 612 – São Paulo, Brazil

Abstract: The aim of this study was to analyse the impact of the internet in the business model of selected components of the music industry chain. The introduction of the internet is understood to be an innovation that transformed the music industry. The method used was a multiple case study featuring four content creators (artists) and two-content distributors (a major label - Sony - and an indie label). The results showed changes in the product (becoming a digital rather than a physical product) and distribution (online retailers and disintermediation, which enables artists to connect with customers directly) as well as increased revenue for artists and indie distributors, which have benefited by publicising over the internet. The major distributors did not observe this increase in revenue, perhaps as a result of piracy.

Keywords: music industry transformation; internet; innovation; business models; disintermediation; product changes; digitalisation; digital music; online retailing; e-tailing; electronic retailing; music revenue; music artists; indie distributors; major distributors; music piracy.

DOI: 10.1504/IJBIR.2016.076766

International Journal of Business Innovation and Research, 2016 Vol.10 No.4, pp.543 - 562

Received: 16 Nov 2013
Accepted: 29 Mar 2014
Published online: 01 Jun 2016 *

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