Title: Technology shocks and the restructuring of an industry: a social network analysis application for the music business

Authors: Stan Renard; Cory Hallam

Addresses: The University of Texas, One UTSA Circle, San Antonio TX 78249, USA ' The University of Texas, One UTSA Circle, San Antonio TX 78249, USA

Abstract: The music industry has seen aggressive mergers and acquisitions in the past 180 years, favouring an oligopolistic model controlling the entire supply chain from content producer to consumer. However, technology disruption and convergence has influenced the path dependency of the industry and led to a drastic redefinition of business models. We examine industry relationships using social network analysis (SNA) and determine that new technology agents in the digital era are displacing the traditional distribution channels within the music industry. We show that the industry experienced technology shocks contributing to the phasing out of traditional elements of the industry's value delivery, creating three areas of opportunity for tech entrepreneurs: 1) manufacturing; 2) distribution; 3) transaction(s). Currently, the post-shocks music industry is dependent on technology companies for the connection to consumers. These relatively new technology companies in the digital era are significantly reorganising the network expanding their control of music consumption.

Keywords: technology shocks; music business; technology entrepreneurship; disruption; social network analysis; SNA.

DOI: 10.1504/IJTIP.2018.096106

International Journal of Technology Intelligence and Planning, 2018 Vol.12 No.2, pp.173 - 208

Available online: 07 Nov 2018 *

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