International Music Industry

945 Words2 Pages

According to Hagel et al (2008), we live in a world where massive technological changes creating a new techno-economic paradigm that will shift the fundamental way firms engage in business. New innovations, such as the internet and mobile telephone have created new challenges and opportunities that transform industries and commerce. How to deal with the challenges and embrace the new opportunities have become the main issues.

Music industry is the remarkable example within the transition caused by the new technology. The advent of the internet has broken up the limitation of the space and times. Without the need for the storage and shops, all the digital music content can be uploading on the internet. The coverage of the internet nearly all places has allowed people streaming and downloading music through mobile phone and computers almost at anytime and anywhere. In addition, it provides multiple media platform for music and entertainment companies to link their products to consumers. For example, various consumption platforms such as Pandorla, Sportify, and Lulu, also the rise of the social-networking like MySpace and Facebook, which link the music content and the consumers. Internet has become the way consumers reach to the music content. However, the vastly expanded digital market has highlighted the flaws in the record companies whose monolithic structures were built around the physical music. At the same time, music consumers have found various peer-to-peer models to avoiding to pay for the music but to share it. Under those challenges and opportunities from the internet, the “Long tail” theory has been written in an article by Chris Anderson in the Wired magazine, which grew into the 2006 The Long Tail: Why the Future of...

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... “long tail” retails business model and the music industry. In the chapter2 the author investigates that the poor media leading system cannot promote all the music to be known by the consumers. It includes the traditional media such television, radio and magazine, and modern media such as music service providers, music list players and searching engines. The article will then examine that the urban-rural duel economic model is the challenge for the long tail music business model. The chapter3 will investigate that the “access” for music consumers is impossible to be established in the current environment in China. Finally, the article suggest the most effective methods to improve the current environment in music market in order to benefit from the long tail business model and recommend the right policy mix which can help to develop the music industry.

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