The Digitization of the Recorded Music Industry: Impact on Business Models and Scenarios of Evolution

Telecom ParisTech Working Paper No. ESS-08-01

26 Pages Posted: 11 Feb 2008

See all articles by Marc Bourreau

Marc Bourreau

Telecom ParisTech

François Moreau

Université Paris 13

Michel Gensollen

Telecom Paris Tech

Date Written: January 2008

Abstract

In this paper, we provide scenarios of evolution for the recorded music industry. These scenarios are based on two dimensions. First, we identify two strategies of revenue extraction in a digital world: either through the sale of content, which requires a direct or indirect protection of music files; or through the (almost) free distribution of content and the sale of complementary goods or services. Second, we argue that the informational structure of the industry is evolving from a situation in which works are selected before the production phase and promotion is centralised to a situation in which there will be no selection and/or promotion will be decentralised. We discuss each scenario in terms of market structure and diversity and provide examples of emerging business that fit with the scenarios.

Keywords: L2, L86, Z1

JEL Classification: music industry, digitization, business models

Suggested Citation

Bourreau, Marc and Moreau, François and Gensollen, Michel, The Digitization of the Recorded Music Industry: Impact on Business Models and Scenarios of Evolution (January 2008). Telecom ParisTech Working Paper No. ESS-08-01. Available at SSRN: https://ssrn.com/abstract=1092138 or http://dx.doi.org/10.2139/ssrn.1092138

Marc Bourreau (Contact Author)

Telecom ParisTech ( email )

46, rue Barrault
Paris Cedex 13, F-75634
France

François Moreau

Université Paris 13 ( email )

France

Michel Gensollen

Telecom Paris Tech ( email )

46, rue Barrault
Paris Cedex 13, F-75634
France

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