EC 011Music Recording Industry

EC 011Music Recording Industry - Through technological...

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Through technological innovation and the shape of the market, the music recording industry has become a source of controversy stemming from accusations of price fixing among its five major firms (Universal, Time Warner, Bertelsmann, Sony, EMI) as well as legal action due to copyright infringement by its consumers in what is described as a “free-for all” over economics rents. The technological evolution of the industry has altered the manner in which music is produced, distributed, and consumed and signaled periodic entry into the industry by emerging firms. Distribution within the industry was physically focused through record distributors within the 1950’s-60’s who made their product available to retailers. Small emerging independent distributors struggled because they faced high entry barriers into a field dominated by five established firms. These independents firms were bought out and/or merged with the top five firms, thus, the top five distributors also became those top five firms. This blocked entry of independent firms because they now controlled the
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This note was uploaded on 04/07/2008 for the course EC 11 taught by Professor Gedeon during the Spring '08 term at Vermont.

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EC 011Music Recording Industry - Through technological...

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