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Digital Music Report Card: From Genuine Innovations to False Trails
Generator Research Limited, Feb 2006, Pages: 12
In spite of the problems, large parts of the music industry are buzzing with energy and excitement. So much so, that industry professionals are right to fear a repeat of the late 1990's when a heady, euphoric journey ended in a car crash.
We can see new developments across the whole music landscape: from talent sourcing, music marketing and product formatting to music distribution, retail and consumption. Indeed, such is the pace of market innovation that it is sometimes hard to keep up.
This report takes a cold, hard look at the latest market developments and assesses them using the lessons of the 1990's in order to identify the genuine, serious developments that suggest long-term, permanent trends.
The report describes the structure and operation of the traditional music industry by identifying the key components of the value chain and then explaining the content generation, promotion and retail aspects of the business.
Next, we outline the most important market developments that have occurred over the last two years. This covers all corners of the industry including content creation, talent marketing, music marketing, e-labels, digital distribution, retail, replay devices and consumption environments. This section of the report also includes the consumer arena, where substantial behavioural changes are taking place.
By analysing the relationship between these actual market trends, their theoretical basis and the underlying business rationale, the report then defines a framework for the structure and form of the new, emerging music industry.
Radically different to the old, linear model, the report then questions just how sustainable this new model is by identifying its vulnerabilities and describing the corrective actions that need be taken by the industry.
Finally, by selecting a few topical areas, the report concludes by outlining some new business opportunities which are suggested by the new digitally-based industry structure.
Key topics covered include:
- Digital Entertainment
- Consumer Requirements
- Software Architecture
- User Interface
- Accessing 'TV sites'
- Strategic Analysis
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