Title: Internet Reformulation of the Music Industry Supply Chain System

Abstract:
Creative goods such as music are very unique in nature and different from other forms goods and services. Music is known as an experiential good (Bjorkergren, 1996; Hirsch, 1972; Holbrook and Hirschman, 1982). As a good, its value is derived from the subjective experiences that rely heavily on the use of artistic symbols, that act to manipulate consumer perception and emotion. The unpredictability of such subjective experiences makes it extremely difficult to identify and establish clear standards of product quality (Lewis, 1990; Turow, 1984).  This paper presents the results from 500 interviews undertaken with music buying consumers and suppliers throughout Europe in 2004 - in independent music stores, based in London (UK), Dresden (Germany), Helsinki (Finland) and Copenhagen (Denmark). The purpose of the research was to determine the extent to which the internet is altering patterns of consumption and in so doing impacting on the supply and distribution of music.  Previous works (Hirsch, 1972; Molteni and Ordanini, 2003) point to the fact that most studies of music production and consumers (fans) tend to be in the main, rooted in the fields of sociology and cultural studies.


Author: Gary Graham

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