Business Innovation and Disruption in the Music Industry

Over the past fifteen years the music industry has experienced a disruptive process of digital transformation that has reshaped most aspects of the industry; in 2015 the contours of a “new music economy” have begun to emerge. The structure and mechanics of these evolutionary processes vary considerably between continents, and this book examines these processes within Europe, America and Asia. The contributors offer a range of theoretical perspectives, as well as empirical findings from the social sciences and business, as well as the media industries. They offer a holistic understanding of the forces shaping the new music economy, and shed some light on the impact of these forces on the ways in which music is created, aggregated and distributed, and on the economic and social consequences for industry producers and consumers.

Introduction to "Business innovation and disruption in the music industry"

Similar to most other creative industries, the evolution of the music industry is heavily shaped by media technologies. This was equally true in 1999, when the global recorded music industry had experienced two decades of continuous growth largely driven by the rapid transition from vinyl records to Compact Discs. The transition encouraged avid music listeners to purchase much of their music collections all over again in order to listen to their favourite music with ‘digital sound’. As a consequence of this successful product innovation, recorded music sales (unit measure) more than doubled between the early 1980s and the end of the 1990s. It was with this backdrop that the first peer-to-peer file sharing service was developed and released to the mainstream music market in 1999 by the college student Shawn Fanning. The service was named Napster and it marks the beginning of an era that is now a classic example of how an innovation is able to disrupt an entire industry and make large swathes of existing industry competences obsolete. File sharing services such as Napster, followed by a range of similar services in its path, reduced physical unit sales in the music industry to levels that had not been seen since the 1970s. The severe impact of the internet on physical sales shocked many music industry executives who spent much of the 2000s vigorously trying to reverse the decline and make the disruptive technologies go away. At the end, they learned that their efforts were to no avail and the impact on the music industry proved to be transformative, irreversible and, to many music industry professionals, also devastating. Thousands of people lost their livelihood, large and small music companies have folded or been forced into mergers or acquisitions. But as always during periods of disruption, the past 15 years have also been very innovative, spurring a plethora of new music business models. These new business models have mainly emerged outside the music industry and the innovators have been often been required to be both persuasive and persistent in order to get acceptance from the risk-averse and cash-poor music industry establishment. Apple was one such change agent that in 2003 was the first company to open up a functioning and legal market for online music. iTunes Music Store was the first online retail outlet that was able to offer the music catalogues from all the major music companies; it used an entirely novel pricing model, and it allowed consumers to de-bundle the music album and only buy the songs that they actually liked. Songs had previously been bundled by physical necessity as discs or cassettes, but with iTunes Music Store, the institutionalized album bundle slowly started to fall apart. The consequences had an immediate impact on music retailing and within just a few years, many brick and mortar record stores were forced out of business in markets across the world. The transformation also had disruptive consequences beyond music retailing and redefined music companies’ organizational structures, work processes and routines, as well as professional roles. iTunes Music Store in one sense was a disruptive innovation, but it was at the same time relatively incremental, since the major labels’ positions and power structures remained largely unscathed. The rights holders still controlled their intellectual properties and the structures that guided the royalties paid per song that was sold were predictable, transparent and in line with established music industry practices.

Music industry

The music industry is usually structured into three industry sectors: live music, music licensing, and recorded music. Live music and recorded music are primarily consumer businesses where revenues are generated consumers who buy CDs or concert tickets. The licensing industry on the other hand is a business-to-business industry where companies pay music rights owners for the use of their musics in various contexts, e.g. background music in shops, music in advertising, or music in broadcast radio...

Local music repertoire and the digitization of the international music industry: An empirical analysis 1994 – 2013

In some of the countries where there has been a rapid increase in the use of online music distribution technologies, analysts have reported about declining sales of local music repertoire (e.g. Nordgård, 2013). The analysts are concerned about such tendencies since local music repertoire accounts for a sizable share of an average country’s total recorded music sales (e.g. IFPI, 2012). This paper searches for empirical evidence that may confirm these reports in a number of music markets in North America, Europe and Australasia. The paper makes a contribution to the literature on the digital transformation of the music industry since it combines and analyses data sources that previously have not been used in this context and gives a new perspective on changing user consumption practices in the music industry. The paper also examines the variation of geographic diversity over time among international acts that become commercially successful in the countries covered by the study.

Will algorithmic playlist curation be the end of music stardom?

It is 2015 and there are no indications that the relentless digital transformation of the music economy is about to slow down. Rather, the music economy continues to rapidly reinvent itself and industry powers, positions and practices that were redefined only a few years ago are being questioned once again. This paper examines the most recent changes of the music economy as it moves from a product-based towards an access-based logic. The paper starts out by recognising the essential role of technology in the evolution of the music economy. It then moves on to a discussion about the rise of so-called access-based music business models and points out some of the controversies and debates that are associated with these models and online services. With this as a background the paper explores how access-based music services and the algorithmically curated playlists developed by these services transform the relationship between artists, music and fans and challenges the music industrial power relationships and established industry practices once again.

From vision to actions: Towards adaptive and autonomous humanoid robots

Although robotics research has seen advances over the last decades robots are still not in widespread use outside industrial applications. Yet a range of proposed scenarios have robots working together, helping and coexisting with humans in daily life. In all these a clear need to deal with a more unstructured, changing environment arises. I herein present a system that aims to overcome the limitations of highly complex robotic systems, in terms of autonomy and adaptation. The main focus of research is to investigate the use of visual feedback for improving reaching and grasping capabilities of complex robots. To facilitate this a combined integration of computer vision and machine learning techniques is employed. From a robot vision point of view the combination of domain knowledge from both imaging processing and machine learning techniques, can expand the capabilities of robots. I present a novel framework called Cartesian Genetic Programming for Image Processing (CGP-IP). CGP-IP can be trained to detect objects in the incoming camera streams and successfully demonstrated on many different problem domains. The approach requires only a few training images (it was tested with 5 to 10 images per experiment) is fast, scalable and robust yet requires very small training sets. Additionally, it can generate human readable programs that can be further customized and tuned. While CGP-IP is a supervised-learning technique, I show an integration on the iCub, that allows for the autonomous learning of object detection and identification. Finally this dissertation includes two proof-of-concepts that integrate the motion and action sides. First, reactive reaching and grasping is shown. It allows the robot to avoid obstacles detected in the visual stream, while reaching for the intended target object. Furthermore the integration enables us to use the robot in non-static environments, i.e. the reaching is adapted on-the- fly from the visual feedback received, e.g. when an obstacle is moved into the trajectory. The second integration highlights the capabilities of these frameworks, by improving the visual detection by performing object manipulation actions.

Active Adaptive Gyrostabiliser Control System

A gyrostabiliser control system and method for stabilising marine vessel motion based on precession information only. The control system employs an Automatic Gain Control (AGC) precession controller (60). This system operates with a gain factor that is always being gradually minimized so as to let the gyro flywheel (12) develop as much precession as possible - the higher the precession, the higher the roll stabilising moment. This continuous gain change provides adaptation to changes in sea state and sailing conditions. The system effectively predicts the likelihood of maximum precession being reached. Should this event be detected, then the gain is rapidly increased so as to provide a breaking precession torque. Once the event has passed, the system again attempts to gradually decrease the gain.

Echoes: World music from Queensland

Research background: Echoes-World Music in Queensland is a full-length album produced in collaboration with the Brisbane Multicultural Arts Centre (BEMAC). The project involved the recording and production of 13 different artists’ original compositions and arrangements of traditional works, drawing on hybrid digital-analog production techniques. The recording of the album was informed by prior scholarly work by Taylor, Feld, Wong and others. These existing studies have discussed the complexities of intercultural collaboration, and the types of cultural politics that are involved in the recording and distribution of what has been known by the term ‘World Music.’ Aspects of applied ethnomusicology have informed the creative work, as a means of interpreting the implicit and explicit complexities that arise through the recording and dissemination of intercultural creative practice. The project asked the research question, in what ways is intercultural music making effected by collaborative practices in the recording studio? Research contribution: This project has identified that the recording and production of intercultural music making involves a complex amalgam of aspects of live or ‘authentic’ performance practices, alongside highly mediated production practices that are influenced by new forms of digital recording technology. Research significance: The compact disc was launched at a live performance showcase as part of the 2014 Big Sound music industry conference, and was added to feature album rotation for all Virgin Australia flights in February-March 2015. The album has received airplay on Radio National, Edge Radio (Hobart) and Radio Adelaide, and was a Feature Album on PBS FM (Melbourne), 2SER (Sydney), and ArtsoundFM Canberrra. The research context of the work is detailed in Gavin Carfoot (in press), ‘Musical discovery, colonialism and the possibilities of intercultural communication through music’ in Popular Communication.

Vineland Adaptive Behavior Scales - II profile of young children with Autism Spectrum Disorder

Adaptive behaviour is a crucial area of assessment for individuals with Autism Spectrum Disorder (ASD). This study examined the adaptive behaviour profile of 77 young children with ASD using the Vineland-II, and analysed factors associated with adaptive functioning. Consistent with previous research with the original Vineland a distinct autism profile of Vineland-II age equivalent scores, but not standard scores, was found. Highest scores were in motor skills and lowest scores were in socialisation. The addition of the Autism Diagnostic Observation Schedule (ADOS) calibrated severity score did not contribute significant variance to Vineland-II scores beyond that accounted for by age and nonverbal ability. Limitations, future directions, and implications are discussed.

A novel approach to 6-DOF adaptive trajectory tracking control of an AUV in the presence of parameter uncertainties

In this paper, the trajectory tracking control of an autonomous underwater vehicle (AUVs) in six-degrees-of-freedom (6-DOFs) is addressed. It is assumed that the system parameters are unknown and the vehicle is underactuated. An adaptive controller is proposed, based on Lyapunov׳s direct method and the back-stepping technique, which interestingly guarantees robustness against parameter uncertainties. The desired trajectory can be any sufficiently smooth bounded curve parameterized by time even if consist of straight line. In contrast with the majority of research in this field, the likelihood of actuators׳ saturation is considered and another adaptive controller is designed to overcome this problem, in which control signals are bounded using saturation functions. The nonlinear adaptive control scheme yields asymptotic convergence of the vehicle to the reference trajectory, in the presence of parametric uncertainties. The stability of the presented control laws is proved in the sense of Lyapunov theory and Barbalat׳s lemma. Efficiency of presented controller using saturation functions is verified through comparing numerical simulations of both controllers.

"It makes you think anything is possible”: Representing diversity in music theory pedagogy

This paper critiques a traditional approach to music theory pedagogy. It argues that music theory courses should draw on pedagogies that reflect the diversity and pluralism inherent in 21st century music making. It presents the findings of an action research project investigating the experiences of undergraduate students undertaking an innovative contemporary art music theory course. It describes the students’ struggle in coming to terms with a course that integrated composing, performing, listening and analysing coupled with what for many was their first exposure to the diversity of contemporary art music. The paper concludes with suggesting that the approach could be adopted more widely throughout music programs.

Implementing music therapy on an adolescent inpatient unit: A mixed-methods evaluation of acceptability, experience of participation and perceived impact

Objective: We aimed to assess the feasibility of delivering a music therapy program on adolescent psychiatric wards. Method: We undertook a mixed-methods evaluation of a pilot program. Various active and receptive techniques were employed in group music therapy sessions delivered as part of a structured clinical program. Data collected in interviews with participants and staff and feedback questionnaires were thematically and descriptively analysed and triangulated. Results: Data from 62 questionnaires returned by 43 patients who took part in 16 music therapy sessions, and seven staff, evidenced strong support for music therapy. Patients typically reported experiencing sessions as relaxing, comforting, uplifting, and empowering; >90% would participate by choice and use music therapeutically in the future. Staff endorsed music therapy as valuable therapeutically, reporting that patients engaged enthusiastically and identified sessions as improving their own moods and ward milieu. Conclusions: Integration of music therapy in inpatient treatment of adolescents is feasible and acceptable, and is valued by staff and patients as a complement to ‘talking therapies’. Participation is enjoyed and associated with outcomes including improvement in mood, expression of feelings and social engagement consistent with recovery.

International Journal of Music Business Research. Special Issue on the Australasian Music Economy

The music business is one of the most international of all the cultural industries. Music, industry practices, and people travel easily across country borders and the major music companies are dominating national music markets across the globe. However, at the same time the music industries in different countries are very idiosyncratic. Music is an ingrained part of a country’s history, its culture and heritage. One aspect of this idiosyncrasy is related to how creatives, audiences and music organizations are affected by and is able to take advantage of the ongoing digitization of society.

How does complex adaptive system theory inform innovation in complex project based organisations?

Innovation enables organisations to endure by responding to emergence and to improve efficiency. Innovation in a complex organisation can be difficult due to complexities contributing to slow decision-making. Complex projects fail due to an inability to respond to emergence which consumes finances and impacts on resources and organisational success. Therefore, for complex organisations to improve on performance and resilience, it would be advantageous to understand how to improve the management of innovation and thus, the ability to respond to emergence. The benefits to managers are an increase in the number of successful projects and improved productivity. This study will explore innovation management in a complex project based organisation. The contribution to the academic literature will be an in-depth, qualitative exploration of innovation in a complex project based organisation using a comparative case study approach.