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.

Turning gaming EEG peripherals into trainable brain computer interfaces

Companies such as NeuroSky and Emotiv Systems are selling non-medical EEG devices for human computer interaction. These devices are significantly more affordable than their medical counterparts, and are mainly used to measure levels of engagement, focus, relaxation and stress. This information is sought after for marketing research and games. However, these EEG devices have the potential to enable users to interact with their surrounding environment using thoughts only, without activating any muscles. In this paper, we present preliminary results that demonstrate that despite reduced voltage and time sensitivity compared to medical-grade EEG systems, the quality of the signals of the Emotiv EPOC neuroheadset is sufficiently good in allowing discrimina tion between imaging events. We collected streams of EEG raw data and trained different types of classifiers to discriminate between three states (rest and two imaging events). We achieved a generalisation error of less than 2% for two types of non-linear classifiers.

Computer-assisted sampling of acoustic data for more efficient determination of bird species richness

Bird species richness survey is one of the most intriguing ecological topics for evaluating environmental health. Here, bird species richness denotes the number of unique bird species in a particular area. Factors affecting the investigation of bird species richness include weather, observation bias, and most importantly, the prohibitive costs of conducting surveys at large spatiotemporal scales. Thanks to advances in recording techniques, these problems have been alleviated by deploying sensors for acoustic data collection. Although automated detection techniques have been introduced to identify various bird species, the innate complexity of bird vocalizations, the background noise present in the recording and the escalating volumes of acoustic data pose a challenging task on determination of bird species richness. In this paper we proposed a two-step computer-assisted sampling approach for determining bird species richness in one-day acoustic data. First, a classification model is built based on acoustic indices for filtering out minutes that contain few bird species. Then the classified bird minutes are ordered by an acoustic index and the redundant temporal minutes are removed from the ranked minute sequence. The experimental results show that our method is more efficient in directing experts for determination of bird species compared with the previous methods.

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.

The ninth 48hr game making challenge (2015)

The 48 hour game making challenge has been running since 2007. In recent years, we have not only been running a 'game jam' for the local community but we have also been exploring the way in which the event itself and the place of the event has the potential to create its own stories. The 2015 challenge is part of a series of data collection opportunities focussed on the game jam itself and the meaning making that the participants engage in about the event. We are continuing the data collection commenced in 2012: "Game jams are the creative festivals of the game development community and a game jam is very much an event or performance; its stories are those of subjective experience. Participants return year after year and recount personal stories from previous challenges; arrival in the 48hr location typically inspires instances of individual memory and narration more in keeping with those of a music festival or an oft frequented holiday destination. Since its inception, the 48hr has been heavily documented, from the photo-blogging of our first jam and the twitter streams of more recent events to more formal interviews and documentaries (see Anderson, 2012). We have even had our own moments of Gonzo journalism with an on-site press room one year and an ‘embedded’ journalist another year (Keogh, 2011). In the last two years of the 48hr we have started to explore ways and means to collect more abstract data during the event, that is, empirical data about movement and activity. The intent behind this form of data collection was to explore graphic and computer generated visualisations of the event, not for the purpose of formal analysis but in the service of further story telling." [exerpt from truna aka j.turner, Thomas & Owen, 2013) See: truna aka j.turner, Thomas & Owen (2013) Living the indie life: mapping creative teams in a 48 hour game jam and playing with data, Proceedings of the 9th Australasian Conference on Interactive Entertainment, IE'2013, September 30 - October 01 2013, Melbourne, VIC, Australia

"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.

Job-related diversity and team performance: An empirical analysis of the US music industry

A significant amount of research has been carried out to investigate the existing bonds between team characteristics and team outcomes in contexts of social creativity. Specifically, how work group diversity affects its performance is of great relevance but unfortunately, there is no clear understanding of the diversity-performance relationship. Therefore, to improve our understanding of this phenomenon, it would be worthwhile to investigate further empirical settings. For this reason, we decided to study the music industry that, to our knowledge, has never been chosen as empirical setting for the application of the theoretical constructs linked to the topic of team diversity and performance. Our research aims at analyze the US music industry to study the relationship between job-related characteristics of team diversity and team performances.

Autonomous UAVs wildlife detection using thermal imaging, predictive navigation and computer vision

There is an increased interest on the use of Unmanned Aerial Vehicles (UAVs) for wildlife and feral animal monitoring around the world. This paper describes a novel system which uses a predictive dynamic application that places the UAV ahead of a user, with a low cost thermal camera, a small onboard computer that identifies heat signatures of a target animal from a predetermined altitude and transmits that target’s GPS coordinates. A map is generated and various data sets and graphs are displayed using a GUI designed for easy use. The paper describes the hardware and software architecture and the probabilistic model for downward facing camera for the detection of an animal. Behavioral dynamics of target movement for the design of a Kalman filter and Markov model based prediction algorithm are used to place the UAV ahead of the user. Geometrical concepts and Haversine formula are applied to the maximum likelihood case in order to make a prediction regarding a future state of the user, thus delivering a new way point for autonomous navigation. Results show that the system is capable of autonomously locating animals from a predetermined height and generate a map showing the location of the animals ahead of the user.