Business Innovation and Disruption in the Music Industry
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Business Innovation and Disruption in the Music Industry

Edited by Patrik Wikström and Robert DeFillippi

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.
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Chapter 9: Lessons from the world’s most advanced market for music streaming services

Daniel Nordgård


The recent rise in subscription-based music streaming services has caused a heated and polarized debate over genre diversity, business models and revenue streams. On the one hand, music streaming represents a model with the potential of restoring a music economy that has been declining ever since the turn of the millennium. On the other hand, music streaming seems to further skew revenues towards the top international hits, fuelling concerns about the model’s sustainability for large sections of the music economy. Building on two studies of Norway’s experiences from adopting the streaming format, this chapter seeks to understand why subscription-based music streaming seems to be perceived so differently by different segments of the music economy. The chapter presents and discusses explanations to these tensions and suggests possible actions to further develop subscription-based music streaming.

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