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Music industry intermediation in the digital era and the resilience of the Majors’ oligopoly : the role of transactional capability

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  • Rémy Guichardaz

    (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique)

  • Laurent Bach

    (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique)

  • Julien Penin

    (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique)

Abstract

The digital revolution has significantly impacted the music industry by lowering barriers to entry. This change is usually depicted as endangering the big incumbent firms, the so-called ‘Majors' (Universal, Sony, and Warner). Yet, market indicators show that the majors' leadership has not declined. In part thanks to the application of a 360° business model made possible by digitization, they have been able to sustain their position. However, there is still a lack of theoretical account as well as empirical evidence for understanding how this model has been implemented by the Majors. This paper uses the concept of transactional capabilities in order to explain this switch towards 360° business model : majors have relied on a new type of competences, more oriented towards the completion of multiple transactions in parallel with heterogeneous actors. We illustrate this point with the case study of the French arm of Sony Music Entertainment.

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  • Rémy Guichardaz & Laurent Bach & Julien Penin, 2019. "Music industry intermediation in the digital era and the resilience of the Majors’ oligopoly : the role of transactional capability," Post-Print hal-02182067, HAL.
    • Handle: RePEc:hal:journl:hal-02182067
    DOI: 10.1080/13662716.2018.1561357
    Note: View the original document on HAL open archive server: https://hal.univ-lorraine.fr/hal-02182067
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    Keywords

    Dynamic capabilities; Business model; Transactional capability; Music industry; Disintermediation;
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