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Das Internet und die Transformation der Musikindustrie: Rekonstruktion und Erklärung eines unkontrollierten sektoralen Wandels

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  • Dolata, Ulrich

Abstract

Since the late 1990s, the music business has been experiencing a period of crisis. A new set of technologies digitization, data compression and the Internet - has forced significant changes on the industry. This paper analyzes the repercussions of this new technological constellation on the socioeconomic structures and institutions of the sector to show that the constitutive impulses for restructuring came from the fringes of the industry and from external actors. Established companies in the music business were hesitant to meet these new technological challenges. They initially reacted with blockades and containment strategies, and only repositioned themselves strategically when the pressure to change grew massive and unavoidable. This paper argues that there were several factors in play that thwarted the ability to anticipate and adapt to these technological, organizational and institutional challenges. These include (1) general difficulties in anticipating the socioeconomic impact of fundamentally new technological opportunities; (2) the complex and time-consuming process of establishing a new techno-institutional match; (3) the sector's technological conservatism and (4) oligopolistic structure along with (5) the structural hierarchy in companies at the center. Taken together, these factors prevented the established core players from effecting a controlled transformation of the sector.

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  • Dolata, Ulrich, 2008. "Das Internet und die Transformation der Musikindustrie: Rekonstruktion und Erklärung eines unkontrollierten sektoralen Wandels," MPIfG Discussion Paper 08/7, Max Planck Institute for the Study of Societies.
    • Handle: RePEc:zbw:mpifgd:087
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    Cited by:

    1. Werle, Raymund, 2011. "Institutional analysis of technical innovation: A review," Research Contributions to Organizational Sociology and Innovation Studies, SOI Discussion Papers 2011-04, University of Stuttgart, Institute for Social Sciences, Department of Organizational Sociology and Innovation Studies.
    2. Dolata, Ulrich, 2020. "The digital transformation of the music industry. The second decade: From download to streaming," Research Contributions to Organizational Sociology and Innovation Studies, SOI Discussion Papers 2020-04, University of Stuttgart, Institute for Social Sciences, Department of Organizational Sociology and Innovation Studies.
    3. Dolata, Ulrich, 2014. "Märkte und Macht der Internetkonzerne: Konzentration - Konkurrenz - Innovationsstrategien," Research Contributions to Organizational Sociology and Innovation Studies, SOI Discussion Papers 2014-04, University of Stuttgart, Institute for Social Sciences, Department of Organizational Sociology and Innovation Studies.
    4. Kungl, Gregor, 2014. "The incumbent German power companies in a changing environment: A comparison of E.ON, RWE, EnBW and Vattenfall from 1998 to 2013," Research Contributions to Organizational Sociology and Innovation Studies, SOI Discussion Papers 2014-03, University of Stuttgart, Institute for Social Sciences, Department of Organizational Sociology and Innovation Studies.
    5. Fuchs, Gerhard & Wassermann, Sandra, 2012. "Organising a market: Photovoltaics in Germany," Research Contributions to Organizational Sociology and Innovation Studies, SOI Discussion Papers 2012-01, University of Stuttgart, Institute for Social Sciences, Department of Organizational Sociology and Innovation Studies.
    6. Dolata, Ulrich, 2009. "Technological innovations and sectoral change: Transformative capacity, adaptability, patterns of change: An analytical framework," Research Policy, Elsevier, vol. 38(6), pages 1066-1076, July.
    7. Dolata, Ulrich, 2011. "The music industry and the internet: A decade of disruptive and uncontrolled sectoral change," Research Contributions to Organizational Sociology and Innovation Studies, SOI Discussion Papers 2011-02, University of Stuttgart, Institute for Social Sciences, Department of Organizational Sociology and Innovation Studies.
    8. Dolata, Ulrich, 2011. "Radical change as gradual transformation: Characteristics and variants of socio-technical transitions," Research Contributions to Organizational Sociology and Innovation Studies, SOI Discussion Papers 2011-03, University of Stuttgart, Institute for Social Sciences, Department of Organizational Sociology and Innovation Studies.

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