IDEAS home Printed from https://ideas.repec.org/p/zbw/stusoi/201102.html
   My bibliography  Save this paper

The music industry and the internet: A decade of disruptive and uncontrolled sectoral change

Author

Listed:
  • Dolata, Ulrich

Abstract

Since the late 1990s, the music industry has been undergoing a period of significant and crisis-ridden changes. This period was launched and driven forward by a new set of technologies:digitalization, data compression and the Internet. This paper analyzes the repercussions of this new technological constellation on the socio-economic structures and institutions of this sector. The depiction of this technology-driven sectoral transformation shows that at that time the constitutive impulses for restructuring came from the not well-established fringes of the sector and from external actors. The established companies of the music business were hesitant in accepting the new technological challenges. They initially reacted with blockades and containment strategies and only defined a strategic repositioning upon massive and undeniable pressures to change. The paper argues that the low ability to anticipate and adapt to these technological, organizational and institutional challenges is based on the interplay of several factors. Among these are: (1) general difficulties in anticipating the socio-economic impact of fundamentally new technological opportunities; (2) complex and time-consuming processes of establishing a new techno-institutional match; (3) technological conservatism; (4) the oligopolistic structure of the sector; as well as (5) the hierarchically structured focal companies. Together these factors obstructed a controlled sectoral transformation orchestrated by the established core players.

Suggested Citation

  • 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.
  • Handle: RePEc:zbw:stusoi:201102
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/88170/1/668458461.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Raghu Garud & Praveen R. Nayyar, 1994. "Transformative capacity: Continual structuring by intertemporal technology transfer," Strategic Management Journal, Wiley Blackwell, vol. 15(5), pages 365-385, June.
    2. Dolata, Ulrich, 2011. "Wandel durch Technik: Eine Theorie soziotechnischer Transformation," Schriften aus dem Max-Planck-Institut für Gesellschaftsforschung Köln, Max Planck Institute for the Study of Societies, volume 73, number 73.
    3. Geels, Frank W. & Schot, Johan, 2007. "Typology of sociotechnical transition pathways," Research Policy, Elsevier, vol. 36(3), pages 399-417, April.
    4. Schrape, Jan-Felix, 2011. "Der Wandel des Buchhandels durch Digitalisierung und Internet," Research Contributions to Organizational Sociology and Innovation Studies, SOI Discussion Papers 2011-01, University of Stuttgart, Institute for Social Sciences, Department of Organizational Sociology and Innovation Studies.
    5. Eve Chiapello & A. Hurand, 2011. "Contribution," Post-Print hal-00681170, HAL.
    6. Gerhard Illing & Martin Peitz (ed.), 2006. "Industrial Organization and the Digital Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262090414, December.
    7. Beyer, Jürgen, 2006. "Pfadabhängigkeit: Über institutionelle Kontinuität, anfällige Stabilität und fundamentalen Wandel," Schriften aus dem Max-Planck-Institut für Gesellschaftsforschung Köln, Max Planck Institute for the Study of Societies, volume 56, number 56.
    8. 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.
    9. Anderson, Philip & Tushman, Michael L, 2001. "Organizational Environments and Industry Exit: The Effects of Uncertainty, Munificence and Complexity," Industrial and Corporate Change, Oxford University Press, vol. 10(3), pages 675-711, September.
    10. 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.
    11. Peter Tschmuck, 2006. "Creativity and Innovation in the Music Industry," Springer Books, Springer, number 978-1-4020-4275-1, June.
    12. Smith, Adrian & Stirling, Andy & Berkhout, Frans, 2005. "The governance of sustainable socio-technical transitions," Research Policy, Elsevier, vol. 34(10), pages 1491-1510, December.
    13. Baldwin, Robert & Cave, Martin & Lodge, Martin (ed.), 2010. "The Oxford Handbook of Regulation," OUP Catalogue, Oxford University Press, number 9780199560219.
    14. Illing, Gerhard (Ed.), . "Industrial Organization and the Digital Economy," Monographs in Economics, University of Munich, Department of Economics, number 19506, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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. 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.
    3. 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.
    4. Paolo Calvosa, 2012. "L?impatto di internet nel settore dei giochi pubblici in Italia e i modelli di business degli operatori on line: il caso Microgame," ECONOMIA E DIRITTO DEL TERZIARIO, FrancoAngeli Editore, vol. 2012(3), pages 379-402.
    5. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    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. 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.
    5. 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.
    6. 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.
    7. 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.
    8. Dolata, Ulrich & Schrape, Jan Felix, 2014. "Masses, crowds, communities, movements: Collective formations in the digital age," Research Contributions to Organizational Sociology and Innovation Studies, SOI Discussion Papers 2014-02, University of Stuttgart, Institute for Social Sciences, Department of Organizational Sociology and Innovation Studies.
    9. Dolata, Ulrich, 2017. "Technological innovations and the transformation of economic sectors: A concise overview of issues and concepts," Research Contributions to Organizational Sociology and Innovation Studies, SOI Discussion Papers 2018-01, University of Stuttgart, Institute for Social Sciences, Department of Organizational Sociology and Innovation Studies.
    10. 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.
    11. Steen, Markus & Weaver, Tyson, 2017. "Incumbents’ diversification and cross-sectorial energy industry dynamics," Research Policy, Elsevier, vol. 46(6), pages 1071-1086.
    12. Garud, Raghu & Gehman, Joel, 2012. "Metatheoretical perspectives on sustainability journeys: Evolutionary, relational and durational," Research Policy, Elsevier, vol. 41(6), pages 980-995.
    13. Erlinghagen, Sabine & Markard, Jochen, 2012. "Smart grids and the transformation of the electricity sector: ICT firms as potential catalysts for sectoral change," Energy Policy, Elsevier, vol. 51(C), pages 895-906.
    14. Weber, K. Matthias & Rohracher, Harald, 2012. "Legitimizing research, technology and innovation policies for transformative change," Research Policy, Elsevier, vol. 41(6), pages 1037-1047.
    15. Neukirch, Mario, 2014. "Konflikte um den Ausbau der Stromnetze: Status und Entwicklung heterogener Protestkonstellationen," Research Contributions to Organizational Sociology and Innovation Studies, SOI Discussion Papers 2014-01, University of Stuttgart, Institute for Social Sciences, Department of Organizational Sociology and Innovation Studies.
    16. Suleiman, Lina, 2021. "Blue green infrastructure, from niche to mainstream: Challenges and opportunities for planning in Stockholm," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    17. Kropp, Cordula, 2018. "Sustainable innovations: Theories, conflicts and strategies," Research Contributions to Organizational Sociology and Innovation Studies, SOI Discussion Papers 2018-02, University of Stuttgart, Institute for Social Sciences, Department of Organizational Sociology and Innovation Studies.
    18. Susana Borras & Jakob Edler, 2014. "Introduction: on governance, systems and change," Chapters, in: Susana Borrás & Jakob Edler (ed.), The Governance of Socio-Technical Systems, chapter 1, pages 1-22, Edward Elgar Publishing.
    19. Lindberg, Marie Byskov & Markard, Jochen & Andersen, Allan Dahl, 2019. "Policies, actors and sustainability transition pathways: A study of the EU’s energy policy mix," Research Policy, Elsevier, vol. 48(10).
    20. Jens Hanson & Markus Steen & Tyson Weaver & Håkon E. Normann & Gard H. Hansen, 2016. "Path creation through branching and transfer of complementary resources: the role of established industries for new renewable energy technologies," Working Papers on Innovation Studies 20160310, Centre for Technology, Innovation and Culture, University of Oslo.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:stusoi:201102. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: http://www.uni-stuttgart.de/soz/oi/index.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.