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Digital Platforms and Cultural Industries

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Edited By Philippe Bouquillion and François Moreau

The assessment of the challenges of digital platforms for cultural industries raises many different issues. How platforms choices in content pricing affect the overall value of cultural markets, especially in the case where content just aim at favoring devices’ sales? How are revenues shared between platforms and content right holders? Do creators and artists all benefit from the growth of digital platforms? How usual business models of cultural industries have to adapt to the digital paradigm? Should we observe rather a reinforcement of the star system or the emergence of a long tail? What is the impact on market concentration? Could we expect an increase or a decrease in cultural diversity? What is the role played by recommender systems, playlists and algorithms in influencing consumers’ choices? How to implement efficient public policies given the transnational dimension of digital platforms? The various papers gathered in this book contribute further to these different topics with a focus on empirical issues. The first part gathers the contributions dealing with the analysis of the impact that digital platforms have on the incumbent or legacy players of the original value chain of content industries: content providers, live entertainment producers, consumers, etc. The second part opens the black box of the ecosystem of digital platforms by studying competition among them and among the business models they adopt, as well as the conditions for the emergence of new players.

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Digitization and the Brazilian Music Market: Notes About the Rising of Digital Aggregators (Valiati, Leandro / Perfeito da Silva, Pedro)

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Digitization and the Brazilian Music Market: Notes About the Rising of Digital Aggregators

Leandro Valiati and Pedro Perfeito da Silva

Introduction

In the music industry, digitization has become the driving force of change in the processes of production, distribution, promotion, and consumption of musical goods and services (Bourreau, Gensollen, Moreau, & Waelbroeck, 2013). On the one hand, it generated the reorientation of the phonographic industry because of the drop in sales in the 2000s; on the other hand, there was a cost reduction in production, distribution, and promotion, that fostered new business models such as paid download shops, streaming platforms, and outside industry firms (for example, mobile and information technology companies).

This paper focuses on major record companies’ power erosions and the emergence of digital aggregators in the Brazilian market.1 Digital aggregators can be described as firms with a business model based on intermediation between digital distribution platforms (streaming services and download shops) and artists or independent labels. Such terminology derives from the main function of these firms, which concentrate on aggregating the contracts with each artist or recorder into a single contract with the distribution platform. Because of streaming growth,2 digital←165 | 166→ aggregators show potential to gain power within the music industry, since they present adherence to the current technological paradigm as well as to new consumption habits.

Methodologically, this work relies on the concept of governance based on the Global Value Chain (GVC) approach. According to...

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