Disintermediation and Reintermediation of the Sound Recording Value Chain: Two Case Studies

Abstract

Digitalization and the Internet create the potential for disintermediating the traditional value chain of the sound recording industry, providing new opportunities for artists and music consumers to interact and trade in recorded music. This article presents two case studies in which artists have used information and communication technology to disintermediate that chain. Their experiences show, however, that some reintermediation is necessary and desirable to obtain optimal market benefits. The remintermediation can be controlled to provide substantial independence for artists.

Key Words:

• sound recordings
• value chain
• Internet
• industry structure