Abstract:

This article has seeks to examine how the supply chain for music is being transformed by the advent of digital technologies which allow consumers to download music from the Internet.  It shows that the music industry is an unprecedented period of volatility and change regarding its supply and distribution operations.  Digital technologies are disrupting the industry to an extent not seen since the early days of radio.  The article begins by describing key features of the music industry and showing the impact of the Internet.  It then moves on to describe the background to and methods used in our research.  This is followed by an analysis of our findings which builds a picture of the legitimate digital downloaders and the factors which motivate them to pay to download music from the Internet.  The article concludes by arguing that the legitimate digital downloader is likely to be male, between the ages of 30 and 40, and have a high level of specialist music knowledge, i.e. they see the record label as the brand identifier of music quality.  It also concludes that what will motivate these individuals to purchase from a website is not that it is cheaper but that it offers them a greater range and choice of music than that offered by traditional music outlets.