Value Gap or Growth? How Digital Music Boosts Music Industry Growth

Today, consumers have access to a greater choice of lawful music services than ever before and can listen to music anywhere, anytime, on a broad range of devices. With these increased choices has come an explosion of sharing and creativity.

Today, consumers have access to a greater choice of lawful music services than ever before and can
listen to music anywhere, anytime, on a broad range of devices. With these increased choices has come
an explosion of sharing and creativity.

From the content industry side, the Internet has also enabled new business models for creators and the
emergence of new artists and music intermediaries. It has also allowed independent labels to thrive — in
Adele’s producer’s own words, digital music is a “more level playing field”.1 The supply side of music is
more diverse and competitive than ever.

Have these benefits come at the expense of legacy music players, such as major labels and collecting
societies? For the fourth consecutive year, the global recorded music industry grew in 2018.2 Since 2014,
collecting societies’ income for music has also grown continuously, with global income rising by 26.8%
between 2014 and 2018.

CCIA_Paper_Value_Growth_Music_Industry_2019_A4-2

More From The Research Center

Competitive Dynamics of Online and Brick-and-Mortar Retail Prices

Prices charged by brick-and-mortar retail channels tend to correspond closely to those charged online – good news for consumers, who benefit from a competitive retail landscape through lower pric...

Fireside Chat with Hal Varian on Antitrust Bills

A recent fireside chat with Google’s Chief Economist Hal Varian featured discussion on the flawed reasoning behind proposed tech regulations in antitrust bills like S. 2992, H.R. 3825, and H.R. 3...

Radical Proposals to Overhaul Antitrust Laws Would Cost Public Sector Workers in Pension Benefits

Radical proposals to overhaul antitrust law, such as pending bills S. 2992 and H.R. 3816, would cost 27.9 million teachers, fire fighters, and nurses almost $4,000 per person in lost retirement b...

The Cost of Tech Regulatory Bills to State and Local Pension Plans – State By State Aggregates

Tech regulatory bills like S. 2992 and H.R. 3816 would increase operating costs for regulated U.S. companies, reducing their market value and harming their shareholders. State and local government ...