Four things brands can learn from the digital disruption of the music industry
The digital disruption of the music industry is largely misunderstood. It has been widely touted as the toppling of major labels by digital insurgents, yet major labels remain at the center of the industry. What digital has done is different, and much more radical. It is the transformation of music from a
product into a service.
This is happening in all industries, not just music. From food to fashion, digital technologies are enabling challengers to contest incumbents with new business models that bypass the centrality of a product in creating value and growth. What’s happening in music offers guidance for every category.
This Future Perspective will discuss how digital has changed the music industry and then outline four critical lessons learned about how to succeed in a marketplace transformed by digital disruption. In particular, the experience of the music industry makes it clear that success in the future of consumption will require new business models, not just new products.