Characteristics of the Transformation of the Music Industry in the Context of Digitalization

Abstract

The article examines the characteristics of the transformation of the music industry in the context of digitalization.The article reveals the features of the change in the structure of the music product from 1999 to 2023.There is a clear trend towards a decrease in physical sales and an increase in streaming over the 25 years studied.Moreover, streaming can be considered the main reason for a certain revival of sales in the music industry as a whole.In 2023, streaming continued to dominate global revenues, but revenues from all music formats increased, except for downloads and other digital content.Streaming, performing rights and physical formats such as CDs and vinyl grew faster in 2023 than in 2022.Revenues from physical sales increased by 13.4%, which is the highest growth rate among all formats in 2023.The transformation of the music industry in the digitalization era has been marked by innovations and challenges that have arisen along the way.The article explores the evolution from the period of dominance of physical media, such as vinyl records, cassettes and CDs, to the digital revolution, which introduced formats such as MP3 and AAC.The growth of streaming platfroms, with the leaders being Spotify and Apple Music, has reshaped how consumers access music.It should be noted that there have also been problems, particularly concerning remuneration for musicians.The introduction of non-fungible tokens (NFTs) and the possibility of achieving more equitable compensation through the use of blockchain are potential solutions for the industry.It can be predicted that the music industry will continue to adapt to the challenges inherent in the digital era.In these unique conditions, the interaction between producers, suppliers (distributors), and consumers of a musical product will be crucial.These changes underscore the need for further research in this direction, particularly on the digital distribution of musical products.