Digital technology has led to the evolution of the music industry over time, which has brought up changes in the business model. Disintermediation in the music industry has removed the middlemen, allowing them to reach out to their consumers directly. At the onset of the music industry, artists used to reach out to artists directly, but due to recording and distribution demands, intermediaries came into place. Digital technology is now replacing them, allowing once again for artists to reach consumers directly. Disintermediation effects are succeeding because of the internet that is now allowing artists to be self-sufficient and autonomous in how they handle their business.
Disintermediation in the music industry has been beneficial to the artists. The rise of independent artists who are not tied to record labels is on the rise. The consumer now has the chance to listen to a wide diversity of artists according to their tastes and preferences. The artists have complete control of their content when no intermediaries are involved who may control the artist's content (Chalmers, Matthews & Hyslop,2019). Artists can share their views without worrying about being politically correct, which is not the case when they are signed in record labels. Artists can collaborate with other artists easily on projects. Removing intermediaries reduces costs, and hence the artists gain in profits.
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Disintermediation in the music industry has also affected some of the artists negatively. Record labels had the financial muscle to promote artists' projects, distribute their music and protect their content (Sitonio & Nucciarelli,2018). Artists may not have the ability to promote their content, especially new artists, and also their content can be pirated easily through the internet. This means that artists end up losing revenue.
References
Chalmers, D., Matthews, R., & Hyslop, A. (2019). Blockchain as an external enabler of new venture ideas: Digital entrepreneurs and the disintermediation of the global music industry. Journal of Business Research .
Sitonio, C., & Nucciarelli, A. (2018). The impact of blockchain on the music industry.
