Abstract
In 2000, sales in the global music industry amounted to approximately $US 37 billion (International Federation of the Phonograph Industry 2001a). These figures are for sales of physical music formats, such as compact discs (CDs), cassettes, and vinyl. Despite the large scale of the music industry, there are indications that physical music sales are in the maturity stage of the product life cycle, and may even be declining for some music formats. For example, Diebold, a leading German management and technology consultancy company, observes that global music sales fell from $41.5 billion in 1995 to $38.5 billion in 1999
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