Abstract
We propose a model for understanding the transformation of the market structure in the recorded music industry value chain due to new forms of digital distribution. It takes into account the traditional music industry's value chain and distribution network, and the product characteristics of digital music as they relate to consumer value creation. We showcase changes in market structure from various perspectives of the players in the music industry value chain. With this as background, we then present propositions that highlight forces at work in market transformation and how each player's role in the digital music industry value chain is likely to change. We note the new tensions that arise around intellectual property rights for digital music with market structure changes. We support the propositions with illustrative mini-cases.
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