The Music Industry

Early Beginnings and the Analog Era.

In the late 19th and early 20th centuries, the invention of the phonograph and radio transformed music from live, local performances to mass-distributed recorded sound.

Physical formats like vinyl records, magnetic tapes, and later CDs dominated the market, with record labels acting as gatekeepers for talent, production, and distribution.

The success of radio and later television further amplified artists’ reach, but also led to challenges in monetising live performances versus recorded music..

The Rise of the Blockbuster and Consolidation

By the mid-20th century, the success of certain genres and icons led to the star system, where a few major labels controlled vast portions of the market.

This consolidation meant that while there were huge commercial successes, independent artists often struggled to break through, creating a divide between mainstream appeal and niche expression.

The Digital Revolution

The late 1990s and early 2000s brought about a seismic shift as the internet became a primary source of music discovery and distribution.

The advent of digital file formats, most notably the MP3, and peer-to-peer sharing platforms like Napster, upended traditional revenue models and led to widespread issues with piracy and copyright infringement.

This period forced the industry to rethink business models, licensing agreements, and the value of recorded music.

The Streaming Era and New Business Models

In response to piracy and the changing habits of consumers, streaming services emerged in the late 2000s and 2010s.

Platforms like Spotify, Apple Music, and later newcomers have changed how revenue is generated—from physical sales and downloads to subscription and ad-supported models.

While streaming has re-opened access to a vast catalog of music for consumers, it has also sparked debates over fair compensation for artists and transparency in how royalties are distributed.

Current and Emerging Challenges

Advances in technology, including artificial intelligence that can generate or remix music, raise new questions about intellectual property and creative ownership.

Ongoing shifts in consumer behaviour and global market dynamics mean that traditional revenue streams remain in flux.

There’s also a growing need to balance profitability with ethical concerns such as equitable pay for artists, diversity in representation, and combating the misuse of music in various contexts.