Aspects of the South African music industry : an analytical perspective

Abstract

The music industry worldwide is rapidly evolving as a result of commercial, technological and demographic developments. The magnitude of the strategic impact of these developments on the South African music industry is evaluated in terms of internal and external factors, such as the intrinsic industry growth levels, ability to adapt to change, the consumer buying power, audio-visual piracy and counterfeiting, literacy, employment and the prevalence of HIV/AIDS. Collected data from public domain and proprietary music industry sources are transformed and presented in terms of the competitiveness of the South African music industry, from which key points for strategic leverage are identified. These key points of strategic leverage include education and training, relevant music industry research, the formalisation of the music industry strategy process and the development of alternative marketing, sales and distribution channels. In comparison to specific benchmark countries, the South African music industry has significant technological and socio-economic challenges and opportunities that need to be addressed in order to become a competitive co-evolutionary participant in the world music industry. South Africa, as an emerging world player, is ideally positioned for the development and implementation of new technological and commercial systems, such as the download distribution channel. This however, requires the collaborative participation of government departments, educational institutions, public and private enterprises. In particular, in-depth research on the local music industry is needed, which should include the collection of relevant statistical data. This study presents suggestions for some strategic interventions, including an application of the Porter DNA-model.