Towards a model for digital distribution and value capture in the South African music industry

Abstract

New digital distribution and value capture models have emerged on the global music industry scene in the last ten years. These models are highly dependent on a strong underlying communications and broadband internet infrastructure which is largely present in most developed markets. South Africa, however, is a developing country whose broadband infrastructure is still nascent and not as widely available or accessible. Due to the permeation of mobile technology, most broadband internet access is likely to occur through the mobile networks in most developing markets. This stands in stark contrast to developed markets where broadband internet access occurs primarily via fixed line infrastructure with mobile as a secondary option.This research set out to investigate whether digital value distribution and value capture models which succeeded in developed countries would be suitable for the South African music industry given the broadband infrastructure constraints and the different internet access methodologies prevalent in this developing market. This research employed an exploratory research methodology in order to investigate this question and found that a mixture of value distribution and value capture models would address the entire market requirement, with mobile-centric digital distribution models being most suitable for mass market deployment.