A business model for the digital distribution of music in the South African context

Abstract

Increased technological capabilities in the realm of independent audio production coupled with online trends of Social Media, e-commerce, m-commerce and user-generated content have created unique opportunities for content providers to use Web 2.0 as an innovative distribution platform for mass dissemination of content. Artists not contracted to a record company, who are able to produce low cost, high fidelity audio recordings, are able to utilise this web-platform to connect directly with consumers without reliance on record companies, who have traditionally retained control over production and distribution in the music industry. This paper presents elements of an emerging business model which aims to re-architect the traditional value chain by linking artists and consumers directly through an Internet platform. A key component of the model is utilising new technologies and integrating existing service providers through web-services to provide an aggregated value-added service package to both artists and consumers in a cost-effective manner. The model is aimed at the South African market with the assumption that proposed ICT infrastructure upgrades will enable increased broadband Internet access at substantially lower cost. The model also aims to capitalize on the high mobile phone penetration in South Africa and utilise this as an additional distribution channel, particularly in rural areas. Copyright