Digital Distribution of Independent Music Artists: An Economic Analysis of Rights, Costs, and Market Potential

Diploma Thesis from the year 2012 in the subject Communications - Media Economics, Media Management, grade: 1,3, University of Cologne (Seminar fur Allgemeine BWL, Medien- und Technologiemanagement), course: Medienmanagement, language: English, abstract: This thesis considers the influence of digital distribution on the independent music artists’ position in the value chain with respect to rights, costs, and market potential from the perspective of an economic analysis. It begins by delineating the relevant terms and providing a research background about the digital distribution of independent music artists. Ongoing, a new analytical framework is introduced in order to guide the economic analyses from rights and costs to the market potential, whereas direct and indirect distribution are compared from the independent music artists’ point of view. It is found that digital distribution encourages independent music artists to enter the music market without the necessity of a major label. Furthermore, digital distribution seems to be an attractive way for unpopular artists to increase their awareness regardless likely copyright infringements.