1. Introduction: 2
1.1 Background 2
1.2 Cyber Communities, Collective Intelligence and Media Convergence – Overall Research Objectives: 3
2. Literature Review: 8
2.1. Mp3, Napster and File-Sharing Culture 9
2.2. Commercial Development and Convergent Media: 15
2.3 New Concepts of Consumption and Hypotheses 23
3. Research Methodology 25
3.1 Background and the Gap in the Research 25
3.2 Research Strategies and Methodology 26
3.2 Questionnaire Design and Question Rationales 31
3.3 Data Collection and Sampling 33
4. Findings and Analysis 34
4.1 Limitations of the Research 42
5. Conclusion and Implications 42
6. References 44 7. Appendices 50
1. Introduction:
1.1 Background
Starting with the first peer-to-peer file sharing service Napster, which was found in 1999, music industry’s traditional value chain transformed by the advent of new digital technologies. The traditional value chain followed content creation, publishing, distribution, retail and consumption but with digitisation and the emergence of broadband, smartphones and other new communication technologies the way the music is consumed transformed into an interactive model in which content creation is directly sent to consumers through digital channels or it is the consumer that is creating its own content (Freedman, 2003). Former entertainment business attorney, music industry figure, Bob Lefsetz defines this change of roles as “At first you pay your fans, then they pay you, it’s not other way around anymore” (Richards, 2011).
Music business due to their lack of cultural capital and knowledge on new technologies is one of the few industries that had difficulty in success fully applying its business model to digital age (Freedman, 2003). Digital communications and technology companies like Apple Inc. or illegal peer-to-peer file share networks
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