The Effects of Changes in Technology in the Music Industry: A Case Study of Warner Music Group and Uomo Media

Binder, Danae

The Effects of Changes in Technology in the Music Industry: A Case Study of Warner Music Group and Uomo Media

Persistent URL

http://hdl.handle.net/10456/34400

Author(s)

Binder, Danae

Date Issued

April 3, 2013

Abstract

This study examines how changes in technology have affected new entrants in the music industry. Since 1990, the Internet has changed the way music is introduced, promoted, produced, and distributed. To understand the changes the recording music industry has faced, it was important to show a historical background of the industry as a whole. The industry has seen negative growth since 1999, due to drivers such as digital piracy, the recessionary economic environment, bankruptcies of retailers, and overall maturation of the CD format. Major firms, like Warner Music Group, have had to make changes in their business model to stay competitive. The lack of barriers to entry, mainly due to changes in technology, has enabled smaller companies, such as Uomo Media to gain a slice of market share. Financial data, annual reports, and consumer reports were used to find quantitative evidence of success and growth. Findings showed that although Uomo Media’s market share has grown consecutively since its inception in 2004, WMG has acquired and took advantage of new technologies. In an industry that is always changing, growing, and evolving, it is imperative for firms to recognize the advantages of changing and expanding into different and new channels.

First Reader(s)

Onyeiwu, Stephen Z.