ABSTRACT
This chapter looks holistically at the entire value chain – Development, Production, Distribution and Monetisation – of the music industry, to analyse where value is created. After a period of existential crisis in the early twenty-first century driven by illegal file sharing, music has rediscovered its profitability and growth. Development is the phase where songs are created and written. Key inputs are talent, inspiration, experience and (now) creative AI tools. The key output is original copyrights, which are then scaleable along the value chain. Production is where songs are funded and produced, sometimes (not always) by record companies. There are a wide range of creative Artificial Intelligence tools, driving both creativity and challenging copyright issues, because training data used for musical composition may cut across existing rights holders, or leave ownership uncertain. Distribution is where music is marketed to the public, via streaming and other means. Channels examined are music streaming, radio and touring. AI now plays the critical role in the public’s discovery of new music – a role once played mostly by radio. Monetisation is where music gains traction with fans, through royalty collection, merchandise, licensing and live performance income. Catalogues can be retained as royalty drivers, or sold as valuable cash flow streams un-correlated to the economic cycle. An analysis of pop band BTS’ global success, and the South Korean music system that drives it, asks how translatable their approach is to other territories.
