The music recording industry supply chain and industry 4.0

Abstract

The paper explores the impact of technological innovations on the supply chain of the music industry and the players in the industry. The study investigates how these changes have affected the management of the South African music industry’s supply chain and its operations, most especially in the advent of the Fourth Industrial Revolution (Industry 4.0). The study focuses on four supply chain dimensions: (1) the structure of activities, (2) the choice of players, (3) the governing mechanism, and (4) the co-ordinating structure of supply chains. The research indicates that the advent of the Internet has reorganised the industry and affected the way music is consumed. Technological innovations have opened new markets, created opportunities for new entrants and entrepreneurs to enter the market and offer a mix of new and already known services to the consumer. New offerings often require new partnerships, which in turn may change the network structure in the supply chain. With Industry 4.0 we have seen breakthroughs and innovations progressing at an exponential rate, bringing entirely new capabilities and possibilities for change. The research sought to comprehensively analyse the structure of the traditional model of the industry and outline the changes that have developed within the South African supply chain using the four dimensions of supply chain design. The results show that the entrepreneurial technology companies, armed with a wealth of consumer data are gaining a major competitive edge over the traditional incumbents of the industry. The study outlines a new structure of the supply chain and describes how the creators and consumers of music will relate to each other in the future.