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Determining Factors on Digital Change in the Music Industries a Qualitative Analysis of the Kristiansand Roundtable Conferences

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Determining Factors on Digital Change in the Music Industries a Qualitative Analysis of the Kristiansand Roundtable Conferences Daniel Nordgård Determining Factors on Digital Change in the Music Industries A qualitative analysis of the Kristiansand Roundtable Conferences Dissertation for the degree of PhD in Popular Music Performance University of Agder Faculty of Fine Arts 2016 Doctoral dissertations at the University of Agder: 160 ISBN: 978-82-7117-855-0 ISSN:1504-9272 2 List of contents ABBREVIATIONS III ACKNOWLEDGEMENTS VI PREFACE VIII AN OPPORTUNITY TO SIT IN: THE KRISTIANSAND ROUNDTABLE CONFERENCES IX AN INCREDIBLE POOL OF DATA X THE KEY INITIATIVE: PETER JENNER AND BENDIK HOFSETH XI 1 PART 1: IN REVISION: THEORETICAL FRAMEWORKS 1 1.1.1 STRUCTURE 4 1.2 DEFINING THE MUSIC INDUSTRIES 7 1.2.1 DYNAMIC SET OF INTERMEDIARIES 11 1.2.2 THROUGH A BROADER LENS 14 1.2.3 COPYRIGHT ISSUES 17 1.2.4 VALUE-CHAINS AND CHANNEL FUNCTIONS 23 1.3 STRATEGIC ACTION FIELD (SAF) 25 1.3.1 THE FOUNDATIONS 25 1.3.2 TOWARDS AN APPROACH TO UNDERSTANDING CHANGE 29 1.3.3 SUMMARY 34 1.4 CHANGE AND CONTINUITY IN THE MUSIC INDUSTRIES 36 1.4.1 THE RISE OF LIVE MUSIC 36 1.4.2 ECONOMIC AND CREATIVE TRANSITION 39 1.4.3 DIGITAL TURMOIL 45 1.5 DIGITAL DISRUPTIONS – IMPACT EVALUATIONS 50 1.6 SUMMARY 53 2 PART 2: DESIGNING AND CONDUCTING SOCIAL RESEARCH 57 2.1 TO STUDY THE COMPLEXITY OF PEOPLE AND HUMAN INTERACTION 58 2.2 USING A CASE STUDY AS STRATEGY 60 2.2.1 DEFINING A CASE 61 2.2.2 CONSIDERING THE KRISTIANSAND ROUNDTABLE CONFERENCES A CASE 63 2.3 DATA COLLECTION: DEGREES OF PARTICIPATION 64 2.3.1 NATURAL SOCIAL SETTINGS 65 2.3.2 THE KRISTIANSAND ROUNDTABLE CONFERENCES AS A FOCUS GROUP 67 2.3.3 PARTICIPANT OBSERVATION 71 2.4 ANALYZING THE DATA 72 2.4.1 TRANSFORMING QUALITATIVE DATA 72 2.4.2 EXTRACTING CONCEPTS AND IDEAS 74 2.4.3 STRUCTURING AND SYSTEMATIZING 76 2.4.4 PROVIDING A TRUSTED FORUM FOR TALKS 76 2.5 METHODOLOGICAL CHALLENGES 83 2.5.1 ETHICAL CONCERNS 84 2.5.2 LIMITATIONS 89 2.5.3 SUMMARY 92 3 PART 3: MAKING SENSE OF COMPLEXITIES 95 3.1 THE KRISTIANSAND ROUNDTABLE CONFERENCES 96 3.2 MY FINDINGS 100 3.2.1 DEFINING NEW LANDSCAPES AND FIGURING OUT NEW MODELS 112 3.2.2 THREE CASES OF EXTERNAL INFLUENCE 117 3.2.3 INTERNAL FRICTIONS AND DYNAMICS OF THE MUSIC INDUSTRIES 130 i 3.2.4 THE ROLE OF THE RECORD COMPANY 130 3.2.5 THE COMPLEX STRUCTURES OF THE MUSIC INDUSTRIES 136 3.2.6 THE DYSFUNCTIONAL MUSIC INDUSTRIES 140 3.2.7 THE SCREEN OF DEATH 142 3.2.8 CALLING FOR A GLOBAL DATABASE 151 3.2.9 EXTERNAL PRESSURES 158 3.2.10 POLICY-MAKING AND LEGISLATION 158 3.2.11 PRESSURES FROM EXTERNAL COMPANIES AND BUSINESSES 164 3.3 THREE CONCEPTS TO UNDERSTAND THE MUSIC INDUSTRIES DIGITAL ADAPTATIONS 169 3.3.1 CONCEPT A: INTERNAL DYNAMICS: THE DYSFUNCTIONAL MUSIC INDUSTRIES 171 3.3.2 CONCEPT B: EXTERNAL ACTORS’ IMPACT ON PROGRESSIONS 180 3.3.3 CONCEPT C: RELATIONS TO LEGISLATION AND POLICY MAKERS 188 4 CONCLUSION: TYING IT ALL TOGETHER 195 4.1 THE MOST CRITICAL COMPONENT IS THE MUSIC INDUSTRIES THEMSELVES 196 4.2 INTERNAL DYNAMICS AND STRUCTURES 198 4.3 DEFINING A CRISIS 199 4.4 THESE ARE NOT CONVERGING FIELDS 201 4.5 SUGGESTING ALTERNATIVE APPROACHES TO UNDERSTANDING DIGITAL CHANGE 203 5 LITERATURE 205 ii Abbreviations1 CISAC International Confederation of Societies of Authors and Composers represents a broad range international collecting societies, working to enhance creators’ rights. They are an important political actor on matters that involve authors and composer’s rights. http://www.cisac.org/ DRM Digital Rights Management is a broader term referring to different actions and initiatives providing copyright protection for digital media. GEMA Gesellschaft für musikalische Aufführungs- und mechanische Vervielfältigungsrechte is the German collecting society/performing rights society, collecting and distributing performing rights royalties and mechanical rights royalties. https://www.gema.de/en/ GRD Global Repertoire Database. The GRD was an attempt to create a central, multi-territorial source of copyright metadata on the global repertoire of musical works. The Original working group on the project was initiated by the European Union and EU Commissioner Neelie Kroes in 2008. The GRD failed in July 2014 and a brief but informative comment on this can be read here: http://www.thembj.org/2015/08/grds-failure/ ICT Information and Communications Technology (or technologies) is an umbrella term that includes any communication device or application, encompassing: radio, television, cellular phones, computer and network hardware and software, satellite systems and so on, as well as the various services and applications IFPI International Federation of the Phonographic Industry – represents the recording industry and around 1300 record companies worldwide. Commonly associated with the major record companies and their political and economic interests. http://www.ifpi.org/ 1 All website-links were last visited on 01.11.2016 iii IMPALA Independent Music Companies Association is the trade organization for the independent music companies, in particular the record labels. http://www.impalamusic.org/ IMR International Music Registry. The ambitions of the IMR was in many ways similar to the GRD – to provide a comprehensive and authoritative database for the metadata on music rights. The initiative was funded by WIPO and started in 2011. The project has in 2016 been laid dead. ISP Internet Service Provider – a company or organization that provide access to the Internet. KODA KODA is the Danish collecting society/performing rights society, collecting and distributing performing rights royalties and mechanical rights royalties. http://www.koda.dk/eng NMPA National Music Publishers’ Association is the trade association representing all American music publishers and their song writing partners. http://nmpa.org/ RIAA Recording Industry Association of America is the American trade organization for the recorded music industry. RIAA certifies the sales charts and sales awards, such as Gold, Platinum and Diamond albums. The RIAA is a significant political actor in the American and International music industry. https://www.riaa.com/ SACEM Society of Authors, Composers and Publishers of Music is the French collecting society/performing rights society, collecting and distributing performing rights royalties and mechanical rights royalties. https://societe.sacem.fr/en TONO TONO is the Norwegian collecting society/performing rights society, collecting and distributing performing rights royalties and mechanical rights royalties. TONO is owned and governed by its members, Norwegian composers, songwriters, lyricists and music publishers. http://www.tono.no/en/ iv WIPO World Intellectual Property Organization – agency under the United Nations on intellectual property, such as copyright, patents, trademarks and designs. http://www.wipo.int/portal/en/index.html v Acknowledgements These have been some inspiring (and challenging) years, getting my PhD dissertation together. It’s become a project that has expanded in time, as well as ambitions, moving from simply being a project of huge personal interest, to becoming the beginning of a new career-path. For that I am very grateful. And it couldn’t have been possible without the aid and understanding of certain people that I’d like to use this opportunity to thank here. First of all, I’d like to thank my family, Cecilie, Casper and Tobias, who have been so helpful and understanding throughout my project. In particular, these last two years, with me having to work vacations and weekends in order to get the job done. I couldn’t have done this without your support. The same holds true for Toini and Yngvar Nordgård, and Christian and Miriam Nordgård. Thank you so much. I have had great help from my supervisor, Prof. Michael Rauhut, who’s helped me navigate the academic landscapes and who’s support has been very important. Equally, I’ve had great help from Prof. Stan Hawkins and Prof. Søren Kjørup whose inputs and insights have been of tremendous help. The University of Agder and the Department of Popular Music is filled with welcoming and knowledgeable colleagues whom I’ve enjoyed working with. Although being enrolled at the University of Agder and working there as a teacher in music management, I’ve also worked at Agder Research for several years, enjoying the insights, experiences and opportunities given to me here. No doubt, it has had a great impact on my work to be allowed and encouraged to work on different types of projects relating to my focus area. In particular, I’d like to thank Kirsti Mathiesen Hjemdahl. This dissertation could never have happened had it not been for the welcoming and generous nature of Bendik Hofseth, Peter Jenner and the many participants in the Kristiansand Roundtable Conference. By including me in the Roundtable Conference and by granting me access to your meetings, you’ve shown me great trust and I hope my dissertation proves this trust right. I’d like to thank my friend and colleague Andy Inglis for helping me proofread and edit my text. I like to imagine myself as fairly competent in the English language. However, your aid and assistant has been most valuable in getting my text readable and ready. vi Lastly; my PhD scholarship was financed by the two Agder-counties, Vest- and Aust-Agder fylkeskommune. The series of Roundtable Conferences were financed by the University of Agder, Cultiva and VRI-Agder. Obviously, this dissertation is the results from your investments and I hope it finds you well. vii Preface I’ve always loved music. I loved performing it, I loved listening to it and I loved working with it, watching it on stage and being surrounded by it and by other fans and friends.
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