This article explores the impact of the Internet on the supply chain for music. Music is a massive global industry worth $38 billion annually. The global music industry is dominated by the “big five” major record companies. However, as this article will show, the advent of the Internet is having a significant impact on both the supply chain for music and the dominance of the big record labels. The article begins by describing the background to our research and the methods employed. It then goes on to examine how the Internet is transforming the supply chain for music. This is followed by a discussion of the impact of piracy on the music industry. The article concludes by arguing that while the future may look bleak for the major record labels, it looks much more positive for artists and consumers.
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