Welcome to Scribd. Sign in or start your free trial to enjoy unlimited e-books, audiobooks & documents.Find out more
Standard view
Full view
of .
Look up keyword
Like this
0 of .
Results for:
No results containing your search query
P. 1
Ghanaian Music Industry

Ghanaian Music Industry

|Views: 173|Likes:
Published by Kofi Otabil

More info:

Published by: Kofi Otabil on Sep 24, 2010
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less





1.0 BACKGROUND TO THE STUDY1.1 Introduction
The music recording industry offers new trading opportunities for Ghana. In the ageof knowledge-based international competitiveness, services are assuming a greatershare of output of all economies. Though regarded as an informal sector, the musicrecording industry in Ghana represents a vibrant and dynamic sector of the Ghanaianeconomy. (Collins, 2001).A Webactive (2004) report reckons that the global musicindustry generates annual global sales of $38 billion. Mathews (2001b) suggests thatwhile spending on US online music was only $836 million in the year 2000, about 5.5percent of the total revenue in the music market, it is projected to increase to $5.36billion by the year 2005, representing 25 percent of the market. The industry isdominated by five major record labels namely:EMI, Sony, Universal-Vivendi, TimeWarner and Bertelsmann BMG who control the market for recorded music in terms of both production and distribution (Webactive 2004).The ability of the major labels tocontrol the supply chain for music has prevented artists from independentlydistributing their own material.The Internet, by making possible online distribution of music, has disrupted thenormal way of conducting business in the music industry and promises tofundamentally alter the law, the economics, and the power relationships governing theindustry. Internet marketing is heralded as the new paradigm of marketingincorporating deliverable benefits as multiple marketing usage, access to commercialresearch, competitive intelligence, customer service, just-in-time inventory planning,sales channel knowledge, support for channel partners, image enhancement, rapidgrowth, global reach, around-the-clock presence, ability to target marketing efforts,cost effectiveness, up-to-the-minute information, and multimedia. Internet marketingis driven by the escalating, ever-changing needs of customers seeking better servicesand products. Berezai (2000) suggests that the growth in consumer use of the internet,for both leisure activities and as retail channel, has forced businesses to consider theinternet as a business tool. The main requirement for music recording companies
3seeking a competitive advantage is increased knowledge and co-ordination of processes that cross their marketing functions.Ince (2000), suggests that there is agrowing body of work which shows that the Internet is leading companies to developco-operative and less profit-centred activities which can be encompassed under thebroad heading of a supply chain network.The rise of the Internet and the emergence of more co-operative, network-basedapproaches to business have two significant implications for the music industrysupply chain. The first implication is that the supply chain will be radicallytransformed, with many intermediaries disappearing and the power of the majorrecord labels diminishing. The second implication is that rather than purchasingmusic, consumers may instead choose to share it between them, thus reducing thesales and profits of record companies and artists. This assertion is supported by studyconducted by Graham et. al., (2002). However, in order to establish whether thesetwo developments are likely or not, it is necessary to identify specific changes in thecharacteristics that determine a supply chain. During the last decade, manyorganisations have developed some form of Internet presence (Reibstein, 2002).Collins (2001) argues that the music industry has become an essential part of theculture and society of Ghanaians in occasions such as birthday parties, marriageceremonies and other celebrations. Creativity, culture, history, and development areall in themselves enough of an argument for the importance of understanding theGhanaian music, yet the music industry offers more than this. As an economic activitymusic combines two characteristics that are critical to economic success. First musicis a form of electronic information and is easily transmitted to the world market. Thusmusic is an ideal export product that is not constrained by the high transport costsassociated with the export of physical goods. Secondly, the music industry stands tobenefit substantially from the intellectual property rights. In addition to thesecharacteristics, the music industry is characterised by job creation possibilities andsynergies with other sectors of the Ghanaian economy. Collins (2001) indicates thatthe music industry generates over $25 million to the value of the Ghanaian economy,and a further $53 million through international sales. The ability to record music asdigital information coupled with the advancement of communication and recordingtechnology has begun to present an alternative challenges to the existing structure of the music industry.

Activity (5)

You've already reviewed this. Edit your review.
1 thousand reads
1 hundred reads
BRO. CADENCE liked this
Nana Wiafe Akenten IV liked this
teruhata liked this

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->