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A master's thesis from Aalborg University
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Digital Piracy as an Innovation in Recording Industry

Author

Term

4. term

Publication year

2015

Submitted on

Pages

78

Abstract

Formål: Studiet undersøger, hvordan digital piratkopiering (ulovlig kopiering og deling af musik) opstod i musik-/pladebranchen, og om det har virket som en drivkraft for innovation. Det ser på de vigtigste faktorer og på, hvordan lovlige virksomheder kunne reagere og endda drage fordel. Metode: Et kvalitativt, instrumentelt casestudie af Spotify bruges til at belyse den bredere markedsændring. Casen viser, hvordan lovlige forretningsmodeller kan tilbyde levedygtige alternativer til piratkopiering og udnytte et marked i forandring. Resultater: Digital piratkopiering fungerede som en radikal proces og markedsinnovation. Den var med til at ændre et modent marked, længe domineret af traditionelle distributions- og markedsføringsmodeller, til et mere fragmenteret marked på flere platforme med stigende digitalt forbrug. Denne ændring banede vejen for nye lovlige digitale distributionsmodeller, herunder digitalt ejerskab (betalte downloads) og digital streaming (adgang på efterspørgsel uden at eje filerne). Begrænsninger og implikationer: Resultaterne gælder musik/indspilningsindustrien og kan kun overføres indirekte til andre brancher, der er følsomme over for piratkopiering, såsom film og software. Værdi: Artiklen bygger videre på Choi og Perez (2007), som hævder, at digital piratkopiering kan være en innovativ faktor. Den giver et klart overblik over piratkopieringens rolle i indspilningsindustrien og præsenterer Spotify som en nyere lovlig forretningsmæssig respons.

Purpose: This study examines how digital piracy (the illegal copying and sharing of music) emerged in the recording industry and whether it acted as a driver of innovation. It explores which factors mattered most and how legitimate businesses could respond and even benefit. Method: A qualitative, instrumental case study of Spotify is used to illuminate the broader market shift. The case shows how legal business models can offer workable alternatives to piracy and make use of a changing music market. Findings: Digital piracy functioned as a radical process and market innovation. It helped shift a mature market, long dominated by traditional distribution and marketing, into a more fragmented, multi-platform environment with steadily rising digital consumption. This shift opened the door for new legal digital distribution models, including digital ownership (paid downloads) and digital streaming (on-demand access without owning the files). Limitations and implications: The findings apply to the recording industry and may only transfer indirectly to other piracy-sensitive sectors, such as film and software. Value: The paper builds on Choi and Perez (2007), who argue that digital piracy can act as an innovating factor. It offers a clear overview of piracy’s role in the recording industry and presents Spotify as a recent legitimate business response.

[This abstract was generated with the help of AI]