THE IMPLICATIONS OF OWNERSHIP CHANGES ON CONCENTRATION AND DIVERSITY IN THE PHONOGRAM INDUSTRY

This study investigates the structure and organization of the phonogram (records, cassettes, and compact discs) industry internationally and its effect on concentration and diversity in popular music. Results of a major study are reported that found that there is no longer a negative relationship between the proportion of best-selling records produced by the leading firms (concentration) and the number of different top-selling records (diversity). The implications of recent ownership changes in the industry are discussed and a new popular music model is presented that takes into account the open system of musical production as a strategy in maintaining control of the marketplace.