Disintermediation is “the gradual removal of layers of content brokering and intermediation - mainly in manufacturing marketing� (Vaknin 2004). In short this is the removal of the ‘middle men'. For the music industry, file sharing is a large part of this disintermediation. Disintermediation on the Internet means a more direct link between creators and consumers, individualised marketing, more content and a loss of power for record companies.
Disintermediation provides the creators with the ability to control, the sale, distribution and promotion of their records. The traditional linear value chain meant that in order for artists to make money from their content they had to be “mediated by processes of production, distribution and circulation� (Flew 2002) within the cultural industries. Cutler (1999) notes when downloading music there are “two layers of mediation between content creators and content users�. These are the layers of publishing, packaging and distribution, and application services that enable “digital media content to be accessed� As Disintermediation of the music industry continues the packaging and publishing layer could become obsolete.
As artists will be able to reach audiences without mediation, Vaknin (2004) believes the term “‘artist’ will expand to encompass all creative people�. Artists will seek to brand themselves to differentiate themselves from competitors. Disintermediation would see musicians expanding their creativity to encompass all forms of creative expression. New technology innovations mean it is increasingly easier for an artist to create and to market their products to their audience. New technology also means it is easier for users to create their own content and become artists. This will have some negative affects on major artists, as record companies would not be able to expend as much money as they do now on production or wages.
While disintermediation means the artist will have increasingly more power, the record companies will still have a place in the music industry. The increase in content will mean consumers are inundated with media. The role of the record company will be to provide premium music to consumers. Vaknin (2004) calls their role “Content intermediaries� and believe this involves efforts to “grade content and separate the qualitative from the ephemeral and the atrocious� (Vaknin 2004)
Artists, who do not wish to market and distribute their music, will provide a need for intermediaries to do this for them. This role, essentially done by their agent will serve to increase the business efficiency of artists and help to manage their business relationships. Instead of working for record companies these agents will answer to the creator, as they will be easily replaceable.
Disintermediation is something the record industry must adapt to rather than fight. If they continue to fight and not propose genuine solutions they will eventually be left behind as their power dissipates. For artists it will be a natural process as they will establish stronger relationships with existing fan bases and find the power of control of distribution liberating. Disintermediation while occurring across many areas is going to affect the music industry as it is creatively based and can grow with a more direct and unmediated relationship between creators and consumers. Elliott franks
References
Flew , T. (2002) New Media an introduction , Melbourne: Oxford University Press ISBN 0195508599
Cutler, T (1999) “Avoiding Conflict between communication policy and convergence�, Agenda: A journal of policy analysis and reform, vol6, no 2 pp99-109
Vaknin, S (2001) "The Disintermediation of content" retrieved October 11 from [1]
Music File Sharing
identity
Subcultures
Niche Music
Morals & Ethics
Disintermediation
