On the reproduction of the musical economy after the Internet

This article examines a crisis of reproduction that began to afflict the music industry in the late 20th century. It considers the causes of the crisis and explores some of the ways in which the industry is being reformed in the face of the emergence of a new regime of socio-technical organization. The musical economy, at the time of writing, was dominated by four large corporations – AOL-Time Warner, Sony/BMG, Universal and EMI – that were responsible for 80 percent of global music sales and had significant interests across the media, entertainment and technology sectors. In the early 21st century, the music divisions of all these companies experienced a reversal of fortune, linked to falling sales and numerous misplaced investments. This marked a significant break with what, in retrospect, may subsequently be interpreted as a ‘golden era ’ in the history of the music industry, during which it enjoyed about 15 years of steady growth in recorded music sales following the introduction of the compact disc (CDs) as the predominant format for the playback of recorded music (Figure 1). In 2001, global music industry sales fell by 5 percent, and then by over