Some thoughts about where we are regarding digital distribution in 2012 (excerpt of an upcoming book chapter)
Digital distribution has surpassed physical distribution in key markets like the USA or UK and, thus, established as the dominant distribution practice. While the media often speaks of the next killer app that will revolutionize music consumption and dominate music distribution, the analysis of the current situation suggests that different forms of distribution will coexist. The reason is that consumers value music differently, prefer different formats and expect different experiences from consumption. The same applies to content providers. Each artist or record label is in a specific situation pursuing different goals. As a result, a variety of different distribution models have emerged, each with pros and cons for a certain situation. For content providers it is important to choose the appropriate distribution model that supports the overall strategy. The most striking development in digital distribution is the blurring line between promotion and...