The aim of this paper is to indicate that structure of recording industry based on analogue sound recording technology has transformed as a consequence of digitization, a technological innovation. In this study, it is considered that digitization in sound recording technology has formed two paths: the one is a way to strengthen existing market of recording industry and to form prosperity, the other is a way to expand Do-It-Yourself music production and “prosumer” related with diffusion of computer, ICT and the like. Both paths of digitization have been accelerating in the mid-1990s. In the latter half of 1990s, digitization in music creation has enabled to reduce production cost and to integrate industrial organizations: record production, artist management, and music publishing. It used to be reasonable for music companies to divide and assign property rights of their music into mass media companies, and each music copyright used to be joint-ownership in many cases.
“The fourth step” of recording industry evolution is shown as mixed situation with both digitization paths. This study relies on the evolutionary model developed by Kabashima (2009) that explains transformations of content industry. Furthermore, this research attempts to improve on the model. “The fourth step” is added to the three steps of the content industry’s evolutionary theory shown by previous study. “The fourth step” of recording industry is characterized by things as follows: partial integration in industrial organization, creation by consumers, and shift of platform. It is suggested that digitization has led the change of recording industry system since around 1995 in this study. Thus, it is possible to perceive dynamics of recording industry by indicating “the fourth step” of the evolutionary model.
