Internet distribution removed the competitive advantage major labels held through physical distribution networks

Before the internet, controlling a pressing-and-distribution network was a structural barrier that prevented individual artists and small labels from reaching a global audience. Major labels’ ownership of this network gave them near-monopoly access to retail shelves and radio. Digitalization and the internet meant that releasing music globally no longer required physical infrastructure — anyone with a computer and an internet connection could publish and distribute worldwide. This shift lowered the entry barrier to releasing music but did not eliminate the need for marketing and audience-building.

Examples

In the 1980s, a DIY tape label needed to manufacture, warehouse, and ship physical media. A netlabel today uploads a ZIP of WAV files to Archive.org or posts to Bandcamp — cost is near zero and reach is global.

Assessment

Which two competitive advantages of major labels did the internet reduce, according to Galuszka’s research? Does the internet fully level the playing field, or do advantages remain?