Downtown Music Publishing and Songtrust

Abstract

As of 2018, technological innovation in the music industry at large had impacted firms in nearly every sector. Yet, music publishers have been traditionally unconcerned with technological advancement. Several competitive forces have made this position sustainable, but the broader industry’s pace of change was bound to reach the music publishing sector. The laissez-faire attitude of prominent market players in the publishing space has led to a market that was ripe for value innovation, and Downtown Music Publishing has already capitalized in this space, differentiating themselves from their competitors. This case highlights the choices the CEO and co-founder of Downtown Music Publishing and the rest of the senior management team must make about a new product. Should they keep it internal, or should it be spun off?