The B-level International Competitiveness of the Contemporary Hungarian Music Industry = A kortárs magyar zeneipar kétszintű nemzetközi versenyképessége

Abstract

This study investigates the B-level international competitiveness of the Hungarian music industry, focusing on its adaptation and innovation in facing global and local challenges. It seeks to understand how the sector can grow internationally, setting the stage for strategic development. The following specific research questions were identified: 1. What are the general characteristics of the music industry today (in 21st century) and how does Hungary fit into this? 2. What drives the Hungarian music industry's competitiveness? 3. How is the Hungarian music industry positioned in the international market, especially in Europe? Therefore, the research aim was to identify and analyse the determinants of competitiveness of the Hungarian music industry, employing a comprehensive approach. To answer these questions, a deductive approach was used. The literature review synthesized themes on the music industry and competitiveness using an integrative overview technique. Primary data from qualitative interviews were analysed through template analysis, while secondary quantitative data from various sources examined changes in the top 10 global singles from 2021-2023, focusing on the nationality of artists and top Hungarian artists using similar metrics. The research combined macro and micro-level data, using Porter's Diamond framework and data about top singles to assess the Hungarian music industry's global market penetration. The main outcomes include mapping the Hungarian music industry’s competitiveness, shaped by government support and challenges such as small market size and rapid technological changes. Despite the withdrawal of major labels, the rise of independent labels and advancements in production technology have filled the gap. Inefficiencies in funding distribution and reliance on artists' own resources hinder growth. Organizations like HOTS are pivotal in international promotion, but the lack of private funding and the mixed impact of digital transformation require strategic enhancements to boost competitiveness both domestically and internationally. The main contribution of this research lies in its holistic examination of the contemporary Hungarian music industry's competitiveness, offering actionable recommendations for stakeholders and policymakers to enhance the sector's global positioning and resilience.