Abstract
This study investigates the structure and organization of the phonogram (records, cassettes, and compact discs) industry internationally and its effect on concentration and diversity in popular music. Results of a major study are reported that found that there is no longer a negative relationship between the proportion of best-selling records produced by the leading firms (concentration) and the number of different top-selling records (diversity). The implications of recent ownership changes in the industry are discussed and a new popular music model is presented that takes into account the open system of musical production as a strategy in maintaining control of the marketplace.