Hirsch has identified four subsystems within the music industry, which the Artist/Band has to pass through to be able to reach the final subsystem, the audience.
The first subsystem is the creative sector, including the artist, the producer and the A&R agent. Hirsch states that the success of every performing Artist/Band is closely tied to the number of records that come to attention and are purchased by the public. The agents have a crucial job since they are the ones who will find the talents with artistic as well as commercial potential.
Promoters and distributors constitute the third subsystem. The function of this subsystem is to filter the output from policy-makers at the record companies. In the scenario described by Hirsch, there are far more record companies than there are promoters. In such a situation, the promoters add value to the process by selecting the songs which they expect to have the best chance of commercial success.
Music still has to be exposed to the audience in order for listeners to be able to determine it’s value.
Advertisers or Sponsors are properly even more important to the music industry today than they were forty years ago.
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