The Opportunities for Emerging Music Markets in the Changing Global Market Place

1.2. Purpose
The purpose of the paper is to (1) investigate the development and current challenges and issues faced by the music industry in small Emerging Market Latvia; (2) to measure its opportunities in the changing global music marketplace; (3) to consider the obstacles why those opportunities can not be employed and (4) to demonstrate the necessity of Music Business Development Network establishment in Latvia.

To estimate the current status of the music industry sectors in Latvia it is essential to consider the diverse history of the country that has had direct impact on political, and economical progression.

To evaluate the necessity of Music Business Development Network establishment in Latvia paper will prospect the development of such music industry sectors in Latvia like recording music, music publishing, live music as well as Copyright Legislation questions.

To consider the opportunities in the changing global music marketplace the paper will describe those changes with references if they can be adjusted to the music industry in Latvia. SWOT analyses will underline the strengths, weaknesses, opportunities and threats of the music industry in Latvia. The recommendations will be made with relevant case studies of other countries.

There are two main objectives of Music Business Development Network establishment in Latvia. Firstly, the aim is to provide the music industry with platform where industry players can take counsel together to discuss and find the solutions of the issues and challenges faced by them. Second objective is to offer educational training about the changing music marketplace where local, regional and international music industry experts would be invited to share their knowledge, experience and views. The paper will survey the necessary proceedings for such Music Business development establishment and implementation.

1.3. Limitations
Music industry and creative industries in general in Latvia has developed spontaneously and there has not been music industry mapping. Lack of systematic data collection and evaluation did limit this report to estimate accurately the issues of music industry in Latvia.

2.0. Latvia – Geographical, Historical, Political, Economical and Demographical Overview
Latvia is located at the crossroads of Northern and Eastern Europe, on the east coast of the Baltic Sea. The Republic of Latvia is bounded by Estonia to the north, Russia and Belarus to the east and Lithuania to the south, and has a maritime border with Sweden to the west. (LIIA, 2008) Because of its strategic geographical location, the territory of Latvia has been the major influence on the country's diverse historical and cultural experiences.

Throughout the history countries like Germany, Poland, Sweden and Russia have invaded the territory of Latvia in full or in parts. On 18 November 1918, the independent Republic of Latvia was proclaimed for the first time. The loss of the independence came „on 23 August 1939 when the Soviet Union and the German Third Reich signed a treaty of non-aggression, which contained a secret protocol concerning the division of Eastern Europe into spheres of influence. As a result of this Latvia and the other Baltic countries became part of the Soviet sphere of influence.“ (LI, 2008) The renewal of independence was declared on 4th of May 1990.
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