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Nevertheless, since each of the companies produced different songs by different musicians and therefore, products could not be substituted each other. Because of the uniqueness of the each company’s products, availability of substitutions was very low, and bargaining power of customers, mainly retail shops, and suppliers, mainly talented musicians, was also low...
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Complement to records was phonograph that could play records, but the companies focused on records, not machines, as their primary products. However, when broadcast radio, a new technology, posed a serious threat, the U.S. music industry started to depress from 1923. As consumers purchased radios, record sales
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