Following on the previous discussion, this chapter provides an in-depth empirical investigation on INgrooves and addresses the reintermediation process that took place on the digital music distribution networks. It details INgrooves’ innovation process that parallels the process; digital music distribution networks have become reintermediated. Tracing the history from the beginning of the business sparked by iTunes to the partnership with Universal Music Group, this chapter illustrates the process of emergence of new intermediaries and the resurgence of the market control. The detailed process involved in reintermediating distribution infrastructure will reveal the missing link between the prediction and what has happened in the digital music distribution networks.
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