The United States digital recording industry

The recording industry resembles the semiconductor industry in several aspects. Both are large (greater than $60 Billion/year revenues); both are considered critical technologies supporting national objectives; both are experiencing increased competition from foreign suppliers; they recognize significant opportunities for both technological and market growth in the decade to come; and both realize that a key to this future growth lies in alliances among industry, academia, and government. The semiconductor industry has made significant investments in alliances relating to manufacturing technologies (SEMATECH) and to joint long-term technology research centered in universities (SRC). The federal government has provided funding support of these efforts in recognition of the critical roles semiconductor technologies play in national interests. The recording industry is now also forming critical alliances, but has been slower in starting and in gaining broad recognition by government agencies and legislators that the industry needs federal support. Traditionally, the recording industry has been viewed as mature, stable, and, while critical to national interests, able to chart and fund its own course toward future national needs. That perception is fortunately changing.