The second effect is that it cased the sales of CD burners, blank CDs and digital audio players increase and nowadays, most new computers come with CD-RW drives installed, which means people can easily store downloaded music, share music with friends and take it with them anytime as well.
This intermediary will consolidate the available base of music and sell it. Secondly, quality is also a problem with streaming. The record company will get a share of royalties for the amount they have invested in the production of the song.
In that way, consumers can easily and legally get what they want. This is applicable mainly to developed countries now but gradually the broadband speed in developing will also a reach a level at which they can also use direct streaming services. Product differentiation is often based on building on a value niche that a firm believes that is very important to the customer.
Business Unit Level Solution - The case study may put you in a position of a marketing manager of a small brand. The advertising acceptable levels for the consumer and put him in control of the price as well. In my opinion, it is definitely possible to construct a long-term, successful business model for the online distribution of digital media over the Internet.
We propose a royalty based revenue sharing model between the album companies. Advertising will have to be used extensively around the digital platform as an alternative revenue model. There is a huge gap between the model offered by the album companies and the customer needs.
So, only with the principle of user pay can companies provide high-quality and various products. We think that with the increase in broad band speed, consumers can access streaming music without any buffering. Online music stores like MusicGiants are delivering lossless audio downloads and multi-channel audio downloads.
Once people can download free music through peer-to-peer software services, they have less incentive to buy original editions, which will make recording industry spend more to fight against copyrights and invest more in new artists and new music.
However, both these value propositions were not sustainable and will continue to erode over time because of increased digitization, internet bandwidth and decreasing cost of recording music. So, only with the principle of user pay can companies provide high-quality and various products.
This helps is building a narrative that a customer can identify with. So, Napster really changed the way people listen to music, discover music and interact with music.
Often companies can easily see the unfulfilled needs in the markets but they are difficult to serve as there are costly barriers.
Therefore, the birth of Napster solved this problem, creating a virtual music community in which music fans could use the Web as a “swap meet” for music files.
More importantly, Napster is easy to use and it’s free, which expands the range of audience in age. Bandwidth also contributed to Napster’s success. Online Music Distribution in a Post-Napster World Essays: OverOnline Music Distribution in a Post-Napster World Essays, Online Music Distribution in a Post-Napster World Term Papers, Online Music Distribution in a Post-Napster World Research Paper, Book Reports.
ESSAYS, term and research papers available for UNLIMITED access. Online Music Distribution in a Post-Napster World is a Harvard Business Review case study written by Youngme Moonfor the students of Sales & Marketing.
The case study also include other relevant topics and learning material on – Marketing, Pricing.
Anapest Introduced a revolutionary change to the way music was distributed conventionally. Music companies worked with the artists to produce music. Thereafter they invested heavily into burning the music Cad’s, marketing and advertising of the music and managing the distribution of the music to end customers Vela retailers.
Napster case study 1. Online Music Distribution in a Post-Napster World Group 1 Yuri Yoshida Tara Smith Hirokazu Yabuuchi Patrick Joiner Patrick Floody 2. What was Napster? • Napster was developed to help locate music online and to share files mp3 file mp3 file locations query mp3 files mp3 files mp3 file request Napster user A Napster user B.
Online Music Distribution in a Post-Napster World Case Solution, Provides a description of the rise and fall of Napster, the free online music-swapping service.
Also describes the second generation peer-to-peer services.Online music distribution in post napster world