Title: A Systemic Analysis of Digital Music Distribution on the Interneti
Table of Contents
Abstract ......................................................................................................................... iv Glossary ........................................................................................................................ vi Chapter 1: Introduction ................................................................................................... 1
1.1 Purpose ................................................................................................................. 4
1.3 Target Group......................................................................................................... 4 Chapter 2: Literature Review .......................................................................................... 5
2.1 The Music Industry: An Overview ........................................................................ 5
2.2 How the Traditional Music Industry Works ........................................................... 6
2.3 What is an eBusiness Model? ................................................................................ 7
2.4 Changes in the Music Industry’s Value Chain ....................................................... 9
2.5 Growth of Digital Music: A Background ..............................................................12
2.6 The Industry’s Participants ...................................................................................13
2.6.1 Artists ...........................................................................................................14
2.6.2 Record Labels ...............................................................................................14
2.6.3 Digital Music Retailer ...................................................................................15
2.6.4 The Consumers .............................................................................................16
2.7 Challenges in the Digital Music Industry ..............................................................17
2.7.1 Revenue Stream and Pricing ..........................................................................17
2.7.1.1 Artist Perspective ...................................................................................17
2.7.1.2 Digital Music Retailer Perspective ..........................................................18
2.7.1.3 Record Label Perspective .......................................................................19
2.7.1.4 Consumer Perspective ............................................................................20
2.7.2 Gaining Value from and Adding Value to the Industry ..................................20
2.7.2.1 Consumer Perspective ............................................................................20
2.7.2.2 Digital Music Retailer Perspective ..........................................................21
2.7.2.3 Record Label Perspective .......................................................................22
2.7.2.4 Artist Perspective ...................................................................................23
2.7.3 Piracy Perspective .........................................................................................23
2.7.3.1 Artist Perspective ...................................................................................23
2.7.3.2 Record Label Perspective .......................................................................24
2.7.3.3 Digital Music Retailer Perspective ..........................................................24
2.7.3.4 Consumer Perspective ............................................................................25
2.7.4 Deciding on an Effective Business Model .....................................................26
2.7.5 Copyright and Standards ...............................................................................27
2.7.5.1 Artist Perspective ...................................................................................28
2.7.5.2 Record Label Perspective .......................................................................29
2.7.5.3 Digital Music Retailer Perspective ..........................................................29
2.7.5.4 Consumer Perspective ............................................................................29
2.8 Current Models and Trends in the Digital Music Industry ....................................30
2.9 Proposed Business Models ...................................................................................34
2.10 Summary of the Industry ....................................................................................35