Downloading music essay
* Does the growing popularity of downloading it music from the web give rise to a new music sector value string that may differ considerably in the traditional benefit chain? Describe why or why not. I believe it might have an effect in the classic value string for the truth that today it is very typical to down load music on the internet illegally and legally. Therefore the sales in albums in the music industry have got decreased. People prefer to down load music rather than buy the COMPACT DISC because much more economic plus they save money.
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Pertaining to the reasons We mentioned before I believe the traditional benefit chain may possibly change. It really is harder for performers to sell Compact discs and they get more cash in on the concert events performance.
* What costs are remove of the classic value chain or by simply passed the moment online music retailers (Apple, Sony, Microsoft company, Musicmatch, Napster, Cdigix, and others) offer songs right to online buyers? (Note: In 2005, on the web music shops were selling download-only games for headings for $0..
79 to $0. 99 per track and $9. 99 for some albums). The retail price to buy a song online is cheap, and so several costs are remove of the classic value chain.
Retailers at the moment of offer songs on the internet do not have to take into account costs like: record company immediate production costs, pressing of CD and packaging, circulation of the CD, stock of CD’s. For this reason , the final price to client online is cheap. The problem is if the people download music from internet programs just like Ares, Cost-free music video, Lime wire, among others. In this case the designer is certainly not receiving any gain which is the situation that affects the background music industry.
2. What costs would be remove of the traditional value cycle (or bypassed) in the event that saving studios offer downloadable files of artists’ recordings straight to online purchasers? I think in this event will be very similar to an electronic commerce business. All the advantages from e commerce would be utilized here. The main cost that could be cut out is the stock as I said before simply because there would not be considered a physic location to keep the CD’s. Also there is a reduction of costs in the sales department pertaining to the fact the fact that consumer may possibly choose any song that he desires without going to a store.
In the other hand generally in the ecommerce consumers must pay an expense of delivery service however in this case there is not a cost that way because the record or song would be downloaded directly. I found these concerns very interesting; the way in which the technology has changed many industry specifics and the effects that it offers. Nowadays is very easy to have the music but , is true that the music market and the artists do not have precisely the same profits since it used to always be long time in the past.
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