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Digitone

DIGITONE APS: THE CASE OF
THE DANISH ONLINE MUSIC INDUSTRY
Arindam Mukherjee Rajanish Dass
Indian Institute of Management Calcutta∗
CONTACT INFORMATION:
Arindam Mukherjee
Fellow Programme Office
Indian Institute of Management Calcutta
Joka
Diamond Harbour Road
Kolkata 700 104
India.
Email: arindamm@iimcal.ac.in
Contact: +919830379133
Rajanish Dass
Fellow Programme Office
Indian Institute of Management Calcutta
Joka
Diamond Harbour Road
Kolkata 700 104
India.
Email: rajanish@iimcal.ac.in
Contact: +919830175118
∗ This case was prepared by Arindam Mukherjee and Rajanish Dass, Doctoral candidates of the Indian
Institute of Management Calcutta at the Copenhagen Business School, as the basis of class discussion
rather than to illustrate either effective or ineffective handling of an administrative situation. The authors
may have disguised certain names and other identifying information for anonymity and to protect
confidentiality.
2
DIGITONE APS: THE CASE OF
THE DANISH ONLINE MUSIC INDUSTRY
It was a chilly winter evening in 2002 and it was snowing heavily. As he looked outside his
window, Christensen began to feel warm, positive and strong in the heated room. The future of
his online Danish music portal, Digitone ApS, had looked as bleak and misty as the evening
outside not too long ago, but the new-found warmth gave him a fresh resolve. It was true that
even after two and a half years, he had failed to find any sustainable source of revenue for his
business. But his problem was a common one among start-ups – the initial business plan was
weak. Eventually, the survivors had found ways to increase their profitability, and Christensen
felt sure that it was just a matter of time before he too turned around. He reflected on the
direction in which the business was heading. It was clear that he needed some immediate cash
to sustain and promote his company. But he could not follow most of the viable alternatives for
want of funds. He...