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P2P and the e-music industry 1. Introduction This report focuses on the impact that the development of the peer-to-peer (P2P) file-sharing model has had on the commercial
The internet has played a significant role in changing the value propositions and the competitive music industry. The following are some key issues relating directly
in the music industry as music piracy gained salience. In 2003, with fast declining revenues, the music industry reacted by lobbying with governments to close down
of Napster claimed that they were not responsible for what users did with their software. The music industry disagreed. "What Napster is doing threatens legitimate
of Napster claimed that they were not responsible for what users did with their software. The music industry disagreed. "What Napster is doing threatens legitimate
Submitted by elli1981 on June 9, 2008
Category: Business
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1. Introduction
This report focuses on the impact that the development of the peer-to-peer (P2P) file-sharing model has had on the commercial e-music industry.
Firstly, an overview of e-business and the evolution of the Internet are presented. This is followed by a short discussion and classification of business to business (B2B), business to consumer (B2C) and peer-to-peer (P2P) market types. The marketing mix elements of price, product, promotion and place for digital content e-music businesses are then explored. Customer value, implications for the value chain and related ethics are then considered. Finally recommendations will be presented.
This report is based on a survey of recent literature and text books on the topic of P2P networks and the e-music industry.
2. E-business and the Internet
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E-business can be defined as “the transformation of key business processes through the use of Internet technologies” (Chaffy, Ellis-Chadwick, Johnston & Mayer 2006, p.11). In e-business, information and communications technology (ICT) is used to enhance business processes spanning the entire value chain and may include internal systems such as customer relationship management and enterprise resource planning, communication and collaboration tools such as e-mail (Andam 2003), and e-commerce which is the performance of transactions electronically (Simchi-Levi, Kaminsky & Simchi-Levi 2003).
The growth of the Internet and its related technologies has been fundamentally challenging to the recorded music industry. Through product digitisation, it has presented a new, more efficient distribution channel and has in part transformed the recorded music sector from a goods business into a service industry. This provides substantial opportunities for growth and increased revenue, however, the industry initially considered this as a...
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