The biggest industry that has been impacted by the emergence of the new media and interenet.
It has taken the advantage of digital technology and better respond of changing to the consumers taste.
The traditional high cost of content;
- the role of content ownship
- sacarcity of distribution outlets
Aol, microsoft, music and mp3.com to take advantage of this vacum to agressively build the process for the marketing, distrubition, retailing music online.
The major lables
- sony bmg
- warner brothers
- virgin records
Digital transition continued with computers as a reproduction device.
started with cds and make the unplayble on computers.
Internet has increased all over the world.
It was estimated that by october 2000, napsters software was installed on 30 % of all pc worldwide, and it continued to grow. In february 2001 napster has 26.4 million users worldwide. Some researches showed that the average users in March '01 was spending time using Napster then browsing any music retaled web site.
June '01, napster shut down. Moreover it agreed tompay 26 million to creators and music owners for the lapsed period. In september '02 napster declared bankcrupt.
Napster is striving to become respectable subscription service legal distribution.
Napster case showed several issues to conside by major players.
Internet file sharing is an inevitable fact and a rapidly increasing trend
People enjoy to trade music and to download favourite songs at zero cost.
People prefer to download individual songs, not entire albums.
People on searching for popular music but also music that is diffcult to obtain in offline music stores ( for example older song and regional songs)
digital music industry is not immune to theft within recording companies( for instance some songs were released through napster months prior to the commercial release such as metallica "i disappear"
cd sales went down.
In order to be succesful online distribution their catalogues have to hold music from 5 distributions plus many independance ones.