BUS191 First Submission - Table of Contents 1. Introduction...

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Table of Contents 1. Introduction 2. Discussion 2-1. External environment 2-2. Internal factors 2-3. Further analysis 3. Conclusion 4. References - 1 -
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Introduction By 2006, single music market had first been shared by digital music downloads by 50% since its inclusion into the chart a year before (New Media Age, 2006). Digital music and music downloading have got great influence within last several years. Its momentum is too huge to stop it for anyone. One of direct stakeholders related is music retailers. Their sales are being got rid of instead of increasing music downloads. This report is going to analyse this kind of situation surrounding music industry for Real Groovy, one of major music retailers in New Zealand. In discussion, this report is going to try to analyse status quo in terms of external and internal factors, then make synthetic analysis at last. In conclusion, the objective situation for Real groovy is going to be presented. Discussion Discussion 1; External environment Legal environment is extremely important for music industry and music retailers because booming downloading of music is closely involved with the Copyright Act. Downloading music without permission of those who have the copyright of it, namely the artist and the composer, is of course illegal. The artist and composer whose music was downloaded inappropriately have the power to sue those who downloaded it. - 2 -
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It can be said therefore that music industry can use this legal advantage to battle downloads. In fact, in the United States, the Recording Industry Association of America, which is abbreviated to RIAA, and record labels have sued at least 20,000 cases regarding illegal acquisition of music by sharing files online (O'Rourke, 2007). However, it cannot be expected that music industry can make best of this legal advantages fully and take money back efficiently which were supposed to flow into them without downloads. There are three reasons for this. First of all, it is really difficult to detect who downloaded. Secondly, suing those who downloaded music illegally, who might be customer, is not an option which music companies want to take. Finally, if music industry were to sue all the cases, the amount of the cases could be tremendous number, practically making it impossible for them (Fisher, 2000). It can be summarized therefore that music industry and music retailers like Real Groovy, even if they were to collaborate, cannot rely on legal power to combat downloads. Social factors are also as important as legal environment because entertainment service like music is largely dependent on customers’ attitudes and lifestyle. Generally speaking, music devices are becoming smaller and smaller and accordingly are penetrating into lifestyles deeper and deeper. It is now quite normal to see people walking or running listening to music with portable music devices, which was not - 3 -
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popular till recently. It is quite normal for high school students and university students
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BUS191 First Submission - Table of Contents 1. Introduction...

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