Unformatted text preview: ort of revolutionary, and we see the results around us every day.
short KEY CONCEPTS IN E-COMMERCE; DIGITAL MARKETS AND DIGITAL GOODS
The impact of Internet on the market of these kind of digital goods is nothing short of
revolutionary, and we see the results around us every day.
Businesses dependent on the physical products for sales – such as bookstores, book
publishers, music labels and film studios – face the possibility of declining sales and even
destruction of their businesses. Newspapers and magazines are losing readers to the
Internet, and losing advertisers.
HOW INTERNET CHANGES THE MARKETS FOR DIGITAL GOODS
Marginal Cost / unit
Cost of Production
Distributed Delivery Cost
Pricing DIGITAL GOODS
Variable TRADITIONAL GOODS
Greater than Zero
Greater than high
Variable More Variable
Fixed, based on unit cost
Pricing Games) KEY CONCEPTS IN E-COMMERCE; DIGITAL MARKETS AND DIGITAL GOODS
INTERNET BUSINESS MODELS...
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- Spring '11
- web sites, Internet business models