M110+11+Session+3+-+post+class

M110+11+Session+3+-+post+class - Macro Environment...

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Macro Environment Political/Legal – International law and enforcement on piracy Socio-cultural – cultural differences on copyright Technological – new format/device/distribution channel, cost of producing Demographical – younger generation, tech-savvy… Economic – music is more a discretionary spending As a result, overall industry growth is declining, causing… ,y g g , g
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Competitive Forces Rivalry – C4 about 72%, industry growth declining, recorded music becomes a “commodity” Entrants – new tech/channel reduce costs for self-recording and g distribution, leading to individual-labels uyer ew tech/channel allows them to buy single tracks Buyer new tech/channel allows them to buy single tracks (what they want only) instead of a whole CD (bundle!) upplier elf cording and individual labels reduced power of Supplier – self-recording and individual labels reduced power of record companies (less dependent on them) Substitutes – piracy still viable even with new tech/revenue model. New radio format such as XM radio
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Conclusion The music industry is in a transitional state as technological advances render some formats obsolete. Consumer demand for portability and flexibility, combined with py y , technological advances has shifted the way we purchase and listen to music. Also important is the ease at which new formats allow for the pirating of music.
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M110+11+Session+3+-+post+class - Macro Environment...

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