Discussion assignment 1

Discussion assignment 1 - software program and download it...

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Discussion assignment 1 1) Yes! The rise to music being downloaded from the internet gives rise to a huge industry and value chain. The traditional value chain prior to the downloading music industry was heavily hindered by expenses in production and distribution costs. By the time a CD was actually made and on the shelves it went from being $2.40 at the recording company’s direct production costs to $15.00 at consumer retail. This has been that way for quite some time. Until the digital download age when people just needed to go to a website or
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Unformatted text preview: software program and download it for $0.99 cutting out the need for overpriced under used CD’s. This new music industry value chain has changed things greatly from cutting out the middle-expenses of the wholesalers and the record company and passing the savings or value on to the consumer. 2) The expenses that are cut out when the online music retailer sells a song directly to an online buyer are as follows. The record company’s marketing expenses, overhead, operating profit. It also completely bypasses the wholesalers and retailers....
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This note was uploaded on 03/27/2012 for the course BUS 421GS taught by Professor Dr.nathanhimelstein during the Fall '11 term at Thomas Edison State.

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