This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Matt Roberts Hataya Nopakunwong Andrea McIntosh Case Study Analysis Paper Can the Music Industry Change its Tune? The music recording industry started out in control of music marketing and sales and has been in control for quite sometime. CD’s were sold for around $15 at several different locations and were usually offered at around the same price at these locations. The music recording industry was in control of all primary activities such as the production and distribution of music and there was no major competitor that seemed to be a threat. Once digitized MP3 music files became available for free trade online, the music recording industry was no longer in control of distributing music to consumers. They took notice when the music they had paid to produce was being received by consumers for free. However, they continued to pay to produce and distribute the music as they had done before. The music recording industry felt that they threatened by music file sharing networks that were providing free services that they felt they would otherwise be paid for. The music recording industry’s first response to the change was to sue the companies that provided illegally downloaded music. The music industry knew at the time they could not compete with a “free” product and the only way to stop it was to sue and have the sites shut down. At first they succeeded by shutting Napster down, but up popped more companies that did not explicitly give away free music which meant they could not be held liable. The next response was to start to sue the users or websites that download music illegally. This was not a very effective strategy because it is too costly to track down and go through legal actions with all the users of illegal music. Realizing that “hunting” down music listeners was not a good idea; the music industry came up with the next logical step, to sell music online. The music recording industry needing to come up with a strategy that would make sure they saw profit from the product they the paid to produce. They looked at there primary activities and decided they needed to offer a different way to distribute their music than in CD form. The biggest issue that affected or hindered the record industry from competing and stopping the illegal downloads of music is simple; cost. The record industry is overloaded with so many labels and artists that the money is spread out and makes it nearly impossible to make a profit on something without jacking the prices. The jacked up prices is what first caused consumers to want to download music. In order for the record companies to make money they needed to reorganize and get costs down and put there money into viable artists/products. Another obstacle was management; management felt that selling music online would hinder CD sales. They felt that allowing a person to buy one song at a time would make it so that the whole CD was not worth making. I feel that if a good quality product is put out, then it will be bought. So I believe the best “response” by the music recording industry would be to put out good albums and songs. “response” by the music recording industry would be to put out good albums and songs....
View Full Document
This note was uploaded on 04/03/2012 for the course INFORMATIO 360 taught by Professor Koofer during the Spring '12 term at George Mason.
- Spring '12