The music industry: industry analysis, the future of the paid content

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The music industry: industry analysis, the future of the paid content

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Abstract

Contents : Industry Analysis : flow chart, value chain, the vc2 matrix. Paid content : iTunes & Co, demand & deterrents. Future Scenario : tows matrix. Music industry: a complex system of product, information, and capital flows. Value chain: highly fragmented, thus high potential for disintermediation. Vc2 framework: due to disintermediation, the music industry has become a "nightmare" and fails to capture the value it delivers. Value capturing: division of retail price for retailers and labels.

Music industry: A complex system of product, information, and capital flows
Value chain: highly fragmented, thus high potential for disintermediation
Vc2 framework
Value capturing
iTunes
Online music stores: if iTunes can't be profitable, can others?
Paid online content: multimedia projected to take the largest share, but trust issues have to be resolved
Willingness to pay: up to $7 per month for music subscriptions
Willingness to pay: up to $1 per song in a pay-per-use model
Tows matrix: shows plenty of opportunities for the music industry

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[...] potential for disintermediation vc2 framework: due to disintermediation, the music industry has become a “nightmare” and fails to capture the value it delivers value capturing: division of retail price for retailers and labels c o n t e n t s iTunes: not profitable despite 17 million music downloads online music stores: if iTunes can't be profitable, can others? paid online content: multimedia projected to take the [...]

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