Changing rules in the music business

Jan 20, 2011

Sudden technological changes, are accompanied by uncertainties, risks and changes in rules.
Take for example the music market. In recent times, the advance of the sale of online music is advancing steadily. Within this market we found today, three different models:

• The buying unit where people decide to buy a track or entire album, and only pay for it.
• That is done by subscription, where you pay a monthly fee and in return you can download a certain number of songs
• The real-time playback, which pay a monthly fee and you can hear the entire quantity of items you want (but no transfer of ownership).






What will be the dominant model?. We must not neglect the sale of music through traditional channels and formats, much less a free trade possibilities (namely, Kazaa, eMule, Morpheus, etc.).

We must also consider changes in actors. As technology advances and allows authors to produce their own albums, what is the role that they will comply with the record companies?, Do they have the same power as the current one?, "Will also compete with current players selling music online?

It is clear that the business is transfigured by the day. This implies a major strategic challenge for those involved, because of uncertainty about the dominant design that will prevail in the near future.

Many more questions remain unanswered. If there is anything we can ensure, is that the technological changes, as mentioned in the example, come to change the rules forever.

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