* Does the turning popularity of downloading music from the Internet give rise to a new music industry value concatenation that differs well from the traditional value concatenation? Explain why or why non. I think it might hold an consequence in the traditional value concatenation for the fact that nowadays it is really normal to download music from the cyberspace illicitly and lawfully. Due to this fact the gross revenues in albums in the music industry have decreased. Peoples prefer to download music instead than purchase the Cadmium because is more economic and they save money. For the grounds I mentioned before I think the traditional value concatenation might alter. It is harder for creative persons to sell CD’s and they obtain more net income from the concerts public presentation.
* What costs are cut out of the traditional value concatenation or by passed when on-line music retail merchants ( Apple. Sony. Microsoft. Musicmatch. Napster. Cdigix. and others ) sell vocals straight to online purchasers? ( Note: In 2005. on-line music shops were selling download-only rubrics for $ 0. 79 to $ 0. 99 per vocal and $ 9. 99 for most albums ) . The monetary value to purchase a vocal on the cyberspace is inexpensive. so several costs are cut out of the traditional value concatenation.
Retailers at the minute of sell vocals straight on the cyberspace do non hold to take into history costs like: record company direct production costs. pressing of CD and packaging. distribution of the Cadmium. stock of CD’s. That is why the concluding monetary value to consumer online is inexpensive. The job is when the people download music from internet plans like Ares. Free music picture. Lime wire. among others. In that instance the creative person is non having any addition and that’s the state of affairs that affects the music industry.
* What costs would be cut out of the traditional value concatenation ( or bypassed ) in the event that entering studios sell downloadable files of artists’ recordings straight to online purchasers? I think in this event would be really similar to an electronic commercialism concern. All the benefits from vitamin E commercialism would be applied here. The chief cost that would be cut out is the stock as I said before because there would non be a physic topographic point to maintain the CD’s. Besides there would be a decrease of costs in the gross revenues section for the fact that the consumer might take any vocal that he wants without traveling to a shop.
In the other manus by and large in the e-commerce consumers must pay a cost of bringing service but in this instance there is non a cost like that because the file or vocal would be downloaded straight. I found these inquiries really interesting ; the manner in which the engineering has changed many industry facts and the effects that it has. Nowadays is really easy to obtain the music but. is true that the music industry and the creative persons do non hold the same net incomes as it used to be long clip ago.