Draw the bricks and mortar stage by which tradition CDC are credited, distributed, so in retail stores. How does each player in the value make money? Answer: Traditional Music Distribution Value Chain (Bricks & Mortar) Content creation artists, prospered Production, publishers. Cording Manufacturers Sales, Marketing Publicity Distribution pack & ship Customer End users Whole sale Retailers Retailer’s sales to customer The process beings with the talent pool which Includes artists, producers, composers, hostilities and among others, the artists are contacted to International record label to produce music recording such as Sony BMW, universal, Warner and Mel are example of large music companies that own smaller record labels. The rest of the record label industry is made up independent labels such as sub-pop, Epitaph and Muse music.
Record labels add to the artistes’ product by augmenting it with marketing campaigns, promotions, concerts and most importantly access to barging power with distributors. Artists often find it beneficially to leverage the resources of a cord label in order to reserve shelf-space among retailers; Best-Buy and Wall-Mart are two large brick and mortar versus digital music retails. The big four own their own distribution channels while smaller independent record labels rely on separate system of distribution.
Finally, the music Is delivered to the end-user or the consumers through there are many separate steps In the value chain, many record labels and music groups, Including the “Big Four” participate In several of these stages. For instance, Sony BMW may enter into contract with an artist, than the publisher and manufacturer and distribute that artist’s work. (2) Draw the process stages for creating and downloading music today. How dose each player in this electronic/digital value chain make money.
Answer: Digital (online) Distribution value chain online music store Rights clearance and royalties Production Sales ; Marketing publicity Digital Record and encoding Device hand phone, pods, portable. De Delivery over network Hosting server proprietary and digitized format Billing/Fees Luke software, ‘tunes, real player Artists & Record Industry Digital content creation outwork devices Digital asset management. Digital Digital technologies in the music market will change in the underlying market structure and value.
The adoption and diffusion of digital music, reduction in distance between artists and consumer wide distribution networks through the online channels cost of replication and production and copy right protection and piracy issues will affect the music market structure. For digital music, the creation and recording of music and signing and promotion of artists represent the gathering and organizing steps selection and synthesis occur hen the artists and or record labels produce digital recording. Distribution of information occurs over the internet when consumers purchase digital music from a distribution and download or stream content.
Intermediaries are economic agent’s facilities transactions between suppliers and buyers. They set market cleaning prices, make purchase and sales decision, and manage inventories, supply information and co-ordination transactions. Their role in the music market is changing as a result of digital music format. Physical retailers are being replaced by digital music retailer. Manufactures and distributors are becoming obsolete as record labels, producers and artists can go directly to digital music retailers without producing a physical product, reducing the distance between the music supplier and the consumer.
The added value to the music product from manufacturing and distribution is and music piracy, they can now add value through marketing, promotions, copyright and licensing. There is also value added through enforcement of IP rights and piracy prevention. As a result, the channel power dynamics change plus there will be new Incentives as the role of the prayers in the value chain shift. The change value chain is likely to be affected by issues that relates to IP rights. Through digital music also has advantage over physical formats, the product is incomplete.
Digital music does not include some of the important attributes of hysterical CD. These include artwork, lyrics, liner notes and content found in enhancing CDC, like video games, wallpapers but those can be made available in digital form for value chain distribution of digital music and the price digital music and the price digital music offer much cheaper compared to analogue music and easy excess to the consumers. Under the income derive from digital music per song download and subscription services; these also should include monthly subscription and pre-payment credit.
There are many opportunities to explore consumers’ Unwillingness to pay in the context of illegal file sharing and piracy in the digital music ‘alee chain. (3) Compare the role of operation in each of the value chain structures and approaches. Answer: There are two main value chains structures to the Brick ; Mortar ‘alee chain Customers Retailers Distributors Manufacturer Publishers Assets producers, com Erick & Mortar value chain for Traditional music industry Brick & Mortar value chain for Digital music industry.
Artists/ Producers, composers, ghostwriters chain has been standardized with a final physical media as CDC, among other products. Unfortunately with the internet and digital technology the recording music industry has been of the best affected companies like JAZZ, Morpheme, and Neutral and the likes which are based in peer networks or Just selling music with taking care of cope rights when a person buys a CD, that person is acquiring a product that represents all contribution of a chain that are part of music industry.