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Will E-commerce save the music industry?

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  1. Introduction
  2. Traditional music industry
  3. Edition
  4. Distribution
  5. E-commerce emerges in music industry
  6. The impact of e-commerce on the whole industry
  7. Conclusion

The dematerialization of the consumption is the main factor: With the development of internet and MP3 formats, CDs are becoming almost obsolete and consumers are more disposed to consume music through those forms. The consequences of this phenomenon is that revenue are decreasing for the all value chain (the average price of an on-line album is 9,99€ whereas CDs are sold around 20€). But the more dramatic consequence is that is now possible to have access to ?free? music by illegally downloading it, which is even a more loss of revenues for the music market actors.

The economic crisis is a second factor: because of the economic crisis which has hit the world since 2008, households are rationalizing their budget and so, they spend less money for leisure and culture, which affects directly the music industry.

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