There are more people who are listening to music. Nowadays it is everywhere and every when: you are going to take your bus, you are traveling from a country to another, you are making sport... Each reason is the right one to listen to music. It is true that with the development of new technologies, music industry in general has subjected an incredible evolution. But each evolution of course could lead to many problems too. This sector is facing major problems. It is spending much money each year in order to defend itself against downloading of illegal files. Many countries, especially France, are protecting more and more artists and are fighting against "pirates".
In this final assignment we are going to deal with the subject of disruptive technology: in what the development of new technologies particularly since the beginning of the 80's, is typically a problem for this sector?
In the first part, we are going to see the different supports where music was recorded historically and then the new ones. Secondly we are going to analyze the music market globally with its opportunities and threats and thirdly the conclusion of this entire study.
This is the notion the case will articulated around so in order to reach the goals we are going to see in this study, we have at first to define the notion.
First definition of the concept: disruptive technology is a term coined by Harvard Business School professor Clayton M. Christensen to describe a new technology that unexpectedly displaces an established technology.
[...] What is relevant by analyzing this market is that we are always talking about the bad impacts that technology has on the music industry with product piracy or burning of compact disc. But what we are forgetting is that there are many things which are positive too. One of the most important would be the fact that small group can be known a get a good reputation with the social network or Youtube. These artists attract more spectators to their concerts which would maybe buy compact disc or paying MP3 after. [...]
[...] By analyzing the situation of compact disc sales and the global music market in general is a kind of paradox: even if there are less and less compact discs which are sold, it is still the second digital revenues share after games. Is music in danger? That is why we have to go through this analysis more deeply and be careful to what Medias are giving as information and statistics. The behavior of consumers regarding the music industry I have read an interesting study on the behavior of people regarding the music industry. [...]
[...] The case of cassette tapes Then a new way of recording appeared: cassette tapes. This media was created by the Dutch firm Phillips. It was containing two reels where a magnetic tape was winded around. You were able to record lots of music or other sounds on this media. The main advantage if we had to compare it to the microgroove record is that it was smaller and more practical. Thanks to this new media support, you could bring music directly in your car for example. [...]
[...] When people are taking the common transport every day, there is always lots of noise. Music is a kind of escape of this noise and is releasing the pressure before or after a working day. In the following chart, we are seeing the evolution of CD sales from 1998 to 2008 in the largest markets and in Austria in comparison with each national market's best year (source: IFPI 1998-2008). What is clearly relevant is that there is an important gap between the best year and the market in 2008. [...]
[...] First definition of the concept: disruptive technology is a term coined by Harvard Business School professor Clayton M. Christensen to describe a new technology that unexpectedly displaces an established technology. Second definition of the concept: a disruptive technology or disruptive innovation is an innovation that helps create a new market and value network, and eventually goes on to disrupt an existing market and value network, displacing an earlier technology. The term is used in business and technology literature to describe innovations that improve a product or service in ways that the market does not expect, typically first by designing for a different set of consumers in the new market and later by lowering prices in the existing market. Which case are we going to explore? [...]
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