Music Subscription Services or A La Carte?
Over recent years, the music industry has gone through significant changes with the advent of digital music, the internet and a rapidly changing consumer market. Industry players are left wondering where the future of digital music sales and consumption live. Many suggest that music subscription models are the way forward, while others feel a la carte downloads music download services are better suited to the needs and wants of the music consumer market. Both of these services however, despite appealing to some segments of the digital music market, fail to deliver music consumers what they really want: complete freedom and choice, only attainable for through a music service model of mass customisation.
A suggested way forward for digital music providers is to develop a produce and service model of mass customisation, allowing consumers the ability to design their own experience and be involved in the consumption process at a more profound level (Mininni, 2007). A model such as this could reach all consumers in the digital market, which represents 15% of the trade value in the UK (IFPI) and allow the providers to tap into the other 85% of physical music sales in the UK, along with an option to obtain market share of other related music services and products.
While there are limitations and challenges to this model, if executed successfully, a model of mass customisation can provide a music service provider with a distinct competitive advantage by offering consumers premium services and thus building brand loyalty. Moving into the future, it is unclear what changes may occur in music consumption, but it is most likely that consumer fragmentation will continue to occur. If a business can model themselves in a mass customised way, with networks of loosely tied and flexible business unit, they will be able to continuously adapt to changes in both the market, technology and consumer behaviour.
No matter in what direction digital music providers go there are interesting times ahead for lawyers as they try to cope with protecting the multiple rights.
For more articles that I have written visit my blog at http://peteradediran.com/legal
A suggested way forward for digital music providers is to develop a produce and service model of mass customisation, allowing consumers the ability to design their own experience and be involved in the consumption process at a more profound level (Mininni, 2007). A model such as this could reach all consumers in the digital market, which represents 15% of the trade value in the UK (IFPI) and allow the providers to tap into the other 85% of physical music sales in the UK, along with an option to obtain market share of other related music services and products.
While there are limitations and challenges to this model, if executed successfully, a model of mass customisation can provide a music service provider with a distinct competitive advantage by offering consumers premium services and thus building brand loyalty. Moving into the future, it is unclear what changes may occur in music consumption, but it is most likely that consumer fragmentation will continue to occur. If a business can model themselves in a mass customised way, with networks of loosely tied and flexible business unit, they will be able to continuously adapt to changes in both the market, technology and consumer behaviour.
No matter in what direction digital music providers go there are interesting times ahead for lawyers as they try to cope with protecting the multiple rights.
For more articles that I have written visit my blog at http://peteradediran.com/legal
Source...