Investigate the competition between competing music formats. In the 90s, the MP3 format called the traditional means of music distribution, by applying to the storage of near CD-quality recordings at 1/10th of their original size. The threat to the traditional distribution was credible because of the proliferation of complementary technologies such as online digital music players (such as RealNetworks’ RealPlayer, Microsoft Windows Media Player and Apple’s iTunes) and MP3 players and other portable digital … Read more »

Investigate the competition between competing music formats. In the 90s, the MP3 format called the traditional means of music distribution, by applying to the storage of near CD-quality recordings at 1/10th of their original size. The threat to the traditional distribution was credible because of the proliferation of complementary technologies such as online digital music players (such as RealNetworks’ RealPlayer, Microsoft Windows Media Player and Apple’s iTunes) and MP3 players and other portable digital music players. File-sharing sites like Napster made mp3 files for free download indignation of the music industry, which took action. Although Napster was forced out of the market, piracy continues to threaten as users continue more than a billion songs per week to download from file sharing programs like the industry. Legal music download store that pays between $ 0.65 and $ 0.79 per song and music company sells music files in encrypted format to prevent file-sharing programs have been developed. Slowing the adoption of these services were competing digital music audio formats from Apple, Microsoft and RealNetworks.
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from
David B. Yoffie,
Debbie Free
Source: Harvard Business School
3 pages.
Publication Date: May 20, 2004. Prod #: 704 503 PDF-ENG
Music Downloads HBR case solution

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