Whole Network Most Recent TOP10 Analysis Innovation Legal RIAA, MPAA

 

Digital music doldrums - Who does it affect?

Filed in archive Commentary by Marc on June 12, 2006

Digital music doldrums - Who does it affect?
This article is one in a series examining the Pali Capital report that showed paid music download growth is slowing.

Who does it affect?

The digital slowdown is not good news for the recording industry.

The other part of the current digital music family - mobile, ringtones, paid P2P - capture an inordinate amount of headlines. But they are ancillary revenues with little effect on the overall business equation.

It's bad for music makers. Digital sales have risen to the point that it essentially offset the decline in CD sales in 2005. With digital's heady days behind it, digital will not make up for further hemorrhaging. It certainly is not going to return music to its prior glory days.

This situation is great for Apple. It validates their razor blade strategy and underscores the music business's tantrums that they're losing power, as the real money is in the iPod.

It's bad for online music sellers not named after a fruit. You can ignore competition when the market is exploding. But as a market matureslinks, you only gain market share by taking it from someone else. Branding and integration increasingly become critical to customer acquisition. Hmm, those are exactly Apple's core strengths. It will be difficult to take a bite of Apple without changing the game.


Advertisement




Permalink: Digital music doldrums - Who does it affect?
Tags: digital  music  doldrums  affect  does  digital+music  music+doldrums  does+affect 

Trackback: http://www.creative-weblogging.com/cgi-bin/mt-tb.pl/23842



Advertisement


Advertisement


RSSrss   | See all blog subscribe options
Googlegoogle   |   What is RSS?
Yahoo!yahoo
AddthisAddThis Feed Button
BloglinesBloglines
Newsletter

Use the search to look for other interesting posts



 
  • Advertise with us

  • Learn more about our advertising options or email advertising - at - creative-weblogging.com or give Luis a call at +1 (650) 331 8047.


  • Testimonials

  • 'I very much enjoy your blog.'

    'The blog is really good. You do a great job.'
  • Other blogs in the same channel in the Creative Weblogging Network







 
Tagcloud: Abuse Analysis Artists Business Commentary Community Companies Consumer rights DRM Education Entertainment industry Events Finance Free and Legal Files Fun Gaming Government Innovation International Internet Legal Lending Marketing No go People Privacy & Security Retail RIAA, MPAA Society & Public Policy Software Sports Standards Stats Technology Video