Carlos Remigio 3/31/2013
BSAD355 Professor Krocher
1. What industry conditions lead to the revolution in audio distribution described above? Which stakeholders stand to benefit most (or least) from this revolution?
The industry condition that led to the revolution in audio dispersal was the transformation of music to be accessible in a new digital recorded format mp3. The MP3 format gave songs the capability to be downloaded and played digitally on any home computer with internet access. Software programs permitted CD’s to be converted to the new format. A larger industry situation was the birth of media sharing applications, which started out with Napster as the first that allowed users to freely share and issue mp3 formatted songs amongst other users of the same file sharing software. The stakeholder that stood to benefit the most from this revolution is the music fans, predominantly one that has a personal computer to take advantage of the new digital format known as MP3.
2. Why did the music stores created by the record labels fail to attract many subscribers? What, if anything, should the record labels have done differently?
The music stores created by the record labels failed to attract many subscribers because they used exclusive file formats, highly limited digital rights management structures, and did not offer the same number of selections offered by unauthorized user to user services such as Napster, Kazaa or Gnutella. If nothing else, they should have at least used the new widely adopted mp3 format for their songs.
3. What will determine how long the success of the iPod and iTunes endures? Should Apple allow its iPods to play non-iTunes songs? Should Apple allow iTunes songs to play on...