Investors Drawn to Digital Music - PowerPoint PPT Presentation

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Investors Drawn to Digital Music

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  1. Investors Drawn to Digital Music Nic Jenkins Mike Boring

  2. History • Online music started to become popular in the 1990’s • Started with file sharing companies like Kazaa • Legal issues led to consumers looking for legal and cheap or free ways to access music online

  3. iTunes Store • Since 2003, over 10 billion songs have been downloaded from theiTunes store • Apple says that it makes little profit from purchases at their online music store • Apple recently announced that they would be taking a 30 percent cut of subscription fees from their online store, criticized by the industry as too much

  4. Online Subscription Services • Websites like Pandora, Spotify, and Rdio offer online music streaming for free, as well as offer paid versions that offer higher quality music with no advertisements • Pandora filed for IPO in February to raise $100 million

  5. Criticism • While Pandora and Spotify are growing, critics are worried that they will not get enough paying users since they offer a free version • Others are worried that they will be overfunded, and like the dot com bubble in the early 90’s they will not be around long

  6. Relation to Class • Personal Selling -Although not in person, all of these companies offer mobile apps, putting their service literally in the hands of consumers • Source Factors -While these are all great ways to get music, they get looked over for free file sharing services

  7. Sources • http://www.nytimes.com/2011/03/01/business/media/01music.html?ref=business • http://www.google.com/imgres?imgurl=http://www-bgr-com.vimg.net/wp-content/uploads/2010/05/itunes-logo.jpg&imgrefurl=http://www.bgr.com/2010/07/01/exclusive-apple-itunes-in-the-cloud-definitely-happening-soon-wireless-syncing/&usg=__50OZtzERtUk_4eiCQdVnWifswOA=&h=512&w=512&sz=55&hl=en&start=0&zoom=1&tbnid=0ro6Uvh0EiADvM:&tbnh=146&tbnw=147&ei=Dd1rTYGaG5HQsAPxrcmqBw&prev=/images%3Fq%3Ditunes%26hl%3Den%26biw%3D1280%26bih%3D629%26gbv%3D2%26tbs%3Disch:1&itbs=1&iact=rc&dur=742&oei=Dd1rTYGaG5HQsAPxrcmqBw&page=1&ndsp=18&ved=1t:429,r:0,s:0&tx=95&ty=37 • http://www.google.com/imgres?imgurl=http://www.smays.com/wp-content/uploads/2010/12/pandoraradiohack.jpg&imgrefurl=http://www.smays.com/default/2010/12/pandora-radio.html&usg=__TaHfF5M4zPjbp0vFr5t4FP-EB0k=&h=300&w=400&sz=18&hl=en&start=0&zoom=1&tbnid=C8xXxqv4Tzy5zM:&tbnh=136&tbnw=189&ei=Gt9rTd2UMo-8sQPnhNCWDQ&prev=/images%3Fq%3Dpandora%2Bradio%26hl%3Den%26biw%3D1280%26bih%3D629%26gbv%3D2%26tbs%3Disch:1&itbs=1&iact=hc&vpx=316&vpy=293&dur=406&hovh=194&hovw=259&tx=114&ty=93&oei=Gt9rTd2UMo-8sQPnhNCWDQ&page=1&ndsp=19&ved=1t:429,r:8,s:0