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Evolution of Digital Music: Record Labels' DRM Dilemma

Explore the changing landscape of digital music as major record labels consider releasing DRM-free music, faced with slower growth despite increasing digital sales. Learn about EMI and Sony's experiments and how technology is reshaping the industry.

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Evolution of Digital Music: Record Labels' DRM Dilemma

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  1. 23 January Business Cases

  2. News Story: Record Labels Contemplate Unrestricted Digital Music • One of the majors considering releasing music without DRM • Why? • Digital sales in ’06 80% ahead of ’05 but growth rate is slower • Had hoped that iTunes model would succeed • European governments interested in requiring interoperability • Changes happening: • EMI to offer streaming on Baidu.com (leading Chinese search engine) • Estimate that 90% of music in China is pirated • EMI and Sony experimented with unfettered music on Yahoo!

  3. Business Cases • Simple model: • Read about the company and discuss • Typically pointed questions • We’re going to have more specific ones

  4. Our questions • What was the unique business idea this company had? • What made it an opportunity instead of just an idea? • What was the market characteristic? • Did the company show “outside the box” thinking? • Did the company retian a customer focus? • Did they continue to innovate? • How did they use technology in their business? • How did they use technology in their marketing? • Did they have any key partnerships?

  5. This week • Look at Facebook in class • Look at Google for Thursday • Select partners and topics on Thursday

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