Role of internet in music industry
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Complete this assignment based on an industry of your choice.
*Examples of industries: electrical appliance, pharmaceutical, market research, fashion, music, movie, books/ publications, supermarket, education provider, travel, non-for profit, finance/bank, online dating, social networking sites, online gaming, auction etc.
Part A (Recommended page-length: 2)
Critically analyse the roles of internet in this industry. Has internet changed the way this industry operates in any significant ways?
Part B (Recommended page-length: 7)
Identify two competing e-businesses within this industry. To make your analysis more interesting, it is recommended that you choose two e-businesses with different positioning (See Lecture: STP & Positioning Strategy)
Critically analyse, compare and contrast the two e-businesses on their e-marketing mix strategy (e.g., product, price, distribution and communication). Draw insightful connections between your analysis and course materials.
In the conclusion of this assignment, (Recommended page-length: 1)
• provide a summary of your key findings / observations in a concise yet comprehensive
manner
• In your opinion, does one of the businesses have more superior marketing mix strategy than
its competitor? What makes you think so?
There should also be a one-page executive summary.
SAMPLE ANSWER
Role of internet in music industry
The digital platforms have been of great use in the music industry and this has been evident in case more businesses have come up to carry out e-marketing strategies in various ways. This has led to increased sales and reduction in the piracy of music from the middlemen who use music to enrich themselves at the expense of the artists (Alexander, 2002). The internet is really doing well in the scrapping of the unscrupulous dealer who used to use the music that is well loved by people in making money in uncouth means. The internet has played a key role in ensuring that music that is released can be availed in the YouTube, where many people can access it without having to go and buy it from the shops a factor that is time consuming and tedious as well (Alexander, 2002). One of the biggest advantages of internet in marketing is the ability to reach millions of people at the same time from all the corners of the globe (Curient, Nicholas, & Moreau, 2009). This has made many people to access the internet as they mostly employ the use of smartphones that are very fast in downloading music content and listening to it from the internet. The internet has led to increased sales of music and many of the musicians have become rich through the use of internet in their music. The internet has become a new business opportunity for the music industry and this is mostly in the distribution area of the industry and on areas of entertainment. The internet has brought high innovation in the music industry and this is currently proving to enable the music industry to take a center stage if internet continues to be used as statistics shows.
How the internet has been of significant impact in the music industry
On the other side the internet has changed the way the music industry operates in any significant ways that is evident where an unknown smart artist can be in a better position of connecting with an audience without the aid of backing of a major label or they start by putting their works in digital platforms. This latter is loved by many and they start making money whenever people download their works from the digital platforms while using the internet (Curien, Nicolas, and Moreau, 2009). Despite the fact the audience might not be as many as expected, but on the other side the musician benefits because he does not need to share his profit with the labels. This is the reason as to why up to this far, the internet is of great importance to the users of the consumers in the music industry (Ryan, 2014).
Competing e-businesses within the music industry
The two commerce that has proven to be highly competitive in the music industry are inclusive of the Spotify and the iTunes. Spotify has been ranked as the most well-designed and user friendly of all the digital music services that are found on the internet. This is the reason as to why it has been noted to be highly competitive in the music industry. Spotify has used the right path that is loved by many and this has been to its advantage in racing to the top of the music industry that it loves the more (Richardson, 2011). This is evident in its aspect of continuing to blaze as an entrepreneurial model and this has created the success story of the company in its making. Music is becoming an ambiguous passion for many people and Spotify is a successful e-marketing in this industry. Spotify was established with a more recognizable and existing services that could be of great use to the music industry and this is then reason as it has remained to be competitive in the industry for a long period of time (Moscaritolo, 2014). Spotify successfully comes along with the combination that is evident in the ingenious branding campaign and this makes the company to focus on exclusivity that draws high interest form the public. This is a strategy that helps in appeasing the all the digital music lovers who intron users this type of commerce for being one of the best together with designing the required business model that is as well an attraction to many people. This eCommerce has risen to the top ranking in terms of digital music providers and this factor has made it to be very competitive as it is loved by many people who are interested in obtaining music in the internet (Luker, 2012). Despite its good work that exists in the industry Spotify faces high competition from the Apple iTunes Stores who are proving to capture the music industry and in the midst of all this Spotify has managed to bridge the gap and provide services that have been proven to be legal. These have been proven to an attractive option to the whole globe in helping customers to connect with their favorite artist and songs (Farber, 2009).
Apple iTunes
The iTunes store is a digital platform that is used in used to listen to music that is in the internet. It is highly competitive as it service are very good and loved by many who use them in accessing music in then internet. This has been proven to be a large music vendor in the United States of America and this is one of the reasons as to why it remains to be very competitive and loved by many in terms of listening to the music that is present in the internet (Deegan et al, 2009). The introduction of iTunes has simplified the music work that is present in the internet as people are in a better position by downloading the software and listening to any music of their choice that they feel like. The Apple iTunes store is best in offering of an application that is used in various tasks that are inclusive of games that are very interesting and applicable during leisure times. The use of applications is useful in the provision of news and productivity for the customers who are interested in downloading music from the internet. The Apple iTunes gets high benefits; since, when a person downloads an application, 30 percent of the benefit goes to the Apple iTunes and 70 percent goes to the developer of the application, implying that this software company earns a lot when an application is downloaded (Moscaritolo, 2014).
The apple dominates the music market since it has employed the use of some useful strategies that are of great benefit in its success. The use of complex business model is all that is evident in the software that has contributed to its success at a very fast rate in this current growing music industry. The site of the iTunes has contributed to its growing success in the music industry not forgetting the work that software plays in ensuring that all Apple business model are overarched (Ross, 2013). Through the creation of its own music store Apple has been able to dominate the music industry as it is very competitive compared to any other software.
Comparison between Apple iTunes and the Spotify
These two software’s that are used in the music industry are similar as they all aim in making the listening to music to be easier and faster as required by the consumer. The introduction of iTunes and Spotify software’s has simplified the music work that is present in the internet as people a are in a better position by downloading the software and listening to any music of their choice that they feel like. In both the Apple iTunes and the Spotify their businesses are highly protected sand, they do not easily allow any piracy to take place as far as they are concerned with their parts of operations in the music industry (Wilson, 2013). They all ensure that any song that is purchased, all the details is saved in the computer in combination of all the metadata that have been used in the industry. All the direct transfers of music by the use of the two software’s are made simple and easily accessible to all the consumers of the whole globe. The two software’s that is the Apple iTunes and the Spotify all used in the music industry are very sensitive in ensuring that they incorporate massive catalogue that attach the song that has been purchased by the consumer from the internet. The two music, vendors have been able to sell music a lot to the customers across the globe and this has made them to attain high returns through higher sales that they make. The two vendors have had integration with music devices and a cloud that they use to access all the information concerning music across the globe. The sales of the two music, vendors have been rated high and this has proved to be one of the similarities between them in their operations in the industry.
Contrast of Apple iTunes and the Spotify software
The site of the iTunes has contributed to its growing success in the music industry not forgetting the work that software plays in ensuring that all Apple business model are overarched. Through the creation of its own music store Apple has been able to dominate the music industry as it is very competitive compared to any other software. On the other side Spotify is not that much competitive as compared to Apple iTunes despite the fact that it’s really trying to dominate the market, but it has not crated its own music store as Apple iTunes has done. This is one of the sectors that bring contrasts between it Spotify and Apple iTunes. Apple is diverse for the Spotify; since, it was one of the quick music stores that had the capacity given an “individually” choice of music that was preferred by numerous individuals who are fans of music in the web. Apple gave high access to must that was given in the web accordingly, making it to be adored by numerous individuals who were more keen on all that they overcame the utilization of the product. On the other side, Spotify has been demonstrated not to utilize the utilization of the “individualist” determination of music that made Apple iTunes to be extremely aggressive in the business. Spotify adaptability has not been quick as that which was given by Apple iTunes and this is one of the reasons concerning why it was beaten by Apple iTunes regarding rivalry. Apple was the first in joining the mp3 that was delivered by a percentage of the organizations when it was set up and made it function admirably with the music stores that were in prisons before making its own music store. The Spotify software did not combine the working of the two at an early stage, thus it was a bit slow and Apple bet it in competition thus bring a contract between the two in their operations. The way Apple iTunes carries out its operation is very different from the way Spotify operates and this means that the two contrasts a lot in their operations. This is quite evident were the Apple iTunes device makes a comparison to the Spotify online distributor of music to customers to be quite unbalanced as they might require. Apple iTunes as compared to the Spotify have made their downloading services of the music in the internet quite easy and reliable and this is another contrast that is evident between it and Spotify. Spotify is more concerned with ensuring that their customers subscribe to monthly music downloading services that prove to be expensive to some extent, while Apple gives its customers a chance to download music from peer to peer services and since, Spotify gives high limitation concerning what should be done with the music that has been downloaded. The Apple iTunes business model is simple and clean as compared to the Spotify business model that they have employed for use.
Executive summary
These two companies have ventured well in the music industry since they have employed the use of good marketing skills in their music that is loved by most of their customers across the globe. These music industry has proven to attain high succeed in the use of e-marketing that has been evident in the use of Apple iTunes and the Spotify that are very much impressing to the industry in terms of promoting their music. Time is no longer wasted like there before when people used go physically to the music vendors to purchase certain songs of their choice, instead they just need a click onto the internet and they access any music of their choice. The use of internet is a faster and an assurance that the artists have released and this is a t reason as to why digitization has made things easy through the use of the internet. Technology has really impacted how marketing of music is done today and this has proven to be one of the ways that has made the music industry to be in the forefront in terms of revenues. The Apple iTunes and Spotify have really taken advantage of the media to capture the attention of many customers in the music industry. The marketing gives a room for conversation where customers care allowed to give their feedback and comments on what they think should be done to bring improvement. This has in turn given good feedback that is given to the customer as they have one on one contact with their music artists. While using the internet, the artists are only required to use the good and best marketing skills that are needed to be followed by the marketing platforms provided on the internet to ensure that give the best to their customers at all time of the year. Customers are very happy with all the services that they get through the internet using the Spotify and the Apple iTunes in listening to their favorite music of their choice and this gives more chances of exploiting the digital market of music across the globe. The cost of getting music through the use of the e-marketing strategies is cost effective as compared to the traditional forms of getting music from the vendors in many parts of any given country. The customer relationship is really improved due to the high levels of interactions that have been availed through the use of e-marketing on the internet. Communication has been enhanced through the use of e-marketing as customers can give timely response on what they deem necessary and good to them.
Conclusion
The music industry is one of the industries that have heavily invested in the e-marketing platforms in order to reach their clients and make more profits. Spotify has good e-marketing strategy with good e-marketing mix that takes care of competitive pricing and distribution. However, the iTunes seems to have the best mix of marketing strategy with the potential of reaching more clients and making more profits. Unlike their competitor, iTunes apply the e-marketing strategy of low cost margin that enables their clients to access music with more ease. In addition, iTunes has made it more convenient by providing a wide variety of collections within a simple gadget. iTunes allows for more flexibility through its simple and clean business model. In addition, iTunes has massive catalogue that contains millions of songs and this makes it very reliable to its users. The costs of enjoying music through iTunes are greatly reduced since little is spent on marketing of Apple products, which is already a brand. The site of the iTunes has contributed to its growing success in the music industry not forgetting the work that software plays in ensuring that all Apple business model are overarched. Through the creation of its own music store Apple has been able to dominate the music industry as it is very competitive compared to any other software. On the other side Spotify is not that much competitive as compared to Apple iTunes despite the fact that it’s really trying to dominate the market, but it has not crated its own music store as Apple iTunes has done. This is one of the sectors that bring contrasts between it Spotify and Apple iTunes.
Bibliography
Alexander, P. J. 2002. “Peer-to-peer File Sharing: The Case of the Music Recording Industry.” Review of Industrial Organization 20, no. 2: 151-61
Curien, Nicolas, and Moreau. 2009. “The Music Industry in the Digital Era: Toward New Contracts.” Journal of Media Economics 22, no. 2: 102-13
Deegan, M., Horner, J., Elliot, R. & Chase, D. 2009, Can subscribers keep Spotify afloat?, Haymarket Business Publications Ltd, London.
Farber, A. 2009, “Spotify in talks to offer music app to subscribers on 3”, New Media Age, pp. 3.
Luker, S. 2012, “Spotify looks to build consumer presence”, PR Week, , pp. 6.
Moscaritolo, A. 2014, “Apple Expands iBooks Textbooks, iTunes U”, PCmag.com, .
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Richardson, C. 2011, Spotify gets ready to eat your iTunes for lunch, Boston, Mass.
Ross, M. 2013, “Apple unveils iTunes Radio”, B & T Weekly, .
Ryan, D. 2014, Understanding Digital Marketing: Marketing Strategies for Engaging the Digital Generation. Kogan Page; Third Edition
Wilson, J.L. 2013, “iTunes Radio Threatens the iOS Competition Without Innovating”, PCmag.com,
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