Downloading music Essay

* Does the growing popularity of downloading medicinal drug from the profit give rise to a new music industry shelter chain that differs considerably from the traditionalistic value chain? Explain wherefore or wherefore not. I think it might piss an takings in the traditional value chain for the point that nowadays it is rattling normal to download music from the internet illegally and legally. Due to this fact the sales in albums in the music industry have decreased. mess prefer to download music rather than get the CD because is to a greater extent economic and they save money. For the reasons I mentioned before I think the traditional value chain might change. It is harder for operatives to sell CDs and they contain more profit from the concerts performance.* What cost are cut out of the traditional value chain or by passed when online music retailers (Apple, Sony, Microsoft, Musicmatch, Napster, Cdigix, and others) sell songs right away to online buyers? (Note In 2005, online music stores were selling download-only titles for $0.79 to $0.99 per song and $9.99 for most albums). The price to buy a song on the internet is cheap, so several cost are cut out of the traditional value chain.Retailers at the present moment of sell songs turn toly on the internet do not have to take into account be like record comp whatever direct production costs, pressing of CD and packaging, distribution of the CD, stock of CDs. That is why the final price to consumer online is cheap. The problem is when the people download music from internet programs like Ares, Free music video, Lime wire, among others. In that case the artist is not receiving any gain and thats the situation that affects the music industry.* What costs would be cut out of the traditional value chain (or bypassed) in the event that recording studios sell downloadable files of artists recordings directly to online buyers? I think in this event would be very similar to an electronic commerce bu siness. altogether the benefits from e commerce would be applied here. The main cost that would be cut out is the stock as I said before because there would not be a physic place to appreciation the CDs. Also there would be a reduction of costs in the sales department for the fact that the consumer might choose any song that he wants without going to a store.In the other die generally in the e-commerce consumers must pay a cost of economy service but in this case there is not a cost like that because the file or song would be downloaded directly. I found these questions very interesting the way in which the technology has changed some(prenominal) industry facts and the effects that it has. Nowadays is very easy to obtain the music but, is true that the music industry and the artists do not have the analogous profits as it used to be long time ago.