The impact of Internet on some industry areas (music,
publishing, press, cars, telecommunications)
This is one of the biggest existing e-business markets.
The number of titles that can be stocked in a physical
space is limited to several hundred, or thousands at the
most, whereas the demand is for tens of thousands of titles.
A store such as CD Now (http://www.cdnow.com) or Music
Boulevard (http://www.musicboulevard.com) can offer a
huge permanent choice of tens of thousands of titles.
Apart from new releases and very well known artists, CD
turnover is relatively slow, which is what prevents physical
stores from financing a large stock. Thanks to data information
exchange, online music CD stores' sites can offer a wide
choice without having any stock : the order comes from
the distribution site which in turn passes it on to the
music publisher's stocks. In the case where the site which
distributes the products also has a physical stock, the
opportunity to sell throughout a wide geographical area
allows him to improve stock management by increasing the
turnover of a product. There are a large number of music
publishers, but the smaller ones among them have enormous
difficulties in developing their distribution network,
in particular internationally. Internet allows them to
reach music fans across the whole world. Internet is also
helping to change the power balance within the industry,
by challenging the existing economic structure. The possibility
of downloading pieces of music will allow the small independent
labels to become more visible : by creating community
spaces dedicated to their artists on their site, or integrating
themselves within other musical communities, they will
be more easily able to reach and gain the loyalty of their
customers. In addition, the MP3 format (which allows music
lovers to copy CDs and distribute them throughout the
network) poses a serious threat to the existing system
of authors' copyright. Present legislation will probably
be fundamentally reformed and the music publishers who
manage to anticipate this revolution will be the best
placed to benefit from the drastic changes.
The main players now and in the future
Aggregators such as CD NOW which distribute tens of thousands
Software agents which compare the aggregators' offers
and the music lovers' opinions.
The big labels which will create communities.
The independent communities which will be created around
Musicians who distribute their music on their own site
with their own organisation.
Remote downloading systems for occasional listening or
recording onto CDs.
Cultural sites : the number of community-type sites which
have sprung up around cultural and particularly musical
movements, thanks to the audience which they tap into.
Community-type sites : music fan-clubs, musical theme
or trend sites.
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If you enjoyed this site, we obviously share values: we have written it in 1999 !
We haven't updated it online as the vision still is more and more relevant: the more the internet matures, the closer it gets to our vision.
We still believe in innovation, creativity, rigour and results
Contact us if you need
Raphael Richard, founder