Internet Marketing Report Essay Example | Topics and Well Written Essays - 1000 words

Internet Marketing Report - Essay ExampleThey only achieved to pertain 100.000 paying customers which represented revenue of $15 million in 2002. It is nothing compared to the millions of users who roam the web daily in search of new music content.Nevertheless, quick the music industry understood that the Internet is not actually the enemy, but a new, alternative, means of music distribution and that this new vehicle depart mystify over time. Thus the need for each member of the industry to implement on the Internet and to make its artists available as the forecasts predict that the Internet will represent 20 percent of the music business by 2007. One of the major competitive advantages of the internet over the handed-down music CD sales is the number of titles available. For example in a Virgin Megastore you can find around 100.000 titles. On the internet, even a small provider such as CDnow offers over 200.000 CDs. In consequence, several record labels have decided to offer t heir entire song catalog online. Finally, the music industry also understood that the determine would be an issue especially because you can get all the songs for free.This is the main reason why Sony and Universal Music for example, decided to lower their prices to 99 cents the wizard download. Even though, the trade analysts remain skeptical regarding the users shift from free to single fee music. However, the Recording Industry Association of America (RIAA) claims that with more awareness of the lawful threats of downloading music without paying any right to either the artists or the labels and to the poor quality of pirated music files, the customers will ultimately chose the single fee option, especially since take-away devices such as the Ipod are designed to be fully compatible to the online distribution and guarantee a high sound quality.An evaluation of different arrangement of existing players (competitors) within the marketplaceToday there are 4 major websites - eac h one of them connected to one or several of the large-scale Five of the music industry (five record labels which are the global giants in the music industry Universal Music Group, Sony Music Entertainment, EMI Group, Warner Brothers Music, BMG Entertainment) - which are leading the market of downloadable music on the Internet iTunes Music Store, MusicMatch, Napster and Rhapsoy.Each one of these websites is associated to a larger company iTunes with Apple, MusicMatch with Yahoo, Rhapsody with Real and Napster with the RIAA and offers to the customer an application that can be employ on the pc to download and read the music files and this application can also be adapted to the portable device in order to instanter download the music file to go. This meaning that the competitive forces - Bargaining power of suppliers, Bargaining power of buyers, Barriers to entry, Threat of substitute, Rivalry among existing competitors - that were driving the traditional music industry have change d bargaining power of suppliers decreased as it is now possible for the artists to go online with their own music without having to pass through the senior channels of distributions, bargaining power of buyers has largely increased as it is possible for them to get music for free and thus the record companies have to align in order to offer good