Friday, February 18, 2011

Digital Music - Sony Business Model

Sony offers unlimited music for $12.99 a month as Aussie chief left red-faced
Asher Moses
February 18, 2011
"Sony's new service, which officially opens for business in Australia, New Zealand and the US today after launching in Europe late last year, is dubbed Music Unlimited and provides access to six million songs.The service will go head-to-head with iTunes but unlike on Apple's service, where consumers download individual tracks to their computers, Music Unlimited tracks are streamed from the web, so users can't store them. The $12.99 premium plan provides unlimited access to any music while the $4.99 basic plan works like an ad-free radio station whereby users can select the genre or era but not the individual song."
Q1. What would be the attraction of the 'Music Unlimited' plan?
Q2. What is happening to CD sales?
Q3. Why are Digital music sales declining?



2 comments:

Kim said...

1) Smorgasbord access to music for consumers, predictable income stream for Sony.

2) CD sales appear to be on the decline. The CD is approaching End Of Life as a music distribution format.

3) 'Digital' is a misnomer - CDs are digital! Downloadable music isn't declining - it's just not offsetting the decline in CD sales. The graph is stacked.

-Kim.

Suzana said...

Not only is it cheap for consumers the cloud system approach stops consumer hard drives from running out of memory and paying for external storage systems. This is great for Sony with the fact that songs are not “downloaded” stops P2P file sharing. Also the first to compete with iTunes could well gain a large market share. From reading articles, Music Unlimited will also be competing with radio stations! this could potentially be a the next big thing if it takes off. i certainly see it a huge benefit to mobile DJ's.

CD sales are definitely declining as computers with larger hard drives and more power makes it much easier for music storage. From a business perspective, CD's are costing to much to manufacture and will probably, like vinyl records, be fazed out in coming years.

in my opinion, Digital music is declining because of peer-to-peer file sharing programs, it has become very popular even though it’s illegal.