How has the changing demand for downloadable music influenced the strategic business models of firms?

2009

The purpose of this thesis is to identify the new strategic business models that

companies use in the changing competitive landscape of the music market.

Companies that develop and distribute physical music formats, such as compact discs,

have encountered challenges due to the increasing consumer demand for

downloadable music. Some of these challenges include: decreased demand for

physical music, increased competition from online distribution companies, and

frequent violations of copyright laws. To maintain dominant positions in the music

market, companies must develop new strategies.

Analysing secondary data, different theoretical methods were used to classify

companies in the music market, examine the external environment, identify the

companies’ strengths and weaknesses, and determine the most implemented strategies.

Four main strategies were identified: alliances and networks, product diversification,

product and service distribution, and profit maximisation. Since these strategies are

still in the development stages, the most profitable ones still have yet to be determined.