MUSIC SALES OVER THE INTERNET (30p. 2004)

SUMMARY

This study examines the sales of music over the Internet. Both “intangible music” and the sale of physical CDs are examined here .
The study describes the current state of play (2004): main actors, platforms, and business models. It presents a reflection on what is actually at stake in terms of possible effects of substitution, the impact on the pluralism of the media, or on the available diversity on music offer.

CONTENT

I. Definitions

II. An overview of the traditional offline market: evolution and players

III. The online market

1. Distinct from the offline market
2. Overview of its evolution
3. Overview of the online market in the different regions of the world

IV. Actors of the online market

1. Principal platforms and business models
2. Typology of online actors

V. What is at stake?

1. Entry, marketing and promotion costs
2. Effects of substitution?
3. Concentration, convergence, and the use of music as a « loss leader »
4. Concentration and its impact on diversity