E‐business models and consumer expectations for digital audio distribution

Abstract

Access to this document was granted through an Emerald subscription provided by FRIEDRICH ALEXANDER UNIVERSITAET ERLANGEN NUERNBERG For Authors: If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service. Information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comWith over forty years' experience, Emerald Group Publishing is a leading independent publisher of global research with impact in business, society, public policy and education. In total, Emerald publishes over 275 journals and more than 130 book series, as well as an extensive range of online products and services. Emerald is both COUNTER 3 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.*Related content and download information correct at time of download.E-business models and consumer expectations for digital audio distribution Michael Amberg and Manuela SchröderUniversity of Erlangen-Nuremberg, Nuremberg, GermanyAbstract Purpose -The purpose of this paper is to aim to evaluate to what extent present e-business models for digital audio distribution meet the consumer's expectations. Design/methodology/approach -The research method in this paper is particularly based on two empirical studies. In the first study, the supplier side was examined. In this context, 15 e-business models in the German music market were identified, classified according to two criteria (type of compensation and dependency on the supplier or its technology) and analysed with regard to four aspects "type and volume of content", "price of content", "rights of use", and "additional services". To evaluate the identified e-business models, the consumer expectations for digital audio distribution were analysed in a second study. Finally, the results of both studies were compared. Findings -The paper finds that most of the identified e-business models do not meet all of the fundamental consumer expectations. Either the identified category of e-business models and its characteristics (e.g. dependency on technology) lead to a conflict with regard to the expectations of the consumers, or the implemented e-business models reveal discrepancies between the concrete offer and the demand.Research limitations/implications -The results in the paper are limited to e-business models for digital audio distribution in the German music market.Practical implications -The paper shows that, in order to reach more consumers, most of the existing e-business models have to be modified. Originality/value -Based on two empirical studies, this paper presents the state-of-the-art of the digital audio distribution in Germany and systematically identifies gaps between the demand and the supply side of digital audio content.

Shifting Demand: Online Music Piracy, Physical Music Sales, and Digital Music Sales

“…Therefore, some of these consumers may hesitate to buy an entire album for the sake of consuming only one or two tracks they like. According to a survey conducted by Amberg and Schröder (2007), 69.4% of interviewed persons indeed preferred to buy a single track over buying an entire album. Consequently, when only physical music is sold and licensed digital music is unavailable, some consumers will likely find the price of an album too high compared to their willingness-to-pay for the album, which could be determined primarily by their willingness-to-pay for their preferred tracks within the album.…”

Creating an Independent Music Business in Canada: A Case Study

“…Also, the landscape for online music and customer behavior is changing, so the distribution channels may have to be expanded or changed completely (Strategy Analytics, 2010). There is current research indicating that to meet customer expectations, the current Creating an Independent Music Business in Canada e-commerce music distribution websites will have to be greatly modified (Amberg, 2007).…”

Perspectives on Digital Content Markets: A Literature Review of Trends in Technologies, Business and Consumer Behaviour

“…(Amberg & Schröder 2007) One of the best-known examples subscription services is RealNetworks's Rhapsody.…”

“…limiting the period of time a song can be listened to or the number of times it can be burned to a CD. (Amberg & Schröder 2007) The bestknown example of pay-per-download services is Apple's iTunes Store.…”

“…However, besides technologies, also other solutions are needed. These may include, for example, business models that better accommodate consumers' expectations (Amberg & Schröder 2007). For this purpose, a better understanding of online consumers is required.…”