Digital music and the music industry
Title: Digital music and the music industry
With the globe music industry again in trouble like seven years ago, continuously in uneven decreasing of physical and increasing of digital music. During those seven years, several major chain music stores had gone bankruptcy, meanwhile the establishment of Apple’s digital store-iTunes and others, combine with the development of digital music services, made the industry itself find a way to square these conflicting demands. And the in this report I will discuss the music industry through the angle of microeconomic, especially in the section of ‘Supply and Demand’ and ‘Profit maximizing under imperfect competition’ of Sloman’s ‘Economics’ book.
Table of Contents
Summary of the articles 1
Summary of assigned part 1
Link between article and book 2
The music industry is facing dramatic and fast changing. Sales of digital music are growing continuously since they operating in the market, while the physical album sales continuously decreasing from the peak in 2000 ( See Diagram 1.1 in Appendix).but the demand of digital are not growing fast enough to offset the rapid financial loss of declining in CD sales(See Graph 1.2). This report is to research on the microeconomic issues of the supply and demand and profit maximizing under imperfect competition of the music industry.
Summary of the articles
The digital music sales began to take equivalent part of revenue as the physical music. With constantly increase in the demand of digital music sales. The Nokia has come with the free music subscription program, an unlimited music service called “Come with Music” (cvw), in another word, each sale of Nokia’s handset will contribute a piece of revenue to the record labels, and other companies also come with similar subscription. The potential market for the digital music is...