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MUSIC STREAMING PLATFORMS - Coggle Diagram
MUSIC STREAMING PLATFORMS
EVIDENCE FROM THE CASE
HOW DID PERFORMANCE COMPARE TO INCUMBENTS?
Less quality but cheaper or free and immediate access to millions of songs
WHO ADOPTED IT FIRST: NEW ENTRANTS OR ESTABLISHED PLAYERS?
New entrants like Spotify and established player like Apple changed from iTunes to Apple music
WHO WERE THE INITIAL USERS?
Young people who pirated music or couldn't afford CD's
HAS ANY DOMINANT MODEL BEEN DISPLACED?
Yes, the Recorded music sales model
BUSINESS IMPLICATIONS
OPPORTUNITIES FOR NEW ENTRANTS
lower entry barriers
independent artists don't need to be in a record label
STRATEGIC IMPLICATIONS
shift from product ownership to subscription based model
Importance of scale, data analytics, and network effects
IMPACT ON STABLISHED PLAYERS
Collapse of physical music sales (CDs)
Record labels lost control
and profit margin
DEFINITION AND CRITERIA
INFERIOR PERFORMANCE
Incomplete catalogs
People didn't own their music
No offline acces
TRAJECTORY OF IMPROVEMENT
Higher sound quality Offline streaming Broader catalogs
ENTRED THROUGH OVERLOOKED CUSTOMERS
People who pirated music or people who couldn't afford to buy CD's
DISPLACEMENT OF DOMINANT BUSINESS MODELS
Record sellers and CD's sellers were replaced by this business model
VEREDICT
Clearly a Disruptive Technology