Abstract
This document studies the development of the digital music industry
in Western Europe. It analyzes the barriers and drivers behind
its evolution and the recent activities from device manufacturers, ISPs,
and telecom operators into the digital content (and in particular
music) industries. The report provides an outlook for the future
of the digital music industry, in particular the areas of
it more closely related to the telecoms industry. This document
provides analysis and guidance on the factors that will encourage
the growth of the digital music industry, the different business
models available today and how IDC believes they will evolve
in the future, as well as the factors ISPs and
telecoms operators should take into consideration when entering and planning
their online music strategies.
Table of Contents
- IDC Opinion
- In This Study
- Situation Overview
- The Fall of Physical Music Formats — Requiem
- Digital Music Growth — Not Quite Hallelujah Yet
- Growth Factors — La Vie en Rose
- Increasing Broadband Penetration — The Delivery Mechanism
- Infinite Possibilities — The Supply
- Lower Prices
- The Third Man — Alternative Providers
- DRM or Not DRM
- Current Barriers — The Wall
- Limited Broadband Penetration
- Intricate Industry Structure
- Simple Systems for a Digital World
- DRM or Not DRM
- Piracy
- Future Outlook
- A Cocktail of Business Models
- Margins — Too Many Cooks Spoil the Broth?
- Innovation is Key
- ISPs and Telcos — From Service Provider to Content Provider
- Key Factors for Operators Seeking to Become Media Businesses
- Digital Music Tomorrow
- Current Economic Climate
- Music Labels and Publishers — A Necessary Transformation
- Mobile Music — Not So Mobile Yet?
- Simple End-to-End Solutions
- Essential Guidance
- Learn More
- Related Research
- Synopsis
- Table: Music Sales Growth (Physical Format) 2006/07
- Table: Music Sales Growth (Physical Format) 2005/06
- Table: Music Sales Growth (Digital Format) 2005/06 and 2006/07
- Figure: Consumer Broadband Access Connections in Western Europe (2008–2013)
- Figure: Value Chain
- Figure: Evolution of Business Models
- Figure: Online Retailers Revenue Distribution Per Download
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