Digital distribution ‘low-margin’
p2pnet.net News:- JupiterResearch says, “while the launch of new online music stores and services has jump started Europe’s digital music market,” CDs will remain the bedrock of music sales.
However, the corporate online music stores selling the same Big Four record label cartel dross at the same prices to the same relatively few buyers haven’t jump-started anything, except a lot shaky thinking.
“By 2009, JupiterResearch forecasts that digital music revenues will grow to €836 million from €10.6 million at the end of 2003, representing 8% of the total music market, and will be a significant alternate distribution channel,” says the firm in a report.
We forecast that, thanks to the burgeoning digital a/v player market, existing distribution channels, maintained and supplied by Big Music, won’t mean much and the members of the Big Four record label cartel will continue to slide down the slippery slope with the pirates, who depend on physical product to survive, still dancing rings around them.
“Although Europe’s digital music market has finally begun to take off after a sluggish start, it will remain a relatively niche market, considering the total European music market in 2009 will be €10.2 billion,” says the report.
“Current business models define digital distribution as a low-margin business,” it says, adding:
“Companies with ulterior revenue streams (eg, selling devices or broadband access) will be best placed to succeed, and will often market loss leading digital products short term for gains over time.”
Jupiter is, of course, referring to Corporate Music Never-Never Land.
In the real world, companies that develop p2p distribution applications able to handle a variety of communications tasks and which recognize the p2p networks as 21st century sales, marketing and delivery platforms will bask in sunshine.
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