Investors Drawn to Digital Music

Nic JenkinsMike Boring

HistoryOnline music started to become popular in

the 1990’sStarted with file sharing companies like

KazaaLegal issues led to consumers looking for

legal and cheap or free ways to access music online

iTunes StoreSince 2003, over 10 billion

songs have been downloaded from the iTunes store

Apple says that it makes little profit from purchases at their online music store

Apple recently announced that they would be taking a 30 percent cut of subscription fees from their online store, criticized by the industry as too much

Online Subscription ServicesWebsites like

Pandora, Spotify, and Rdio offer online music streaming for free, as well as offer paid versions that offer higher quality music with no advertisements

Pandora filed for IPO in February to raise $100 million

CriticismWhile Pandora and Spotify are growing,

critics are worried that they will not get enough paying users since they offer a free version

Others are worried that they will be overfunded, and like the dot com bubble in the early 90’s they will not be around long

Relation to ClassPersonal Selling

-Although not in person, all of these companies offer mobile apps, putting their service literally in the hands of consumers

Source Factors-While these are all great ways to get music, they get looked over for free file sharing services

Sources http://www.nytimes.com/2011/03/01/busines

s/media/01music.html?ref=business http://www.google.com/imgres?imgurl=http:/

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