The entertainment industry is disoriented. New technology is putting pressure on the digital content providers, including the music biz. Availability of music and other content has been changed radically for both getting hold of music and using it. The cost picture has been exposed for everybody to see, and the public does not like it. New technological possibilities have found new users who are loath to pay very much or anything at all.
Old business models are collapsing and the time of rich pickings are over.This has led to chaos in the business with lots of focus on dwindling sales, free downloading, rights and their management. But now the music business is slowly waking up with new offerings.
There is still a long way to go. Rights issues, formats, equipment restrictions, lock-up by producers, codes, limits on usage, understanding new technology, lack of software to facilitate interchange, old fashioned business models all make it difficult for the public to take part fully.
The challenges are many: how low can your unit costs go, how to enter the new technological world with masses of new customers, what is perceived value? The possibilities are immense for the innovative and daring – think hard, develop good value propositions for users and income will be generated!