Brief Analysis on Business Model Innovation of Digital Music

Abstract

The development of digital technology has an overturning impact on music industry in the network era; the traditional record companies have to implement the digital transformation, because new competitive forces are joining the industry chains, such as network music operators, value-added service providers, terminal equipment manufacturers and even mobile operators who aim to lead the development of music industry with its music data services; the competition and integration of various forces all provide a profound potential prospect for future digital music development. However, piracy has been the recurring troubles of Chinese music market, meanwhile, the development of network technologies, such as search and P2P have facilitated the growth of online piracy, even trying to redefine the meaning of copyright law, which made the protection of digital copyright in a sea of troubles. Although there are benefits from digital music on ring back music gain sharing the mature business model still needs to be explored in practice, in order to get return of value from original whole piece of music. Along the innovative thinking of mesoscopic approach to business models, using mature business models and design ideas summarized by predecessors, combining the inherent law of digital music industry development, focusing on the core value proposition of digital music industry, the innovative form of digital music business model can be explored. The “iPod+iTunes” model of Apple Company and ring back music model of China Mobile show us the huge value of digital music innovative model. Each link of digital music industry chain makes use of the value space provided by Internet, focuses on content or channel or the platform, with various innovation ways, and obtains great value promotion for users with lower cost-creating the blue ocean of digital music. Finally, users will have more choices and be convenient in the music consumption by the value innovation, and enjoy rich high perceptual music experience.