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What is Digital Music??
Market Situation
Market Situation
Global Share of Digital Music Sales
2012
India 1%
Sweden 1%
South Korea 2%

Other 14%

Canada 3%
Australia 3%

USA 42%

France 4%
U.K. 9%
Germany 4%

Japan 17%
Global Share of Digital Music Service
2012
Other 15%

Amazon MP3
22%

iTunes 63%
iTunes music Store
Market Strategy
• Many song selection at once
• Excellent experience
• Simply buy songs
• One price song
• Special offer only at iTunes Store
Business Model: iTunes
Revenue Model
Apple Still Underpins the Growth of the Digital Music Market
iTunes 11.1 (Latest Version)
•
•
•
•
•

iOS 7 support
iTunes 250 Radio stations with no Ads (only in US)
Genius Shuffle
Personal Pod Cast
Improve a fault
Suggestion
• Desktop Software
• Limitation of user
• Social Media (Failure Factor)
Marketing Strategy
Support all platform >> Mass market
30 million songs & 70,000 music clips
Freemium strategy
Various services: free songs, paid songs, flat rate
Support system for simply using
Business Model: Xbox Music
Revenue Model
Subscription Fee

Advertise

Sell
User on
OS of
windows

Key Success

Services

Key Success

Cross
platform

Key Success

Key Success

Key Success Factor
30 mil
songs
and
videos
Not available in
every countries

Failure Factor

Failure Factor

Failure Factor
Mostly retain with
Windows 8
Suggestions
•
•
•
•

Desktop software
Worldwide
Social Media
Audio Quality
Marketing Strategy
Support system for simply using
Personalization
Share your songs to Google Plus
Access your music anywhere, anytime
20 million songs
No Ads annoying
Business Model: Google Music
Revenue Model
$ 9.99 / month
$ 25 / year
$ 0.99-1.29 / song

New artist
Available
on Offline

Key Success

Anywhere
Anytime

Key Success

Cloud
Storage

Key Success

Key Success

Key Success Factor
Unrestricted
download
Not available in
every countries

Failure Factor

Failure Factor

Failure Factor
Limited Platform
Suggestions
•
•
•
•

More platform
Worldwide
Feature
Personalization
Comparison
tracks
supported platform
service contries
music partner
lowest price/single

0

2
Google Music

4

6
Xbox Music

8
iTune

10

12
Conclusion
Discussion

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Digital Music comparative of business model: iTune,Xbox Music and Google Music