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Digital Music
ELASTICITY
According to our researches, the price for the download of the songs has changed in the year 2009: until 2008 the price was of 0,99$ then it grew up to 1,29$.
From that moment up to now the price hasn't changed although the demand is always growing year after year.
In conclusion the demand is extremely elastic.
($)
(Billions)
Although iTunes Music market is a restricted one (concerning only Apple devices) it's in continuous spread.
The graphic shows a strict growing up due to technology development.
Spotify offers two different ways of approaching to the digital music service: it makes available two different kind of subscriptions (of different prices), moreover of different time duration.
Pandora is the most appreciated
radio-streaming service all over America and the one with the highest revenue.
It's not available all over the world because of license issues.
SUPPLY AND DEMAND
Factors which influence the supply:
Digital music was born at the end of the 90's and has quickly rised due to the technological development.
- Low production costs because of technology development
- Competitiveness growth
- Global view
- Everywhere anytime
The expression "digital music" is referred to the streaming and download services of tracks which are recorded and uploaded on the web.
Hence the difference between the physical market of music and the digital one.
Digital music revenues has grown up during the last years
Factors which influence the demand:
- We can have the product immediately
- There isn't usury
- There has been a growth of complementary market of the headphones and smartphones
- Piracy
- Extensive substitutes' market
The global distribution of the new way of listening is not equal as the Statista researches show.
In the previous year there was a gap between streaming and download:
- in Asia the streaming rose of 5,7% while the downloads of 2,1%
- in Europe the streaming rose of 43,1% while the downloads fell down of 11,8%
- in America the streaming rose of 46,6% while the downloads fell down of 12% .
The majority of people approaching to this new way of listening to music are young.
Since 2009 songs' price hasn't changed through the years, despite of this there are three price ranges which the record companies choose to offer to the users, who have reserve price higher than the price proposed.
Supply
Demand
Edited by
Abbundo Chiara
Avizzano Gianluca
Balzano Mariaconcetta
Cannavacciuolo Stefano
Cicala Carla