How Can Music Majors Increase Their Success in the Market for Over-the-Air Downloads?—The Case of Germany

Andreas Konig, Albrecht Enders, Harald Hungenberg, Markus Rohrig
2006 JMM - The International Journal on Media Management  
Music majors, who have been suffering from dwindling revenues in their core business, are placing extraordinary hopes on the new market of Over-The-Air(OTA)-Downloads. However, until now there has been no broad academic discussion about this market. In particular, two central questions have not yet been addressed: (1) which factors influence the success of music majors in the OTA-Download market, and (2) how can music majors increase their success in this market? In order to answer these
more » ... ns, we employ a holistic research approach, which combines an economical and a sociological perspective. We first identify the drivers for the success in the OTA-Download market and analyze these factors in one large-scale survey (n=1,780) in Germany and a series of expert interviews. Subsequently, we construct a mathematical Excel-based tool and apply data optimization techniques from operations research to derive the optimal mix of strategic measures that maximizes the success of music majors in the German OTA-Download market. Finally, we present recommendations for implementing these strategic measures. This explorative study provides a systematic understanding of the general factors driving success in any OTA-Download market. We, therefore, hope that it will be relevant for both German and international scholars and managers. Success in the Market for OTA-Downloads Success in the OTA-Download market Average contribution margin of an OTA-Download Cannibalisation effect
doi:10.1207/s14241250ijmm0804_4 fatcat:6mcbfxuzhzbn7ghvwf3ku5o5xy