WORK SHOP GUM Music Company

TIME TO STEP UP OR BELLS WONT RING NO MORE

Group 4
Ashish Rathi 13P200
Ganapathy Subramaniam R 13P074
Dipesh Agarwal 13P073
Buddhadeb Chakraborty 13P017
Nitin Dangwal 13P094
Karthic S 13P147
Revenue Woes
Headquartered in California
USA
OVERVIEW
GUM Record
Company
Recorded
Music
Music
Publishing
Merch -
andising
One of the oldest & Worlds
Largest Music Company
Leader- Recorded Music,
Publishing Merchandising
Marketing & Distribution
offices across the world
Industry Woes Revenue fall -25%
(from 2004 to 2008) Decline in sales
of physical Media Digital Media pie
is enjoyed by new players

Structure
Industry Woes
Current Business Model
becoming Obsolete
Multiple Challenges
supplier & customer
Unable to keep up with
innovation in industry
GUM Music Company
Creation Development Packaging Marketing Distribution Consumption
VALUE CHAIN ANALYSIS -CHALLENGES
Artists by
passing
traditional
music
companies
Launching
music on
platforms like
iTunes

Increase in
demand for
customized
music selection
This makes the
model of
making one CD
through one
artist obsolete
Consumer has
an option of
buying single
songs online
Consumer
looking for
customized
solution
incompatible
with the
current model


Artists
establishing
direct
consumer
connect
through
YouTube

Online music
distribution a
threat to
traditional
business model
Music Piracy
constitutes a
huge leakage in
the distribution
Proliferation of
online music
streaming
websites like
YouTube
Online Radio is
a threatful
substitute
Internal
Rivalry
Customer
Substitutes
Supplier
New Challenges
Substitutes: Radio, online streaming
Supplier: Artists going on their own
Threat of New Entrants: Innovative
business model like iTunes

Traditional Challenges
Customer: More choices, less
attention Span
Internal Rivalry
Threat of New
Entrants
Online Distribution
New age competitors are
leveraging internet to provide
flexible solution to customer
Existing Brick & Mortar system
incompatible with the new
business models

Music Piracy
Piracy results in leakage in the
potential revenue
Worldwide phenomenon, difficult
to pin point the source of piracy
Songs available for free on
YouTube and other streaming
websites
Business Model Obsolesce
Unable to keep up with the
innovation in business model
New Pricing Models are giving
tough challenge
Per Unit Pricing & Ad funded
Models
KEY CHALLENGES
Thank You