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The digital music format is here to stay and is fast becoming the preferred product choice for music customers (Blockstedt, Kauffman, Riggins 2004).
1. Apply the value chain and competitive forces models to the music recording industry.
U.S. retail sales of recorded music dropped from $13Billion in 1999 to $10.6Bn in 2003 (Keagan 2004), while the popularity of digital music has grown. Meanwhile, Apple ?iTunes' customers grew from 861,000 in July 2003 to 4.9 million in March 2004 (Borland and Fried 2004), reflecting digital music's new role as a "strategic necessity" of the music industry. Analysts predict that in five years 20% to 33% of all music sales will shift from CDs to digital distribution (Keagan 2004)...
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