Download Business Models - E-Commerce - Lecture Slides and more Slides Fundamentals of E-Commerce in PDF only on Docsity! E-Commerce Business Models and Online Music Distribution, cont. Docsity.com Existing Business Models for Information Products • Fee models: Subscription purchase, Single- transaction purchase, Single-transaction license, Serial transaction license, Site license, Payment per electronic use • Advertising models: Combined subscription and advertising income, Advertising income only • “Free” distribution models: Free distribution (no hidden motives), Free samples (e.g., coming attractions), Free first version, Free information when you buy something else (complementary products, bundling). Docsity.com “Daft Club” Model Purchase Daft Punk CD and you also get a “personalized code” that gives you access to the Daft Club server. From it you get: – Ability to download a new Daft Punk “bonus track” each month. The bonus tracks are not released on CDs. – Access to the rest of the Daft-Club user community. Bonus tracks will be wrapped with DRM metadata that says they can’t be copied. Almost surely circumventable, but would many people bother circumventing? Docsity.com “Napster++ as Superdistribution” Model (Napster--??) • Napster users pay monthly subscription fee. • They can download DRM-wrapped songs from Bertlesmann server. (And other labels if others also settle.) • When they redistribute via P2P file sharing, they get rebates on their next month’s subscription fees. DRM system keeps track. • They retain the chat-room, “Napster community” network effects. Again, probably circumventable. But is there a price point at which circumvention would not be worth it? Docsity.com “Street Performer” Model Novelist gives chapter 1 to publisher and promises rest of book after she is paid $X. Publisher posts chapter 1, collects payments, issues signed receipts to customers (“donors”?). If publisher collects $X+Y, he gets rest of book from novelist, posts it, gives $X to novelist, and keeps $Y. If he collects less than $X+Y, he sends refunds to customers. Also, if novelist doesn’t deliver rest of book, she gets bad publicity and customers get refunds. Docsity.com Notable Business-Model Components + Buy one song at a time (cheap!) ? “Lock” content to user. - “Lock” content to device(s). - “Play k times.” ( + / ? / -: Just my guesses.) Docsity.com Revised Schedule Jan 23: First HW Assignment Due Feb 1: Second HW Assignment Due Feb 8: First Hour Exam Feb 22: Optional Final Project/Paper Description Due Mar 1: Third HW Assignment Due Mar 27: Fourth HW Assignment Due Apr 3: Second Hour Exam Apr 19: Final Paper/Project Due Docsity.com Reading Assignment for February 15 and 20, 2001 Chapter 6 of The Digital Dilemma http://books.nap.edu/html/digital_dilemma/ Benkler and Lessig’s Amici Curiae Brief in Universal v. Reimerdes. http://www.eff.org/IP/Video/MPAA_DVD_cases/ 20010126_ny_2profs_amicus.html Docsity.com
