E-Commerce
Business Models and Online Music
Distribution, cont.
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Business Models - E-Commerce - Lecture Slides, Slides of Fundamentals of E-Commerce
Students of Communication, study E-Commerce as an auxiliary subject. these are the key points discussed in these Lecture Slides of E-Commerce : Business Models, Online Music, Distribution, Information Products, Existing Business, Fee Models, Singletransaction, Purchase, Serial Transaction, Electronic Use
Typology: Slides
2012/2013
1 / 12
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E-Commerce
Business Models and Online Music
Distribution, cont
Existing Business Models for
Information Products
-^
Fee models: Subscription purchase, Single-transaction purchase, Single-transaction license,Serial transaction license, Site license, Paymentper electronic use
-^
Advertising models: Combined subscription andadvertising income, Advertising income only
-^
“Free” distribution models: Free distribution (nohidden motives), Free samples (
e.g.,
coming
attractions), Free first version, Free informationwhen you buy something else (complementaryproducts, bundling).
Discussion Points
What should the Bertelsmann-Napster business model be? *Why does Bertlesmann need P2P?? They could have more
control and possibly higher quality by “serving” musicthemselves. *Are DRM (and, more generally, TPS) and P2P (particularly
Napster) antithetical?
-^
What does the subscription fee ($15/month?) entitle thesubscriber to?
-^
Are they critically dependent on technical protection? (Ifso, they may be in trouble…)
-^
Why can’t someone else develop equivalent P2P softwareand steal Napster’s user base? (Recall IE and Netscape.)Are users concerned about copyright law?
“Daft Club” Model
Purchase Daft Punk CD and you also get a “personalizedcode” that gives you access to the Daft Club server. Fromit 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 thatsays they can’t be copied. Almost surely circumventable,but would many people bother circumventing?
“Street Performer” Model
Novelist gives chapter 1 to publisher and promisesrest of book after she is paid $X.Publisher posts chapter 1, collects payments, issuessigned receipts to customers (“donors”?).If publisher collects $X+Y, he gets rest of book fromnovelist, posts it, gives $X to novelist, and keeps $Y.If he collects less than $X+Y, he sends refunds tocustomers. Also, if novelist doesn’t deliver rest ofbook, she gets bad publicity
and customers get refunds.
“Street Performer” Model
(Cont.)
Many variations:
- New author gives first book away• Non-anonymous big donors• Some publishers “edit” and choose, and
some don’t
- Famous authors don’t have to deliver
chapter 1 in advance
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.)