Music Downloads :Is the Price Right

1
Music Downloads Is the Price Right?

• A federal panel will decide if Apple , Amazon and
  the like should pay higher royalties to music
  publishers. But 99 songs likely arent going
  anywhere

Financial Engineering and Computation Lab. ???
2
Outline

• Contents
• Analysis
• Conclusion
• In Taiwan

3
Contents

• primary role
• online music distributors(Apple?EMusic?Amazon.com
  , etc)
• music publisher(represent creators of song lyrics
  and sheet music)
• record labels(EMI?Song BMG)
• Online music distributors should pay higher
  royalty fees
• 9 pennies (as same as the CD) ?15 pennies
• (increased in 66)

4
Analysis
Incomes CD?online

• Result
• Record labels absorb royalty increases at least
  it could strike new accords with online music
• Then , online music distributors will rise the
  price to cover it increased cost

5
iTunes Music Store

• Sales of iPods and iPhones
• They would not continue to operate the iTunes
  Music Store
• Consumers may go to the other way , which is free
• Economics

6
Conclusion

• Music Publishers
• More consumers access music over the Web and
  eschew CD
• They decide not to increase.

7
In Taiwan

• Legal download
• KKBOX
• ezPeer
• environment

8
My opinion
?
9
My opinion(2)

• Attractive
• Increase price

10

• Thanks for your listening