dc.description.abstract | The last decade was the time when music downloading software was developed at the fastest rate. Technology advancement has changed the management model of digital music platforms. Given that the most important asset possessed by digital music platforms is digital content that is mostly controlled by music companies, the success of managing digital music platforms lies in close cooperation between platform operators and music companies. Due to the prevalence of digital music, innovative services that integrate downloading software with on-line music platforms have led to successful breakthrough from stagnated music sales and to the change of value chain in music industries. The close ties between music companies and platform operators have enhanced the competiveness of the overall digital music industries.
This research reviews relevant literature and analyzes the management model, creation of potential e-business value, and key success factors. KKBOX and Apple iTunes Music Store, the two most representative digital music platforms at home and abroad, are taken as the case study. The two companies’ differences in management model and process of creating potential e-business value are examined. From the perspective of value chain, Resource-Based View, Schumpeter Innovation Theory, Transaction Cost Theory, and Strategic Network Theory, this research investigates the two companies’ competition strategies and makes a conclusion on key success factors.
The results indicate that the two case companies both strive for alliance with music companies to enrich digital music platforms with a variety of content. By trying different resource integration techniques to provide clients with excellent user experience, the two companies fix mistakes and build a successful business model. The key factors for successful digital music platforms are categorized into Digital Content, Management Model, Brand Value, User Experience, and Excellent Services. The two case companies both actively move toward these areas in hope to make a breakthrough and benefit the companies.
This research also discovers that innovative strategies are needed in managing digital music platforms. Business opportunities can be created through localized strategies that satisfy the local needs, maintenance of existing strengths, and expansion of overseas market presence and cross-industry cooperation. | en_US |