Nic Jenkins Mike Boring. History Online music started to become popular in the 1990’s Started with file sharing companies like Kazaa Legal issues led.

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Presentation transcript:

Nic Jenkins Mike Boring

History Online music started to become popular in the 1990’s Started with file sharing companies like Kazaa Legal issues led to consumers looking for legal and cheap or free ways to access music online

iTunes Store Since 2003, over 10 billion songs have been downloaded from the iTunes store Apple says that it makes little profit from purchases at their online music store Apple recently announced that they would be taking a 30 percent cut of subscription fees from their online store, criticized by the industry as too much

Online Subscription Services Websites like Pandora, Spotify, and Rdio offer online music streaming for free, as well as offer paid versions that offer higher quality music with no advertisements Pandora filed for IPO in February to raise $100 million

Criticism While Pandora and Spotify are growing, critics are worried that they will not get enough paying users since they offer a free version Others are worried that they will be overfunded, and like the dot com bubble in the early 90’s they will not be around long

Relation to Class Personal Selling -Although not in person, all of these companies offer mobile apps, putting their service literally in the hands of consumers Source Factors -While these are all great ways to get music, they get looked over for free file sharing services

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