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Future of the Recorded Music Industry (Part 3): Out of the Darkness, into the Light
Generator Research Limited, Sep 2007, Pages: 34
-Ten System-V Services
-Distribution: Supply Chain
-Retail Strategy
-Revenue Leverage
-Developer Community
-Security and Privacy
This report is a blueprint for a completely new music industry, which we have called System-V.
Unlike the current music industry, System-V would be perfectly aligned with consumer behaviour and with the powerful forces of technological change. Today, these trends are slowing destroying the music industry but, with System-V, we show how they could be harnessed and used to generate a new category of revenue that could be enjoyed by record labels and music publishers.
The music industry’s problems are so profound that a major rethink is required. Concepts that the industry has held dear for decades now seem increasingly redundant. The industry’s value chain, its approach to pricing, the underlying infrastructure, the role of copyright and even the industry’s core commercial model and its value proposition all need a radical rethink.
In a System-V world, music would be provided for free. Uncontrolled copying and sharing would be encouraged and DRM would be removed. System-V is not a rental model and users do not buy music. Existing copyright laws as they apply to sound recordings would be redundant.
A thriving developer program would be a critical component of System-V. Developers, entrepreneurs and established companies would be encouraged to create new, value-added applications, products and services that incorporated music, but they would not have to pay the music industry anything.
The System-V API would provide access to a wealth of information about the world’s consumption of music and allow third parties to develop broad range of new products, applications and services that would draw users and others into the System-V ecosystem.
This report describes System-V in detail by covering aspects such as the underlying strategic rationale, business considerations, infrastructure requirements, operational aspects and enabled user services.
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