Music Industry in need of new Business models

The music industry has clearly changed. The music industry has turned digital. That’s a fact. Traditional models do not apply anymore. Distribution rules shifted towards online channels. The main distribution of music comes in digital formats through digital environments. The industry is in need of new business models. A few years ago, Trent Reznor, the mind behind the band Nine Inch Nails, decided to change the rules. He left the big record companies, and decided to distribute the band’s albums through their website, for free! However, he managed to create strong bonds with the fans and offered exclusive offers to make the traditional formats of the album more attractive.

Another example discussed in class relates to the pricing methods followed. Radiohead, an English rock band from UK, decided to work interdependently and self-released their seventh album, In Rainbows (2007), as a digital download for which customers could set their own price. The Radiohead experiment set new standards for the industry.

Successful or not in terms of profits, these approaches showed that the future of music business is based on different dynamics between b(r)ands and consumers. All aspects of the value system have changed and new models need to be implemented.

Dimitris T.

Online Grocery Shopping: Current practices and a glance of the future

Inspired from the Tesco case we discussed last week in class, I would like to share two videos related to Tesco and the technologies that the company pursues. One of the distinguishing approaches that made Tesco quite successful was the introduction of Online Grocery Home Shopping. The idea is pretty obvious and straightforward, they reallocate some of consumers’ effort needed (to come to the store and carry the shopping back home) to their processes (hand pick the items you want and deliver them at home). Actually, it may be strange to a lot to use such a system, but although in theory the company loses the retail impulsive behavior of some consumers, they have a very interesting channel to apply all their services, their offers, personalized to the fullest. See how it works:


In addition, we also talked about the recent developments in Tesco: Mobile Apps. Whether that is in a metro station while waiting (see an example here), or just by scanning a barcode of every item you hold, in any place, at any time:

However, when talking about these new technologies, we also have to take into consideration, who the target group is, and what may the reactions be (see for example the response of the person in 1:25). Interesting to see whether this will indeed be teh fitire of shopping!!

Dimitris T.


Volvo Likes You!

We’ve recently been talking a lot about using social media to promote a brand. The UnME jeans case is just one example of the various discussions we had. Many of us think Facebook is a great way to promote a brand. Companies create their own Facebook page on which they interact directly with their customers who can “like” the page.

This is the way most companies do it, but Volvo decided to do things differently. Instead of liking Volvo, they decided to like you!

Around 10,000 love notes where distributed among Volvo drivers asking them to receive a personal tribute on Facebook. All that Volvo drivers will have to do is leave their license plate number and they will receive a personal tribute. This campaign is supported by an online film showing several Volvo drivers that got a personal tribute from Volvo (it’s in Dutch but you will get the ideal).

I think that this is a nice way to not only do things differently, but also gain some attention and honor your customers.