3 Should the industry adopt Internet marketing such as the strategy of Apple Computers iTunes Music Store
Question:
3 Should the industry adopt Internet marketing such as the strategy of Apple Computer’s iTunes Music Store which sells downloaded songs for 99 cents? An alternative might be selling MP3 players preloaded with an artists music together with cut-rate options to all future works. For example, Michelle Shocked might enter into a partnership with Apple to sell preloaded iPods for a premium of $50 over the costs of an empty iPod.
Since Shocked has produced over 100 songs, the costs per track would be a nominal 50 cents.The rights to all future tracks could also be sold for the same 50 cents.Thus, if Shocked produced a CD with sixteen tracks that might sell for $15.99, those who bought the preloaded iPod could own the tracks from only $8.Would this scheme work? Would you consider it yourself?
Step by Step Answer:
International Marketing Analysis and Strategy
ISBN: 978-0415311335
4th edition
Authors: Sak Onkvisit, John J. Shaw