Product details

The case deals with iTunes, an Internet-based music retailing service launched by Apple Computers in early 2003. It provides detailed information about the changing dynamics of the music industry and analyses the circumstances that led to the emergence of the on-line music distribution business. It also examines the impact of on-line music services on the industry in light of the problem of growing music piracy. The efforts made by several companies to launch legal services, and the reasons for their failure, are explored. The case then describes how Apple''s iTunes provided a viable solution to the problems faced by the music industry and the customers. Finally, the case discusses the challenges facing iTunes, and its future prospects, in light of Apple''s decision to launch its Windows version. The case is structured to enable students to: (1) understand the structure and functioning of the music industry and analyse the evolving dynamics of the same; (2) examine the different modes of on-line/digital music distribution and their respective advantages and disadvantages; (3) appreciate how technological developments impact the functioning of an industry and analyse the ways in which companies can react to the changing scenario; (4) examine the steps taken by the music industry to tackle the problem of music piracy due to digital music distribution; and (5) examine why several on-line music distribution services failed before the launch of iTunes and the reasons for the growing popularity of iTunes. The case is aimed at MBA/PGDBA students, and is intended to be part of the strategy and general management curriculum. The teaching note does not contain an analysis of the case.