Subject category:
Strategy and General Management
Published by:
Harvard Business Publishing
Version: 13 September 2005
Length: 18 pages
Data source: Field research
Abstract
Examines RealNetwork's (Real's) strategy for the rapidly emerging on-line music market. In contrast to rivals who sell individual copies of songs, Real offers on-line music on a subscription basis. For a $10 monthly fee, subscribers to Real's Rhapsody service have unlimited rights to stream all songs from a 600,000-title library to any PC and can burn CD copies of these songs for 79 cents apiece. Real faces significant marketing challenges in persuading consumers to 'rent' rather than own their music. The company must decide which channel partners - broadband access providers, consumer electronics retailers, PC manufacturers, or portals - are best equipped to help sell its services. Finally, Real must determine how to differentiate its services from those soon to be offered by a glut of new competitors poised to enter the on-line music market, including Wal-Mart, Viacom, Sony, Dell, and Microsoft.
Location:
Industry:
Size:
744 employees, USD200 million revenues
Other setting(s):
2004
About
Abstract
Examines RealNetwork's (Real's) strategy for the rapidly emerging on-line music market. In contrast to rivals who sell individual copies of songs, Real offers on-line music on a subscription basis. For a $10 monthly fee, subscribers to Real's Rhapsody service have unlimited rights to stream all songs from a 600,000-title library to any PC and can burn CD copies of these songs for 79 cents apiece. Real faces significant marketing challenges in persuading consumers to 'rent' rather than own their music. The company must decide which channel partners - broadband access providers, consumer electronics retailers, PC manufacturers, or portals - are best equipped to help sell its services. Finally, Real must determine how to differentiate its services from those soon to be offered by a glut of new competitors poised to enter the on-line music market, including Wal-Mart, Viacom, Sony, Dell, and Microsoft.
Settings
Location:
Industry:
Size:
744 employees, USD200 million revenues
Other setting(s):
2004