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The distributors, and distributing channels, have transformed from their traditional in-store structure, in the s, to streaming services nowadays. This transformation is directly related to companies trying to capture value to maintain, or create, their strategic advantage. Complementors Essays, during this transformation, the industry itself kept flourishing. Here is an analysis of how music intermediaries captured value; and competed-cooperated with their complementors to shape the music industry. Suppliers and Buyers Historically, the dynamics between music producers and distributers was of a correlation. Both sides needed each other to capture value and profit from the industry. Producers needed to market their products, and distributors needed creative contents to sell. However, it is more difficult for intermediaries to substitute suppliers producers.
Moreover, the artistic content of music, makes producers, and their clients, offer products that are unique Complementors Essays differentiated. Both above factors, contributes to the bargaining power of suppliers in the music industry.
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On the other hand, customers had no real power before the online shift of the music industry. Their only place to buy music was the traditional in-store outlets, like Virgin Megastores. The only other source for customers to buy music was illegal copying, until Napster introduced its P2P model. Customer gained power, and they had unlimited content available for Complementors Essays.
However, with the shut-down of Napster, intermediaries re-positioned themselves in the market through online stores Complementors Essays streaming services iTunes and Spotify for instance. Customers have alternatives now, but they are still in need of music because they are emotionally related to art.]
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