In recent years, digital music and the revolution of digital transmission technology has a great impact on the way of traditional music industry operation. Based on the recent statistics and research, the digital music market is growing at double-digit rate and the consumer demands are also increasing day by day. Since Apple introduced the iTune “pay for downloading music” concept and gained the exclusive right from many record companies, the successful business model has resolved the problem of the legitimation of downloading music online. Therefore, compared to the previous ambiguous situation, the record companies have developed and negotiated the business models of developing the MP3 music, copyright allocation and the music royalty distribution standard. In addition, many companies have also started participating in their niche markets. However, since there are many different methods of getting music from Internet, what should kinds of marketing strategies be able to acquire more customers, how can the record company, regulations and consumers are able to benefit from online music downloading, and how should online music downloading in Taiwan operate comparing to the overseas market?
This thesis analyses different cases and applies the case study operation strategy and motivation of entering into digital market, combining with STP market analysis and marketing combination to discover the marketing strategy of entering into the digital music industry. It works by not only improving the current services but also being able to use as an important guideline for potential investors entering into the online music industry. In order to study the Taiwan marketing strategy for the online music download, I took the case study as my major research methodology. Throughout this real case, I analyzed its strategy by using STP market analysis and its marketing combination. The result can be used for the future improvement as well as the basis for the company that plans to enter this market.
In the end, the research will propose some recommendations based on innovative services and the price war strategy. We find that differentiation will be the key factor that can be applied to all competitors. When the online music business learns different experiences from time to time, they will not only establish a large and complete music search index, but they will also develop more attractive ordering method in order to help the consumer get the digital music online at less costs and in a more convenient way. Moreover, the establishment of the brand and customer loyalty is also a critical issue to succeed in the online music industry.
Finally, the intellectual property and legislation of using the music is also the urgent problem needed to be solved. On the other hand, how to educate the consumer to download and to use online music legally will still need more efforts from the IFPI and governments.