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  • August 1999 (Revised October 1999)
  • Case
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RCA Records: The Digital Revolution

By: Jeffrey F. Rayport, Carin-Isabel Knoop and Cate Reavis
  • Format:Print
  • | Language:English
  • | Pages:22
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Abstract

In 1995, Bertelsmann-owned RCA Records was considered a "tired and old" record label. By 1999, the company represented a number of the "hottest" acts in the music industry. Nevertheless, the company's position (as well as that of the entire music industry) was under attack. Retail and radio consolidation, an escalating number of product releases, increasing marketing costs, and new technology (that enabled musicians to market and sell music direct to consumers via the Internet) were reducing margins generated by physical product. With the new technology came new competitors that appeared to offer artists more creative and financial freedom. While this case highlights the turnaround of RCA Records, it focuses more on the challenges CEO Bob Jamieson and general manager Jack Rovner faced amidst these industry threats. They needed to decide whether their current business model would provide them with continued growth or if the company needed to change its strategy.

Keywords

Brands and Branding; Business Model; Competition; Corporate Strategy; Internet and the Web; Change Management; Marketing Strategy; Music Industry; Entertainment and Recreation Industry; United States

Citation

Rayport, Jeffrey F., Carin-Isabel Knoop, and Cate Reavis. "RCA Records: The Digital Revolution." Harvard Business School Case 800-014, August 1999. (Revised October 1999.)
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About The Author

Jeffrey F. Rayport

Entrepreneurial Management
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