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  • February 2008 (Revised February 2019)
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MP3 Portable Audio Players and the Recorded Music Industry

By: Willy Shih
  • Format:Print
  • | Language:English
  • | Pages:19
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Abstract

The emergence of the MP3 file-based music format not only disrupted the market for portable audio players, it also impacted the business models of major record labels. Modularity, and the commoditization spillover enabled by modularity in the personal computer industry, was a major force in the development of the market. While Apple's iPod held a dominant market position, new forces of commoditization continued to drive shifts in the value chain. The case examines the commoditization cycle and contrasts integrated solutions such as the iPod-iTunes software-iTunes Music Store with emerging competition from other MP3 players and the ultimate shift towards streaming.

Keywords

Recording; Digital Devices; Digital Media; Digital Music; Digital; Digital Economics; Consumer Electronics; Customer Value and Value Chain; Disruptive Innovation; Technological Innovation; Information Technology; Music Industry; Technology Industry; Electronics Industry; United States

Citation

Shih, Willy. "MP3 Portable Audio Players and the Recorded Music Industry." Harvard Business School Case 608-119, February 2008. (Revised February 2019.) (These are the new exhibits.)
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About The Author

Willy C. Shih

Technology and Operations Management
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Related Work

    • February 2008 (Revised February 2019)
    • Faculty Research

    MP3 Portable Audio Players and the Recorded Music Industry

    By: Willy Shih
Related Work
  • MP3 Portable Audio Players and the Recorded Music Industry By: Willy Shih
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