Creating a framework for business models for digital content - Mobile music as case study

This article examines and categorizes potential business model scenarios for digital content. The digitalization of goods like music and other content types leads to market uncertainties. As a result, offering parties on the supply side may not be able to sufficiently privatize it. On the demand side, due to changing cost structures for digital goods, consumers may not be willing to pay directly for any such goods. Therefore, enterprises are forced to develop new business models to respond successfully to this new market situation. Firstly, definitions of business models for digital content and its important role in the strategic context of companies are being defined and examined. Following, we will point out challenges resulting from selling digital content in the digital net-economy, using the example of mobile music. Based on the above assumptions we will examine the market for mobile music and categorize four different types of viable business models. In the first type, mobile music is used to promote the traditional offline business. The second category proposes a model in which consumers are willing to pay for additional services to access mobile music. The third and fourth scenario significantly differ from the previous two, as music providers are considered to protect their content by using digital rights management technologies. While in the third scenario, consumers access content using subscription systems, in the last category, secure peer-to-peer technologies (super-distribution) enable consumers to share and recommend copy-protected songs. The paper concludes with an analysis about the success of business models for digital content.