Trends Report

The Global Landscape Of Online Music Stores And Services

April 17th, 2009
Sonal Gandhi
With contributors:
Mark Mulligan , Erik Hood


Given the decline of physical stores along with physical media, online music stores and services represent the future of music commerce. Although iTunes leads in most markets on either side of the Atlantic, the online music landscape has become very competitive. Sites are "outbuilding" each other with features such as collaborative filtering to recommend music and editorial content to increase engagement. While cheap prices and DRM-free content are important, digital buyers also value a large selection and the ease of use of the site. Product strategists need to have the right competitive strategy to go up against Apple and must prioritize feature improvements if they are going to be in the à la carte game at all.

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