Distribution Structures and Channels are now in a great state of flux characterised by the simultaneous presence of three different models:Old-fashioned ‘conventional’ distribution of products down a tiered channel involving distributors and retailers; Hybrid forms of distribution for most products, based on mixture of digital and ‘physical’ methods; All-digital distribution, where no physical distribution and retail outlets are involved
The precise distribution mix on the ground is heavily dependent on the type of Product or Service being sold. The boundary between Products and Services in Digital Markets is also starting to blur, driven by changes in Technology, Products and Business Models. The mix also reflects differences in regional and national environments, characterised by infrastructures, business practices and consumer behaviour and expectations.
Warner Brothers Entertainment will release its films online in South Korea before they are released in the country on DVD, in a major break from the established Hollywood distribution model which could lead to a big increase in movie downloads. The film studio, which is part of Time Warner, has targeted South Korea because it has very high broadband penetration. It hopes that releasing films online first will cut down on the very high levels of DVD piracy in South Korea.
Sarita Jones, 15 October 2008
Sony Corp and Bertelsmann AG have finally reached agreement on Sony buying Bertelsmann's 50% stake in Sony BMG for $1.2 bn. The company will now be called Sony Music Entertainment Inc. and will become a wholly owned subsidiary of Sony Corporation of America. Sony and Bertelsmann AG originally...
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Sarita Jones, 21 July 2008
The Carphone Warehouse Group PLC and Best Buy Co., Inc. have agreed to form a new venture to accelerate their growth by capitalising on the European consumer’s evolving appetite for consumer electronics. The Carphone Warehouse is proposing to contribute its retail business (which includes all...
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Reiko Uchida, 09 May 2008
As we progress through 2008, Google’s market capitalization stands at just over $150 bn, with revenues of nearly $15 bn, EBITDA of $5.62 bn, a trailing edge P/E ratio of 51.40, and $13 bn in cash at the bank. With some analysts forecasting a further rise in the share price, is this valuation...
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Uday Phadke, 29 February 2008
The Recorded Music industry is in decline despite the rise in Digital Revenues. Music publishing revenues have continued to grow slowly year on year, but recorded music revenues continue to fall as the rise in digital music fails to compensate for the fall in CD sales in all major markets. This...
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Reiko Uchida, 15 January 2008