How Digital Distribution Has Changed Traditional Retail
The wonderful world and concept of Digital Distribution has completely changed the way we experience many things nowadays, but how does it affect traditional retail businesses? The rise of online distribution has provided controversy for the traditional business models and resulted in challenges as well as new opportunities for traditional retailers and publishers.
Digital Distribution covers a wide range of things, but the main ones are music, movies, video and video games. Sites such as Netflix have essentially revolutionized the way we watch movies nowadays, giving a busy person the option of not having to go out to a cinema and watch it or buy a physical copy, instead they can simply purchase and watch it from the comfort of their home with minimal effort even required.
Music not too long ago was confined to CDs and physical copies, and now many a business offer practically endless amounts of songs on their online services. The transition into the online space has boosted sales, and profit for some artists. It has also allowed for potentially lower expenses such as lower coordination costs, lower distribution costs, as well as the possibility for redistributed total profits.
These lower costs have aided new artists in breaking onto the scene and gaining recognition. In the past, some emerging artists have struggled to find a way to market themselves and compete in the various distribution channels. The Internet may give artists more control over their music in terms of ownership, rights, creative process, pricing, and more. In addition to providing global users with easier access to content, online stores allow users to choose the songs they wish instead of having to purchase an entire album from which there may only be one or two titles that the buyer enjoys.
The number of downloaded single tracks rose from 160 million in 2004 to 795 million in 2006, which accounted for a revenue boost from US$397 million to US$2 billion.
While most people enjoy a good physical book, the advantages of online e-books and audiobooks cannot be understated, the phenomenon of books going digital has given users the ability to access their books on handheld digital book readers and other handheld devices which is widely available today. One benefit of electronic book readers is that they allow users to access additional content via hypertext links. These electronic book readers also give users portability for their books since a reader can hold multiple books depending on the size of its hard drive.
Companies that are able to adapt and make changes to capitalize on the digital media market have seen sales surge, which in turn is actually a good thing and beneficial for them.