E‐business models and consumer expectations for digital audio distribution

The purpose of this paper is to aim to evaluate to what extent present e‐business models for digital audio distribution meet the consumer's expectations.

The research method in this paper is particularly based on two empirical studies. In the first study, the supplier side was examined. In this context, 15 e‐business models in the German music market were identified, classified according to two criteria (type of compensation and dependency on the supplier or its technology) and analysed with regard to four aspects “type and volume of content”, “price of content”, “rights of use”, and “additional services”. To evaluate the identified e‐business models, the consumer expectations for digital audio distribution were analysed in a second study. Finally, the results of both studies were compared.

The paper finds that most of the identified e‐business models do not meet all of the fundamental consumer expectations. Either the identified category of e‐business models and its characteristics (e.g. dependency on technology) lead to a conflict with regard to the expectations of the consumers, or the implemented e‐business models reveal discrepancies between the concrete offer and the demand.

The results in the paper are limited to e‐business models for digital audio distribution in the German music market.

The paper shows that, in order to reach more consumers, most of the existing e‐business models have to be modified.

Based on two empirical studies, this paper presents the state‐of‐the‐art of the digital audio distribution in Germany and systematically identifies gaps between the demand and the supply side of digital audio content.