In this study, it is aimed to investigate the business dynamics of a hypothetical record company. The recent declining trend in musical industry in many countries has brought up the issue of free sharing of musical content. A system dynamic approach was taken to imitate a setting where there are both legal and illegal ways of obtaining an album. Special attention was paid to the self-marketing effect of the musical content present in the market. The life cycle of a particular album that is assumed to have a high potential of being popular is simulated. Despite the outstanding self-marketing effect of the shared content, the record company’s profits decrease following the decline in sales due to diversion of people to illegal ways of obtaining the album in the mid-phases of the life cycle. Scenario analyses showed that the company’s benefit from free sharing depends on how the increasing illegal content affects the market. If the diverting effect of illegal content is low, the demand generated is realized as legal sales to a satisfactory extent and thus the company actually profits.

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Date created

• 2008 July 20-2008 July 24

Type

• Document

Processing Activity

• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

License

• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
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ITEM CONTEXT

Part of

6cbae5a21467df4434abbc87da443217

Scope and Contents

Part of

ce498623f0349395d0a141a0525190a0

Scope and Contents

Part of

23d738ba88f8333bc39725f9cb5bd0b8

Scope and Contents

Collection

System Dynamic Society Records

Scope and Contents

Collecting area

• This collection is part of the University Archives