While music industries are still fighting for piracy, some major labels are finally realized they should change the value stream. Music business is no longer can’t rely on per CD / track sold. There should be another way. Like SonyBMG Indonesia, It seems they are freely distributing videoclips for Indonesian Market. User like me can easily enjoy the music without paying any Rupiahs. Then how the industry keep making money from their products?

In the last three years, the usage of Ring back tone has significantly increased. It’s very amazing growth and surprisingly making money. Music is sold not just from CD / Cassetes, but from RBT / i-Ring / NSP, etc. Even in more expensive price, image that one short track is priced round Rp.5000,- to Rp.10.000,-. Let’s compare if you buy for full tracks CD Album for only Rp.40.000,- contains for 10 tracks minimum.

Yes, the key is industry must response to market behavior changing. For consumer products perhaps it can be forced by the major player. What about business market? We should search for any new potential value chain, rather than keep focusing on traditional channel.

Just like Newspaper or any popular Magazines, the price you pay for each exemplar is not to cover the COGS but to pay the distribution fee from the publisher through media agent, and finally right on your hand. Business like newspapers automatically generate Corporate Social Responsibility by enabling poor children to sell the newspaper for attractive profit.

Turn your value chain into more inovative way. Research for your market and also potential market. Hopefully you’ll become the Pioneer in industry. The steps are on youw own, but the key is you must think out of the box and execute it inside the box.

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