Newly vulnerable markets in an age of pure information products

An analysis of online music and online news

Eric K. Clemons, Bin Gu, Karl Reiner Lang

Research output: Contribution to journalArticle

57 Citations (Scopus)

Abstract

We describe the emerging competition between music companies and their star acts and the role of online distribution in this industry. We then contrast this with the lack of competition newspapers will face from their reporters, writers, and photographers, but identify other possible competitors for newspaper publishers. We examine what resources have previously enabled record companies to lock in their star acts and ways in which technology has altered artists' abilities to reach the market independently and thus their dependency upon record companies. We examine which resources have seen their value eroded in the newspaper industry and the remaining value that the newspaper company still creates, other than bundling stories, adding advertising, and printing and selling the papers. We consider what part of the newspaper business is vulnerable, if any, and where threats may arise. We combine the resource-based view of competitive advantage to examine which industry may have become newly easy to enter, and the theory of newly vulnerable markets to assess which industry may actually have become vulnerable as a result. Our analyses are then used to create a computer simulation model to make the implications more explicit under a range of assumptions.

Original languageEnglish (US)
Pages (from-to)17-41
Number of pages25
JournalJournal of Management Information Systems
Volume19
Issue number3
StatePublished - Dec 2002
Externally publishedYes

Fingerprint

newspaper
news
music
market
industry
Industry
resources
photographer
reporter
Stars
computer simulation
selling
simulation model
artist
Values
writer
Music
Information products
News
threat

Keywords

  • Electronic commerce
  • Music industry
  • Newly vulnerable markets
  • Newspaper industry
  • Resource-based competition

ASJC Scopus subject areas

  • Management Information Systems
  • Management of Technology and Innovation
  • Strategy and Management
  • Information Systems
  • Library and Information Sciences

Cite this

Newly vulnerable markets in an age of pure information products : An analysis of online music and online news. / Clemons, Eric K.; Gu, Bin; Reiner Lang, Karl.

In: Journal of Management Information Systems, Vol. 19, No. 3, 12.2002, p. 17-41.

Research output: Contribution to journalArticle

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