This document discusses e-business models for digital media content. It analyzes four categories of models (A-D) based on compensation type and supplier dependence. Category A uses pay-per-download independently of suppliers. Category B is also pay-per-download but depends on suppliers. Category C uses flat rates, while D uses commissions. The document also examines challenges, benefits, and requirements for rights management, consumers, and businesses regarding digital media distribution.
Learning about models of E-Business is made easy through this presentation. It contains the comprehensive information about models of E-Business. It helps the students to learn the concepts quickly with the help of examples. The models are presented with crisp explanation.
General information
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The Global NetworkISYS11862081Course BackgroundCourse.docxcherry686017
The Global Network
ISYS1186/2081
Course Background
Course Details
Course Name:
The Global Network
Course Code:
ISYS1186 (Postgraduate offering)
ISYS2081 (Undergraduate offering)
Credit Points:
12
Contact Details
Dr Huan Vo-Tran (Course Coordinator of F2F and Online Offering)
Email: [email protected]rmit.edu.au
Phone: +61 3 9925 1699
Location: Building 80, Level 9, Office 48
Availability: via appointment
Laki Sideris
Email: [email protected]rmit.edu.au
Phone: + 61 3 9925 8240
Availability: via appointment
Assessment
Total of two assessment tasks for the course.
Each worth 50%
Assignment Guide can be found on Blackboard under “Assessment Submission”
All assessment items must be submitted through Blackboard
Any extensions must be formally submitted using the correct forms as per RMIT policy.
All assessment items must be placed onto Turnitin for the detection of plagiarism.
All emails to be should have the course code in the header: ISYS1186 or ISYS2081.
The Global Network
The ‘spaces’ that this course will touch upon ....
The ‘wired web’ / Internet
Mobile web / mobile business
Social media / mobility
And other emerging communication technologies
The Global Network …
The course deliberately aims to be exploratory in nature
The primary questions
How will the changing network / mobility / social communication impact on your future work?
We will explore, debate and have fun looking at current and emerging trends
The Global Network ...
Wired web...
While initially a distributed computer infrastructure
Content quickly became a focus of WWW
The Global Network ...
Mobile communication
Initially established as a voice carrier
Focus was on
Technology
Different carriers
Standards
Devices
Content was secondary
Changes in network speed / devices / applications
See a shift towards
Mobile content
Mobile service
The Global Network ...
Social media / mobility
Mobile phone access to social spaces
Ad hoc mobile networking
Location aware / social tracking
Social media marketing
Social media training
Learning networks
The Global Network ...
What does this mean for:
Business?
Advertising
Customer contact
Service access and delivery
Broader society?
Location aware
Privacy
Social network / influence
Information access?
Portable information access
Screen design
Remote clients
E and M-business frameworks
Aims
Provide initial background on business concepts and models associated with electronic and mobile applications
Use this as a starting framework for ongoing focus associated with global communication developments
Electronic Commerce
Back to basics !
Language of electronic business…
E-business jargon
B2B:
Business to Business. Supply chain interoperability
B2C:
Business to Consumer. Main popular focus of e-commerce development
B2B2C:
Business to Business to Consumer: product/service is on-sold to the customer by a third part eg: travel agents selling airline bookings to a customer
E-business jargon ...
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This will be used as part of your Personal Professional Portfolio once graded.
Objective:
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The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
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1. Challenges:
1. managing the risks of the market developments (e. g., altered demand and increasing cost pressure)
2. making use of the full potentials of digital media content (e. g., multiple use and low distribution
costs)
Benefits:
Disney achieved a five times higher exploitation of rights related to the movie “The Lion King”.
Sony with its “Men in Black” using a traditional business model.
Apple was able to increase the sales of its “iPod” by implementing an electronic music store named
“iTunes”.
Questions:
1. What kind of e-business models are suitable to manage digital media content?
2. What are the key requirements for companies to be successful in the economical utilization of
copyrighted media content, especially in the Internet?
3. How do the present e-business models fulfil these requirements?
the management and enforcement of the rights on digital content,
the circumstances under which a consumer is willing to pay for the usage of media content and
the internal and economical requirements to realize efficient e-business models.
E-BUSINESS MODELS FOR DIGITAL MEDIA CONTENT
Traditional business models for media content are generally based on selling physical media or on free
consumption of content, financed by advertising revenues.
Over the last ten years, technical advances (e. g., MP3, CD writer or peer-to-peer networks) have enabled
the consumers to digitize, store, share, and modify the content quickly and cheaply on a mass scale.
there are lots of file sharing tools and peer-to-peer networks which help consumers to illegally copy and
share content for free, e. g., KaZaa, eMule/eDonkey, Filetopia, Gnutella Clients, or Morpheus.
two criteria:
1. type of Compensation, e. g., flat rate or pay per download (or usage) of digital media content.
2. dependency on supplier or its technology (composed of soft- and hardware)
Advantages of these Criterias:
E-business models based on “pay-per-download” and independent of technology of the supplier
The opportunity to buy single songs and not the whole CD.
The offer of additional services, e. g., a search function or the possibility to download music of unknown
artists for free.
The necessity of registration with personal data.
E-business models based on “pay-per-download” and dependent on technology of the supplier
2. The suppliers of these e-business models benefit from selling hardware components, because the offer of
digital media content advances it. Examples of this category are Apple iTunes and Sony Connect.
E-business models based on a flat rate
They only have to pay a low flat rate. The biggest problem of these suppliers is the acquisition of the
customers. Therefore the suppliers provide detailed information about their offer. For the advancement of
the offer, there are lots of additional services, e. g.:
• play lists
• individual administration of the collected media content
• information about the artists, the content or important events such as concerts
• communities
Examples of this category are Napster and Rhapsody.
E-business models based on commissions (named “Super Distribution”)
the customers can use the digital content without any restrictions.
In the future the customer’s acceptance will be the key success factor for these e-business models.
www.dorfdisco.de, www.bevision.de, or www.fredadrett.de.
RIGHTS MANAGEMENT FOR DIGITAL CONTENT
Digital Rights Management (DRM) came up, which was consuetudinary defined as “a type of server
software developed to enable secure distribution – and perhaps more importantly, to disable illegal
distribution – of paid content over the Web”
The combination of these technologies constitutes DRM systems which include the following functional
elements:
• Access control, which could possibly be supported by encryption.
• Use control, which could possibly be supported by rights expression languages.
• Handling of rights violation, which could possibly be supported by watermarks.
• Accounting (function in the widest sense), which could possibly be supported by rights expression
languages.
Microsoft Windows Media Rights Manager, Open Intellectual Property Management and Protection,
RealNetworks Helix DRM or IBM Electronic Media Management System.
“DRM covers the description, identification, trading, protecting, monitoring, and tracking of all forms of
usages over both tangible and intangible assets. …”
Business Rights Management (BRM)
The customer acceptance is one of the most important factors, which are critical for the success and
survival of e-business models for digital content.
Suppliers of e-business models of the category A use technology which controls the access and the usage.
Suppliers of e-business models of the category B use protection technology based on a proprietary
development.
3. The customer cannot deploy another software to use the offer of digital content. In e-business models
based on a flat rate (category C), the customer can consume the digital content during the validation time
of the flat rate.
Only the e-business models of the category D do not use protection technology.
The deployment of DRM systems is widely-used by the suppliers of digital content in the Internet. It
has the goal to control the customers and their behaviour. For this reason it leads to a lower customer’s
acceptance.
CONSUMER BASED REQUIREMENTS
Increase attractiveness
High data quality
Usability
Additional information about the digital content
Community features
Diverse pricing models
Independence of hardware
Minimum requirements
Correctness of content
Reliable payment transaction
Privacy protection
Decrease attractiveness
Suggestions about other products of possible interest
Membership in a club
Merchandising offerings
Personalised buying via customer profils
Personalised ownership rights
Restriction in the number of possible copies
Based on this analysis, the results are:
Offer of content: The consumers require a broad offer of digital content which is not only well-known
but also considers special interests.
Price of content: The prices of the offered content nearly correspond to the average price acceptance
of the interviewed consumers.
Restriction of usage: For the interviewed consumers restrictions with regard to usage of the digital
content decrease the attractiveness of the offer.
In e-business models of the category A, B, or C, the usage of content is restricted. The restrictions are
different:
E-business models of category A: restriction with regard to the number of utilization (e. g., copy or
export) of digital content.
4. E-business models of category B: technical restriction which is dependent on the technology of the
supplier.
E-business models of category C: temporal restriction which is dependent on the period of validity
of the flat rate.
Additional Services: In the survey, the interviewed consumers prefer additional services such as
information about the content and community features.
The e-business models of category A concentrate on the selling of digital content without a huge number
of additional services. Only suppliers of e-business models of the categories B and C, which are
interested in a long-term customer relationship, have a broader offer of cost free services.
ECONOMICAL REQUIREMENTS
Besides consumers based requirements, the economical requirements and conditions are very important
for the survival of enterprises.
For reducing costs we selected the following requirements:.
Maximized digitalization of value-added processes: Especially in the context of selling digital content, it
is possible to reduce the physical contact with the goods. The costs for logistics can decrease.
Customer integration in the value added processes: Customers can adopt activities of the media
enterprises, e. g., communicating, consulting of other customers in communities or selling of digital
content.
Simple cost structures and strict monitoring: Cost structures should be transparent and adapted to
requirements of the core business. In this context it is also important to check whether the application of
DRM systems is warrantable in comparison to its usefulness. Especially for BRM and for BRM systems,
it is necessary that rights relevant processes are transparent and controllable.
For increasing revenues, we identified the following requirements:
Networking and transparency as a valuable consideration: It is necessary for enterprises to use
networking effects.
Acceleration and improvement of the product development and the innovation process: The development
of new content and the generation of rights on content are the core activities of media enterprises.
Searching and creating new utilization and commercialisation models of rights on media content:
The media industry has different possibilities to commercialise the rights on content. It is dependent on
the needs of the potential customers.
Reduction of costs: At the moment the customers can buy digital content via internet and at retail.
Another opportunity to reduce costs is the integration of the customers in the value added processes. Two
examples are identified in this context:
• The advisory function via communities or customers’ play lists especially in e-business models the
category B, or C.
• The selling function with regard to the customers’ content in e-business models of the category D.
5. Increase of revenues: Almost every analysed e-business model (of the categories A – D) has a search
function which provides the transparency of its offer of digital content.
CONCLUSION AND OUTLOOK
Media enterprises have to view e-business models as a new and different communication and
distribution channel with another consumer behaviour and needs.