An Economic Perspective: The Future of Digital vs. Print Media with a focus on the cultural products of books and music

Abstract: Digital media has introduced the market to the quickest form of content distribution man has ever seen. Many businesses have tried to adapt their business models to the digital world to maximize their value and influence. Internet has impacted many businesses worldwide giving them an opportunity to evolve and bring innovation to their business direction and economic model so they can offer a balanced value proposition to the consumer and gain competitive advantage in the market. There is a general understanding that since the inception of digital media, the print media industry has been going through several challenges to re-engineer their business models for better profitability. The objective of this thesis is to provide the reader with an understanding of the implications digital media has over printed media in terms of cost, effectiveness and market share and how the print media industry can accommodate digital media in their existing business model. The thesis identifies two major media industries namely the book industry and the music industry. It discusses the transformation of their information from the printed to the digital platform by studying the risks and benefits of the two platforms. It investigates general concerns faced by the media industries in the present market situation. It further proposes business models for each industry acquired through literature review and various academic sources. Mechanisms through which media industries can accommodate digital transition are discussed and ideas for firms looking to create analogous business communities are advanced in this thesis.