Compact_Discs_Singles_Market

Compact Discs Singles Market COMPACT DISCS SINGLES MARKET At the beginning of the 21st century there has been a major change in technology, concerning the music industry. Sales of compact discs, once among the most robust and profitable sectors of popular culture, have fallen dramatically since the advent of Internet file-sharing operations like Napster. Before this technology came out, the CD market was a great success. However the initial demand of this technology drove prices up, as the market moved towards equilibrium. Due to such high demand prices stayed high for a considerable time, aggravating consumers. Department stores could afford to lower the CD prices to compete with music stores, which could not. The major music distributors decided to make a privacy policy called the MAP (minimum advertising pricing) which acted as a price floor. This however did not solve the problem of over charging the consumers and prices remained high. Mid 90’s the technology of CD-burners, and internet free downloading music became available to the public. This provided a cheap substitute product of the same technological standard. The music industry prices, music, high, cds, cd, technology, sales, over, million, market, map, internet, industry, however, downloading, consumers, stores, singles, shown, reaction, price, people, major, floor, explanation, due, discs, demand, creating, compact, charging, 2001, ‘hp, years, year