Ups and Downs: business model innovation

A consortium of Dutch researchers published a report on 'filesharing and the economic impact on the Dutch creative industry'. One of the suggestions of the researchers is innovating business models. Earlier, I shared with you the presentation of Alex Osterwalder about business model innovation. Alex and the researchers are suggesting the same types of innovations. Innovation of value chains into value networks, innovation of distribution and markets. Page 136 of the report 'Ups and downs':

"The only way to cope with the impact of file sharing is to develop new connections and networks to support new products and services'. It seems like a strategy of lawsuits and DRM is not the right way to act. Next to this the market size of legal music downloads isn't generation the same amount of revenues as the decline of the music market." 'The industry is in a forced phase of transition"

Part of this transition is the entrance of new companies into the value network. Companies like Nokia and Apple are taking the lead in constructing new products, services and connections. It is really 'innovation time' for the traditional music companies. Otherwise the new entrants will take over their business.