Dr. Andreas Raharso

Dr. Andreas Raharso

Former BINUS Business School Faculty Member

Case Document

Marketing Year 2007

[CASE STUDY] COPYRIGHTED DIGITAL MUSIC DISTRIBUTION TOWARDS A HEALTHY INDUSTRY

Music Industry Architecture changed dramatically with the introduction of the MP3 format, which was started in April 1989 by Fraunhofer Institute when it patented the new audio format. Compressed audio could now be easily transferred from PSTN (Public Switch Telephone Network) through a dial-up connection.

CD Audio format and analog cassette were substituted by the MP3 audio format, which is approximately one-tenth of the size of a CD Audio file. The MP3 format can be stored in any available portable storage such as USB flash, burned to a blank CD, or even transferred to any MP3 player like iPod and smart phone.

However, one drawback is the MP3 audio format is so flexible then anyone can easily copy or duplicate the digital song, leading to copyright infringement. File sharing technology, namely peer-to-peer (client to client) such as NAPSTER is a nightmare to any recording label.

The two approaches for digital music distribution are copy protection in which DRM (digital right management) technology is used, and the copyright protection where accountability is used for each customer with the support of watermarking technology.

The issue of copyrighting in Indonesia’s music industry has been a long and forgone story. Based on 2004 data from The Age website, Indonesia ranked 4th in the illegal music industry market, worth as much as US$ 89 million (as much as 80% of the total music industry)

Marketing Year 2007

[CASE STUDY] YAMAHA JUPITER: FROM GLOBAL ADVERTISEMENT TO LOCAL TASTE

It was January 2006, when Bambang Asmarabudi turned off his remote control on television set in his room in Pulo Gadung office after seeing 30-second TVC (TV Campaign) of new cub, Yamaha Jupiter developed by Yamaha’s headquarter in Japan. He was fond of this motorcycle. The technology was awesome, it had fantastic design, it comprised shooting technique, good setting; it was flawless design and high product quality.

As Managing Director of Promotions and Motorsports, Bambang was involved in the company for 15 years. He started his career in motorcycle manufacturer. Actually, there was nothing wrong with commercial overall content. But he was not sure that the ad would be received by company target market, regarding taste and education level difference in Japan and Indonesia. He knew exactly what kind of people in Indonesia. And it did not match with TV advertising.

He watched thousand times of the commercial advertising of Yamaha Jupiter. He saw the sales report was plummeted during the first quarter. He was weighing the idea about having another type of advertising. The advertising that was easier to understand, better shaped, and reach the grass root community. So that they did not need to think, did not need to analyze, but the advertising still headed the new technology and design of the cub.

He then picked up his cell phone, rang the Vice President, Dyonisius Beti, asked for a time to discuss the matters that bothered him.