Case Document

Marketing Year 2007

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)

Author

Dr. Andreas Raharso

Dr. Andreas Raharso

PORTALHR: ANSWERING THE CHALLENGE OF INDO-NESIA ONLINE PORTAL BUSINESS

PortalHR is an online portal whose targeted Indonesian human resources community, a targeted and segmented market. Although PortalHR is only been around for more than a year, its current situation is promising. While many online portal businesses in Indonesia suffered from financial and operational difficulty, PortalHR had its own strategy to overcome such difficulties. In the future, PortalHR will have to face greater challenge, either from another competitor who could surface anytime or even from its own strategy, which will be tested if its strategy was capable enough to answer the future.

Author

Boy Avianto, M.Sc.

Boy Avianto, M.Sc.

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