B Pasta/diapers Push
2.7 Technological Viability and Supply Chain Competitiveness
2.7.2 Technical drivers influencing competitive distribution
The non-physical characteristic of software has created significant challenges (Sweeny and Ryan, 2008:217). Distributing music involves numerous technical enablers and technology which influences the creation and transfer of digital music. If technology is absent at any stage in the supply chain, the supply chain will fail and digital music file sharing will not reach the consumer or its destination. The technical dimensions refer to the technologies involved in the distribution of music and how they interact in delivering the final digital product.
2.7.2.1 Access to Bandwidth
The first step in transferring music online is to download a file. This is essential as the file needs to exist on a PC before it can be uploaded onto a server. This takes the form of ripping an original cd onto the PC. According to Alves (2004); and Hill (2003) the process of downloading a file refers to the transfer of a song from a server to a PC. The transfer of a song from a PC to a portable device such as an MP3 player is similar. Peer-to-peer downloads follow from one PC to another without the file residing on the server or repository.
Bandwidth constraints are significant in distributing digital products. Some music files are large and use large gigabytes of storage space. Even high-speed DSL lines may be inadequate to distribute such large files. The choice of Internet service provider is imperative in ensuring high-speed service. Multiple web servers are used and balanced equally so that traffic can be processed during peak times. Furthermore, providers closer to the Internet support are likely to provide an effective service but at higher cost. Partnering with external companies is viable way to address bandwidth dilemmas (Sweeny and Ryan, 2008:219).
At 28 kilo bytes per second (kbps) modem connection takes about two-and-a-half minutes to download one song and 30 minutes to download an album. This is considered “too long” for the customer. Broadband connection speeds are one megabyte per second (mbps) and more, allowing consumers to download an album in MP3 format within a minute. With this type of internet connection speed, there is mass consumer demand for music (Adner, 2002:13).
Technological developments have given consumers immediate access to large databases of music at high download speeds. Alves (2004); Evans and Wurster (2000); IFPI (2014); Lam and Tan (2001); and Macedonia (2000) attribute the growing popularity of downloads to technological developments. The increase in downloading is a result of the move towards broadband communication in the home, thereby offering consumers high speed connection and quicker downloads. The result was the design of PCs with fast processors and large storage capabilities to handle faster downloads. Alves (2004:28) notes that technology is not only facilitating but encouraging the use of distribution services. Developments in the technological sphere are enabling quicker downloads from the Internet.
In an attempt to increase Internet availability, Microsoft launched a television white-spaces spectrum pilot in Limpopo in 2014 by using unused portions of the radio frequency spectrum reserved for broadcasting to deliver affordable Internet access to areas that previously lacked access in the hope that this would encourage further deployment throughout SA and Africa. The
focus of this pilot project is to provide low-cost broadband access for the majority of South Africans within the next six years (van der Berg, 2014:1).
NAP Africa is a neutral Internet Exchange Point (IXP) located within data centre facilities in SA. In 2015, NAP Africa announced that Africa’s most successful neutral peering exchange had reached a record-breaking peak of 15 gigabytes per second (Gbps) making it the second largest IXP and adding value to the development of South African’s access to the Internet. According to McCann (2014:1) “it was launched in March 2012, by December 2013 traffic was peaking at 5Gbps in a little over two years, NAP Africa has outperformed other leading IXPs by achieving double-digit growth. This rapid adoption by the market proves that peering exchanges are a much needed facility in the African Internet ecosystem.” McCann (2014); and NAPAfrica (2014) note that peering in Africa not only makes the Internet more affordable, but also plays a vital part in advancing the development of the Internet ecosystem by lowering costs and creating a superior usage experience for the consumer which in turn drives demand for the whole industry. Increasing Internet usage, the development of mobile technologies, improving national connectivity and growing access to international connectivity are the driving forces in developed markets (McCann, 2014:1).
2.7.2.2 Complementary Media Devices
Messerschmitt and Szyperski (2003); and Sweeny and Ryan (2008) point to a sharp distinction between digital and physical products in that goods such as software or media content cannot exist without a physical support infrastructure (hardware). Software applications and the like require layers of other software products to be present on the hardware before it can work properly. An example is typical Apple products like an iPod which can only play music purchased from the iTunes store or in iTunes format. The same applied when MP3 players were released which enabled consumers to transfer their music from PCs to their portable MP3 players. The figure below presents an overview of today’s digital music services (Klym, 2005:6).
Figure 2.33: Overview of Current Digital Music Services
Source: Klym, N. (2005) Digital Music Distribution. [online], available:
http://cfp.mit.edu/docs/digital-music-dec2005.pdf [11 August 2014]: p. 6.
The most popular models for digital music consumption are Internet-based downloads to a PC and the option to transfer files to a portable music player and or a cellular phone. Mobile service offers direct over-the-air downloads to cell phones, with the ability to transfer to a PC by means of wireless frequencies (wi-fi), Bluetooth or an usb cable. The literature identifies technology as a major factor in the popularity of transferring digital music online.