DIGITAL AND PHYSICAL MUSIC CHANNEL VALUE CREATION POTENTIAL OF INDONESIAN RECORDS LABEL, CASE: TRINITY OPTIMA PRODUCTION AND WARNER MUSIC INDONESIA

• Main Author: Senjaya, Andy
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72293
• Institution: Institut Teknologi Bandung

In the past few years, digital music distribution started to replace the existence of physical music. Digital music has the same proportion of revenues with physical music for the first time in 2014. It makes records label should be able to apply the best strategy to deliver their music through digital and physical. Moreover, records label is facing with piracy issue that impact into their revenue, especially in Indonesia. Many conventional stores were closed at the end of 2015 due to this phenomenon. Therefore, Indonesia records label should have a method in order to provide good quality music and develop industry music in Indonesia as well. In respond to that, this research is going to discover the value creation potential of Indonesian records label. The qualitative data research will be executed by using semi-structured interview, observation, and secondary data. The subjects are certain Indonesian records label which have a big role in the music industry, Trinity Optima Production and Warner Music Indonesia. The key of this research is to analyze their value creation potential which is categorized in several variables. The data collection from Trinity Optima Production and Warner Music Indonesia will discover their efficiency function, effectiveness function, and network function. Supplierefficiency function has elements of profit function, volume function, and safeguarding function. Supplier-effectiveness function is about innovation function. The last, suppliernetwork function has elements of resource-access function, scout function, and marketsignaling function. By identifying these variables and doing cross-case analysis, it can discover both of them differences in applying strategies through digital and physical music. As the result of this research, both of Trinity Optima Production and Warner Music Indonesia should be adaptable to change due to the environmental change in this music industry is very fast. Some strategies that Trinity and Warner apply can be different through digital and physical music. To be noted that each record label has different artists one another. Therefore, the strategy either Trinity of Warner apply should be fit with the status and popularity of artists followed by the proper target market.