Question

Traditionally, the music industry signed multi-year contracts with artists and sold copyright-protected music through established distribution channels. A shift to the digital format and the rise of Internet technology have resulted in the sharing of music over peer-to-peer networks, a practice the industry calls "piracy." In recent years, the music industry has seen a rapid decline in the number of CDs sold. At the same time, the ownership of the distribution rights of musical content under copyright laws remains clear. Attempts at innovation by individual record labels to offer music as direct downloads to consumer are quickly copied by other labels.
Based on these factors, the best assessment is that the music industry has shifted from a __________ to a __________ cycle market.

a) slow; fast
b) slow; standard
c) standard; slow
d) standard; fast

Answer 1

Answer:

d) standard; fast

Explanation:

Standard cycle market is defined as a market where a company's products (competitive advantage) are shielded from imitation. This is seen in the given scenario as multi-year contracts with artists and sold copyright-protected music through established distribution channels.

Fast cycle market on the other hand occurs when the competitive advantage of a company is not shielded from imitation. The imitation occurs regularly. In the given scenario this is exemplified by a shift to the digital format and the rise of Internet technology have resulted in the sharing of music over peer-to-peer networks, a practice the industry calls "piracy