Question

Consider the market for music recordings. You can either choose to buy vinyl or stream online for free.

• Explain briefly who is more likely to end up in either submarket and why.
• Which hurdles do exist for consumers?

Answer 1

Market for Music Recordings
A consumer who opts to demand for commodities for music recordings could either select between vinyl and online streaming. Even if both are having drawbacks and disadvantages of their own, some specialties and abilities of online streaming could help it attaining better demand than the other.
Vinyl even having the advantage of tangibility, the need of physical space and its inability to be useful without the support of particular devices are all giving it a negative impact to the other. If the option is available on an online streaming comparatively pricing less for substituting vinyl perfectly, that can attract better demand. The need of regular maintenance and care needed for vinyl is a drawback that most of the consumers are concerned about. Since it is not easy to carry the vinyl everywhere as someone goes, that stands as a major disadvantage of the commodity.
Online streaming even having disadvantages, the comparison with the other could help it finds better demand on the market. The ability to handle in many different devices without particular constraints is a major advantage that it poses. Easiness to store data and also to make it available any time with only internet can attract more consumers for the same. The less pricing strategy of the online streaming method makes it a better competent. People shifting to the online platforms and adopting new technologies are stimulants that for the online streaming methods for music recordings.
Consumers find it easy to purchase online streaming methods since they are more convenient in purchasing the same. Even if they have security problems, the emerging type of market blend to the way that it creates more attractive in the online substitutes of the commodity in the market, forcing the consumers to shift to online streaming methods.