Digital distribution
Encyclopedia
Online distribution, digital distribution, or electronic software distribution (ESD) is the practice of delivering content
without the use of physical media, typically by downloading via the internet
directly to a consumer's device. Online distribution bypasses conventional physical distribution media, such as paper
or DVD
s. The term online distribution is typically applied to freestanding products; downloadable add-ons for other products are more commonly known as downloadable content
. A website for distribution of application software
is usually called application store or app store.
Content distributed online may be streamed or downloaded. Streaming involves downloading and using content "on-demand" as it is needed. Meanwhile, fully downloading the content to a hard drive or other form of storage media allows for quick access in the future.
s usually must enter their industry’s publishing
chain. Publishers help artists advertise, fund
and distribute
their work to retail
outlets. In some industries, particularly videogames, artists find themselves bound to publishers, and in many cases unable to make the content they want; the publisher might not think it will profit well. This can quickly lead to the standardization of the content and to the stifling of new, potentially risky ideas.
By opting for online distribution, an artist can get their work into the public sphere of interest easily with potentially minimum business overhead
s. This often leads to cheaper goods for the consumer
and increased profits for the artists, as well as increased artistic freedom.
Online distribution also opens the door to new business models (e.g., the Open Music Model
). For instance, an artist could release one track from an album or one chapter from a book at a time instead of waiting for them all to be completed. This either gives them a cash boost to help continue or warns that their work is not financially viable before they have sunk excessive money and time into it. Videogames have increased flexibility in this area, demonstrated by micropayment
models such as the one in Gunbound
. A clear result of these new models is their accessibility to smaller artists or artist teams who do not have the time, funds, or expertise to make a new product in one go.
An example of this can be found in the music industry. Indie artists are for the first time able to access the same distribution channels as major record labels, with none of the restrictive practices or inflated manufacturing costs; there is a growing collection of 'internet labels' that offer distribution to unsigned or independent artists directly to online music stores, and in some cases marketing and promotion services. Further, many bands are able to bypass this completely, and offer their music for sale via their own independently controlled websites; this gives even further advantage to the artist, as it completely cuts out a distributor—and their cut of the profits.
in 2007-08.
Content
Content or contents may refer to:* Contentment, a state of being* Content , the highest common factor of a polynomial's coefficients* Content , an additive real function defined on a field of sets...
without the use of physical media, typically by downloading via the internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
directly to a consumer's device. Online distribution bypasses conventional physical distribution media, such as paper
Paper
Paper is a thin material mainly used for writing upon, printing upon, drawing or for packaging. It is produced by pressing together moist fibers, typically cellulose pulp derived from wood, rags or grasses, and drying them into flexible sheets....
or DVD
DVD
A DVD is an optical disc storage media format, invented and developed by Philips, Sony, Toshiba, and Panasonic in 1995. DVDs offer higher storage capacity than Compact Discs while having the same dimensions....
s. The term online distribution is typically applied to freestanding products; downloadable add-ons for other products are more commonly known as downloadable content
Downloadable content
Downloadable content is official additional content for a video game distributed through the Internet. Downloadable content can be of several types, ranging from a single in-game outfit to an entirely new, extensive storyline, similarly to an expansion pack. As such, DLC may add new game modes,...
. A website for distribution of application software
Application software
Application software, also known as an application or an "app", is computer software designed to help the user to perform specific tasks. Examples include enterprise software, accounting software, office suites, graphics software and media players. Many application programs deal principally with...
is usually called application store or app store.
Content distributed online may be streamed or downloaded. Streaming involves downloading and using content "on-demand" as it is needed. Meanwhile, fully downloading the content to a hard drive or other form of storage media allows for quick access in the future.
Basis
The major attraction for online distribution is its direct nature. To make a commercially successful work, artistArtist
An artist is a person engaged in one or more of any of a broad spectrum of activities related to creating art, practicing the arts and/or demonstrating an art. The common usage in both everyday speech and academic discourse is a practitioner in the visual arts only...
s usually must enter their industry’s publishing
Publishing
Publishing is the process of production and dissemination of literature or information—the activity of making information available to the general public...
chain. Publishers help artists advertise, fund
Funding
Funding is the act of providing resources, usually in form of money , or other values such as effort or time , for a project, a person, a business or any other private or public institutions...
and distribute
Distribution (business)
Product distribution is one of the four elements of the marketing mix. An organization or set of organizations involved in the process of making a product or service available for use or consumption by a consumer or business user.The other three parts of the marketing mix are product, pricing,...
their work to retail
Retail
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
outlets. In some industries, particularly videogames, artists find themselves bound to publishers, and in many cases unable to make the content they want; the publisher might not think it will profit well. This can quickly lead to the standardization of the content and to the stifling of new, potentially risky ideas.
By opting for online distribution, an artist can get their work into the public sphere of interest easily with potentially minimum business overhead
Overhead
Overhead may be:* Overhead , the ongoing operating costs of running a business* Engineering overhead, ancillary design features required by a component of a device...
s. This often leads to cheaper goods for the consumer
Consumer
Consumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...
and increased profits for the artists, as well as increased artistic freedom.
Online distribution also opens the door to new business models (e.g., the Open Music Model
Open Music Model
The Open Music Model is an economic and technological framework for the recording industry based on research conducted at the Massachusetts Institute of Technology...
). For instance, an artist could release one track from an album or one chapter from a book at a time instead of waiting for them all to be completed. This either gives them a cash boost to help continue or warns that their work is not financially viable before they have sunk excessive money and time into it. Videogames have increased flexibility in this area, demonstrated by micropayment
Micropayment
A micropayment is a financial transaction involving a very small sum of money and usually one that occurs online. PayPal defines a micropayment as a transaction of less than 12 USD while Visa prefers transactions under 20 Australian dollars, and though micropayments were originally envisioned to...
models such as the one in Gunbound
GunBound
GunBound is a free-to-play, turn-based, room-to-room, multiplayer online game with many similar features to the popular Worms game series....
. A clear result of these new models is their accessibility to smaller artists or artist teams who do not have the time, funds, or expertise to make a new product in one go.
An example of this can be found in the music industry. Indie artists are for the first time able to access the same distribution channels as major record labels, with none of the restrictive practices or inflated manufacturing costs; there is a growing collection of 'internet labels' that offer distribution to unsigned or independent artists directly to online music stores, and in some cases marketing and promotion services. Further, many bands are able to bypass this completely, and offer their music for sale via their own independently controlled websites; this gives even further advantage to the artist, as it completely cuts out a distributor—and their cut of the profits.
Impact on traditional retail
The rise of online distribution of music in particular has been blamed for a number of traditional retail venues closing, such as the iconic Canadian music chain Sam the Record ManSam the Record Man
Sam the Record Man was a Canadian record store chain that, at one time, was Canada's largest music recording retailer. In 1982, their ads proclaimed they had "140 locations, coast to coast"....
in 2007-08.
Notable online distributors
- 7digital7digital7digital is a privately held digital media delivery company based in the United Kingdom, offering downloadable music, video and movies to customers primarily within major European markets...
- AmazonAmazon.comAmazon.com, Inc. is a multinational electronic commerce company headquartered in Seattle, Washington, United States. It is the world's largest online retailer. Amazon has separate websites for the following countries: United States, Canada, United Kingdom, Germany, France, Italy, Spain, Japan, and...
- BandcampBandcampBandcamp is an online music store, as well as a platform for artist promotion, that caters mainly for independent artists. Artists on Bandcamp have a customizable microsite with the albums they upload. All tracks can be played for free on the website and some artists offer free music downloads...
- Battle.netBattle.netBattle.net is a gaming service provided by Blizzard Entertainment. Battle.net was launched in November 30, 1996 with the release of Blizzard's action-RPG Diablo. Battle.net was the first online gaming service incorporated directly into the games that make use of it, in contrast to the external...
- CD BabyCD BabyCD Baby is an online music store specializing in the sale of CDs and digital music downloads from independent musicians to consumers. The company is also a digital aggregator of independent music recordings, distributing content to several online digital music retailers.CD Baby has achieved recent...
- DesuraDesuraDesura is a proprietary digital distribution platform developed by DesuraNET for Microsoft Windows and Linux platforms, although a client for Mac OS X has also been hinted at. It is used to distribute games and related media online, with a primary focus on small independent developers rather than...
- Direct2DriveDirect2DriveDirect2Drive is an online game store offering PC videogames via direct download. On May 25, 2011, Gamefly acquired Direct2Drive from IGN Entertainment Group .- Competition with Steam :...
- DjshopDjshopDjshop Records is a German-based online dance music retail store, selling vinyl records, CDs, music downloads and music accessories, founded by Armin Wirth.. The website was created in 1993. In 1998 the site changed into the European commercial franchise store Djshop, with locations in Poland,...
- DotEmuDotEmuDotEmu is a French video game company created in 2007 by Xavier Liard and Romain Tisserand, with its headquarters in France. This company initially dedicated to B2B adaptation and emulation of old games and now provides a B2C distribution service on dotemu.com.Distribution service: Users can...
- GamersGateGamersGateGamersGate AB is a Sweden-based online video game store offering PC games, Mac games and electronic guides via direct download. It is a competitor to online video game services such as Valve's Steam, Direct2Drive and Impulse....
- Good Old Games
- Impulse
- iTunes StoreITunes StoreThe iTunes Store is a software-based online digital media store operated by Apple. Opening as the iTunes Music Store on April 28, 2003, with over 200,000 items to purchase, it is, as of April 2008, the number-one music vendor in the United States...
- Mac App StoreMac App StoreThe Mac App Store is a digital distribution platform for Mac OS X applications developed by Apple Inc.. The platform was announced on October 20, 2010 at Apple's "Back to the Mac" event. Apple began accepting app submissions from registered developers on November 3, 2010 in preparation for its launch...
- NetflixNetflixNetflix, Inc., is an American provider of on-demand internet streaming media in the United States, Canada, and Latin America and flat rate DVD-by-mail in the United States. The company was established in 1997 and is headquartered in Los Gatos, California...
- NimbitNimbitNimbit, Inc. is a Framingham, Massachusetts-based company offering direct-to-fan sales, marketing, and career management solutions for independent artists and music labels through Web-based services...
- OnLiveOnLiveOnLive is a cloud gaming platform: the games are synchronized, rendered, and stored on remote servers and delivered via the Internet.The service is available using the OnLive Game System, PCs running Microsoft Windows and Intel-based Macs with OS X 10.5.8 or later...
- Origin (digital distribution platform)
- Nokia Ovi Store
- PlayStation StorePlayStation StoreThe PlayStation Store is an online virtual market available to users of Sony's PlayStation 3 and PlayStation Portable game consoles via the PlayStation Network. The Store offers a range of downloadable content both for purchase and available free of charge. Available content includes full games,...
- Steam
- Ubuntu Software CenterUbuntu Software CenterUbuntu Software Center is a computer program for browsing, installing and removing software on the Ubuntu operating system. Based upon the GNOME application, gnome-app-install, which is similar in function and appearance, it serves as a GTK+ graphical user interface front-end to the Advanced...
- Xbox Live MarketplaceXbox Live MarketplaceThe Xbox Live Marketplace is a virtual market designed for Microsoft's Xbox 360 console that allows Xbox Live members to download purchased or promotional content...
See also
- App storeApp StoreThe App Store is a digital application distribution platform for iOS developed and maintained by Apple Inc.The service allows users to browse and download applications from the iTunes Store that were developed with the iOS SDK or Mac SDK and published through Apple Inc.. Depending on the...
- Electronic commerceElectronic commerceElectronic commerce, commonly known as e-commerce, eCommerce or e-comm, refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks. However, the term may refer to more than just buying and selling products online...
- Content delivery networkContent Delivery NetworkA content delivery network or content distribution network is a system of computers containing copies of data placed at various nodes of a network....
- Video on demandVideo on demandVideo on Demand or Audio and Video On Demand are systems which allow users to select and watch/listen to video or audio content on demand...
- Gaming on demand
- eBooks
- Comparison of online music storesComparison of online music storesFor streaming services, see list of online music databases.The following table lists online music stores that carry a selection of songs by many record labels and artists. The stores listed below access passive databases and require access through a computer or some allow access and downloads...
- List of digital distribution platforms for mobile devices
- List of Internet television providers
- Film distributionFilm distributionThe distribution of a film is the process through which a movie is made available to watch for an audience by a film distributor...
- Film distributorFilm distributorA film distributor is a company or individual responsible for releasing films to the public either theatrically or for home viewing...