Internet Services Marketing

Services have a number of characteristics (Intangibility, Heterogeneity, Perishability, Inseparability and Lack of Ownership) that affect the way in which certain services are more successful than others when offered via the Internet.

Clearly those services that are highly intangible and technologically orientated such as the music and picture industries have adapted very successfully to the Internet as a mode of distribution. The success of Apple iTunes (http://www.apple.com/itunes/) or Tesco (http://www.tescodownloads.com/) and music downloads is undisputed but arguably a result of customer driven demand rather than the fortuitous anticipation or insight of the music industry. Customers had for some time been downloading and sharing music via the Internet (largely illegally[1]), most of the music industry did not really have a choice but to provide their own legitimate alternative.

As technologies advance further and the download speeds for end users increase, it is likely that the popularity of high quality video media will also increase, however, there is some debate about the format of such media discussions surrounding its availability and licensed ownership. Unlike music downloads which are essentially purchased no differently than a CD in a shop allowing the customer to backup and make copies for their own use, most video currently follows a more restricted business model allowing for the ‘streaming’ of video to a customers computer for a limited period only rather than allowing the customer to have a full copy available at their disposal in the same way that purchasing a hard copy DVD does. Considering the vast array of available material that can be downloaded illegally through file sharing applications, it is likely that the film and video providers will have to follow the same route as the music industry in order to protect their interests as well meet the needs and wants of the customer profitably[2].

[1] http://news.bbc.co.uk/1/hi/technology4875142.stm /

[2] http://news.bbc.co.uk/1/hi/entertainment/4876778.stm