New Streams of Revenue
Digital distribution is quickly becoming the method of choice for many publishers to offer both new and old titles to consumers that want to download digital products on-demand. I believe, that digital retail and distribution is a natural evolution in the way consumers will interact with and purchase digital media and entertainment.
Advantages:
- No physical inventory limit
- No cost of goods, printing, shipping, inventory or returns and digital distribution
- Service a group of customers who value convenience and want to plug and play right now
- Always-on availability and newer, popular products
Disadvantages:
- Expenses of bandwidth and digital rights management
- Massive file sizes take a long time to download, however, as the quality of broadband improves and as more and more users upgrade to broadband, it's likely that this issue will fade away
Digital distribution expenses like packaging are eliminated , however the expenses of bandwidth and digital rights management have to be added.
Brick-and-mortar retail will never be completely replaced by digital distribution, but for an increasing portion of the market, digital distribution is a welcomed reality.