The Internet has become more and more present in everyday life. The expansion of social networks such as Twitter or Facebook has revolutionized the way people interact with their family and their friends. The Internet made communicating and exchanging easier: you can now send an e-mail to the other side of the world in less than a second. The number of users is rapidly growing: the International Telecommunication Union estimates that more than 2.7 billion people have access to the Internet in 2013. These changes did not only affect private life. The “Net” is now more and more important in the business environment: it is now used as a professional tool in nearly all existing companies. Some companies are even completely based on the Internet: they are commonly called “dot-com companies”. A new industry was also created: the Electronic Commerce (or e-commerce) industry: the buying and selling of products (or services) are entirely conducted over the Internet. McKinsey & Company, one of the most prestigious consulting firm in the world, estimates that almost $8 trillion were exchanged in 2011 thanks to e-commerce.
However, the Internet did not only create new industries. For McKnight et al. (2001), the Internet also led to a process of creative destruction (defined by Schumpeter in the 20th century as the destruction of existing technologies and methods of productions by innovation): “clearly defined industry boundaries, entry barriers, and market positions within the telecommunications industry have been replaced, perhaps permanently, by blurred and fluid industry borders, rapidly shifting interfirm alliances, and the unrelenting introduction of cost-reducing product and process innovations.” Indeed, the Internet led to drastic changes for some of the “traditional” industries, such as the music or film industries, which are now forced to evolve.
This paper will first try to investigate these changes by focusing on the case of the newspapers industry, and will then discuss the changes that occurred in the music industry. Lastly, we will try to examine how the supply and demand model in e-Commerce differs from a traditional commerce environment.
The newspapers industry has been strongly affected by the development of the Internet. Since the 1990s, the number of printed newspapers readers is decreasing, because they are not able to attract new readers (Wurff, 2004), while the number of news readers online is rapidly growing. Indeed, media organizations are now offering online news for free. For Wurff, using the Internet is a good way to reach young customers that will become the future readers, but also a good way to be...