Multi-tier system of distribution of audiovisual content

This paper analyzes and critically evaluates present music and video market functioning with emphasis to the sales of electronic format of this content which is preferred by current customers. It analyzes the widespread trend of content sharing via the Internet and specifies reasons why the trend is happening. It defines cases of behavior that are justifiable in the eyes of consumers and therefore legitimate (i.e. creation of backups, downloading and sharing legally unavailable content, downloading for personal use, etc.) and elements that reduce value of the legally distributed content for the customer (copy protection mechanisms or current licensing system). Furthermore, it analyzes new economic approaches that enable the utilization potential of the Internet (i.e. the Long Tail Theory) or of potential customers (Crowdsourcing, Word of Mouth, Gamification). The paper analyzes the functioning new services that use the Internet as a platform for their operation and offer users the experience they want. Proposal for this new system of audiovisual content distribution is proposed based on a synthesis of findings from the operation of these services, new theoretical approaches and author's own contribution. This new system rejects the idea of selling the content as goods (per items) and adopts an approach of access to the whole catalogue of content for a flat monthly fee. This newly born service has several tiers that differ qualitatively among themselves, also in terms of added value for users and finally in the price at which the layers are available. This system is very acceptable to customers as well as being an interesting long-term alternative to the current system for operators of the new system and copyright holders.