Research Of Online Musie Product Supply Chain Contract Coordination

The progress of digital technology and the penetration of Internet have led the traditional music industry to undergo a disruptive change. Online music product, which is in the digital form, is gradually taking the place of traditional music product and has great influence on people's lives. The new market characteristics of online music product have made the actual environment faced with related enterprises of online music product challenging, and then the battle line between enterprises is extended. The competition between enterprises has begun to rise to the competition between supply chains.In this paper online music product supply chain contract is taken as the object of the study, and the rationality and efficiency of online music product supply chain contracts under the pay-per-song mode and the ad-revenue-sharing (advertisement-revenue-sharing) mode is analyzed on the basis of traditional supply chain contract coordination theory.This paper firstly gives an overview of researches on supply chain contract coordination theory. Then, based on traditional physical product supply chain contract and according to the characteristics of online music products, how to apply supply chain contract to online music product is discussed. This paper chooses to respectively models and analyzes the online music product supply chain contracts under the pay-per-song mode and the ad-revenue-sharing mode. It is pointed out that the supply chain contracts under the two existing modes cannot coordinate the supply chain. However, the ad-revenue-sharing mode is better than the pay-per-song mode. Thus this paper improves the online music product supply chain contract under the ad-revenue-sharing mode. It is discovered that the revenue-sharing contract with retailer effort cost sharing scheme can coordinate the supply chain under certain conditions. In the example analysis, results of the model are verified and reasonable ranges of the sharing proportions of advertisement revenue and effort cost between manufacturer and retailer, which can provide some guidance for management practice, are derived.