A rewarding experience? Exploring how crowdfunding is affecting music industry business models

Research output: Contribution to journalArticle

26 Citations (Scopus)

Abstract

This paper provides an exploratory study of how rewards-based crowdfunding affects business model development for music industry artists, labels and live sector companies. The empirical methodology incorporated a qualitative, semi-structured, three-stage interview design with fifty seven senior executives from industry crowdfunding platforms and three stakeholder groups. The results and analysis cover new research ground and provide conceptual models to develop theoretical foundations for further research in this field. The findings indicate that the financial model benefits of crowdfunding for independent artists are dependent on fan base demographic variables relating to age group and genre due to sustained apprehension from younger audiences. Furthermore, major labels are now considering a more user-centric financial model as an innovation strategy, and the impact of crowdfunding on their marketing model may already be initiating its development in terms of creativity, strength and artist relations.
LanguageEnglish
Pages25
Number of pages36
JournalJournal of Business Research
Volume70
Early online date10 Aug 2016
DOIs
Publication statusPublished - 1 Jan 2017

Fingerprint

Artist
Music industry
Business model
Financial models
Model development
Exploratory study
Age groups
Methodology
Marketing models
Creativity
Conceptual model
Industry
Demographic variables
Innovation strategy
Reward
Stakeholders

Keywords

  • crowdfunding
  • business models
  • music industry

Cite this

@article{a792be27c92e4efe820652e0b4de4bdf,
title = "A rewarding experience? Exploring how crowdfunding is affecting music industry business models",
abstract = "This paper provides an exploratory study of how rewards-based crowdfunding affects business model development for music industry artists, labels and live sector companies. The empirical methodology incorporated a qualitative, semi-structured, three-stage interview design with fifty seven senior executives from industry crowdfunding platforms and three stakeholder groups. The results and analysis cover new research ground and provide conceptual models to develop theoretical foundations for further research in this field. The findings indicate that the financial model benefits of crowdfunding for independent artists are dependent on fan base demographic variables relating to age group and genre due to sustained apprehension from younger audiences. Furthermore, major labels are now considering a more user-centric financial model as an innovation strategy, and the impact of crowdfunding on their marketing model may already be initiating its development in terms of creativity, strength and artist relations.",
keywords = "crowdfunding, business models, music industry",
author = "Jordan Gamble and Michael Brennan and Rodney McAdam",
note = "Reference text: References Agrawal et al., 2011 A. Agrawal, C. Catalini, A. Goldfarb Friends, family, and the flat world: The geography of crowdfunding NBER Working Paper, 16820 (2011), pp. 1–61 View Record in Scopus Al-Debei and Avison, 2010 M.M. Al-Debei, D. Avison Developing a unified framework of the business model concept European Journal of Information Systems, 19 (3) (2010), pp. 359–376 Full Text via CrossRef | View Record in Scopus | Citing articles (148) Allard-Poesi, 2005 F. Allard-Poesi The paradox of sensemaking in organizational analysis Organization, 12 (2) (2005), pp. 169–196 Full Text via CrossRef | View Record in Scopus | Citing articles (40) Arewa, 2010 O.B. Arewa YouTube, UGC, and digital music: Competing business and cultural models in the internet age Northwestern University Law Review, 104 (2) (2010), pp. 431–476 View Record in Scopus | Citing articles (4) Arts Council, 2010 Arts Council Digital audiences - Engagement with arts and culture online 2010 (November 2010), pp. 1–65 Bannerman, 2013 S. Bannerman Crowdfunding culture Journal of Mobile Culture, 7 (1) (2013), pp. 1–30 Belleflamme et al., 2013 P. Belleflamme, T. Lambert, A. Schwienbacher Individual crowdfunding practices Venture Capital, 15 (4) (2013), pp. 313–333 Full Text via CrossRef | View Record in Scopus | Citing articles (16) Bourreau et al., 2012 M. Bourreau, M. Gensollen, F. Moreau The impact of a radical innovation on business models: Incremental adjustments or big bang? Industry & Innovation, 19 (5) (2012), pp. 415–435 Full Text via CrossRef | View Record in Scopus | Citing articles (6) Buff and Alhadeff, 2013 L.A. Buff, P. Alhadeff Budgeting for crowdfunding rewards Journal of the Music & Entertainment Industry Educators Association, 13 (1) (2013), pp. 27–44 Cardoso and Ramos, 2012 A. Cardoso, I. Ramos Looking at the past to enrich the future: A reflection on klein and myers' quality criteria for interpretive research Electronic Journal of Business Research Methods, 10 (2) (2012), pp. 77–88 View Record in Scopus | Citing articles (1) Casadesus-Masanell and Hervas-Drane, 2010 R. Casadesus-Masanell, A. Hervas-Drane Competing against online sharing Management Decision, 48 (8) (2010), pp. 1247–1260 Full Text via CrossRef | View Record in Scopus | Citing articles (2) Cavalcante et al., 2011 S. Cavalcante, P. Kesting, J. Ulh{\o}i Business model dynamics and innovation: (re)establishing the missing linkages Management Decision, 49 (8) (2011), pp. 1327–1342 Full Text via CrossRef | View Record in Scopus | Citing articles (97) CCS, 2011 CCS The music blueprint 2011 (March 2011), pp. 1–60 Chaney, 2012 D. Chaney The music industry in the digital age: Consumer participation in value creation International Journal of Arts Management, 15 (1) (2012), pp. 42–52 View Record in Scopus | Citing articles (6) Chesbrough, 2006 H. Chesbrough Open business models: How to thrive in the new innovation landscape Harvard Business Press, Harvard (2006) Choi and Burnes, 2013 H. Choi, B. Burnes The internet and value co-creation: The case of the popular music industry Prometheus, 31 (1) (2013), pp. 35–53 Full Text via CrossRef | View Record in Scopus | Citing articles (7) DeCuir-Gunby et al., 2011 J.T. DeCuir-Gunby, P.L. Marshall, A.W. McCulloch Developing and using a codebook for the analysis of interview data: An example from a professional development research project Field Methods, 23 (2) (2011), pp. 136–155 Full Text via CrossRef | View Record in Scopus | Citing articles (52) Demil and Lecocq, 2010 B. Demil, X. Lecocq Business model evolution: In search of dynamic consistency Long Range Planning, 43 (2/3) (2010), pp. 227–246 Article | PDF (249 K) | View Record in Scopus | Citing articles (216) Dewenter et al., 2012 R. Dewenter, J. Haucap, T. Wenzel On file sharing with indirect network effects between concert ticket sales and music recordings Journal of Media Economics, 25 (3) (2012), pp. 168–178 Full Text via CrossRef | View Record in Scopus | Citing articles (4) Doganova and Eyquem-Renault, 2009 L. Doganova, M. Eyquem-Renault What do business models do?: Innovation devices in technology entrepreneurship Research Policy, 38 (10) (2009), pp. 1559–1570 Article | PDF (269 K) | View Record in Scopus | Citing articles (128) Doz and Kosonen, 2010 Y.L. Doz, M. Kosonen Embedding strategic agility: A leadership agenda for accelerating business model renewal Long Range Planning, 43 (2/3) (2010), pp. 370–382 Article | PDF (152 K) | View Record in Scopus | Citing articles (122) Dubosson-Torbay et al., 2002 M. Dubosson-Torbay, A. Osterwalder, Y. Pigneur E-business model design, classification, and measurements Thunderbird International Business Review, 44 (1) (2002), pp. 5–23 Full Text via CrossRef | View Record in Scopus | Citing articles (128) Ericsson, 2010 S. Ericsson Recorded music industry and the emergence of online music distribution: Innovation in the absence of copyright (reform) The George Washington Law Review, 79 (2010), p. 1783 Gamble and Gilmore, 2013 J.R. Gamble, A. Gilmore A new era of consumer marketing? An application of co-creational marketing in the music industry European Journal of Marketing, 47 (11/12) (2013), pp. 1859–1888 Full Text via CrossRef | View Record in Scopus | Citing articles (6) Generator, 2011 Generator Generator annual report 2011 (2011), pp. 20111–20126 George and Bock, 2011 G. George, A.J. Bock The business model in practice and its implications for entrepreneurship research Entrepreneurship: Theory and Practice, 35 (1) (2011), pp. 83–111 Full Text via CrossRef | View Record in Scopus | Citing articles (129) Grant et al., 2012 M.A. Grant, L.N. Rohr, J.T. Grant How informants answer questions? Implications for reflexivity Field Methods, 24 (2) (2012), pp. 230–246 Full Text via CrossRef | View Record in Scopus Griffin, 2012 Z.J. Griffin Crowdfunding: Fleecing the American masses Case W·Res.JL Tech.& Internet, 4 (2) (2012), pp. 375–410 Harhoff et al., 2003 D. Harhoff, J. Henkel, E. von Hippel Profiting from voluntary information spillovers: How users benefit by freely revealing their innovations Research Policy, 32 (10) (2003), pp. 1753–1769 Article | PDF (277 K) | View Record in Scopus | Citing articles (248) Harris, 2000 S. Harris Reconciling positive and interpretative international management research: A native category approach International Business Review, 9 (6) (2000), pp. 755–770 Article | PDF (301 K) | View Record in Scopus | Citing articles (29) Herstatt and Schweisfurth, 2014 C. Herstatt, T. Schweisfurth The intellectual pillars of user innovation: A co-citation analysis. Technologie- und Innovations management Technische Universit{\"a}t Hamburg-Harburg working paper, 87 (1) (2014), pp. 1–17 von Hippel, 2007 E. von Hippel Horizontal innovation networks: By and for users Industrial and Corporate Change, 16 (2007), pp. 293–315 Full Text via CrossRef | View Record in Scopus | Citing articles (163) IFPI, 2013 IFPI IFPI digital music report 2013: Engine of a digital world (2013), pp. 1–36 Izvercian and Alina Seran, 2013 M. Izvercian, S. Alina Seran The Web 2.0 and the globalization impact on new consumer emergence and classification In: paper presented at International Conference on Education, Management and Social Science (ICEMSS-13). 22nd August 2013 Tianjin, ChinaAtlantis Press (2013), pp. 158–161 Kallio et al., 2006 J. Kallio, M. Tinnila, A. Tseng An international comparison of operator-driven business models Business Process Management Journal, 12 (3) (2006), pp. 281–298 View Record in Scopus | Citing articles (20) Kappel, 2009 T. Kappel Ex ante crowdfunding and the recording industry: A model for the us Loyola of Los Angeles Entertainment Law Review, 29 (3) (2009), pp. 375–385 View Record in Scopus | Citing articles (15) Knox, 2003 K. Knox A researcher's dilemma-Philosophical and methodological pluralism Electronic Journal of Business Research Methods, 2 (2) (2003), pp. 145–154 Kunze and Mai, 2007 O. Kunze, L.W. Mai Consumer adoption of online music services: The influence of perceived risks and risk-relief strategies International Journal of Retail & Distribution Management, 35 (11) (2007), pp. 862–877 Full Text via CrossRef | View Record in Scopus | Citing articles (14) Leech and Onwuegbuzie, 2007 N.L. Leech, A.J. Onwuegbuzie An array of qualitative data analysis tools: A call for data analysis triangulation School Psychology Quarterly, 22 (4) (2007), pp. 557–584 Full Text via CrossRef | View Record in Scopus | Citing articles (170) Lehner, 2013 O.M. Lehner Crowdfunding social ventures: A model and research agenda Venture Capital, 15 (4) (2013), pp. 289–311 Full Text via CrossRef | View Record in Scopus | Citing articles (25) Lincoff, 2008 B. Lincoff Common sense, accommodation and sound policy for the digital music marketplace Journal of International Media and Entertainment Law, 2 (1) (2008), pp. 1–64 L{\"u}thje et al., 2005 C. L{\"u}thje, C. Herstatt, E. von Hippel Userinnovators and “local” information: The case of mountain biking Research Policy, 24 (6) (2005), pp. 951–965 Article | PDF (189 K) | View Record in Scopus | Citing articles (187) Lysonski and Durvasula, 2008 S. Lysonski, S. Durvasula Digital piracy of MP3s: Consumer and ethical predispositions Journal of Consumer Marketing, 25 (3) (2008), pp. 167–178 Full Text via CrossRef | View Record in Scopus | Citing articles (59) Mason and Spring, 2011 K. Mason, M. Spring The sites and practices of business models Industrial Marketing Management, 40 (6) (2011), pp. 1032–1041 Article | PDF (497 K) | View Record in Scopus | Citing articles (49) McGrath, 2010 R.G. McGrath Business models: A discovery driven approach Long Range Planning, 43 (2) (2010), pp. 247–261 Article | PDF (235 K) | View Record in Scopus | Citing articles (166) Oestreicher and Kuzma, 2009 K.G. Oestreicher, J. Kuzma The music industry & its consumers: A potential divorce through technology and shifting market linkages? Chinese Business Review, 8 (9) (2009), pp. 1–16 Ordanini et al., 2011 A. Ordanini, L. Miceli, M. Pizzetti, A. Parasuraman Crowd-funding: Transforming customers into investors through innovative service platforms Journal of Service Management, 22 (4) (2011), pp. 443–470 View Record in Scopus | Citing articles (103) Papies et al., 2011 D. Papies, F. Eggers, N. Wl{\"o}mert Music for free? How free ad-funded downloads affect consumer choice Journal of the Academy of Marketing Science, 39 (5) (2011), pp. 777–794 Full Text via CrossRef | View Record in Scopus | Citing articles (15) Parry et al., 2014a G. Parry, O.F. Bustinza, F. Vendrell-Herrero Copyright and creation: Repositioning the argument Strategic Direction, 30 (3) (2014), pp. 32–35 Full Text via CrossRef | View Record in Scopus | Citing articles (1) Parry et al., 2014b G. Parry, F. Vendrell-Herrero, O.F. Bustinza Using data in decision-making: Analysis from the music industry Strategic Change, 23 (3–4) (2014), pp. 265–277 Full Text via CrossRef | View Record in Scopus Power and Hallencreutz, 2007 D. Power, D. Hallencreutz Competitiveness, local production systems and global commodity chains in the music industry: Entering the US market Regional Studies, 41 (3) (2007), pp. 377–389 View Record in Scopus | Citing articles (20) Qu and Dumay, 2011 S.Q. Qu, J. Dumay The qualitative research interview Qualitative Research in Accounting & Management, 8 (3) (2011), pp. 238–264 Full Text via CrossRef | View Record in Scopus | Citing articles (70) Regner and Barria, 2009 T. Regner, J.A. Barria Do consumers pay voluntarily? The case of online music Journal of Economic Behavior & Organization, 71 (2) (2009), pp. 395–406 Article | PDF (430 K) | View Record in Scopus | Citing articles (48) Rowlands, 2005 B.H. Rowlands Grounded in practice: Using interpretive research to build theory Electronic Journal of Business Research Methods, 3 (1) (2005), pp. 81–92 View Record in Scopus | Citing articles (29) Sandberg et al., 2011 E. Sandberg, T. Kihl{\'e}n, M. Abrahamsson Characteristics of a logistics-based business model Journal of Marketing Channels, 18 (2) (2011), pp. 123–145 Full Text via CrossRef | View Record in Scopus | Citing articles (3) Shafer et al., 2005 S.M. Shafer, H.J. Smith, J. 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year = "2017",
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language = "English",
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journal = "Journal of Business Research",
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TY - JOUR

T1 - A rewarding experience? Exploring how crowdfunding is affecting music industry business models

AU - Gamble, Jordan

AU - Brennan, Michael

AU - McAdam, Rodney

N1 - Reference text: References Agrawal et al., 2011 A. Agrawal, C. Catalini, A. Goldfarb Friends, family, and the flat world: The geography of crowdfunding NBER Working Paper, 16820 (2011), pp. 1–61 View Record in Scopus Al-Debei and Avison, 2010 M.M. Al-Debei, D. Avison Developing a unified framework of the business model concept European Journal of Information Systems, 19 (3) (2010), pp. 359–376 Full Text via CrossRef | View Record in Scopus | Citing articles (148) Allard-Poesi, 2005 F. Allard-Poesi The paradox of sensemaking in organizational analysis Organization, 12 (2) (2005), pp. 169–196 Full Text via CrossRef | View Record in Scopus | Citing articles (40) Arewa, 2010 O.B. Arewa YouTube, UGC, and digital music: Competing business and cultural models in the internet age Northwestern University Law Review, 104 (2) (2010), pp. 431–476 View Record in Scopus | Citing articles (4) Arts Council, 2010 Arts Council Digital audiences - Engagement with arts and culture online 2010 (November 2010), pp. 1–65 Bannerman, 2013 S. Bannerman Crowdfunding culture Journal of Mobile Culture, 7 (1) (2013), pp. 1–30 Belleflamme et al., 2013 P. Belleflamme, T. Lambert, A. Schwienbacher Individual crowdfunding practices Venture Capital, 15 (4) (2013), pp. 313–333 Full Text via CrossRef | View Record in Scopus | Citing articles (16) Bourreau et al., 2012 M. Bourreau, M. Gensollen, F. Moreau The impact of a radical innovation on business models: Incremental adjustments or big bang? Industry & Innovation, 19 (5) (2012), pp. 415–435 Full Text via CrossRef | View Record in Scopus | Citing articles (6) Buff and Alhadeff, 2013 L.A. Buff, P. Alhadeff Budgeting for crowdfunding rewards Journal of the Music & Entertainment Industry Educators Association, 13 (1) (2013), pp. 27–44 Cardoso and Ramos, 2012 A. Cardoso, I. Ramos Looking at the past to enrich the future: A reflection on klein and myers' quality criteria for interpretive research Electronic Journal of Business Research Methods, 10 (2) (2012), pp. 77–88 View Record in Scopus | Citing articles (1) Casadesus-Masanell and Hervas-Drane, 2010 R. Casadesus-Masanell, A. Hervas-Drane Competing against online sharing Management Decision, 48 (8) (2010), pp. 1247–1260 Full Text via CrossRef | View Record in Scopus | Citing articles (2) Cavalcante et al., 2011 S. Cavalcante, P. Kesting, J. Ulhøi Business model dynamics and innovation: (re)establishing the missing linkages Management Decision, 49 (8) (2011), pp. 1327–1342 Full Text via CrossRef | View Record in Scopus | Citing articles (97) CCS, 2011 CCS The music blueprint 2011 (March 2011), pp. 1–60 Chaney, 2012 D. Chaney The music industry in the digital age: Consumer participation in value creation International Journal of Arts Management, 15 (1) (2012), pp. 42–52 View Record in Scopus | Citing articles (6) Chesbrough, 2006 H. Chesbrough Open business models: How to thrive in the new innovation landscape Harvard Business Press, Harvard (2006) Choi and Burnes, 2013 H. Choi, B. Burnes The internet and value co-creation: The case of the popular music industry Prometheus, 31 (1) (2013), pp. 35–53 Full Text via CrossRef | View Record in Scopus | Citing articles (7) DeCuir-Gunby et al., 2011 J.T. DeCuir-Gunby, P.L. Marshall, A.W. McCulloch Developing and using a codebook for the analysis of interview data: An example from a professional development research project Field Methods, 23 (2) (2011), pp. 136–155 Full Text via CrossRef | View Record in Scopus | Citing articles (52) Demil and Lecocq, 2010 B. Demil, X. Lecocq Business model evolution: In search of dynamic consistency Long Range Planning, 43 (2/3) (2010), pp. 227–246 Article | PDF (249 K) | View Record in Scopus | Citing articles (216) Dewenter et al., 2012 R. Dewenter, J. Haucap, T. Wenzel On file sharing with indirect network effects between concert ticket sales and music recordings Journal of Media Economics, 25 (3) (2012), pp. 168–178 Full Text via CrossRef | View Record in Scopus | Citing articles (4) Doganova and Eyquem-Renault, 2009 L. Doganova, M. Eyquem-Renault What do business models do?: Innovation devices in technology entrepreneurship Research Policy, 38 (10) (2009), pp. 1559–1570 Article | PDF (269 K) | View Record in Scopus | Citing articles (128) Doz and Kosonen, 2010 Y.L. Doz, M. Kosonen Embedding strategic agility: A leadership agenda for accelerating business model renewal Long Range Planning, 43 (2/3) (2010), pp. 370–382 Article | PDF (152 K) | View Record in Scopus | Citing articles (122) Dubosson-Torbay et al., 2002 M. Dubosson-Torbay, A. Osterwalder, Y. Pigneur E-business model design, classification, and measurements Thunderbird International Business Review, 44 (1) (2002), pp. 5–23 Full Text via CrossRef | View Record in Scopus | Citing articles (128) Ericsson, 2010 S. Ericsson Recorded music industry and the emergence of online music distribution: Innovation in the absence of copyright (reform) The George Washington Law Review, 79 (2010), p. 1783 Gamble and Gilmore, 2013 J.R. Gamble, A. Gilmore A new era of consumer marketing? An application of co-creational marketing in the music industry European Journal of Marketing, 47 (11/12) (2013), pp. 1859–1888 Full Text via CrossRef | View Record in Scopus | Citing articles (6) Generator, 2011 Generator Generator annual report 2011 (2011), pp. 20111–20126 George and Bock, 2011 G. George, A.J. Bock The business model in practice and its implications for entrepreneurship research Entrepreneurship: Theory and Practice, 35 (1) (2011), pp. 83–111 Full Text via CrossRef | View Record in Scopus | Citing articles (129) Grant et al., 2012 M.A. Grant, L.N. Rohr, J.T. Grant How informants answer questions? Implications for reflexivity Field Methods, 24 (2) (2012), pp. 230–246 Full Text via CrossRef | View Record in Scopus Griffin, 2012 Z.J. Griffin Crowdfunding: Fleecing the American masses Case W·Res.JL Tech.& Internet, 4 (2) (2012), pp. 375–410 Harhoff et al., 2003 D. Harhoff, J. Henkel, E. von Hippel Profiting from voluntary information spillovers: How users benefit by freely revealing their innovations Research Policy, 32 (10) (2003), pp. 1753–1769 Article | PDF (277 K) | View Record in Scopus | Citing articles (248) Harris, 2000 S. Harris Reconciling positive and interpretative international management research: A native category approach International Business Review, 9 (6) (2000), pp. 755–770 Article | PDF (301 K) | View Record in Scopus | Citing articles (29) Herstatt and Schweisfurth, 2014 C. Herstatt, T. Schweisfurth The intellectual pillars of user innovation: A co-citation analysis. Technologie- und Innovations management Technische Universität Hamburg-Harburg working paper, 87 (1) (2014), pp. 1–17 von Hippel, 2007 E. von Hippel Horizontal innovation networks: By and for users Industrial and Corporate Change, 16 (2007), pp. 293–315 Full Text via CrossRef | View Record in Scopus | Citing articles (163) IFPI, 2013 IFPI IFPI digital music report 2013: Engine of a digital world (2013), pp. 1–36 Izvercian and Alina Seran, 2013 M. Izvercian, S. Alina Seran The Web 2.0 and the globalization impact on new consumer emergence and classification In: paper presented at International Conference on Education, Management and Social Science (ICEMSS-13). 22nd August 2013 Tianjin, ChinaAtlantis Press (2013), pp. 158–161 Kallio et al., 2006 J. Kallio, M. Tinnila, A. Tseng An international comparison of operator-driven business models Business Process Management Journal, 12 (3) (2006), pp. 281–298 View Record in Scopus | Citing articles (20) Kappel, 2009 T. Kappel Ex ante crowdfunding and the recording industry: A model for the us Loyola of Los Angeles Entertainment Law Review, 29 (3) (2009), pp. 375–385 View Record in Scopus | Citing articles (15) Knox, 2003 K. Knox A researcher's dilemma-Philosophical and methodological pluralism Electronic Journal of Business Research Methods, 2 (2) (2003), pp. 145–154 Kunze and Mai, 2007 O. Kunze, L.W. Mai Consumer adoption of online music services: The influence of perceived risks and risk-relief strategies International Journal of Retail & Distribution Management, 35 (11) (2007), pp. 862–877 Full Text via CrossRef | View Record in Scopus | Citing articles (14) Leech and Onwuegbuzie, 2007 N.L. Leech, A.J. Onwuegbuzie An array of qualitative data analysis tools: A call for data analysis triangulation School Psychology Quarterly, 22 (4) (2007), pp. 557–584 Full Text via CrossRef | View Record in Scopus | Citing articles (170) Lehner, 2013 O.M. Lehner Crowdfunding social ventures: A model and research agenda Venture Capital, 15 (4) (2013), pp. 289–311 Full Text via CrossRef | View Record in Scopus | Citing articles (25) Lincoff, 2008 B. Lincoff Common sense, accommodation and sound policy for the digital music marketplace Journal of International Media and Entertainment Law, 2 (1) (2008), pp. 1–64 Lüthje et al., 2005 C. Lüthje, C. Herstatt, E. von Hippel Userinnovators and “local” information: The case of mountain biking Research Policy, 24 (6) (2005), pp. 951–965 Article | PDF (189 K) | View Record in Scopus | Citing articles (187) Lysonski and Durvasula, 2008 S. Lysonski, S. Durvasula Digital piracy of MP3s: Consumer and ethical predispositions Journal of Consumer Marketing, 25 (3) (2008), pp. 167–178 Full Text via CrossRef | View Record in Scopus | Citing articles (59) Mason and Spring, 2011 K. Mason, M. Spring The sites and practices of business models Industrial Marketing Management, 40 (6) (2011), pp. 1032–1041 Article | PDF (497 K) | View Record in Scopus | Citing articles (49) McGrath, 2010 R.G. McGrath Business models: A discovery driven approach Long Range Planning, 43 (2) (2010), pp. 247–261 Article | PDF (235 K) | View Record in Scopus | Citing articles (166) Oestreicher and Kuzma, 2009 K.G. Oestreicher, J. Kuzma The music industry & its consumers: A potential divorce through technology and shifting market linkages? Chinese Business Review, 8 (9) (2009), pp. 1–16 Ordanini et al., 2011 A. Ordanini, L. Miceli, M. Pizzetti, A. Parasuraman Crowd-funding: Transforming customers into investors through innovative service platforms Journal of Service Management, 22 (4) (2011), pp. 443–470 View Record in Scopus | Citing articles (103) Papies et al., 2011 D. Papies, F. Eggers, N. Wlömert Music for free? How free ad-funded downloads affect consumer choice Journal of the Academy of Marketing Science, 39 (5) (2011), pp. 777–794 Full Text via CrossRef | View Record in Scopus | Citing articles (15) Parry et al., 2014a G. Parry, O.F. Bustinza, F. Vendrell-Herrero Copyright and creation: Repositioning the argument Strategic Direction, 30 (3) (2014), pp. 32–35 Full Text via CrossRef | View Record in Scopus | Citing articles (1) Parry et al., 2014b G. Parry, F. Vendrell-Herrero, O.F. Bustinza Using data in decision-making: Analysis from the music industry Strategic Change, 23 (3–4) (2014), pp. 265–277 Full Text via CrossRef | View Record in Scopus Power and Hallencreutz, 2007 D. Power, D. Hallencreutz Competitiveness, local production systems and global commodity chains in the music industry: Entering the US market Regional Studies, 41 (3) (2007), pp. 377–389 View Record in Scopus | Citing articles (20) Qu and Dumay, 2011 S.Q. Qu, J. 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PY - 2017/1/1

Y1 - 2017/1/1

N2 - This paper provides an exploratory study of how rewards-based crowdfunding affects business model development for music industry artists, labels and live sector companies. The empirical methodology incorporated a qualitative, semi-structured, three-stage interview design with fifty seven senior executives from industry crowdfunding platforms and three stakeholder groups. The results and analysis cover new research ground and provide conceptual models to develop theoretical foundations for further research in this field. The findings indicate that the financial model benefits of crowdfunding for independent artists are dependent on fan base demographic variables relating to age group and genre due to sustained apprehension from younger audiences. Furthermore, major labels are now considering a more user-centric financial model as an innovation strategy, and the impact of crowdfunding on their marketing model may already be initiating its development in terms of creativity, strength and artist relations.

AB - This paper provides an exploratory study of how rewards-based crowdfunding affects business model development for music industry artists, labels and live sector companies. The empirical methodology incorporated a qualitative, semi-structured, three-stage interview design with fifty seven senior executives from industry crowdfunding platforms and three stakeholder groups. The results and analysis cover new research ground and provide conceptual models to develop theoretical foundations for further research in this field. The findings indicate that the financial model benefits of crowdfunding for independent artists are dependent on fan base demographic variables relating to age group and genre due to sustained apprehension from younger audiences. Furthermore, major labels are now considering a more user-centric financial model as an innovation strategy, and the impact of crowdfunding on their marketing model may already be initiating its development in terms of creativity, strength and artist relations.

KW - crowdfunding

KW - business models

KW - music industry

U2 - 10.1016/j.jbusres.2016.07.009

DO - 10.1016/j.jbusres.2016.07.009

M3 - Article

VL - 70

SP - 25

JO - Journal of Business Research

T2 - Journal of Business Research

JF - Journal of Business Research

SN - 0148-2963

ER -