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

Gamble, Jordan Robert; Brennan, Michael; McAdam, Rodney

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.

Citation

Gamble, J. R., Brennan, M., & McAdam, R. (2016). A rewarding experience? Exploring how crowdfunding is affecting music industry business models. Journal of Business Research, 70, 25-36. https://doi.org/10.1016/j.jbusres.2016.07.009

• Journal Article Type: Article
• Acceptance Date: Jul 27, 2016
• Online Publication Date: Aug 10, 2016
• Publication Date: 2016-08
• Deposit Date: Sep 20, 2016
• Publicly Available Date: Jul 8, 2020
• Journal: Journal of Business Research
• Print ISSN: 0148-2963
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 70
• Pages: 25-36
• DOI: https://doi.org/10.1016/j.jbusres.2016.07.009
• Keywords: Rewards-based crowdfunding; Business model, music industry,financial model, user-centric; Innovation
• Public URL: http://researchrepository.napier.ac.uk/Output/382851
• Related Public URLs: http://researchrepository.napier.ac.uk/id/eprint/10454