A rewarding experience? Exploring how crowdfunding is affecting music industry business models
Gamble, Jordan Robert.
- Publisher: Elsevier
Rewards-based crowdfunding | Business model, music industry,financial model, user-centric | Innovation | 303 Social processes | 338.4 Secondary industries and services | HV Social pathology. Social and public welfare
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.