Emerging Service-Based Business Models in the Music Industry: An Exploratory Survey
During the last decade the incumbent companies in the recorded music industry had severe difficulties in adequately reacting to technological improvements and changes in consumers’ needs. Which business models are best suited to the new circumstances is not yet clear. Thus, experiments with alternative business models are essential. The omnipresence of music in the digital era means that, the product ”recorded music” is loosing it’s value and is instead reinforcing the service aspect of music. Many product-based companies are seeking to improve their competitiveness by moving toward service-based business models. However, incumbent firms face severe barriers to conducting business model experiments with such service-based offers. This is why entrepreneurial startup companies are the leading force in steering business models toward a service-dominant perspective. In this article we will analyze and categorize the service-based business models of recently founded music companies to identify some of the generic characteristics of innovative business models in the recorded music industry.
Keywordsbusiness model innovation music industry service transformation startups
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