Owen and O'Dair (2020)
|Owen and O'Dair (2020)|
|Title:||How blockchain technology can monetize new music ventures: an examination of new business models|
|Author(s):||Owen, R., O'Dair, M.|
|Citation:||Owen, R., & O'Dair, M. (2020). How blockchain technology can monetize new music ventures: an examination of new business models. The Journal of Risk Finance.|
|Link(s):||Definitive , Open Access|
|Key Related Studies:|
|About the Data|
|Data Description:||The study draws on in-depth interviews with key actors at four case-story music industry infomediary businesses: Blokur; Dot Blockchain; JAAK; Mycleia.|
|Data Type:||Primary data|
|Secondary Data Sources:|
|Data Collection Methods:|
|Data Analysis Methods:|
|Cross Country Study?:||No|
|Government or policy study?:||No|
|Time Period(s) of Collection:||
Purpose – This paper aims to examine how blockchain technology is disrupting business models for new venture finance.
Design/methodology/approach – The role of blockchain technology in the evolution of new business models to monetize the creative economy is explored by means of a case study approach. The focus is on the recorded music industry, which is in the vanguard of new forms of intermediation and financialization. There is a particular focus on emerging artists.
Findings – This paper provides novel case study insights and concludes by considering how further research can contribute to building a theory of technology-driven business models which apply to the development, on the one hand, of new forms of financial intermediaries, more correctly referred to as “infomediaries,” and on the other hand, to new forms of direct monetization by artists.
Originality/value – This paper provides early insight into the emerging potential applications of blockchain technologies to streamline music industry business service models and improve finance streams for new artists. The findings have far-reaching implications across the creative sector.
Keywords: Blockchain, Business models, Infomediaries, Music industry,New venture finance
Paper type: Research paper
Main Results of the Study
The article reports the following findings:
- Blockchain is enabling new infomediary services to develop. The case study evidence suggests that the most advanced of these new services, currently at alpha and beta testing stages, aim to ensure the rights and licensing of recorded music, incorporating artist creator details, smart contract payments and artistic expression into the digitized online streaming and wider artistic distribution mechanisms facilitated by the internet and blockchain.
- Blockchain is enabling new infomediary customer services to monetize new recorded music far more efficiently through the new online streaming music distribution services. The main customers will be the artist creators, publishers and labels, and the online music streaming services, with the value creation in terms of greater efficiency (speed, accuracy and cost reduction) in establishing artists’ rights and payments by using blockchain technology, digital encoding and AI search mechanisms to replace physical collection society activities.
- The new business models are B2B services, with little cost directed towards the artist/creators. The expectations are that the publishers and labels and streaming distributors will pay for these enhanced services, either through licensing rights or small percentage service charges on transactions.
- All new service providers are in favour of regulation as a means of gaining public recognition, trust and acceptance of the blockchain services – the main question here is the extent to which industry regulations can be adopted globally and the desire for a blockchain facilitating light touch approach. So, while blockchain is inherently disintermediating, it is also necessarily in need of legal enforcement of global rights and infomediary activities to ensure the promotion and more equitable payment of artists.
Policy Implications as Stated By Author
"while blockchain is inherently disintermediating, it is also necessarily in need of legal enforcement of global rights and infomediary activities to ensure the promotion and more equitable payment of artists."
Coverage of Study
|Level of aggregation:||Company|
|Period of material under study:||2019|
|Level of aggregation:||Individual|
|Period of material under study:||2019|