Owen and O'Dair (2020) 2
|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. and O'Dair, M. (2020), How blockchain technology can monetize new music ventures: an examination of new business models, Journal of Risk Finance, Vol. 21 No. 4, pp. 333-353.|
|Key Related Studies:|
|About the Data|
|Data Description:||For this study, the authors adopted “new infomediaries” as their unit of analysis. As case studies, they selected infomediary businesses in which they identified a priority in assigning new artists and which used or planned to use blockchain technology to generate funding streams for these artists. They conducted interviews with four infomediary business (Mycelia, Blokur, JAAK and Dot Blockchain Media) and, in parallel, an interview with a former vice president of strategy from a major record label.|
|Data Type:||Primary data|
|Secondary Data Sources:|
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|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.”
Main Results of the Study
The study finds four emerging themes:
1. There is a widespread acknowledgment that blockchain is a more efficient and effective path to licensing and payment for artists than a centralized database of music rights and blockchain is enabling new infomediary services to develop;
2. Blockchain is also enabling new infomediary customer services to monetize new recorded music far more efficiently through the new online streaming music distribution services.
3. New and emerging blockchain-based business models are still needed, as well as a significant change in the structure of the music industry in order for these new infomediary services succeed.
4. Finally, some of the external barriers identified to the adoption of these new services range from the dominance of major labels, which historically neglect new technologies, to the danger of premature regulation. Regarding the latter, new services providers are in favour of regulation as a form of gaining public recognition, trust and acceptance of the blockchain services. However, they believe in a “non-premature” and “light-touch” regulation.
Policy Implications as Stated By Author
The study does not make any explicit policy recommendation. However, it suggests that there is a positive attitude towards regulation from new infomediary businesses. These new services providers are in favour to a regulation as a form of gaining public recognition, trust and acceptance of the blockchain services. However, they advocate for a “non-premature” and “light-touch” regulation. This means that governments should wait until a clearer picture emerges to regulate the new market and, when regulating it, be careful, for example, to not create too much bureaucracy.
Coverage of Study