Owen and O'Dair (2020) 2

Source Details

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.
Year:	2020
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.
Link(s):	Definitive
Key Related Studies:	Baden-Fuller and Haefliger (2013) Baden-Fuller and Haefliger (2013) Sitonio and Nucciarelli (2018) Tumasjan and Beutel (2018) O’Dair (2019)
Discipline:	O34: Intellectual Property and Intellectual Capital
Linked by:

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:
Data Collection Methods:	Case Study Semi-Structured Interview
Data Analysis Methods:	Textual Content Analysis
Industry(ies):	Sound recording and music publishing
Country(ies):	UK
Cross Country Study?:	No
Comparative Study?:	No
Literature review?:	No
Government or policy study?:	No
Time Period(s) of Collection:	February 2019
Funder(s):

Abstract

“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

Coverage of Fundamental Issues

Issue	Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)?
Harmony of interest assumption between authors and publishers (creators and producers/investors)
Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption)
Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)

Coverage of Evidence Based Policies

Issue	Included within Study
Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right)
Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction)
Mass digitisation/orphan works (non-use; extended collective licensing)
Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability)
Fair remuneration (levies; copyright contracts)
Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Datasets

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