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A rewarding experience? Exploring how crowdfunding is affecting music industry business models

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  • Gamble, Jordan Robert
  • Brennan, Michael
  • McAdam, Rodney

Abstract

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.

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  • Gamble, Jordan Robert & Brennan, Michael & McAdam, Rodney, 2017. "A rewarding experience? Exploring how crowdfunding is affecting music industry business models," Journal of Business Research, Elsevier, vol. 70(C), pages 25-36.
    • Handle: RePEc:eee:jbrese:v:70:y:2017:i:c:p:25-36
    DOI: 10.1016/j.jbusres.2016.07.009
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    4. Khaoula Behi & Nivedita Agarwal & Alexander Brem, 2020. "An Analysis of a Crowdfunding System in North Africa Based on the Actor-Network Theory," International Journal of Global Business and Competitiveness, Springer, vol. 15(1), pages 23-34, June.
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    7. Uparna, Jayaram & Bingham, Chris, 2022. "Breaking “Bad”: Negativity’s benefit for entrepreneurial funding," Journal of Business Research, Elsevier, vol. 139(C), pages 1353-1365.
    8. Afshin Omidi & Cinzia Dal Zotto & Esmaeil Norouzi & José María Valero-Pastor, 2020. "Media Innovation Strategies for Sustaining Competitive Advantage: Evidence from Music Download Stores in Iran," Sustainability, MDPI, vol. 12(6), pages 1-17, March.
    9. Chandna, Vallari & Salimath, Manjula S., 2018. "Peer-to-peer selling in online platforms: A salient business model for virtual entrepreneurship," Journal of Business Research, Elsevier, vol. 84(C), pages 162-174.
    10. Kaminski, Jermain & Hopp, Christian & Tykvová, Tereza, 2019. "New technology assessment in entrepreneurial financing – Does crowdfunding predict venture capital investments?," Technological Forecasting and Social Change, Elsevier, vol. 139(C), pages 287-302.
    11. Calic, Goran & Shevchenko, Anton, 2020. "How signal intensity of behavioral orientations affects crowdfunding performance: The role of entrepreneurial orientation in crowdfunding business ventures," Journal of Business Research, Elsevier, vol. 115(C), pages 204-220.
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    13. Natenapang Thongsri & Alex Kung-Hsiung Chang, 2019. "Interactions Among Factors Influencing Product Innovation and Innovation Behaviour: Market Orientation, Managerial Ties, and Government Support," Sustainability, MDPI, vol. 11(10), pages 1-21, May.
    14. Kalanit Efrat & Shaked Gilboa, 2020. "Relationship approach to crowdfunding: how creators and supporters interaction enhances projects’ success," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(4), pages 899-911, December.
    15. Tafesse, Wondwesen, 2021. "Communicating crowdfunding campaigns: How message strategy, vivid media use and product type influence campaign success," Journal of Business Research, Elsevier, vol. 127(C), pages 252-263.
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    18. Clinton, Eric & McAdam, Maura & Gamble, Jordan Robert, 2018. "Transgenerational entrepreneurial family firms: An examination of the business model construct," Journal of Business Research, Elsevier, vol. 90(C), pages 269-285.

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