The International Journal of Music Business Research is an online, open access, fully peer reviewed academic journal that has been published since 2012.
The field of music business studies is multidisciplinary; the journal publishes articles that address the economics of the arts and music, musical creativity, the sociology of music, the law, and culture and technology with a specific focus on articles that aim to enhance our understanding of the creation, dissemination, and reception/consumption of music. The journal is currently hosted by the Institute for Cultural Management and Cultural Studies (IKM) at the University of Music and Performing Arts Vienna.
We aim to publish two volumes annually: one an open edition and the other with a specific theme.
Volume 1, no 1, April 2012
Innovation in the arts – lessons from the creation of Dalhalla
This article employs seven innovation perspectives and an etymological study of innovation, together with a case study on how Margareta Dellefors created Dalhalla in Sweden, an opera and classical music arena. Because of the combination of nature and art, Dalhalla gained world fame. The case study opens Schumpeter's black box "creative destruction" and it deepens the understanding of barriers and stimulating factors. The analysis includes a new model of innovation.
Collaborating to compete: the role of cultural intermediaries in hypercompetition
This article explores the role that cultural intermediaries, defined primarily as radio DJs and journalists, play in the lives of three unsigned UK urban music artists. Using semi-structured interviews, textual analysis of social media usage, and observation notes, as well as auto-ethnographic examination of the author's own career as a musician over a four-year period between 2010-13, it is suggested that intermediaries are of crucial importance in the lives of artists largely as distinguishers in an environment of ferocious competition, which anonymises via abundance. Their role is therefore deeply symbolic, providing credible eminence. By interpreting these findings through a Bourdieusian lens, it is suggested that these collaborative processes of intermediary engagement, which allow musicians to acquire large reserves of institutionalised cultural capital, problematise notions of success by masking the profound difficulties they have in converting this prestige into material rewards. There is therefore, for these musicians, a worrying ambiguity relating to how others understand and value what they do, and a tension between this perception and their material reality.
Status quo and perspectives of licensing synchronisation rights
Stephan Klingner & Julia Friedrich
The commercialisation of synchronisation rights has become an area of growing importance for music publishers and labels, since wide-ranging exploitation of musical works is needed nowadays to achieve a profitable level of business activity. The developments in the synchronisation rights area are closely linked to increased digitalisation. On the one hand, business processes can be optimised by using internet-based platforms or applying seamlessly digitalised workflows, yet on the other hand, both supply and demand of musical works is increasing, creating other challenges. This paper analyses the current state of the art in the sector by conducting market research as well as using various case studies. The goal was to capture current workflows, challenges and perspectives relating to the licensing of synchronisation rights.
Book review by Dennis Collopy: The Economics of Music by Peter Tschmuck
A methodology for cultural music business research
In the light of the constant, media driven transformations of the music business and culture, the contexts and practices, where and through which music is produced, circulated and used, change constantly. To detect and analyse these new forms and processes related to the music business and to research their meaning for the people involved with them, this article proposes a methodology for cultural music business research. It suggests practice theory as a fruitful starting point to research a transformed music culture as modern practices run across increasingly blurred lines between music producers, businesses, media, brands and prosumers or fans. It then provides insights into the methodology of multi-sited ethnography that fits this kind of cultural music business research and finally proposes a set of methods and tools for interpretation of the data produced through this methodology.
The impact of digitalisation on the recorded music consumption. An Estonian case study
Digitalisation has radically changed how recorded music is produced, distributed and consumed. While physical sales have been declining globally, music subscription continues to be a key driver for digital growth, even though the viability of the "freemium" business model has not yet been proven to be sustainable. A survey questionnaire with 1,544 respondents was carried out to study the changed recorded music consumption patterns in Estonia. The analysis revealed disparities in recorded music consumption among different age and gender groups. It follows that different communication messages are needed to reach these distinct consumer groups in order to monetise their recorded music consumption more effectively.
Song product characteristics and music commercial performance
Arilova A. Randrianasolo & Jeremiah Sala
The purpose of this paper is to investigate how the time-related factor known as tempo, the pitch-related factor known as song key, and the texture-related factor reflected by genre influence a song's commercial performance. The authors utilise Poisson and ordinal regression analyses across two samples to test the influences of tempo, song key, and genre on commercial performance. Sample 1 is composed of the #1 songs from 1958 until 2015, and sample 2 is composed of the top 100 songs of 2012 and 2013 in the United States. Results of the regression analyses indicate that song key and genre influence different aspects of performance. The findings of this research provide implications to music managers faced with the decision to select a song to promote for an artist or album. Specifically, this research indicates that managers seeking to select singles to promote for an artist or album should consider song product characteristics that may influence commercial success.
The New Music Industries: Disruption and Discovery by Diane Hughes, Mark Evans, Guy Morrow and Sarah Keith
Book review by Daniel Nordgård
Aesthetic preferences and aesthetic 'agnosticism' among managers in music organisations: is liking projects important?
How do managers within large music organisations deal with their own aesthetic preferences when developing and marketing new work? In this qualitative, international study, data were collected through 24 interviews with senior managers. The study found strong differences of opinion, ranging from managers being strongly invested in their own aesthetic preferences, to bringing an 'agnostic' attitude that their personal preferences should be ignored in deference to those of the target audience.
Why narratives are better than chronicles of achievement in musicians' biographies
Drawing on Frith's theory that music appreciation involves identification with broader cultural narratives and Bruner's theory that identities are narratively constructed, a hypothesis is developed to argue that band bios containing narrative features are superior to those that merely chronicle bands' achievements. Such bios can facilitate perceptions of authenticity and thereby improve listeners' aesthetic experience of the music and increase the likelihood of them becoming fans.
The psychology of streaming: exploring music listeners' motivations to favour access over ownership
Digital streaming represents the most radical development in the way we experience music since the invention of automatic playback technologies two centuries ago. From zero ownership and on-demand access to a virtually limitless library of music via a disconnected financial transaction, streaming services challenge previous conceptions of how music is defined, experienced and consumed. This paper explores streaming from a psychological perspective, and highlights a range of factors that motivate users to favour access over ownership. From removal of responsibili-ties of ownership to enhanced discovery, nostalgia-fulfilment to augmented emotional engagement, adoption of access-based consumption is shown to be both driven by, and have multiple positive effects on listeners' psychological functioning. The paper concludes by examining some implications of the issues discussed for each of the three pillars of the streaming industry — listeners, content-creators and service providers — for enhancing the musical experience, growing revenues, and maximising overall potential for engagement with and through music.
ROCKONOMICS REVISITED: THE RISE OF MUSIC STREAMING SERVICES
AND THE EFFECT ON THE CONCERT INDUSTRY
Adam Fer & Barbara Baarsma
According to Krueger (2005) the main reason for concert ticket prices for popular music to show a sharp increase between 1996 and 2003 is that artists felt less constrained from increasing prices due to the erosion of the complementary relationship with album sales. This paper continues his analysis in a more current context by
focusing on how the rise of music streaming services has influenced concert ticket prices and revenues, while also providing a brief analysis on the effects of the economic crisis.
INNOVATION DIFFUSION IN B2B RELATIONS: NEW SONG DIFFUSION IN RADIO BROADCASTING
Alexander Brem & Michael Reichert
Through a multiple case study based on interviews with radio editorial staff, this article provides insights in the selection process for the use of new songs in German radio broadcasting. Radio editors learn about new songs through different channels, the intensity of the information search depends on the station's size and resources.
Several criteria for new song adoption have been identified, including: congruence with format, usage by competitive stations, evaluations by radio consultancy.
THE DISTINCTIVENESS OF ELECTRONIC DANCE MUSIC. CHALLENGING MAINSTREAM
ROUTINES AND STRUCTURES IN THE MUSIC INDUSTRIES
Job van der Velden & Erik Hitters
To what extent is the Dance (or EDM) genre distinctive, when compared to the structures currently present in the dynamic music industries? We have combined a literature review with a qualitative analysis through interviews with prominent Dutch Dance label owners, in order to answer this question. The analysis shows that the Dance genre is not compatible with the existing models developed by Negus and Hesmondhalgh, used to explain the structures and the (power-) division within the music industry. The article looks at the unique characteristics (e.g. the 'digitally born' nature, the absence of majors and the live revenue focus) of this genre and what this has meant, and means, amidst all digital advances, for its development.
BUSINESS INNOVATION AND DISRUPTION IN THE MUSIC INDUSTRY (eds. Wikström, P. & DeFillippi, R.)
Book review by Daniel Nordgård
Editorial by Peter Tschmuck
LIFE IS LIVE: EXPERIENCING MUSIC IN THE DIGITAL AGE
The music industry has seen many changes over recent decades: one of the most discussed is the change in user behaviour and its implications for buying behaviour. Although music reception has become omnipresent in everyday life, the music industry has faced a decrease in recorded music revenues while the live music sector has grown. This paper argues that through digital information/communication technologies the "immediate experience of music reception" is becoming a shared concept of "life 2.0" and live settings.
MUSIC CONSUMPTION IN SPAIN: FROM ANALOGUE TO DIGITAL IN THE SHAPING OF MUSIC
José María Álvarez Monzoncillo & Juan Calvi
This paper analyses the relationship between the types of music consumed on the Internet and the thought leaders for this new digital consumption: i.e. the social agents or new mediators that influence consumption. Mass consumption is determined by traditional mass media such as the press, radio and television since they are very effective marketing tools. The Internet reinforces the presence of mass consumption products, in fact, data relating to so-called "long tail" music consumption shows that the majority of cultural consumption is increasingly concentrated on the top ten lists. Nevertheless, the media's role has gradually begun to lose steam and is being substituted by recommendation systems and/or the rise of new online agents. To support this analysis, we carried out a comparative study of 50 of the most listened to songs via streaming, radio, physically, digitally purchased or that were illegally downloaded.
THE EVOLUTION OF MUSIC BLOGS: FROM A FAN’S PASSION TO A PROMOTIONAL OUTLET
As music blogs have recently become an essential outlet for music and artist's promotion, this article looks at their evolution from simple fans' personal diaries to key collaborators of the music industry. Record labels went from suing blogs for digital copyright infringements to collaborating with them for the promotion of their artists. In particular, four different phases will be identified, each one characterised by particular blogging practices. It will be argued that the increasing influence of the blogosphere and the music industry on blog content strategies can be considered seminal factors in the evolution of music blogs. The emergence of new dynamics in blogging approaches may lead to a need to redefine what a music blog is. It also requires finding new theoretical frameworks to help analyse the newest version of a music blog.
Editorial by Martin Lücke & Carsten Winter
SUCCESS FACTORS FOR MUSIC-BASED CROWDFUNDING AS A NEW MEANS OF FINANCING MUSIC PROJECTS
Helmut Scherer & Carsten Winter
This article concerns the new possibilities for co-financing music. With communication between artists and fans on the rise to the point of becoming partners in value creation in the new open networked music economy, crowdfunding creates new opportunities for artists to fund their projects. Since music sales are still in decline and new artists or creative projects continue to struggle to find financiers for their projects, crowdfunding has become the next step in the transformation of the music economy.
BURIED BY ADMINISTRATION: HOW THE MUSIC INDUSTRY LOSES ITS CREATIVITY. AN EMPIRICAL STUDY OF GERMAN MUSIC LABELS AND PUBLISHERS
Ronny Gey, Frank Schumacher, Stephen Klingner & Bettina Schasse De Araujo
This article highlights the results of a qualitative analysis of the German music industry and its small and medium sized enterprises (SME) with a focus on the conflicts between the artistic and commercial rationales. We interviewed eight individuals from record labels, music publishers and music organizations in order to explore how they worked and with which everyday business problems they were confronted.
THE HIGHER EDUCATION OF MUSICIANS AND MUSIC INDUSTRY WORKERS IN GERMANY
David-Emil Wickström, Martin Lücke & Anita Jóri
This article discusses the higher education of musicians and music industry workers within the field of Popular Music in Germany. For a successful education, which enables a long-term sustainable career within the music industry, we argue that students need both artistic as well as entrepreneurial skills and knowledge.
Editorial by Peter Tschmuck
DISINTERMEDIATION EFFECTS ON INDEPENDENT APPROACHES TO THE MUSIC BUSINESS
Francisco Bernardo and Luís Gustavo Martins
In the aftermath of the digital revolution, business models are changing and disintermediation is impacting the music economy. In these circumstances, we observe the widespread claim that music artists are able to successfully reach the market on their own, leveraging access to networked global communications and the use of digital network media as a means of production. This paper argues such arguments feed on the ideals of independence in the context of an experimental and transitional stage that the music industry is currently undergoing, and that may be part of a recurrent cycle leading to the establishment of a new generation of intermediaries.
CREATIVITY, INNOVATION AND ENTREPRENEURSHIP IN MUSIC BUSINESS EDUCATION
This study surveys existing literature, which place music business entrepreneurship in context, in terms of traditional business entrepreneurship. Considerations of the music business entrepreneur sit within a larger discourse of entrepreneurship, creativity, innovation and popular mythologies around the differences between typical entrepreneurs and music business entrepreneurs. This research concludes by making some observations regarding music business curriculum.
MUSIC BLOGS AND THE MUSIC INDUSTRY: COLLUSION OR INDEPENDENCE?
As the music blogging culture is becoming a core component of the musical experience of many music listeners slowly replacing more traditional forms through which the audience experience music, this article explores how music blog practices fit into the broader discourse of music promotion and how their relationships with the music
industry are articulated. Ideally music blogs should operate with values that are distinct from those of the record companies, but because they often rely on record companies for access to material, that relationship might be a source of tension. This article argues that music blogs enter into a series of collaborative relationships that are one aspect of their practices. In particular, they collaborate with labels and PR sponsors to determine the kinds of materials they will present on their sites, importantly connecting these materials with their posts.
Editorial by Peter Tschmuck
THE EUROPEAN COMMISSION’S PROPOSAL FOR A DIRECTIVE ON COLLECTING SOCIETIES AND CULTURAL DIVERSITY – A MISSED OPPORTUNITY
At the beginning I would like to make a hypothetical statement concerning the Eurovision Song Contest: Those of you who would have wished more people singing in their native tongue will probably in the end agree with my position as presented here, whereas those of you who are insofar indifferent or even, for marketing or other reasons, prefer "English for all" will probably react more sceptically.
TURN IT UP: THAT’S MY SONG IN THAT AD
This article concerns the effect of various and actual integrations of popular music on attitude towards an ad, brand and artist in television commercials in general. Three commercials with foreground music were selected to stimulate the discussion of popular music in advertising by representing three integrations of popular music in television advertising: original vocals and lyrics (OV), original instrumental (OI), and altered original vocals and lyrics (AV). This study found high likeability for song, artist and brand in general, and in particular, when the song and artist were considered in terms of being favourites.
‘WITH A LITTLE HELP FROM MY FRIENDS’: PEER PRODUCTION AND THE CHANGING FACE OF THE LIVE ALBUM
Steven C. Brown
The live album is an important artefact in bringing together recorded music and live music. As the popularity of live music grows in tandem with the decline of recorded music, the role of the live album is explored in the context of the digital era. By exploring the recent phenomenon of peer production (or crowdsourcing), and with reference to various examples, the future of the live album is explored as one which blurs the boundaries of creation and ownership. Posing that this new era of voluntary participation may benefit musicians commercially, the article concludes that future research into peer production may inspire new ways for the music industry to appease changing consumer preferences in a time of rapid technological change.
Editorial by Patrik Wikström and Peter Tschmuck
REGULATING ARTIST MANAGERS: AN INSIDER’S PERSPECTIVE
It is problematic that artist managers in the international popular music industry are not currently subject to consistent regulatory frameworks, particularly given the increasing centralisation of responsibility with this role. This article examines the following research question: Can artist management practices be consistently regulated? In addition, it will address the following sub-research questions: What are the pitfalls that belie attempts to regulate for the betterment of musicians and the music industry? Is self-regulation a viable alternative?
THE NEWCASTLE MUSIC INDUSTRY: AN ETHNOGRAPHIC STUDY OF A REGIONAL CREATIVE SYSTEM IN ACTION
Phillip McIntyre and Gaye Sheather
This paper presents detailed preliminary findings from an ethnographic study of the Newcastle NSW music industry. It argues that in the midst of seemingly continuous change primarily wrought by the advent of new global trade regimes and associated digital technologies there are also fundamental continuities at work for local music industries. These continuities are evident in the idea that these industries are part of a dynamic system of choice-making agents constituted by musicians, promoters, media operatives, venue owners, educators, policy makers and many others. They compete and collaborate within the structures of a gift and financial economy which exists in a regional and global framework with a dynamic history that has helped shape this creative system in action.
WHAT CONSTITUTES SUCCESS IN THE AUSTRALIAN MUSIC INDUSTRIES?
Diane Hughes, Sarah Keith, Guy Morrow, Mark Evans, Denis Crowdy
Contemporary artists embarking on a musical career enter into a highly competitive and complex environment. Whereas the pre-digital music industries consisted of definable streams of income and markers of achievement, such as live performance opportunities, record deals, royalties, and radio play, today's music industries involve multiple platforms and strategies that artists need to engage with. Defining "success" in this new environment goes beyond standard definitions of financial independence or peer respect (Letts 2013). Success is contingent on planning for and leveraging numerous smaller successes in areas including developing "Do It Yourself" (DIY) and management skills and engaging in funding opportunities such as government grants. Artists may also employ crowdfunding or alternate means for raising capital, engaging with fans via social media, managing their online identities and personas, utilising online music video, and expanding into overseas markets in order to maintain financial viability. This research draws on a series of focus groups with artists and industry practitioners within the Australian music industries, and considers the diverse contemporary approaches that artists take in order to achieve success in their careers.
Editorial by Dennis Collopy and Peter Tschmuck
MUSIC RECEPTION IN THE DIGITAL AGE – EMPIRICAL RESEARCH ON NEW PATTERNS OF MUSICIAL BEHAVIOUR
Developments since the 1990s make it abundantly clear to what extent new conditions can cast doubt upon previously unquestioned ideas about how people experience music. Twenty years after the internet was opened up to all comers with the graphics-enabled web browser Mosaic, new behaviours related to music have become established which would never before have been thought possible. But it is still the case that not all experts understand (or respect) the new ways in which members of "generation Web 2.0" receive their music. Empirical music sociology can help here. Using reliable data on the population of the small European country Austria this essay demonstrates where the deep divisions between "digital natives" and "digital immigrants" in music reception already appear irreversible, and also where they have played almost no role for a long time now.
ANALYSING THE POPULAR MUSIC AUDIENCE: DETERMINANTS OF PARTICIPATION AND FREQUENCY OF ATTENDANCE
Juan D. Montoro-Pons Manuel Cuadrado García and Trinidad Casasús-Estellés
The past decade has witnessed a gradual shift in the popular music audience leading to the predominance of live performances as the main revenue source in the industry. Whether this trend is sustainable and how it relates to other sectors, mainly the recorded music industry, crucially depends on consumer’s demand. We analyse the demand for live popular music by resorting to data by the 2010-11 Survey for Cultural Habits and Practices in Spain. The aim of this paper is twofold. Firstly, to determine the factors that explain frequency of attendance to live performances and how it relates to media participation. Secondly, to classify consumers by identifying different demand segments.
THE DEVELOPMENT OF THE DIGITAL MUSIC INDUSTRY IN CHINA DURING THE FIRST DECADE OF THE 21st CENTURY WITH PARTICULAR REGARD TO INDUSTRIAL CONVERGENCE
John Fangjun Li
This article concerns the development of China's digital music industry and will specifically focus on the influence of industrial convergence. Part one examines the early development of China's digital music industry. The second part concerns the systems and structures of the digital music industry and the major types of digital music business companies and the third and final section provides some conclusions about China’s digital music industry and industrial convergence.
Editorial by Dennis Collopy, Peter Tschmuck and Carsten Winter
CUSTOMER EXPERIENCE MANAGEMENT IN THE MUSIC INDUSTRY ONLINE COMMUNITIES
Online communities provide novel ways to improve current customer experience management (CEM). Academics and managers alike have been focusing on traditional CEM activities such as store layout and personal selling but online communities as a part of CEM is rarely looked into as source of competitive advantage. Current research presents how leading music industry companies in Europe are employing online communities to enhance customer experience. Intended to be of interest to both academics and managers, the research posits that in any online community activities aimed at increasing customer value through CEM and offering concrete customer benefits are valued.
THE NEW ARTREPRENEUR – HOW ARTISTS CAN THRIVE ON A NETWORKED MUSIC BUSINESS
Maike Engelmann, Lorenz Grünewald and Julia Heinrich
Drawing upon interviews with classical music students and teachers, international artists as well as practitioners from the Berlin music industry, this article argues that the conceptions of 'the artist' that are currently taught at conservatories, and that are discussed in advisory books, have to be revised. Contemporary practitioners are adopting entrepreneurial logics, in addition to aesthetic ones, and are designing careers that will are fulfilling in both an artistic and economic sense. However, market figures and our own research show that these two perspectives alone cannot provide enough orientation for established and future classical musicians. We suggest that a new approach that redefines an artist’s creativity and that enables them to develop their careers and scope of action by acquiring and exchanging social and cultural capital within their networks is needed.
HOW MEDIA PROSUMERS CONTRIBUTE TO SOCIAL INNOVATION IN TODAY’S NEW NETWORKED MUSIC CULTURE AND ECONOMY
This article contributes to our understanding of the development of new opportunities for the creation of value within the music economy. The underlying proposition is that the current transformation of recorded music culture into a networked, on‐demand, music culture, one where new digital networked media allow more artists and consumers to act as producers, distributers, publishers, and critics, is comparable to previous fundamental transformations where new media became the dominant means of production, allocation, perception and use of music. The concluding part of the article examines how new media impacted and challenged the economic value chain in the music business.
Editorial by Peter Tschmuck and Dennis Collopy
A TYPOLOGY OF MUSIC DISTRIBUTION MODELS
A typology of music distribution models is proposed consisting of the ownership model, the access model, and the context model. These models are not substitutes for each other and may co‐exist serving different market niches. The paper argues that increasingly the economic value created from recorded music is based on context rather than on ownership. During this process, access‐based services temporarily generate economic value, but such services are destined to eventually become commoditised.
MUSIC AND ADVERTISING: THE INFLUENCE OF ADVERTISING AND THE MEDIA ON THE DEVELOPMENT OF THE MUSIC INDUSTRY IN THE USA
This paper examines the previously unexplored influence of advertising on the transition of the music industry from its beginnings in the USA during the second half of the 19th century until today. The strong influence of advertising on the music business is evident in the theoretical association of these two industries in an inter‐penetration zone between the economy and the media, within which both subsystems constantly interact. In addition this article explores the various core competencies of the music business resulting from changes in the Media and analyses its original hybrid nature.
SHORT PAPER: COPYRIGHT REVERSION AND THE “USE-IT-OR-LOSE-IT” PRINCIPLE
This brief article makes an argument for the use of the legal device of term reversion, as a means for bringing unexploited works back into use, and mitigating the undesirable effects of the excessive term of copyright protection. It proposes to legislate a simple rule that copyright interests will be transferable only for an initial term of 10 years, after which they will revert to the creator. If carefully implemented, the rule is compatible with the current constraints of international and EU law. By stimulating artist‐led innovation, term reversion may also improve the financial position of creators.