Music business models and piracy

Bustinza, Óscar F.; Vendrell‐Herrero, Ferran; Parry, Glenn; Myrthianos, Vasileios

doi:10.1108/02635571311289638

Cited by 44 publications

(51 citation statements)

References 36 publications

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“…Service business dynamics require the implementation of business models which capture value through consumer understanding (Bustinza et al, 2013a;Vargo and Lusch, 2008).…”

Section: Digital Dark Matter and Territorial Competitivenessmentioning

confidence: 99%

Digital dark matter within product service systems

Vendrell‐Herrero

Myrthianos

Parry

et al. 2017

Self Cite

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Purpose The unobserved benefits of digital technologies are described as digital dark matter. Product service systems (PSSs) are bundles of products and services that deliver value in use, which is unobserved but generates benefits. This paper aims to empirically quantify digital dark matter within PSSs and correlates that measure with national competitiveness. Design/methodology/approach A novel methodology establishes the link between customer needs and a product and digital service portfolio offered across ten developed economies. The case context is the music industry where product and services are often substitutes – a cannibalistic PSS. Consumer information is obtained from a unique database of more than 18,000 consumer surveys. Consumer demand for digital formats is modelled and predicted through logistic regressions. Findings The work provides inverse estimations for digital dark matter within PSSs by calculating the gap between supply and demand for digital offers – described as the business model challenge. The USA has the lowest business model challenge; the home of major companies developing digital technologies. Digital dark matter is shown to be positively correlated with national competitiveness and manufacturing competitiveness indices. Practical implications The success of a cannibalistic PSS requires good understanding of market demand. Governments embarking on soft innovation policies might incentivise the development of service-orientated business models based on digital technologies. Originality/value Work expands theory on the concept of digital dark matter to the PSS literature. Empirically, a novel method is proposed to measure digital dark matter.

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“…Service business dynamics require the implementation of business models which capture value through consumer understanding (Bustinza et al, 2013a;Vargo and Lusch, 2008).…”

Section: Digital Dark Matter and Territorial Competitivenessmentioning

confidence: 99%

Digital dark matter within product service systems

Vendrell‐Herrero

Myrthianos

Parry

et al. 2017

Self Cite

View full text Add to dashboard Cite

show abstract

“…The creative industries have been used for analysis in studies on: the Resource-Based View (RBV) of the firm using the major U.S. film studios (Miller and Shamsie, 1996); the relationship between technology acquisition and innovations in small media firms (Puranam et al, 2006); the role of innovation as strategic change, drawing on SMEs producing computer games (Hotho and Champion, 2011); consumer attitudes and service (Parry et al, 2012); and the role of the business model (Bustinza et al, 2013).…”

Section: Studies In the Creative Industriesmentioning

confidence: 99%

“…Digitization means supply chains have fundamentally changed (Graham and Smart, 2010) with costs of production and distribution significantly reduced (Byrne, 2012). However, customers are less willing to pay for digital content (Oberholzer-Gee and Strumpf, 2007) creating challenges for these industries related to the operation of firms in the market and consumers illegal file sharing activity (Bustinza et al, 2013). This paper focuses only upon the supply chain management challenge.…”

Section: Introductionmentioning

confidence: 99%

Supply and demand chain management: the effect of adding services to product offerings

Bustinza

Parry

Vendrell‐Herrero

2013

Supply Chain Management: An International Journal

101

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Purpose -The purpose of this paper is to understand how firms manage their product and service offerings, integrating supply chain management (SCM) and demand chain management (DCM) strategies. Adding services to the product portfolio of a firm may bring benefits to an organisation, but requires a reconsideration of the supply chain management approach. Design/methodology/approach -A survey is used to collect data, with valid questionnaires obtained for 4,227 UK-based respondents. Empirical analysis utilises structural equation modelling (SEM). Findings -The paper proposes that a combination of management approaches is required by firms which add services to their portfolio of traditional product offerings. A supply chain management approach may be suitable for traditional product offerings. The management of the services value chain, where the customers' role as value creator is a central feature of the construct, is better served by integration of the market orientation of DCM. Originality/value -The paper addresses a research gap related to the shift in traditional activities carried out by a firm moving from purely product to a product service offer and reconsiders the supply and demand chain management approach. The paper is from a Business to Consumer (B2C) perspective. In this context, the work pioneers analysis into a particular case where a firm's product and service offerings may be substitutes for each other in the eyes of the customer.

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“…Estimates of unauthorised distribution vary from 13% to 48% of the legal market (Bustinza et al, 2013). As already discussed, it has been under debate, from different perspectives, but, even if some propose it can have positive effects, especially for new artists (Gopal and Sanders, 2001;Volz, 2006), it is still unauthorised under current legislation, and P2P networks face litigation and are forced to shut down operations.…”

Section: Digital Distributionmentioning

confidence: 99%

Recorded music supply network reconfiguration: the dual effect of digital technology

Nakano

Fleury

2017

IJMTM

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Current literature on the impact of technology innovation has mainly focused on manufacturing firms and networks and has considered technology impact as having an immediate effect on the supply network. This paper analyses how digital technology has impacted the recorded music supply network, a fast moving supply chain, arguing that it had a twofold effect. It was initially applied to the production process, displaying a competency enhancing effect but not changing substantially the industry structure and governance pattern. It was only when applied to the distribution process, the governance-granting process, that its impacts were fully deployed, allowing the entry of new types of players adopting new business models and challenging the former governance pattern: the hierarchical governance was replaced by a pattern in which agents organise themselves in project-based, adhoc configurations, and market access is not controlled by large companies.

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Music business models and piracy

Abstract: Postprint (published version

Cited by 44 publications

References 36 publications

Digital dark matter within product service systems

Digital dark matter within product service systems

Supply and demand chain management: the effect of adding services to product offerings

Recorded music supply network reconfiguration: the dual effect of digital technology

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