Streaming Killed the Download Star! How the Business Model of Streaming Services Revolutionizes Music Distribution

Journal of Organizational Advancement, Strategic and Institutional Studies, Vol. VII, No. 1, 2015

11 Pages Posted: 1 Apr 2015 Last revised: 22 Apr 2015

See all articles by Timm Wagner

Timm Wagner

Friedrich-Alexander-Universität Erlangen-Nuremberg (FAU)

Matthias Rose

Fraunhofer Institute for Integrated Circuits

Christian Baccarella

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg

Kai-Ingo Voigt

University of Erlangen-Nuremberg

Date Written: March 1, 2015

Abstract

This article focuses on modern music distribution and investigates the business models of music download shops compared to streaming services. For that, a literature review as well as interviews with various industry experts representing different stakeholders of music distribution were conducted. It is shown that the business model of music streaming services differs fundamentally regarding the revenue streams compared to music download shops. Further differences can be identified in terms of new customer segments, which are attracted by new channel characteristics, new payment models, as well as due to closer customer relationships. In total, this study particularly contributes to the understanding of the future potential of streaming services and highlights the need for download shops to review the long-term stability of their business model.

Keywords: Music Industry, Music Distribution, Music Streaming Services, Business Model Innovation

JEL Classification: M10

Suggested Citation

Wagner, Timm and Rose, Matthias and Baccarella, Christian and Voigt, Kai-Ingo, Streaming Killed the Download Star! How the Business Model of Streaming Services Revolutionizes Music Distribution (March 1, 2015). Journal of Organizational Advancement, Strategic and Institutional Studies, Vol. VII, No. 1, 2015, Available at SSRN: https://ssrn.com/abstract=2587176

Timm Wagner (Contact Author)

Friedrich-Alexander-Universität Erlangen-Nuremberg (FAU) ( email )

Lange Gasse 20
Nürnberg, 90403
Germany

Matthias Rose

Fraunhofer Institute for Integrated Circuits ( email )

Am Wolfsmantel 33
Erlangen, 91058
Germany

Christian Baccarella

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg ( email )

Lange Gasse 20
Nuremberg, DE 90403
Germany

Kai-Ingo Voigt

University of Erlangen-Nuremberg ( email )

Schloßplatz 4
Erlangen, DE Bavaria 91054
Germany

HOME PAGE: http://www.industriebetriebslehre.de

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
3,038
Abstract Views
8,276
rank
4,201
PlumX Metrics