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

Gamble, Jordan Robert,
Brennan, Michael,
McAdam, Rodney
Journal of Business Research

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.

Vitenskapelig artikkel

A snapshot on crowdfunding

Hemer, J.
Working papers firms and region

This article addresses crowdfunding, a relatively new form of informal financing of projects and ventures. It describes its principle characteristics and the range of players in this market. The different business models of crowdfunding intermediaries are explored and illustrated. A first attempt is made to classify the different forms of funding and business models of crowdfunding intermediaries. Based on the available empirical data the paper discusses the economic relevance of crowdfunding and its applicability to start-up financing and funding creative ventures and research projects.

Working Paper

A study of the application of international business strategies in the film industry: the case of Norway

Heidenreich, A.,
Komendantova, M.

Oppgaven analyserer norske produksjonsselskaper/filmer i forhold til konkurranse på det internasjonale markedet. Studien er basert på intervjuer med et utvalg produksjonsselskaper og på dokumentanalyser.


A Theory of Fields

Fligstein, N.,
McAdams, D.
New York, Oxford University Press

Finding ways to understand the nature of social change and social order—from political movements to market meltdowns—is one of the enduring problems of social science. This book draws together far-ranging insights from social movement theory, organizational theory, and economic and political sociology to construct a general theory of social organization and strategic action. This book proposes that social change and social order can be understood through what the book calls strategic action fields. It posits that these fields are the general building blocks of political and economic life, civil society, and the state, and the fundamental form of order in our world today. Similar to Russian dolls, they are nested and connected in a broader environment of almost countless proximate and overlapping fields. Fields are mutually dependent; change in one often triggers change in another. At the core of the theory is an account of how social actors fashion and maintain order in a given field. This sociological theory of action, what they call “social skill,” helps explain what individuals do in strategic action fields to gain cooperation or engage in competition. To demonstrate the breadth of the theory, the book makes its abstract principles concrete through extended case studies of the Civil Rights Movement and the rise and fall of the market for mortgages in the U.S. since the 1960s. The book also provides a “how-to” guide to help others implement the approach and discusses methodological issues.


A Work-System Approach to Classifying Risks in Crowdfunding Platforms : An Exploratory Analysis

Arenas, A.,
Goh, J. M.,
Podar, M.
Twenty-first Americas Conference on Information Systems, Puerto Rico

Using the Work Systems Risk Framework, authors analyze main risks in three equity crowdfunding platforms: Crowdfunder, AngelList and Seedrs. Their findings indicate that operational risk, project management risk, cognitive skill risk, IP risk, quality risk, legal risk and vendor relationship risk factors to be important to crowdfunding platforms. Findings from this study are relevant to platform owners and regulators in assessing the risks of crowdfunding platforms.

Conference paper

Adverse Incentives in Crowdfunding

Hildebrand, T.,
Puri, M.,
Rocholl, J.

This paper analyses the substantially growing markets for crowdfunding, in which retail investors lend to borrowers without financial intermediaries. Critics suggest these markets allow sophisticated investors to take advantage of unsophisticated investors. The growth and viability of these markets critically depends on the underlying incentives. The document provides evidence of perverse incentives in crowdfunding that are not fully recognized by the market. In particular it looks at group leader bids in the presence of origination fees and finds that these bids are (wrongly) perceived as a signal of good loan quality, resulting in lower interest rates. Yet these loans actually have higher default rates. These adverse incentives are overcome only with sufficient skin in the game and when there are no origination fees. The results provide important implications for crowdfunding, its structure and regulation.

Working Paper

After the Campaign: Outcomes of Crowdfunding

Mollick, E.,
Kuppuswamy, V.
UNC Kenan-Flagler Research Paper

In this document it is conducted a follow-up survey of large design, technology, and video games projects that attempted to raise money using crowdfunding before mid-2012. It is found that reward-based crowdfunding appears to be able to lead to and support traditional entrepreneurship. A very high percentage (over 90%) of successful projects remained ongoing ventures 1-4 years after their campaign. It is found that 32% of all these reported yearly revenues of over $100,000 a year since the Kickstarter campaign, and added an average of 2.2 employees per successful project. The survey also suggested that crowdfunding provided many potential benefits beyond the crowdfunded money itself to successful creators; including helping provide access to customers, press, employees, and outside funders. Consistent with other research, many projects were delayed for a variety of reasons, and 37% went over budget. It is also analyzed the factors that lead to longer-term crowdfunding success.

Journal paper

After the creative industries

Banks, M.,
O'Connor, J.
International Journal of Cultural Policy

In the 1990s ,the rise of the creative industried as a discourse and instrument of policy signalled a desire amongst governments to harness cultural production to a renewed economic agenda.


All work and no pay: consequences of unpaid work in the creative industries

Siebert, S. ,
Wilson, F.
Work, Employment and Society

This research note evaluates the benefits and pitfalls of unpaid work as an entry route into employment in the creative industries and investigates the consequences of this practice for those who already work in the sector. Based on a qualitative study of perspectives of stakeholders in unpaid work, this article argues that the social capital thesis, often used as a rationale for unpaid work, inadequately explains the practice of unpaid work experience, primarily because it does not take cognisance of the consequences of this practice for other people working in the sector. The study also highlights methodological issues that need to be considered in the future. As well as the importance of a plurality of stakeholder perspectives, the study emphasizes the need to consider the perspectives of those who are excluded from unpaid work and those who are potentially displaced by it.

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