Music Streaming Platform : Is it a viable business model for the music industry?
Fiacre, Ronan (2017)
Fiacre, Ronan
Metropolia Ammattikorkeakoulu
2017
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201802272818
https://urn.fi/URN:NBN:fi:amk-201802272818
Tiivistelmä
The aim of this thesis was to create the new business model of a record company and try to figure it out if this business model is viable in the coming years or no. Indeed, after almost two decades of depression the music industry new a growth in 2015 of 3,5% due to the new streaming technologies. However, Spotify the main actor of those has never been profitable. The aim of this thesis was to know if this is a problem or not as well.
The method used was an exploratory research and qualitative and quantitative methods were used. For the quantitative method, secondary data were used from various sources, report, article, books and newspapers while for the qualitative, primary data were used by doing an interviewed of a product manager in a record company in Sweden.
The results found were that the streaming technologies totally changed the business model and have an enormous power and place in the music industry. The new business model is profitable and has good chances to be viable in the future. However, some limitations must be solved such has the Value Gap or the fact that only the big record companies might survive to this new business model.
In order to solved this limitation which must be solved for the business model to be profitable, the states regulations have to create laws in order for the streaming/video platform to pay enough royalties to each actors of the industry. This will solve the problem of the Value Gap.
The method used was an exploratory research and qualitative and quantitative methods were used. For the quantitative method, secondary data were used from various sources, report, article, books and newspapers while for the qualitative, primary data were used by doing an interviewed of a product manager in a record company in Sweden.
The results found were that the streaming technologies totally changed the business model and have an enormous power and place in the music industry. The new business model is profitable and has good chances to be viable in the future. However, some limitations must be solved such has the Value Gap or the fact that only the big record companies might survive to this new business model.
In order to solved this limitation which must be solved for the business model to be profitable, the states regulations have to create laws in order for the streaming/video platform to pay enough royalties to each actors of the industry. This will solve the problem of the Value Gap.