Evolution of business models and the relevance of the Lean startup in the music industry
Korhonen, Maiju (2020)
2020
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2020053115580
https://urn.fi/URN:NBN:fi:amk-2020053115580
Tiivistelmä
The purpose of this study was to investigate how the business models have evolved over time in the music business and could the Lean Startup be a useful approach to improve the chances for a record label to gain a sustainable competitive advantage.
The qualitative research method was applied, and the study was conducted using secondary and preliminary data. Preliminary data was gathered by conducting interviews with industry professionals providing industry knowledge of the changes within the music industry. Additionally, the use of author’s experience in the music industry has been used in the results part of the work.
The key findings of this thesis are that the rise of streaming platforms have had a significant effect on the business models within the industry. This led to changes in the content of contracts created between artists and record labels. Therefore, record labels started to receive income from new revenue flows, leading the labels to modify their operations to fit the changing markets. Another key finding in this thesis, is that the business model canvas that is created to the purposes of using the Lean Startup method can be applied on a theoretical level to an independent record label. The results indicated that further research on the topic could be implemented.
The qualitative research method was applied, and the study was conducted using secondary and preliminary data. Preliminary data was gathered by conducting interviews with industry professionals providing industry knowledge of the changes within the music industry. Additionally, the use of author’s experience in the music industry has been used in the results part of the work.
The key findings of this thesis are that the rise of streaming platforms have had a significant effect on the business models within the industry. This led to changes in the content of contracts created between artists and record labels. Therefore, record labels started to receive income from new revenue flows, leading the labels to modify their operations to fit the changing markets. Another key finding in this thesis, is that the business model canvas that is created to the purposes of using the Lean Startup method can be applied on a theoretical level to an independent record label. The results indicated that further research on the topic could be implemented.