Changing Business Models in the Creative Industries (original) (raw)
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BUSINESS MODELS FOR THE CREATIVE INDUSTRIES: A LITERATURE REVIEW
Quaderno DEM, 2019
The topic of cultural and creative industries has been strongly debated by economics and business scholars over the last two decades. At the same time, the Business Model tool was developed. Assuming that both of the topics have created enormous debates among scholars and practitioners, the definition of cultural industries is shifting to the wider definition of creative industries. Such extension is meant to comprehend all of those industries and all of those sectors that are including dynamics of generation and exploitation of intellectual property. Such approach led to the embracing of a wide range of industries that were rarely associated to the cultural and creative domains in the past. Furthermore, the Business model has shifted from being an architecture specifically designed to serve the e-business, to a flexible yet hard to define “good-for-all” method to better understand and/or improve any kind of business. Surprisingly, studies on the Business model specifically applied to the Creative industries appeared to be fragmented. The present study aimed to briefly review the Business Models literature applied to the Creative industries, in order to measure how much the tool has been studied within the CCIs and through which lens and objectives. Additional goals have been the analysis of the subsectors within the creative industries that had already been treated from scholars prior, highlighting the ones that should be analyzed further in the future.
Newly emerging business models in the creative industries in the wake of increasing digitalisation
Zenodo (CERN European Organization for Nuclear Research), 2022
Version history table Version Date Modification reason Modifier(s) v.01 13.10.2021 The first draft circulated and revised within UTARTU Eneli Kindsiko (UTARTU), Ragne Kõuts-Klemm (UTARTU), Helen Eenmaa (UTARTU), Ingmar Pastak (UTARTU) v.02 20.04.2022 The second draft circulated and revised within UTARTU Helen Eenmaa (UTARTU) v.03 23.05.2022 Preliminary draft sent to peerreviewers Bartolomeo Meletti (UoG) v.04 10.06.2022 The third draft circulated and revised within UTARTU in response to comments from peer-reviewers Eneli Kindsiko (UTARTU), Ragne Kõuts-Klemm (UTARTU) v.05 16.06.2022 Full draft sent to peer-reviewers Helen Eenmaa (UTARTU) Legal Disclaimer The information in this document is provided "as is", and no guarantee or warranty is given that the information is fit for any particular purpose. The above referenced consortium members shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials subject to any liability which is mandatory due to applicable law.
2019
The Internet and modern-day technologies have changed the way people connect with the world around them. The music industry is one of the areas that is undoubtedly affected by the Internet. Music technologies have faced a drastic reorganization process due to the digital revolution that changed the way people consume, source, listen, purchase, discover, experience, produce, read and learn music. These technological advancements have induced great changes for artists, listeners, and producers. This study will attempt to investigate the business models of digital music that can be profitable in the future. As previous studies suggest (Arditi, 2017), with the introduction of the technological revolution the whole revenue mechanism has shifted. This study attempts to give insight into the changing revenue mechanism of how musicians, record labels, make money from digital music by analyzing the digital music business models from the perspective of the consumer, the record labels and the artists. The fundamental questions this study attempts to address are a) how technology has changed by presenting an overview of the music industry, b) what kind of digital music business models exist by analyzing their effects from the perspective of the listeners, artists and record labels, and c) what happens if the business model does not meet the demand of the users by explaining the ‘piracy’ phenomenon. The present research seeks to identify where digital music services in the contemporary era are heading, to investigate the effectiveness and operation of digital music services and to offer implications about what can be expected in the future. To answer the given research questions, the literature on related topics suggests that both a quantitative and a qualitative approach are considered as the necessary methods for the present study. In the first phase, drawing on relevant literature review qualitative analysis is used to present the theoretical background for the thesis. In the second phase quantitative analysis is utilized. The primary tool is the questionnaire, which contains three sections of questions. The first section focuses on the personal background of the participants, determining the type of the person under examination. The second section includes questions regarding music consumption habits. The last section analyzes listeners’ perception towards piracy phenomenon. As an artist, I will also myself make empirical analysis based on my observations and experiences during my work with Sony Music Turkey in 2015 in the conclusion.
Insights into the dynamics of business models in the media industry
Executive Summary Our objectives Analyze major paradigm changes in the media industry; Investigate the building blocks and dynamics of media business models; Predict the future management challenges in the media business. Research questions Why should firms engaging in the media industry consistently innovate business models that are different from their current practices and ways of operation? How can firms renew their business model in the dynamic media industry characterized by collaborative digital ecosystems? What are the future management challenges for the media business models? Findings Six fundamental paradigm changes in the media industry discussed in the paper: The value paradigm shifts the media offerings increasingly from products to services. The technology paradigm underscores the role of platforms instead of traditional media processes in the delivery of the content. The customer paradigm shifts the focus from proactive push strategies to reactive market pull s...
Creative industries and bit bang – how value is created in the digital age
Creative industries are based on individual creativity and skill, as opposed to traditional manufacturing and service industries, which are technology and process driven. Examples of high-impact creative industries include music, advertising and computer gaming. These industries play an increasingly important role in national economies worldwide. In this paper, we discuss how creative industries are structured, how they Bit Bang 165 differ from more traditional industries and how digitalisation is changing the business models for these industries. In particular, the discussion explores several salient examples, including the music, computer gaming, newspaper and fashion industries. Based on the examples, we draw general conclusions about the future of creative industries. For example, we discuss how the traditional linear value chain is being transformed into a value network due to novel business models for the information age. Similar studies concentrate primarily on traditional pr...
New business models for Cultural and Creative Institutions
Management, 2019
Total integration of social media and internet into daily life of the young people is the most distinct demographic characteristics of the Generation Z (born between 1995 and 2015). For Cultural and Creative Industries and Institutions in order to engage with this audience efficiently, their business models have to consider social media and more participative approach. The paper addresses the challenges and opportunities that face cultural institutions by analysing and assessing the business models related to new internet solutions. The paper provides a fresh review of the business models in which the author examines the new business model concepts through CCII subject-matter lenses. Discussed case-studies show generally successful result in activating Generation Z audience participation in cultural activities. While trying to understand limitations of the cultural institutions position and motivation towards social media and generally mobile internet, the paper raises critical impl...
A framework for the transformation of the incumbent creative industries in a digital age
IFKAD - International Forum on Knowledge Asset Dynamics - 10th Edition, 2015
Purpose -New business models emerged within the creative industries when advances in information and communication technologies (ICTs) altered the patterns of cultural consumption worldwide. Digital technologies altered the way creative products were created, produced, reproduced, distributed, and commercialised at national and international levels. In the face of the continual emergence of digital disruptions, the traditional, existing sector is failing to rapidly enough adapt. The purpose of the paper is to provide a better understanding of an emerging framework for the transformation of incumbent cultural and creative enterprises in a digital age, called The AmbITion Approach.
Technovation
This paper contains an exploratory analysis of the business model innovations (BMIs) that firms in cultural and creative industries (CCIs) undertake along their life-cycle. Despite the role that creative and cultural and creative firms (CCFs) have in the economic development of industrialised countries, they tend to remain small and often fail due to industry-specific constraints and tensions, such as the lack of managerial capabilities and complexity in nurturing value chain relationships. However, there has been relatively limited scholarly interest into the specific conditions and processes that enabled CCFs to overcome these liabilities, and in particular into the identification of the business models they have adopted along their life-cycle. In this paper, this issue is analysed by using the concept of BMI, which sheds light on how the reconfiguration of the activity system through which a CCF creates, delivers and captures value enables the exploitation of entrepreneurial opportunities over time. This paper builds on an in-depth historical study of three leading firms operating in the mobile gaming industry, namely Rovio, Zynga and King Digital Entertainment. Three main results emerge from this study. First, in the ramp-up phase of their life-cycle, CCFs organize their resource architecture to build a strong and recognized reputation. Second, in the development phase, BMI is used to leverage new distribution paradigms. Finally, in the maturity phase, firms dedicate resources to innovate their product portfolios by providing platforms that support the development and testing of new creative ideas and solutions.