KES Transactions on Innovation in Music

Publisher Future Technology Press
Vol. 1 No. 1 Special Edition - Innovation in Music 2013
Article TitleThe challenge of monetizing consumer behaviour via advertisements in a multi-sided music business environment
Primary AuthorAinslie Harris, [NONE]
Pages 53 - 66
Article ID im13bk-005
Publication Date 17-May-15
AbstractMonetizing consumer behaviour in a multi-sided music business environment

Dr. Ainslie Harris

The business end of today’s music industry is no longer dictated by a linear supply chain or a value chain, but a complex, multi-sided network environment, with stakeholders that include artists, consumers, channel marketers, advertisers, and rights holders, among others.

Music is no longer a separate product in itself – songs and albums have become commoditized, and music is now simply a means to an end. Today, it can be legitimately argued that it is consumer behaviour, delivery channels, and the experience of music rather than the tracks themselves that are monetized; this has led to the introduction of new business models, such as ad-supported music streaming and download services, in order to take advantage of the changing nature of music consumption.

In this multi-sided business network, no single stakeholder has control over the monetization of music, though some stakeholders exert more influence than others. The stakeholder network is inter-dependent; though consumers hold ultimate power and freedom in the network, they alone cannot singlehandedly influence its success or failure. Thus, as power shifts from the product supplier to the consumer, the nature of the procurement/consumption experience (e.g. quality, utility, ease of engagement) plays an increasingly important role.

At present, there is scant representation of these concepts in the literature. As such, this paper presents the results of a recent study [1] that investigated the characteristics that consumers evaluate in their choice to use ad-supported music services, the factors that influence consumer attitudes towards such services, and the influence consumers and other stakeholders exert in a multi-sided network environment.

1. Harris, A. J., (2013). A model of key characteristics affecting consumer attitudes toward the usage of free legitimate ad-supported music download services. DBA Thesis. Robert Gor
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