Although the recording industry finds itself in a challenging economic situation, very little is known about how to build up a business model which fulfils the demands of a new generation. The theory of access replacing ownership provides another perspective concerning the so-called digital natives. The analysis of the demands of this consumer groups shows that the ownership of music seems to be obsolete to them. The music consumers of today and tomorrow do no longer care about owning music. The Swedish model Spotify offers music on an advertisement and subscription base and is depicted as an example in which consumers are offered a model of access. The thesis results provide general information about the notion of property and ownership as a whole as well as it recovers the development of these notions on the digital age and their deep impact on the economic behaviour and the scope of dealing with these changes.
The thesis uses self generated data from a survey as well as literary sources and serves as a road sign indicating the issues of access in several parts of economy, with the focus on Spotify and the recording industry. The findings of the thesis can be generalised to any industry that offers digital (entertainment) content.
Table of Contents
1. INTRODUCTION
1.1. Introduction
1.2. Significance of the research issue
1.3. Structure of the thesis
2. “HOW IT USED TO BE”
2.1. The relevance of ownership and property
2.2. The recording industry and its devices
3. “HOW IT IS”
3.1. Effects of digitalisation on the recording industry
3.1.1. Background of digital music
3.1.2. Music distribution on the Internet
3.2. The digital natives
3.2.1. Digital natives and digital immigrants
3.2.2. Demands and values of the Net Generation
3.2.3. The importance of networking and communities
3.2.4. Consuming habits
3.3. Spotify
3.3.1. Business model
3.3.2. Technology & Mobile
3.3.3. Features & Community
3.3.4. Finance
3.3.5. Competitors on the international market
3.4. Spotify and its users
3.4.1. Depiction of the survey and the samples
3.4.2. General usage of the programme
3.4.3. Music consumption and ownership
4. “HOW IT WILL BE”
4.1. Access replaces ownership
4.1.1. The new era of access
4.1.2. Shared ownership
4.1.3. The rules of the new economy
4.2. Spotify and the age of access
4.2.1. Music as a public good
4.2.2. Spotify as a model of access
4.2.3 Music and identity
5. PROSPECTS & CONCLUSION
5.1. Discussion
5.1.1. The Swedish model
5.1.2. Aspects of the age of access
5.2. Conclusion
Objectives & Core Themes
The thesis aims to examine the paradigm shift from music ownership to digital access models, using Spotify as a primary case study to analyze changing consumer behaviors and the resulting implications for the recording industry.
- The transition from traditional physical property ownership to subscription-based access services.
- Characteristics, values, and media consumption habits of the "digital native" generation.
- The business model, technological infrastructure, and community features of the Spotify platform.
- The impact of digital piracy and shifting economic models on the music industry's future profitability.
- The psychological significance of material possessions as symbols of identity in the digital age.
Excerpt from the Book
3.3.1. Business Model
“The launch of Spotify in the UK must surely be one of the biggest PR successes for an online music service. Despite only having spent around £5,000 on marketing since 2006 (according to Daniel Ek, one of Spotify's founders), they've managed to gain huge media coverage […]. It's been described as sexy, incredibly user-friendly and the future – maybe even the saviour – of legal music consumption.”
Spotify has been hailed as the “21st-century jukebox”. But what is it and how does it work? Spotify is a proprietary peer-to-peer music streaming service that allows instant listening to specific tracks or albums with almost no buffering delay. Music can be browsed by artists, albums or created playlists as well as by direct searches. Although, due to the system's DRM, it is not possible to save the streamed music for use outside the application, a link is provided to allow the listener to directly purchase the material via partner retailers.
The service is currently available in Sweden, Norway, Finland, the United Kingdom, France and Spain. Spotify has been developed since 2006 by a team at Spotify AB, Stockholm, Sweden. The company Spotify was founded by Daniel Ek, former CTO of Stardoll, and Martin Lorentzon, co-founder of TradeDoubler in Stockholm. Today the company has 90 employees, the headquarters are located in London, research and development is located in Stockholm.
Summary of Chapters
1. INTRODUCTION: The chapter sets the stage by discussing the economic decline of the recording industry and introducing Spotify as a potential new business model for music distribution based on access.
2. “HOW IT USED TO BE”: This section explores the historical development of ownership and property rights in the modern age, specifically looking at how these concepts influenced the recording industry's traditional business practices.
3. “HOW IT IS”: This chapter analyzes the effects of digitalization, the demographics and consuming habits of "digital natives," the specific business model of Spotify, and the results of a survey regarding user interactions with the platform.
4. “HOW IT WILL BE”: The author discusses the transition toward an "age of access," exploring shared ownership models, the rules of the new digital economy, and how music functions as a public good versus a personal identity marker.
5. PROSPECTS & CONCLUSION: This final section discusses the "Swedish model" of legal music services and summarizes the future potential for digital music business models based on the findings presented throughout the thesis.
Keywords
Spotify, Music Industry, Access, Ownership, Digital Natives, Streaming, Digitalization, Recording Industry, Business Models, Consumer Behavior, Peer-to-Peer, Intellectual Property, Subscription Services, Advertising, Digital Economy
Frequently Asked Questions
What is the primary focus of this thesis?
The thesis investigates the shift in the music industry from traditional ownership of physical media to a model based on accessing digital content, using the Spotify service as a primary case study.
What are the core thematic areas discussed in the work?
Key themes include the evolution of property concepts, the habits and values of "digital natives," the mechanics of the music streaming business model, and the ongoing conflict between copyright holders and digital consumers.
What is the central research question?
The core research explores whether the model of "access replacing ownership" is a sustainable and viable business strategy for the recording and entertainment industry in the future.
Which research methodology does the author employ?
The work combines an analysis of literary sources and theories from economics and psychology with primary data collected through a survey of 120 university students.
What is covered in the main section of the document?
The main part of the thesis addresses the effects of digitalization, defines the "digital native" demographic, and provides a detailed breakdown of Spotify’s business model, technology, and user reception.
How would you characterize the work using keywords?
The research is best characterized by terms such as music industry, access, digital natives, streaming, ownership, and digital transformation.
How does Spotify’s business model differ from traditional retail music?
Spotify operates as a streaming platform rather than a download store, offering access to a vast library of music on an advertising-supported or subscription basis, rather than selling individual physical products or files for permanent ownership.
What conclusions does the author draw about "digital natives"?
The author concludes that digital natives perceive music differently than older generations, favoring convenience, speed, and shareability over the traditional need for physical collections, although those with high musical interest still value ownership as an identity marker.
- Citar trabajo
- Marie Heimer (Autor), 2010, The theory of access replacing ownership on the example of spotify, Múnich, GRIN Verlag, https://www.grin.com/document/153699
