Content uploaded by Pavlos A. Vlachos
Author content
All content in this area was uploaded by Pavlos A. Vlachos on Nov 02, 2015
Content may be subject to copyright.
A preview of the PDF is not available
Drawing Emerging Business Models for the Mobile Music Industry
Abstract and Figures
The plethora of actors, the complexity of relationships and the variety of information and financial flows affecting the mobile entertainment arena today, have created a series of challenging business opportunities for entrepreneurs and key market players. The evolving and quite promising mobile music market, however, is suffering from the luck of integrated theoretical frameworks critical for the business activity acceleration and for the corresponding mobile music services diffusion. In this paper, we advocate the application of a business model change methodology for the purpose of transforming the current business models of the traditional and online music industry to a new business model appropriate for the mobile music industry. To do so, we are based on the results of a qualitative research study, which involved in-depth interviews with content providers, mobile operators and music consumers using semi-structured questionnaires. To that end, the present study applies the available business model theoretical insights to the music industry and depicts the current business practice in terms of: the content delivery channels employed (i.e. traditional, Internet, mobile), the participating actors; and the relative flows. Key business modeling issues are discussed and direct managerial implications to potential players are also provided. Finally, straightforward directions for further research are discussed.
Figures - uploaded by Pavlos A. Vlachos
Author content
All figure content in this area was uploaded by Pavlos A. Vlachos
Content may be subject to copyright.
... The third sub-theme represents sector-specific considerations of BMI tools. The papers within this theme have studied the hospitality sector (Kandampully, 2006); music industry (Vlachos et al. 2006); service in manufacturing industry (Witell and Löfgren, 2013); mobile business and telecommunications (Ghezzi et al., 2010); retail industry (Lange and Velamuri, 2014); fashion industry (Hvass, 2015); the sharing economy or collaborative consumption (Matzler et al., 2015); and the base of pyramid markets (Goyal, 2014). However, despite the various sectors and contexts, two common themes can be identified across the papers. ...
... However, despite the various sectors and contexts, two common themes can be identified across the papers. First, BMI revolves around current changes in a specific industry or market, such as servitization in manufacturing (Witell and Löfgren, 2013), the music industry becoming more "mobile" (Vlachos et al., 2006), or the trend in consumer markets toward sharing and collaboration (Matzler et al., 2015). Second, the proposed tools represent a type of reaction to these changes, or how firms change or transform their old BMs into new ones (e.g., by changing a store layout for physical retailers (Lange and Velamuri, 2014) or integrating reselling and reuse of garments into BMs in the fashion industry (Hvass, 2015). ...
... Other papers, instead, relate their BMI definitions according to the specific innovation they are investigating; for instance, the disruptive innovation related to products (Comes andBerniker, 2008, Markides, 2006). Finally, for some authors innovation refers to specific contexts only such as mobile music (Vlachos et al., 2006), the hospitality industry (Kandampully, 2006), and the energy sector (Richter, 2013). ...
The third chapter is the core of this book and it introduces a fine-grained ontological exploration of BMI. Specifically, this chapter focuses on the results of our systematic literature review and the related thematic and the ontological analyses of the 156 papers selected for this research. With the help of thematic maps and ontological tables, the authors illustrate the 56 themes resulting from the analyses, categorized into seven macro themes: definitions of BMI, drivers of BMI, outcomes of BMI, barriers to BMI, enablers of BMI, tools of BMI, and processes of BMI. Moreover, this chapter provides a specific discussion on the conceptualization of BMI that reveals its dual nature: the first one being connected to the changes to BM components and the second one to the dynamisms related to the continuous innovation of BMs. Finally, the paper concludes with specific discussions and presents a research agenda, and related future research suggestions, for each macro-theme identified in the systematic literature review (i.e., BMI definitions, drivers, outcomes, barriers, enablers, tools, and processes).
... Individual (Cavalcante, 2014, Svejenova et al., 2010, Aspara et al., 2013, Sosna et al., 2010, Sanz-Velasco and Saemundsson, 2008, Kiura et al., 2014, Girotra and Netessine, 2013, Giesen et al., 2010, Pohle and Chapman, 2006, Engel, 2011, Tuulenmäki and Välikangas, 2011, Eriksson et al., 2008, Deschamps, 2005, Osiyevskyy and Dewald, 2015, Martins et al., 2015, Chroneer et al., 2015 Team (Eppler andHoffmann, 2012, Doz andKosonen, 2010) Firm (Wu et al., 2010, Dunford et al., 2010, Björkdahl, 2009, Aspara et al., 2010, Zott and Amit, 2010, Kim and Min, 2015, Sanchez and Ricart, 2010, Nair et al., 2012, Ho et al., 2010, Demil and Lecocq, 2010, Habtay, 2012, Eurich et al., 2014, Dickson and Chang, 2015, Coblence and Sabatier, 2014, Bouncken et al., 2015, Ramendra Singh et al., 2015, Schneider and Spieth, 2014, Hvass, 2015, Jain, 2014, Amshoff et al., 2015, Khanagha et al., 2014, Denicolai et al., 2014, Cucculelli et al., 2014, Morgan, 2015, Cavalcante, 2014, Pourabdollahian and Copani, 2014, Halme and Korpela, 2014, Ghezzi et al., 2015, Tongur and Engwall, 2014, Wei et al., 2014, Roth et al., 2015, Goyal, 2014, Hao-Chen et al., 2013, Chesbrough, 2010, Pateli and Giaglis, 2005, Zott and Amit, 2007, Bohnsack et al., 2014, Markides, 2013, Dalby et al., 2014, Witell and Löfgren, 2013, Maglio and Spohrer, 2013, Storbacka et al., 2013, Ng et al., 2013, Nair et al., 2013, Velamuri et al., 2013, Desyllas and Sako, 2013, Pynnönen et al., 2012, Brettel et al., 2012, Aspara et al., 2011, Dmitriev et al., 2014, Baumeister et al., 2015, Lange and Velamuri, 2014, Cao, 2014, Simmons et al., 2013, Kiron et al., 2013a, Kiron et al., 2013b, Koen et al., 2010, Koen et al., 2011, Leavy, 2010, Sinfield et al., 2012, Chesbrough, 2007, Giesen et al., 2007, Berman et al., 2012, Bate and Johnston, 2005, Euchner and Ganguly, 2014, Matzler et al., 2015, Huarng, 2013, Michalski, 2003, Amit and Zott, 2015, Bucherer et al., 2012, Richter, 2013, Evans and Johnson, 2013, Casadesus-Masanell and Zhu, 2013, Enkel and Mezger, 2013, Abdelkafi et al., 2013, De Reuver et al., 2013, Lazonick et al., 2013, Shelton, 2009, Günzel and Holm, 2013, Gudiksen, 2015, Taran et al., 2015, Seidenstricker and Linder, 2014, Velu, 2015, Cucculelli and Bettinelli, 2015, Habtay and Holmén, 2014, Wang et al., 2015, Mezger, 2014, Gerasymenko et al., 2015 Network (Yunus et al., 2010, Spector, 2013, Chung et al., 2004, Westerlund et al., 2014, Monios and Bergqvist, 2015, Palo and Tähtinen, 2013, Lindgren et al., 2010, Chesbrough and Schwartz, 2007, Ritala and Sainio, 2014, Cavalcante, 2013, Shin, 2014 Institutional (Liu and Wei, 2013, Bouwman et al., 2008, Gambardella and McGahan, 2010, Carayannis et al., 2015, Kandampully, 2006, Swatman et al., 2006, Hwang and Christensen, 2008, Birkin et al., 2009, Vlachos et al., 2006, Malhotra, 2002 * 25 papers could not be classified because they did not take an explicit position in terms of perspective. ...
... Others again study the following contexts: the digital music market (Vlachos et al., 2006); the hospitality industry (Kandampully, 2006); and the news and music industries (Swatman et al., 2006) and explore how their characteristics affect BMI. In a similar vein, Bowman and colleagues study how BMI can occur in the digital television market and the institutional forces that intervene during the process in terms of regulatory environment, industry structure, and consumer attitudes toward digital television services (Bouwman et al., 2008). ...
... A brief summary is offered in Table 4.6. Hwang and Christensen (2008) Disruptive technological innovation has to be integrated in different BMs in the health industry to create BMI Industry context Malhotra (2002), Vlachos et al. (2006) With regard to BMI in E-business, the role of knowledge management (KM) and the importance of balancing KM for design and KM for emergence Industry context Kandampully (2006) A framework enabling firms in the hospitality industry to innovate their BMs Industry context Swatman et al. (2006) Overview and assessment of the best internet-based business models in the news and music industries Industry context Gambardella and McGahan (2010) How BMI and industry structural changes are driven by General Purpose Technologies and the possible consequences at the firm and sector level Industry structural change Birkin et al. (2009) Any new business model focused on sustainable development must fit more with cultural contexts and values than with technical and managerial issues Cultural context ...
This chapter introduces a multilevel analysis of BMI that flows from the thematic and ontological analyses of the 156 papers included in the systematic literature review. Five different levels of analysis emerged from the studies: individual (e.g., entrepreneurs and employees); team (e.g., top management); firm (e.g. companies and organizations), network (e.g., partnerships and consortia), and the firm’s institutional environment (e.g., industry, market, sector, or society). These levels of analysis are discussed in order to improve our understanding of BMI and to stimulate future research. The tables and the multilevel issues examined in this chapter reveal that most existing knowledge on BMI is concentrated on a single level of analysis at a time, moreover the majority of the papers use the firm as the level of investigation. Accordingly, this chapter contributes to the development of the BMI literature, highlighting for each level of analysis, the related research gaps, and offering specific suggestions—a road map for future research—to address each of these knowledge gaps.
... Understandably, we do not find papers with the typical research question-theorymethods-results structure in this group. We find instead pieces with various structures that contain reports of surveys (e.g., Kiron et al., 2013a, Kiron et al., 2013b, Berman et al., 2012, Vlachos et al., 2006, descriptions (e.g., Hwang and Christensen, 2008, Chesbrough, 2007a, Chesbrough, 2007b, experience-based reccommendations (e.g., Engel, 2011, Koen et al., 2011, Tuulenmäki and Välikangas, 2011, exploratory case-based analysis (e.g., Koen et al., 2010, Birkin et al., 2009, or selected best practice cases (Giesen et al., 2007). Because of the aims and structures of these papers, it is not possible to identify a specific sector focus. ...
... A second group has explored the practical applications of BMI in specific contexts such as large companies (Koen et al., 2010), healthcare services (Hwang and Christensen, 2008), mobile services (Eriksson et al., 2008), the hospitality industry (Kandampully, 2006), the digital content market (Swatman et al., 2006), the online music industry (Vlachos et al., 2006), and e-commerce (Malhotra, 2002). ...
This chapter categorizes the 156 papers included in our systematic analysis according to the disciplines to which they belong. Our thematic and ontological analyses identified five different disciplines dealing with BMI: strategic management, organizational studies, marketing, and entrepreneurship. In addition to these, we have the practice-oriented group of papers. This chapter is organized as follows, each section considers one of the five different disciplines and first analyzes how BMI is treated in it by reviewing the main research questions, the theoretical perspectives, and the methodologies employed in the papers considered in our systematic literature review. Specifically, we will discuss the papers most cited in each field and their contribution to the knowledge on BMI. Finally, the chapter presents the categorization of the papers according to their main perspectives and levels of analysis (illustrated in the fourth chapter of this book), providing a specific research agenda for future research.
... As a result, the consumption of content in online formats, such as websites, e-books, and apps, has seen major growth rates in recent years, while offline content formats, such as CDs or magazines, have become less popular [62]. This transition holds substantial challenges for the content industry as many content providers (i.e., organizations that create or acquire content to make it available to recipients) struggle to build sustainable revenue models around content in online formats [18,60,72]. ...
While consumption of content in offline formats continues to decline, many providers are still struggling to monetize their content online, because consumers’ willingness to pay (WTP) for content in online formats is low. The availability of free content on the Internet is often considered the primary reason for this issue. However, we hold that the lower WTP is also related to a lower appraisal of online formats per se. Using a conjoint analysis and the example of newspaper subscriptions, we explore differences in consumer preferences and WTP between offline and online formats. Our results show that after price, format is the second-most important attribute of a newspaper subscription. While consumers still prefer the printed newspaper to any online format, WTP differs across online formats and is strongly associated with device ownership. Our study provides a novel understanding of the previously neglected factor content format and its importance for content providers.
... Chen et al., 2002;Lee, 2013;López-Nicolás et al., 2008;Wu and Wang, 2005). Perceived usefulness, interactivity, ease of use and enjoyment, ubiquity, social and media influences, and trust, are considered the most common driving factors (Coursaris and Sung, 2012;Kleine and Baker, 2004;Lee, 2013;López-Nicolás et al., 2008;Lu et al., 2008;Mallat et al., 2009;Nysveen et al., 2005;Okazaki and Mendez, 2013;Vlachos et al., 2006;Wei et al., 2014), while perceived risks such as monetary considerations and security, as well as technology barriers, appear to hinder the use of such services Lim et al., 2006;Schierz et al., 2010;Wu and Wang, 2005). These past studies have very much focused on the adoption of value-added mobile services; however, given that such services have been widely available in the marketplace for a long time now, it is logical to assume that most users are now past the adoption stage. ...
This study proposes a conceptual framework for understanding the driving factors of value-added mobile services use. We offer a novel perspective, through an examination of the user–device relationship, on how the latent use of smartphones enhances the actual use of value-added mobile services. We grounded our framework in both the domestication and Apparatgeist theories as well as the findings from three focus groups. We tested the framework using self-reported data from 414 smartphone users. The findings demonstrate that the symbolic use of smartphones results in increased attachment to smartphones that in turn has a positive effect on deriving experiential value of using value-added mobile services. Symbolic use also has a positive relationship with value-expressiveness resulting from the use of such services. Both value-expressiveness and experiential value have a strong, positive relationship with overall user satisfaction that leads to an increase in the actual use of such services.
... Consequently, people no longer perceive mobile phones as telecommunication tools only; rather they treat their mobile phones as entertainment gadgets. Many of the telecommunication companies see these as business opportunities that could assist them in reducing their revenue dependence on mobile voice services, which are nearly reaching saturation (Vlachos, Vrechopoulos, and Pateli, 2006). It is thus not surprising to see an increasing number of companies are now competing against each other; trying hard to provide the best mobile entertainment services to win their customers. ...
Deriving from the Apparatgeist as well as Uses and Gratification theories, this paper proposes a conceptual framework for better understanding determinants of adoption of mobile entertainment services. It is proposed that symbolic use, perceived enjoyment, social escapism, and social norm will affect the adoption of such services. Mobile phone consumption style is postulated to mediate these relationships. Self-efficacy is suggested to moderate the relationship between the antecedents and consumption styles and actual use of mobile entertainment services. The proposed model is aimed to provide better insights on segmenting target audiences and tailoring mobile entertainment services more effectively.
This chapter concludes our work by summarizing all the results derived from the analyses illustrated and discussed in the previous chapters. This chapter contributes to the knowledge of business model innovation (BMI) in three ways. First, we review the integrative framework related to the drivers, contingencies, and outcomes of BMI that was complemented with a deep analysis of theoretical perspectives and future research. Second, we propose an integrated multilevel (individual, team, firm, network and institutional) and multidisciplinary (strategic management, organizational studies, marketing, entrepreneurship, and practice-oriented) framework for BMI. Third, these perspectives of analysis facilitate the development of a comprehensive research agenda that can stimulate future studies on BMI from different perspectives, such as, a deeper BMI conceptualization, a wider and mixed usage of research methods, more integrative studies able to integrate level of analysis and a multidisciplinary understanding of BMI. These future contributions can improve the knowledge of the underlying mechanisms of BMI, and particularly of its drivers, outcomes, and contingencies.
With billions of users worldwide, the cell phone is not only a successful communications technology; it is also key to the future of media. Global Mobile Media offers an overview of the complex topic of mobile media, looking at the emerging industry structures, new media economies, mobile media cultures and network politics of cell phones as they move centre-stage in media industries. The development, adoption and significance of cell phones for society and culture have been registered in a growing body of work. Where existing books have focused on communication, and on the social and cultural aspects of mobile media, Global Mobile Media looks at the media dimensions. Goggin provides a pioneering yet measured evaluation of how cell phone corporations, media interests, users and policy makers are together shaping a new media dispensation. Global Mobile Media successfully places new mobile media historically, socially and culturally in a wider field of portable media technologies through extensive case studies, including: the rise of smartphones, with a detailed discussion of the Apple iPhone and how it has catalysed a new phase in convergent media, audiences and innovation, the new agenda in cultural politics and media policy, featuring topics such as iPhone apps and control, mobile commons, and open mobile networks, a succinct map of the political economy of mobile media, identifying key players, patterns of ownership and control, institutions, and issues, a critical account of cell phones' involvement in and contribution to much-discussed new forms of production and consumption, such as user-generated content, p2p networks, open and free source software networks, an anatomy of how cell phones relate to other online media, particularly the Internet and wireless technologies. Global Mobile Media is an engaging, accessible text which will be of immense interest to upper-level undergraduates, postgraduates and researchers in Communication Studies, Cultural Studies and Media Studies, as well as those taking New Media courses.
Mobile and wireless communication technologies have enabled the provision of innovative services for individuals, organisations and society, while at the same time they have spawned a plethora of research opportunities. This special issue encapsulates four of the best papers that were presented during the 9th International Conference on Mobile Business/9th Global Mobility Roundtable. The papers discuss four seminal m-commerce topics. In our course to introduce the special issue, we perform a short outline of the trajectory of m-commerce research under three perspectives: technology, applications and core research themes.
The task undertaken by this paper is to examine the delivery of mobile content in the Irish telecommunications industry, looking at the business strategies, operations and sources of innovation involved in bringing this new breed of services to the customer, in order to identify what drives the business value chain in this sector. A programme of 18 industry interviews was employed in this study, designed specifically for gaining a valuable mix of industry opinions and this strategic mix included interviewing senior representatives from the four incumbent network operators, 11 content providers and three handset manufacturers. These were performed with the aim of leveraging information that will enable this research to establish a level of clarity as to where value lies within the process of content delivery, what future trends are predicted in this field and why mobile phones hold such a strong position in an environment of increasing device convergence.
A conceptual challenge in exploring the role of trust in interorganizational exchange is translating an inherently individual-level concept-trust-to the organizational-level outcome of performance. We define interpersonal and interorganizational trust as distinct constructs and draw on theories of interorganizational relations to derive a model of exchange performance. Specifically, we investigate the role of trust in interfirm exchange at two levels of analysis and assess its effects on negotiation costs, conflict, and ultimately performance. Propositions were tested with data from a sample of 107 buyer-supplier interfirm relationships in the electrical equipment manufacturing industry using a structural equation model. The results indicate that interpersonal and interorganizational trust are related but distinct constructs, and play different roles in affecting negotiation processes and exchange performance. Further, the hypotheses linking trust to performance receive some support, although the precise nature of the link is somewhat different than initially proposed. Overall, the results show that trust in interorganizational exchange relations clearly matters.
The emerging capabilities of mobile telephony provide a promising alternative commerce channel, contributing to the configuration of the appropriate conditions for the forthcoming communication industry convergence. Elaborating on the rapid evolutions in the mobile commerce landscape, this paper investigates consumer attitudes towards mobile music services through an exploratory research approach conducted in Finland, UK and Greece. The objective of this study is to support content providers and mobile operators to capitalize on the unexplored marketing challenges existing in the virgin territory of mobile music. The findings indicate that content‐centric criteria (i.e., sound/image quality and content variety) are the most critical success factors for mobile music diffusion and consumer adoption, while content personalization capabilities, ubiquity, and easy‐to‐use interfaces constitute for the consumers the most desired features of a mobile music application. Significant differences were observed between consumers willing to adopt mobile music services and those that are not, in terms of the importance they assign to specific mobile music application selection criteria and features. Finally, significant differences were observed between the investigated countries in terms of consumers’ willingness to adopt mobile music services.
Purpose
To construct and test, through its application to a real case study, a methodology that generates contingencies for the evolution of a company or an industry's reference business model (BM) under the impact of a technology innovation.
Design/methodology/approach
The paper draws on theoretical predicaments of organizational development and scenario planning as well as more recently published works (2001‐2004) on BM design and change in order to build the primary steps of the methodology. A contingency approach is applied for selecting among alternatives the most suitable future BM. The usefulness and applicability of the provided methodology are proved through a real case study that concerns changing the exhibition's industry reference BM under the impact of a mobile innovation.
Findings
The proposed methodology is primarily useful in cases where a strategic manager wishes to draw and assess not one totally new BM but a set of scenarios that reflect alternative configurations for its current BM evolution. Such a methodology needs to be complemented with a contingency framework for guiding the selection of the scenario that better suits the internal and external environment of the company.
Research limitations/implications
It is expected that related theories, such as the theory of Industrial Organization and the theory of Network Economics, also need to be examined under the light of BM change to identify and cross‐validate factors that contribute to the design and assessment of BMs.
Practical implications
The ultimate utility of the proposed methodology is as a road‐map for leading change in the value‐creation logic of a firm, taking advantage of an advanced technology solution. By continuously changing their BM, and identifying new ways to deliver value to their customers, firms aspire to obtain and sustain a competitive advantage in high‐velocity environments.
Originality/value
This paper fulfils an identified research gap for a structured approach towards changing the BM of a firm, which introduces a technology innovation by keeping the principles of the old (traditional) business logic and taking into account the effects incurred from the firm's internal and external environment.
In slightly over two years, NTT DoCoMo, Japan's leading wireless telecommunications network provider, has been able to win over 30,000,000 subscribers to i-mode, its mobile Internet service. I-mode represents the first successful implementation of the convergence of the Internet and mobile telephony into a new industry. This article examines the origins of i-mode's success, both in terms of NTT DoCoMo's technological strategy and business model and why Japan has proven such a fruitful environment for mobile Internet. It also explores whether i-mode's success provides a global first-mover advantage to NTT DoCoMo's plans to employ strategic partnerships to spread the i-mode standard.
After explaining why business executives and academics should consider thinking about a rigorous approach to e-business models, we introduce a new e-Business Model Ontology. Using the concept of business models can help companies understand, communicate and share, change, measure, simulate and learn more about the different aspects of e-business in their firm. The generic e-Business Model Ontology (a rigorous definition of the e-business issues and their interdependencies in a company's business model), which we outline in this paper is the foundation for the development of various useful tools for e-business management and IS Requirements Engineering. The e-Business Model Ontology is based on an extensive literature review and describes the logic of a "business system" for creating value in the Internet era. It is composed of four main pillars, which are product innovation, infrastructure management, customer relationship and financials. These elements are then further decomposed.
