Blockchain Technology in The Music Industry

Abstract

The objective of the present study is to investigate the contribution that blockchain-based digital music distribution services (BBDMDSs) can make to solving the most significant problems of the music industry. Thereby, a particular focus is put on the evaluation from a consumer perspective and discover factors that determine their intention to use such services. In that respect, the study contributes as a theoretical proposition to consumer behavior literature and adds to the understanding of blockchain technology applicability in the music industry. Within the literature review, the theoretical fundamentals regarding the music industry, blockchain technology, and consumer behavior theory are provided. Findings are derived from a multiple-case study of BBDMDSs and by following a qualitative approach conducting semistructured in-depth interviews with five music consumers. By examining the obtained findings, the unique values of an increase in the credibility and security of service providers; cost savings on financial transactions; and the enablement of instant revenue payouts to artists could be identified. Regarding consumers’ intention to use BBDMDSs, our findings demonstrate that the factors of content, user interface, direct connection, price, compatibility, and technology involvement are most significant. Based on the findings, practical recommendations for an appropriate strategy to strengthen the market position of BBDMDSs are suggested.