International Journal of Music Business Research Volume 3, Number 2, October 2014 Editors: Peter Tschmuck University of Music and Performing Arts Vienna, Austria Dennis Collopy University of Hertfordshire, UK Carsten Winter University of Music, Drama and Media Hanover, Germany AIMS AND SCOPE The International Journal of Music Business Research (IJMBR) as a double-blind reviewed academic journal provides a new platform to present articles of merit and to shed light on the current state of the art of music business research. Music business research is a scientific approach at the intersection of economic, artistic, especially musical, cultural, social, legal, technological developments that aims at a better understanding of the creation/production, dissemination/distribution and reception/consumption of the cultural good music. Thus, the IJMBR targets all academics, from students to professors, from around the world and from all disciplines with an interest in research on the music economy. EDITORIAL BOARD Dagmar Abfalter, University of Music and Performing Arts Vienna, Austria David Bahanovich, Trinity Laban Conservatoire of Music and Dance, UK Marc Bourreau, Université Telecom ParisTech, France Ryan Daniel, James Cook University Townsville, Australia Beate Flath, Karl-Franzens University Graz, Austria Simon Frith, University of Edinburgh, Scotland, UK Victor Ginsburgh, Université Libre de Bruxelles, Belgium Philip Graham, Queensland University of Technology, Australia Christian Handke, Erasmus University Rotterdam, The Netherlands Susanne Janssen, Erasmus University Rotterdam, The Netherlands Martin Kretschmer, University of Glasgow, UK Frank Linde, Cologne University of Applied Sciences, Germany Martin Lücke, Macromedia University for Media and Communication, Campus Berlin, Germany Jordi McKenzie, University of Sydney, Australia Juan D. Montoro Pons, University Valencia, Spain François Moreau, Université Paris 13, France Guy Morrow, Macquarie University Sydney, Australia Daniel Nordgård, University of Agder, Norway Felix Oberholzer-Gee, Harvard Business School, US Lucie Šilerová, Janáček Academy of Music, Czech Republic Alfred Smudits, University of Music and Performing Arts Vienna, Austria Eva Stöckler, Danube-University Krems, Austria Michael Theede, Macromedia University for Media and Communication, Cam- pus Hamburg, Germany Aleksandra Wagner, Jagiellonian University Krakow, Poland Patrik Wikström, Queensland University of Technology, Australia International Journal of Music Business Research Volume 3, Number 2, October 2014 CONTENTS Editorial 4 Articles Disintermediation Effects on Independent Approaches to Music Business Francisco Bernardo & Luís Gustavo Martins 7 Creativity, Innovation and Entrepreneurship in Music Business Education Ben O'Hara 28 Music Blogs and the Music Industry: Collusion or Independence? Beatrice Jetto 60 Notes for contributors 81 4 International Journal of Music Business Research, October 2014, vol. 3 no. 2 Editorial Peter Tschmuck1 This October 2014 issue of the International Journal of Music Business Research opens with the award-winning paper from the 4th Vienna Mu- sic Business Research Days 2013. In this Francisco Bernardo & Luís Gus- tavo Martins of the Catholic University of Portugal in Porto pose the crucial question of whether, in the digital age, disintermediation is re- shaping the music industry and fostering independent approaches to the market. They argue that digital network media enable ordinary people to adopt a do-it-yourself or "DIY" approach to producing and disseminat- ing music by eliminating intermediaries such as record labels. To support their analysis they reference Christian Handke's study on the independ- ent music scene in Germany as well as certain findings from the US ‘Art- ist Revenue Project’. Despite the obvious advantages of the DIY ap- proach (such as artistic freedom, independence, self-determination), Bernardo and Martins also highlight certain disadvantages and ultimate- ly argue for a mixed approach. Even though DIY is an important aspect of launching a career in the music business, to achieve sustainable artistic and economic success new artists will need to continue to rely on estab- lished as well as new intermediaries. Aspects of Bernardo & Martins' article are echoed in the subsequent paper by O'Hare entitled, "Creativity, Innovation and Entrepreneurship in Music Business Education". The author argues these days a music business education is essential to achieve success in the music business. O'Hare, who is the Head of Higher Education (Music Business) at Box Hill Institute in Melbourne/Australia states: "There has been an increasing professionalisation of the music industry, which requires industry per- 1 Peter Tschmuck is Professor for Culture Institutions Studies at the Institute for Cultural Manage- ment and Cultural Studies of the University of Music and Performing Arts Vienna, Austria with a focus on music business and industry research. He is the author of the book "Creativity and Innova- tion in the Music Industry" (2nd edition, Springer, 2012) and co-edited "Music Business and the Experience Economy. The Australasian Case, Springer, 2013). He annually organizes the Vienna Music Business Research Days and runs the blog on http://musicbusinessresearch.wordpress.com. Editorial 5 sonnel to acquire more complex skill sets. Notions of creativity, innova- tion and entrepreneurship need to be applied to music business educa- tion." Later on he gives a comprehensive overview of the literature of music business and models the interrelationship of creativity, innovation and entrepreneurship. The third article in this volume is a contribution by Beatrice Jetto of the University of Technology and Notre Dame University in Sydney, Aus- tralia. In this she focuses on the relationship between music blogs and the music industry by analysing 18 semi-structured interviews with blog- gers specialising in music. Therefore she "… argues that music blogs en- ter into a series of collaborative relationships that are one aspect of their practices. In particular, they collaborate with labels and PR spon- sors to determine the kinds of materials they will present on their sites, importantly connecting these materials with their posts." Each of the articles within the October 2014 issue of the IJMBR ad- dress the impact of digitization on the music industry from disintermedi- ation to new concepts of music business education and the role of music blogs. The IJMBR is aimed at all academics, from students to professors, from around the world and from all disciplines with an interest in music business research. Interdisciplinary papers are especially welcomed if they address economic and business related topics in the field of music. Thus, we look forward to receiving as many interesting papers as possi- ble and request that you send papers for consideration to: [email protected]. Disintermediation Effects 7 Disintermediation Effects on Independent Approaches to Music Business2 Francisco Bernardo & Luís Gustavo Martins 3 Abstract In the aftermath of the digital revolution, business models are changing and disin- termediation is impacting the music economy. In these circumstances, we observe the widespread claim that music artists are able to successfully reach the market on their own, leveraging access to networked global communications and the use of digital network media as a means of production. This paper argues such arguments feed on the ideals of independence in the context of an experimental and transi- tional stage that the music industry is currently undergoing, and that may be part of a recurrent cycle leading to the establishment of a new generation of intermedi- aries. Keywords: Independence, disintermediation, digital network media, music industry 1 Introduction With the advent of the digital revolution and the Internet, business models and strategies of the traditional players within the music indus- try's landscape have significantly changed. In this new reality character- ized by easy access to networked global communications and the matu- 2 This article was awarded best paper of the Young Scholars' Workshop 2013 of the 4th Vienna Music Business Research Days on "The Future of Music Licensing" at the University of Music and Performing Arts Vienna, June 20-21, 2013. 3 Francisco Bernardo, Eng, MSc, M.A., is currently a research fellow at Center for Science and Tech- nology in the Arts (CITAR) and PhD candidate at Catholic University of Portugal, where he focuses on creative industries, interactive art, music technology, audiovisual performance and aesthetics. He holds a graduate degree in Computer Science and Systems Engineering since 2006, and master degree in Mobile Systems since 2009, both from University of Minho and master degree in Man- agement of Creative Industries, from Catholic University of Portugal. ([email protected]). Luís Gustavo Martins is Assistant Professor at the Sound and Image Department of the School of the Arts of the Catholic University of Portugal (UCP - http://artes.ucp.pt/), and a researcher at the Research Center for Science and Technology in the Arts (CITAR), Porto, Portugal (http://citar.ucp.pt/). His research is mainly focused on audio content analysis, sound processing and synthesis, and his research interests include signal processing, machine learning, perception and cognition, music information retrieval (MIR) and software development. He is an active devel- oper of the open source Marsyas audio processing