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Value and Value Creation – Popular Music in the Digital Era: the Case of the Independent Music Industry in South Korea

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Value and Value Creation – Popular Music in the Digital Era: the Case of the Independent Music Industry in South Korea Value and Value Creation – Popular Music in the Digital Era: The Case of the Independent Music Industry in South Korea A thesis submitted to the University of Manchester for the degree of Doctor of Philosophy in the Faculty of Humanities 2014 Hwanho Choi Manchester Business School People, Management and Organisations Division Table of Contents List of Tables .............................................................................................................. 5 List of Figures and Picture ........................................................................................ 6 List of Abbreviations ................................................................................................. 7 Abstract ....................................................................................................................... 8 Chapter 1. Introduction ........................................................................................... 11 Chapter 2. Value Creation and Co-Creation ......................................................... 21 2.1. Introduction ..................................................................................................................21 2.2. The Transition of Value and Value Creation ...............................................................22 2.2.1. Goods-Dominant (G-D) Logic: The Traditional Perspective on Marketing, Value and Value Creation .........................................................................................................22 2.2.2. The Transition from the Exchange Paradigm to Value Creation ..........................27 2.3. Service-Dominant Logic and Value as Consumers’ Creation .....................................34 2.3.1. The Development of Service-Dominant Logic and Value Co-Creation ...............34 2.3.2. Value Co-Creation in the Digital Age ...................................................................38 2.3.3. Value as Consumers’ Creation ..............................................................................41 2.4. Value Creation of Consumers ......................................................................................44 2.4.1. Consumer Culture Theory (CCT) .........................................................................44 2.4.2. Consumption Community .....................................................................................47 2.5. Conclusion ...................................................................................................................52 Chapter 3. Media Development and Its Impact on Cultural Production ........... 55 3.1. Introduction ..................................................................................................................55 3.2. Kittler: An Introduction ...............................................................................................56 3.2.1. The Discourse Networks of 1800 and 1900 ..........................................................58 3.2.2. The Discourse Network of 2000: Kittler in the Internet Era .................................61 3.3. Social Media, and Cultural Production and Consumption ...........................................64 3.3.1. The Emergence of the Social Media and Its Impacts on Life, Culture and Creativity.........................................................................................................................64 3.3.2. Participatory and Convergence Culture ................................................................67 3.4. Conclusion ...................................................................................................................74 Chapter 4. Production and Consumption of Popular Music ............................... 77 4.1. Introduction ..................................................................................................................77 4.2. Brief Industry Background: The Industrialization and Commercialization of the Music Industry ....................................................................................................................80 4.3. The Traditional View on Value Creation in the Music Industry..................................91 4.4. Critiques of the Traditional View: The Convergence of Value Creation in the Popular Music Industry ....................................................................................................................94 4.4.1. Consumption: Popular Music and the Audience ...................................................94 4.4.2. Production: Creativity and Commercialism ........................................................100 4.5. Value Creation in Popular Music in the Digital Age .................................................107 4.5.1. The Impact of the Internet on the Music Industry ...............................................107 4.5.2. Innovation and Restructuring in the Music Industry ...........................................113 4.5.3. The Democratization of the Music Industry .......................................................116 2 4.6. Conclusion .................................................................................................................120 Chapter 5. Methodology ........................................................................................ 124 5.1. Introduction ................................................................................................................124 5.2. Qualitative and Quantitative Research .......................................................................125 5.3. Research Topic ...........................................................................................................129 5.4. Research Approach ....................................................................................................130 5.5. Research Design and Plan ..........................................................................................132 5.6. Qualitative Research ..................................................................................................134 5.6.1. The Quality of Qualitative Research ...................................................................135 5.6.2. Case Study ..........................................................................................................138 5.7. Data Collection ..........................................................................................................140 5.7.1. Secondary Data ...................................................................................................140 5.7.2. Primary Data: Interviewing .................................................................................140 5.8. Data Analysis .............................................................................................................146 5.9. Conclusion .................................................................................................................149 Chapter 6. The Music Industry in South Korea ................................................. 151 6.1. Introduction ................................................................................................................151 6.2. The Development of the Music Industry in South Korea: 1900s - 1990s ..................152 6.2.1. The Emergence of the Music Industry: 1907 – 1945 ..........................................152 6.2.2. The Formative Period of the Music Industry: 1945 to the early 1960s ...............154 6.2.3. The Emergence of the Modern Music Industry: 1960s – 1970s .........................156 6.2.4. The Period of Growth in the Music Industry: 1980s – 1990s .............................162 6.3. The Rise of the Digital Age and the Pursuit of Globalization: 2000s ........................167 6.3.1. The Rise of the Digital Music Market.................................................................167 6.3.2. The Dominance of Idols and the Pursuit of Globalization ..................................175 6.3.3. Value Creation in Popular Music in the Digital Age in South Korea .................179 6.4. The Emergence of an Independent Music Industry ...................................................185 6.4.1. The Area around Hongik University ...................................................................185 6.4.2. What is Indie Music in Korea? ...........................................................................187 6.4.3. The Rise of Independent Music Labels and Culture ...........................................190 6.4.4. The Re-emergence of Independent Music ..........................................................193 6.5. Conclusion .................................................................................................................200 Chapter 7. Consumers of Independent Music in the Digital Age ...................... 204 7.1. Introduction ................................................................................................................204 7.2. The Consumption Behaviour of Independent Music Consumers ..............................205 7.2.1. Information-Processing Approach ......................................................................207 7.2.2. Experiential Approach ........................................................................................212 7.3. Frame Alignment Attitudes of Music Consumers Regarding Independent Music ....217 7.3.1. Fear (Minimizing Inappropriateness) ..................................................................218 7.3.2. Responsibility (Maximizing Appropriateness) ...................................................223
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