Crowdfunding: Learnings from the Music Business

Abstract

The purpose of this paper is to identify key success factors of Crowdfunding in the Music Business in order to discuss their applicability to the Fashion Industry. The research methodology applied is a literature review examining academic and non-academic references. Key research findings include four main success factors. First explains the innovative and adaptive nature of the music industry caused by historical evolution. Second strong commitment and connection to the fan base is identified as success factor. Third manageable effort for the realisation on a large scale reduces the risk of a failure. And, last success factor describes the successful implementation of campaign-specific aspects. The discussion finally shows that three of four success factors can be adapted to the Fashion Business. Due to little scientific research in the field of Crowdfunding in the Music Business, the success factors are worked out independently, based on general literature. Accordingly, quantitative testing and further analysis is recommended.