Collaborative Value-Chain Design of Reward-Based, Crowd-Funding Platforms in the Indonesian Music Industry

Abstract

Rapid advancement in technology has brought about many life changes. Technology simplifies the way people do many things, and it saves time, energy, and cost. The financial sector, for instance, is characterized by the growth of financial technology. One example of this is crowd funding. Creative industries such as music, film, and games are quite high sectors use crowd funding. This research covers crowd-funding platform collaborations with the music industry in Indonesia. In this process, to maximize the collection of funds, the musicians needs to do a value chain analysis and divine its competitive advantages. Such collaboration opens new business deals and changes the value chain. This study analyzes value chain designs and the collaboration between reward-based, crowd-funding platforms and the music industry in Indonesia. The research, which is based on value network theory and uses a qualitative approach and many case studies, was conducted by gathering information from participants involved in crowd funding in the music industry. The results of the study show that collaboration changes the design of the value chain. Crowd funding has changed the method of production in the Indonesian music industry, which involves funding, product development, sales, and distribution until the product reaches customers' hands. Other forms of crowd-funding in other creative industries require further investigation. This research aims to help practitioners understanding how reward-based crowd funding is changing the music industry in Indonesia.