MANAGERIAL DISRUPTIVE STRATEGIES IN THE GLOBAL MUSIC INDUSTRY: BUILDING OF THE COMPETITIVE ADVANTAGES OF SPOTIFY AND PANDORA DIGITAL STREAMING CORPORATIONS

Spotify and Pandora are corporations competing within the global music industry as disruptive entities in the existing industrial structure. Both are streaming corporations that operate in the form of a platform economy. The aim of this paper is to point out the opposite models of development of two...

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Bibliographic Details
Main Author: Lozic, Josko
Format: Conference Proceeding
Language:English
Subjects:
21st century
Business competition
Competitive advantage
Consumers
Consumption
Digital media
Digital music
Digital technology
Digitization
Economic conditions
Economies of scale
Electronic devices
Generation Z
Internet
Music industry
Personal computers
Revenue
Streaming media
Streaming services
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Summary:Spotify and Pandora are corporations competing within the global music industry as disruptive entities in the existing industrial structure. Both are streaming corporations that operate in the form of a platform economy. The aim of this paper is to point out the opposite models of development of two corporations whose key activity is related to streaming music production. The fundamental difference between business models relates to the collection of ad revenue. Corporations compete within technologically advanced industries and take advantage of economies of scale in the global music market. The key competitive advantage of corporations over "classic" music corporations is based on a user community that consumes music on mobile devices and does not purchase music to store it permanently. Streaming music platforms are a key factor in revenue recovery within the music industry. Generation Z, who are users of streaming music platform services, contributed most to this.
ISSN:1849-6903
1849-6903