Scaling Up Broken Systems? Considerations from the Area of Music Streaming

Abstract

We discuss the effects and characteristics of disruptive business models driven by technology, exemplified by the developments in music distribution and consumption over the last 20 years. Starting from a historical perspective, we offer insights into the current situation in music streaming, where technology has not only changed the way we access music but also has important implications on the broader ecosystem, which includes the consumers, the authors, the record industry, and the platforms themselves. The discussion points to potential benefits, as well as to the risks involved in the currently deployed systems. We conclude that the increased profitability of the disruptive business models in the music domain and beyond is largely generated at the expense of the providers of the goods or services being brokered. Using the platforms as a consumer further subsidizes their value and might lead to mono- and oligopolies. While technology allows companies to effectively scale up business, the resulting systems more often amplify existing injustices than mitigate them.