Emerging business models in the music industry: a descriptive case study of AWAL

This project s a conceptual, descriptive study of AWAL’s business model. AWAL is a online “label services” platform who takes on the role of the record label for independent artists without acqiuiring these artists recording rights. The general aim of this study is to uncover the underlying logics of the business model’s components based on microeconomic concepts and theories. The relevant sources in this analysis are Towse’s A Handbook of Cultural Economics and Porter’s Competitive strategy. The paper includes a description of the recording industry, a description of the most relevant economic concepts and a results section where the business model’s different components are analyzed in relation to these described concepts Apart from the study of relevant concepts, is the necessary data is derived from AWAL’s publicly available service definition. The study’s results show AWAL’s unique, two-sided position in the music value chain, and a competitive strategy is based on differentiation and cost management. An important finding is that one of it’s most valuable functions with regards to it’s long term survival is the added value it creates for online music retailers.