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Disruption is the future of business and the creative industries. Discuss with reference to relevant case studies and drawing on the theory of change. Case Study: Spotify $12.51   Add to cart

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Disruption is the future of business and the creative industries. Discuss with reference to relevant case studies and drawing on the theory of change. Case Study: Spotify

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In this essay, I will delve into the dynamic interplay between disruptive innovation and the music industry. I will frame my discussion by exploring the digital revolution and its effect on how music is consumed. I will analyse this notion through music distributors, specifically focusing on the c...

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  • September 21, 2024
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Creative Industries Management Essay


Disruption is the future of business and the creative industries. Discuss with reference

to relevant case studies and drawing on the theory of change.

In the dynamic landscape of the creative industries, the concept of disruption has emerged as

a powerful force in shaping the trajectory of success and innovation. Driven by technological

advancements and shifts in consumer behaviour, disruption challenges traditional models and

compels creative businesses to adapt to surpass their competitors. In this essay, I will delve

into the dynamic interplay between disruptive innovation and the music industry. I will frame

my discussion by exploring the digital revolution and its effect on how music is consumed. In

discussing the transformation of the music industry, Vaizey observes that as music

consumption methods have evolved, ‘so too have the ways in which artists are discovered

and marketed, and their music distributed’ (Vaizey, 2022). I will analyse this notion through

music distributors, specifically focusing on the case study of Spotify and its creative

disruption within the industry through the creation of its music streaming platform. Before

delving into the analysis of disruption caused by the implementation of streaming platforms,

it is essential to comprehend the definition of creative disruption. In explaining the impact of

disruption, the concept refers to ‘the innovative and frequently unconventional strategies

utilised by entrepreneurs to challenge established norms and disrupt traditional business

models within creative sectors’ (Faster Capital, n.d.). Spotify employs such innovative

technological strategies to fulfil its mission of fostering ‘human creativity by giving artists

the opportunity to live off their art and billions of fans the opportunity to enjoy and be

inspired by it’ (Spotify, 2023). Furthermore, discussing the development of the music

industry ‘allows us to understand why streaming has become the most prominent market for

owners of music recording rights’ (Hesmondhalgh et al., 2021: 14). Moreover, through

discussing the past evolution of music distribution and consumption, I can analyse how

disruption shapes the future of business within the creative industries.

, Creative Industries Management Essay




My discussion on music consumption and Spotify can be framed through drawing from

the theory of change model. In explaining the basis of the theory of change, The Centre for

Social Action Fund clarifies how the model serves as a framework that shapes how a program

influences its beneficiaries, outlining various actions undertaken for the recipients, the

ultimate impact sought, and the distinct outcomes that play a role in achieving or contributing

to that impact (Nesta, n.d.). Music distributors must align with this framework to influence

both artists, and the ease of music consumption for its listeners. It is through their

implementation of this framework that they can make a meaningful impact on listeners.

Founded in Sweden in 2006 by Daniel Ek and Martin Lorentzon, Spotify launched in 2008

and has evolved to become a global industry leader within the creative industries. However,

before its launch, the music industry was contending with the difficulties presented by the

digital revolution, such as unauthorised downloads. The advent of the MP3 audio file in the

early 1990s facilitated the convenient online distribution of music, leading to the rise of

piracy. In the UK, the creative industries mapping document in 1998 highlights how, within

the music sector, one has to consider the issue of piracy impacting the sales of exported

goods, further stating how ‘the pirate market is worth billions of pounds worldwide’

(Department for Digital, Culture, Media & Sport, 1998: 72). Digital files producing great

volumes of piracy and undermining legitimate sales was a global economic concern for the

music industry. In the wake of a piracy epidemic, Spotify provided a solution by offering a

service that bettered pirated music while still compensating the creative industry. Lee

Marshall observes how this disruption and change in the industry has been Spotify’s key

selling point by ‘offering a platform which monetises existing consumer behaviour’

(Marshall, 2015:184). He continues to express how Spotify ‘monetises an audience the large

majority of whom were downloading illegally (and therefore not making any money for the

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