digital disruption · digital method innovation technologies & practices in everyday life...

Digital MediaResearch Centre

Digital disruption

Patrik Wikström

@pwikstrom www.linkedin.com/in/patrikwikstrom

Digital Media Research Centrewww.qut.edu.au/research/dmrcQueensland University of [email protected]


Business Innovation

and Disruption by Design

(2016)

Business Innovation

and Disruption

in the Music Industry (2015)

Patrik WikströmBusiness Innovation and Disruption in the Digital Economy


QUT Digital Media Research CentreQUT DMRC conducts world-leading research that helps society

understand and adapt to the social, cultural and economic transformations associated with digital media technologies.

users providersproducers

consumers

platforms

society


QUT Digital Media Research Centre

Journalism, Public Communication &

Democracy

Economies,Organisations &

Regulations

DigitalMethod

Innovation

Technologies &Practices

in Everyday Life

DIGITAL MEDIA

QUT DMRC conducts world-leading research that helps society understand and adapt to the social, cultural and economic

transformations associated with digital media technologies.


digitaltechnologies


Integrated circuitFairchild Camera and Instrument Company 1961


consequences


service

product


Access-based online music services


Access-based music services shiftthe focus from the collection…


…to the real-time listening experience

https://www.spotify.com/au/arts/serendipity/

users providers producers

consumers

platforms

society


abundance of(real-time) data


Example: Changing patterns in the production and consumption of cultural artefacts

Data analyticsE.g. Time‐based, Geographic,

Acoustic metadata

Data collectionCultural artefacts,Popular music,

Artists, albums & tracks


Geographic Metadata:Local Repertoire Share

%


‐3

‐2.5

‐2

‐1.5

‐1

‐0.5

0

0.5

1

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2.5

USUK

AU

Acoustic MetadataExample: “Danceability”


Is acoustic innovation cyclical?

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users providersproducers

consumers

platforms

society

Exploring the complex interaction between competing regulatory systems


abundance of(real-time) data


Developing theory throughsimulation methods

ModelAssumptions

LogicsTheory

Simulated time‐based data

0 100 200 300 400 500 600 700 800 900 1000

Fit?

Real world

Real‐world time‐based data

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We model provider, user, and platform behaviour across multiple market segments

Markets are defined by– Geography– Time– Customer characteristics– Entry barriers

E.g. taxi markets– Daytime, Toowoomba– Brisbane Airport, Limousine– Special needs customers– The Valley, Saturday night


Providers and users are modelledas heterogeneous agents

Provider characteristics• Behaviour

– Professionalism– Loyalty

• Sensitivity/preference– Warm glow*

– Fixed costs– Users’ norm adherence

Usercharacteristics• Behaviour

– Norm adherence– Loyalty

• Sensitivity/preference– Warm glow*

– Price– Provider professionalism

*Cf. Andreoni 1989; 1990


users’ norm adherence

mkt|pltfattractiveness

successful transactions

netincome unit

pricerevenues

expected provider income

variable costs

providers available

untapped user

demand

expecteduser

demand

actual user

demand

potential user mktshare

goodwillreputation

satisfied users

platform feature level

level of discipline

fixed costs

perceived user satisf

platform warm glow

platform marketing

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Exploring the complex interaction between competing regulatory systems

Common patterns in incumbents’ response to digital disruption

DenialCombat

ResignationAcceptance

cf. Kübler‐Ross 1969


Are access-based musicservices “fair” to creators?

“Bad for music”“Ridiculous payouts”

“Unfair to small artists”“It’s a scam!”


Patrik WikströmQUT Digital Media Research Centre

[email protected]@pwikstrom

[email protected]@qutdmrc

digital disruption · digital method innovation technologies & practices in everyday life...

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