The internet and value co-creation: The case of the popular music industry

Abstract

The paper explores the importance of internet-facilitated value co-creation, especially in cultural industries. Through an extensive review of the literature, it shows that in many industries, a transformational shift is taking place from value creation to value co-creation, which is fundamentally changing the relationship between consumers and producers. In particular, the paper examines value creation and co-creation in the popular music industry. This reveals that though much of the research on music and the internet has revolved around the issue of music piracy, evidence is now emerging that the internet is enabling some record labels, musicians and fans to work together to co-create value for mutual benefit. The paper concludes by arguing that value co-creation is an important development that can transform the relationship between consumers and producers, and that in the popular music industry value co-creation can promote new, more positive, relationships among record labels, artists and fans.