Digital Transformation of Business Models in Creative Industries: Emergence of the Portfolio Model

Abstract

This paper examines the changing business models in the creative industries facilitated by digital technologies. A holistic business model framework was developed from a systematic literature review, which is then used to analyse the evidence gathered from two strands of empirical work in the creative industries. The research found that digital technologies have facilitated pervasive changes in business models, but the resultant new business models are not necessarily novel or unprecedented. In many cases, digital technologies allow organisations to deploy a wider range of business models than previously available to them, often by adapting and applying traditional business models to different ranges or stages of products or services in the online environment. One important trend highlighted in this research is the emergence of the portfolio models in three different variants, where one organisation simultaneously adopts more than one business model to tackle different markets niches, to exploit different stages of work-in-progress as well as the final product, or to engage with multi-sided markets. This is a rapidly evolving field and new research is needed to understand emerging trends and their theoretical, business and policy implications. Three themes for future research are identified.