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VALUE CREATION ON YOUTUBE 
Lorenz Grünewald, M.A. 
Joachim Haupt, M.A. 
How Musicians, YouTubers 
and Commercial Networks ...
Research Question 
How and with whom do 
musicians on Youtube create 
which forms of value?
A 
G 
E 
N 
D 
A 
1 
2 
3 
4 
Theoretical Framework & Methodology 
Research basis 
Research Insights 
Cultural, Social and...
1 Theoretical Framework & Methodology 
Research basis
Theoretical Framework 
YouTube as a Holistic Economy with Contingent Definitions of Value 
Castells, 2009 
Circulation/Exc...
Methodology 
Object of research and research method 
Focus 
Youtuber 
Germany 
Musicians 
Methods 
In-depth interviews 
Ex...
Interviews 
Youtube Musicians 
Ten interviews from April to 
Mai 2014 
Duration: 49 to 77 Minutes 
Name alias does… on YT ...
2 Research Insights 
Cultural, Social and Economical Value Perspectives
Exploring Value Creation 
Perspectives and Practices 
Cultural 
Social 
Economic
Cultural Perspective 
From Skills to Cultural Capital 
Skills as Starting Point 
Famous YouTubers as Role Models 
Cross-Pr...
The Story of… 
J Dryor alias Playerboy 
JuliansBlog
Social Perspective 
The Valorization of Relationships 
Friends and Acquaintances 
Fans as an Active Audience 
Subscribers ...
The Story of… 
Vincent Lee
Economic Perspective 
YouTube as a Source of Income 
YouTube Partner Programme 
Monetization by Advertising 
Indirect Reve...
The Story of… 
YoungPianoTV 
“ 
„Wow, the guy who used to be 
on a poster in my child’s room 
just gave me feedback!“
How YouTubers Create Value 
Friendship 
Relationships 
Collaboration 
Networking 
Fan Communication 
Economy of Collaborat...
What do MCN do? 
Quotations from our interviews 
“ Selected network partners will 
Today nothing really works 
without a n...
Ranking of the top 10 
YouTube partners 
according to their 
unique viewers in Sep. 
2013 (in Mio. in GER) | 
Source: comS...
Multi-Channel Networks 
The Rationalization of Value Creation 
Companies with economic interest 
Collect and Administrate ...
3 Media Intermediation 
How YouTube Structures the Value Creation of YouTubers
Intermediaries 
…offer services between two parties 
Artist Record 
Company Distributor Retailer Fan 
Intermediaries
Dis-Intermediation 
Through digitally networked media 
Artist Fan 
YouTube, Bandcamp, Facebook
Re-Intermediation…? 
??? Artist 
Through digitally networked media 
Artist 
Fan 
MCN 
YouTube, Bandcamp, Facebook 
Artist ...
Media-Mediation? 
Through digitally networked media 
Artist YouTube Fan 
Media-Intermediation
YouTube’s “Scope“ 
Empowerment Through Digitally Networked Mediation Media 
YouTube? 
SoundCloud? 
Bandcamp? 
“ SCOPE 
You...
What do MCN do? 
Empowerment and Rationalisation 
YouTube 
Systematic ‚Cross-Promotion‘ 
Dealing with legal issues (strike...
MCNs influence YouTube’s Scope 
in social, cultural and economic respects 
MCN 
Artist 
Artist 
Artist 
Label 
SCOPE 
YouT...
It’s about the scope 
And about increasing it through empowerment 
Artist YouTube 
Fan 
Media-Intermediation 
MCN
4 Conclusion 
Scope, More Forms of Capital and (un)equality
Conclusion 
Empowerment and Rationalisation 
‚New’ forms of capital as restricting element in of value 
creation & partici...
SCOPE 
YYoouuTTuubbee 
MCN 
Friendship 
Relationships 
Collaboration 
Networking 
Fan Communication 
Economy of Collaborat...
@lorenzguitar 
@joachimhaupt 
Thank You! 
Lorenz Grünewald, M.A. 
Joachim Haupt, M.A.
Value Creation on YouTube: How Musicians, YouTubers and Commercial Networks Create Social, Cultural and Economic Capital
Value Creation on YouTube: How Musicians, YouTubers and Commercial Networks Create Social, Cultural and Economic Capital
Value Creation on YouTube: How Musicians, YouTubers and Commercial Networks Create Social, Cultural and Economic Capital
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Value Creation on YouTube: How Musicians, YouTubers and Commercial Networks Create Social, Cultural and Economic Capital

This Presentation for the Vienna Music Business Research Days presents results of a Study that models the different forms of value as created by YouTubers, YouTube Stars and Musicians on YouTube. It also reflects on the role of YouTube as a medium that enables and limits value creation and cultural participation of its users.

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Value Creation on YouTube: How Musicians, YouTubers and Commercial Networks Create Social, Cultural and Economic Capital

  1. 1. VALUE CREATION ON YOUTUBE Lorenz Grünewald, M.A. Joachim Haupt, M.A. How Musicians, YouTubers and Commercial Networks Create Social, Cultural and Economic Capital
  2. 2. Research Question How and with whom do musicians on Youtube create which forms of value?
  3. 3. A G E N D A 1 2 3 4 Theoretical Framework & Methodology Research basis Research Insights Cultural, Social and Economical Value Perspectives Media Intermediation How YouTube Structures the Value Creation of YouTubers Conclusion Scope, More Forms of Capital and (un)equality
  4. 4. 1 Theoretical Framework & Methodology Research basis
  5. 5. Theoretical Framework YouTube as a Holistic Economy with Contingent Definitions of Value Castells, 2009 Circulation/Exchange! Economic Capital Cultural Capital Social Capital Bourdieu, 1986 Value is what is processed in every dominant network at every time in every space according to the hierarchy programmed in the network by the actors acting upon the network. “
  6. 6. Methodology Object of research and research method Focus Youtuber Germany Musicians Methods In-depth interviews Exploratory approach Qualitative content analysis Induction/Deduction Dimensions Content Careers Identity/Selfconcepts Networks/Collaborators
  7. 7. Interviews Youtube Musicians Ten interviews from April to Mai 2014 Duration: 49 to 77 Minutes Name alias does… on YT since Abonennten overall views number of videos Gregor Hilden GregsGuitars Gitarrensoli 2007 42.266 43.921.289 5900 Rieke Werner StrawbellyCake Anime-Songs 2010 53.998 7.048.627 105 Noah Hunold Noah Hunold Sound-Tutorials 2008 3.553 395.696 77 Robin Segebarth DeservingDeath A-Capella-Solo 2007 17.136 3.538.538 145 Jannik Brunke JannikBMusic Pop-Musik 2012 25.771 1.358.494 43 Lukas Moeller YoungPianoTV Piano-Cover 2009 20.094 3.325.719 174 Jan-Hendrik Dreyer J Dryor / Playerboy Hip Hop Satire 2010 12.972 304.209 13 Anonym Anonym Rock-Musik 2006 124.008 8.757.311 36 Vincent Lee Rosovits Vincent Lee Music Musikproduzent 2010 25.513 1.742.648 96 Christian Behrens - Manager McFitti 2012 113.462 19.569.325 124 + an anonymous representative from UFA Labs, a TV production studio also working with YouTubers
  8. 8. 2 Research Insights Cultural, Social and Economical Value Perspectives
  9. 9. Exploring Value Creation Perspectives and Practices Cultural Social Economic
  10. 10. Cultural Perspective From Skills to Cultural Capital Skills as Starting Point Famous YouTubers as Role Models Cross-Promotion & Collaborations Cover Songs and Parodies Importance of Freedom and Cultural Intuition Various Forms of Selfpresentation and Fan Communication ! ADDING UP TO CULTURAL CAPITAL Cultural Social Economic
  11. 11. The Story of… J Dryor alias Playerboy JuliansBlog
  12. 12. Social Perspective The Valorization of Relationships Friends and Acquaintances Fans as an Active Audience Subscribers as a Key Figure Economy of Collaboration Calculus vs. sympathy and friendships ! ADDING UP TO SOCIAL CAPITAL Cultural Social Economic
  13. 13. The Story of… Vincent Lee
  14. 14. Economic Perspective YouTube as a Source of Income YouTube Partner Programme Monetization by Advertising Indirect Revenues Professionalization Fostering the Economy of Collaboration ! ADDING UP TO MONETARY CAPITAL Cultural Social Economic
  15. 15. The Story of… YoungPianoTV “ „Wow, the guy who used to be on a poster in my child’s room just gave me feedback!“
  16. 16. How YouTubers Create Value Friendship Relationships Collaboration Networking Fan Communication Economy of Collaboration Role Models Cross Promotion Cultural Social Economic Skills Cover Songs Freedom Intuition Selfpresentation YouTube Partner Programme Monetization by Advertising Copyright Indirect Revenues Professionalization …and with whom? + MCN
  17. 17. What do MCN do? Quotations from our interviews “ Selected network partners will Today nothing really works without a network. If you wanna get support and you contact Google without being in a network, you can wait for two month until you will get a reply. And if you are part of a network you will be served more quickly. be placed on the homepage in cooperation with YouTube. [Or] you can get special permissions like for music that would otherwise not be displayed because of the GEMA but it is unlocked for such a purpose. “
  18. 18. Ranking of the top 10 YouTube partners according to their unique viewers in Sep. 2013 (in Mio. in GER) | Source: comScore / Statista 2014 Multi-Channel Networks
  19. 19. Multi-Channel Networks The Rationalization of Value Creation Companies with economic interest Collect and Administrate YouTube(r’s) Channels Locked into Content-ID (Tracking and Blocking Content) Attract Advertisers Earn Revenue from Advertising Empower and Connect YouTubers
  20. 20. 3 Media Intermediation How YouTube Structures the Value Creation of YouTubers
  21. 21. Intermediaries …offer services between two parties Artist Record Company Distributor Retailer Fan Intermediaries
  22. 22. Dis-Intermediation Through digitally networked media Artist Fan YouTube, Bandcamp, Facebook
  23. 23. Re-Intermediation…? ??? Artist Through digitally networked media Artist Fan MCN YouTube, Bandcamp, Facebook Artist Artist
  24. 24. Media-Mediation? Through digitally networked media Artist YouTube Fan Media-Intermediation
  25. 25. YouTube’s “Scope“ Empowerment Through Digitally Networked Mediation Media YouTube? SoundCloud? Bandcamp? “ SCOPE YouTube The possibility to plan viral [video] was gradually scaled back. With just one video you have fewer and fewer influence on how many people get to see your video. Some people talk of conspiracies. (YouTube Musician in an interview)
  26. 26. What do MCN do? Empowerment and Rationalisation YouTube Systematic ‚Cross-Promotion‘ Dealing with legal issues (strikes) Getting licences Coaching (Format Development, Channel & Profile Building) Studios & Equipment Relationships w/ YouTube SCOPE
  27. 27. MCNs influence YouTube’s Scope in social, cultural and economic respects MCN Artist Artist Artist Label SCOPE YouTube
  28. 28. It’s about the scope And about increasing it through empowerment Artist YouTube Fan Media-Intermediation MCN
  29. 29. 4 Conclusion Scope, More Forms of Capital and (un)equality
  30. 30. Conclusion Empowerment and Rationalisation ‚New’ forms of capital as restricting element in of value creation & participation MCNs trying to concentrate cultural and social capital Additional source of inequality in the network society Neo-Capitalism vs. Post-Capitalism !
  31. 31. SCOPE YYoouuTTuubbee MCN Friendship Relationships Collaboration Networking Fan Communication Economy of Collaboration Role Models Cross Promotion Cultural Social Economic Skills Cover Songs Freedom Intuition Selfpresentation YouTube Partner Programme Monetization by Advertising Copyright Indirect Revenues Professionalization Summary
  32. 32. @lorenzguitar @joachimhaupt Thank You! Lorenz Grünewald, M.A. Joachim Haupt, M.A.

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