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Crowdfunding : prosocial motivations of funders participating in music campaigns

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Title:
Crowdfunding : prosocial motivations of funders participating in music campaigns
Creator:
Forst, Bruce A.
Place of Publication:
Denver, Colo.
Publisher:
University of Colorado Denver
Publication Date:
Language:
English

Thesis/Dissertation Information

Degree:
Master's ( Master of Science)
Degree Grantor:
University of Colorado Denver
Degree Divisions:
Department of Music and Entertainment Industry Studies, CU Denver
Degree Disciplines:
Recording arts

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University of Colorado Denver Collections
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Auraria Library
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Copyright BRUCE A. FORST. Permission granted to University of Colorado Denver to digitize and display this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.

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Full Text
CROWDFUNDING: PROSOCIAL MOTIVATIONS OF FUNDERS PARTICIPATING
IN MUSIC CAMPAIGNS
by
BRUCE A. FORST B.S., University of Tulsa, 1996
A thesis submitted to the Faculty of the Graduate School of the University of Colorado in partial fulfillment of the requirements for the degree of Master of Science Recording Arts
2016


This thesis for the Master of Science degree by Bruce A. Forst has been approved for the Recording Arts Program by
Leslie Gaston-Bird, Chair Storm Gloor Lome Bregitzer
Date: December 17, 2016


Forst, Bruce A. (M.S., Recording Arts)
Crowdfunding : Prosocial Motivations of Funders Participating in Music Campaigns Thesis directed by Associate Professor Leslie Gaston-Bird
ABSTRACT
The introduction of digital technology changed the way in which artists make money through selling their music. Online file sharing, piracy, mid free streaming services have led to the perception of music as a free commodity. As the sales of compact discs and digital downloads have declined, alternative business models are providing potential new sources of revenue for musical artists. Crowdfunding has emerged as one potential source of revenue for musical artists. This paper looks at the ways in which funders are motivated to support musical artists through crowdfunding platforms. An online survey shows that people who support musical artists through crowdfunding platforms do so primarily as a way to provide support for friends, family members, and for musical artists of which they are fans. This highlights the ways in which crowdfunding for musical artists is more reliant on prosocial behavior and less reliant on consumer behavior. Funders are as less interested in pre-buying a product as they are in providing support for an individual or group with whom they have a connection. This suggests that musical artists wishing to utilize crowdfunding platforms should focus on cultivating their network of friends, family members, mid fans to increase their chances of crowdfunding success.
The form and content of this abstract are approved. I recommend its publication.
mi
Approved: Leslie Gaston-Bird


TABLE OF CONTENTS
CHAPTER
I. INTRODUCTION..............................................1
II. LITERATURE REVIEW........................................11
III. A SURVEY OF FUNDER MOTIVATIONS...........................15
Methods.................................................15
Survey Questions........................................16
Results.................................................21
Further Research........................................28
Discussion..............................................29
REFERENCES......................................................30
IV


LIST OF TABLES
TABLE
1. Survey responses to question one: What is your age?........................21
2. Survey responses to question two: Are you male or female?...................22
3. Survey responses to question three: Which genre(s) would you
says best describes the type of music you enjoy? (Select up to five)........22
4. Survey responses to question four: Rank the ways that you MOST
OFTEN consume music. (If you don't use a service at all choose N/A)........24
5. Survey responses to question five: Have you engaged in any of these
music related activities within the last six months? (Mark all that apply).24
6. Survey responses to question five for the crowdfunder group..................25
7. Survey responses to question six: Have you ever participated in a
crowd-funding campaign for a musical artist?...............................26
8. Survey responses to question seven: Which crowd-funding platforms
have you used to support a musical artist? (Select all that apply).........26
9. Survey responses to question eight: Rank your motivations for supporting a musical artist on a crowd-funding campaign. (Select
N/A if its not a motivation for you).......................................27
v


LIST OF FIGURES
FIGURE
1. The difference in genre preference between crowdfunders mid all survey
participants.............................................................23
2. The difference in the engagement levels of music related activities between
crowdfunders and all survey participants.................................25
3. Survey rankings of motivational behaviors for crowdfunders...............28
VI


CHAPTER I
INTRODUCTION
In the summer of 2012, Emily White, an intern at the media organization National Public Radio (NPR), wrote an article on NPRs All Songs Considered website. It was titled I Never Owned Any Music to Begin With. In this article Ms. White details how she came to acquire her music collection through file sharing. The digital files in her computers music library came from transferring the songs from compact discs (CDs), copying from a friends music player, mid file sharing programs. She says of her attitude towards music that I honestly dont think my peers mid I will ever pay for albums (White, 2012). Soon after this article appeared a response was posted by David Lowery, of the bands Camper Van Beethoven and Cracker. In his response, Lowery outlined the case for why people should be willing to pay for music by purchasing CDs and digital downloads. He argues that music has value, and by not paying for music, consumers are hurting musicians and everyone in the music industry. He asks, Why are we willing to pay for computers, iPods, smartphones, data plans, mid high speed internet access but not the music itself (Lowery, 2012)? This echoes a sentiment made two years later by Taylor Swift who said that Music is art, and art is important and rare. Important rare things are valuable. Valuable things should be paid for (Swift, 2014). Both Lowery mid Swift make the argument that music is valuable, and that without someone willing to pay for this music then there will be no way for musical artists to survive. They advocate that people should be willing to buy digital downloads and CDs as an act of support for music. They are appealing to a sense of fairness and compassion for musical artists. Buying a CD or a digital download should be more like an act of philanthropy mid less
1


like the act of a consumer. Even though there is no need to buy music that is freely available through friends, family, websites mid streaming services, fans should buy CDs and digital downloads to show financial support. This marks a shift away from consumer behavior towards prosocial behavior. Music fans are encouraged to make purchases to donate money to artists they wish to support. But, as Emily White points out, why should consumers buy a digital file they already have, or buy a plastic disc if they already have access to the music? Potentially, crowdfunding could be a way for fans of music to act prosocially in a way that financially supports musical artists.
Since the late eighties mid the early nineties software advances made it possible for the information encoded on a Compact Disc to be transferred to a personal computer and then shared to another personal computer through the internet. This opened a way for music files to be shared freely among computer users. Since that time, musicians have had to struggle with ways to monetize their music even as the value of music has dropped to zero in the eyes of consumers (Owsinski, 2009). Digital music song files are mi example of a purely digital information good that is both nonrival and nonexcludable (Varian, 1998). This means that the digital file exists in infinite supply mid that there is no barrier to one being able to freely consume this good. Attempts to create barriers to digital files have included legal mechanisms like intellectual property rights, various digital copyright protections and the bundling of the music with excludable goods such as exclusive artwork and/or packaging. Free streaming services like Spotify bundle the music with advertisements.
Because of the dwindling revenue from loss of CD sales, record labels have become more selective in their support for musical artists. Less revenue means that
2


record labels have less money to fund the development of smaller musical acts. This leaves many smaller artists in search of capital to fund recording projects.
One way that independent artists are raising money for their recording projects and other financial needs is through the use of crowdfunding platforms. Crowdfunding has opened up an additional avenue for artists to tap directly into their fan base as a source of revenue.
Crowdfunding is a relatively new phenomenon, with the first music oriented crowdfunding platform, ArtistShare, launching its first fan funded project Concert in the Garden, by Maria Schneider in 2003 (Chaney, 2010). Since then, numerous crowdfunding platforms have been launched. Different variants of the crowdfunding platform have been tailored for different types of fundraising. Variations exist for small lending, charitable giving, scientific research, education, and other specific crowdfunding endeavors. Crowdfunding is a variation on the idea of crowdsourcing, a term that was coined in 2006 to mean a way to harness the creative solutions of a distributed network of individuals (Howe, 2008). Kickstarter.com, which was started in 2009 has, according to their own data, successfully funded over 100,000 projects with over $2.3 billion pledged. Musician Amanda Palmers hallmark crowdfunding campaign in 2012 garnered significant media attention when she was able to raise nearly 1.2 million dollars through Kickstarter (Franco, 2012). Other artists like De La Soul and TLC have each also raised over $600,000 mid over $400,000 respectively (Kickstarter). Amanda Palmer has since switched to Patreon, a subscription based crowdfunding platform, where 8885 fans have agreed to make a combined contribution of $35,286 for each artistic creation that she produces ("Support Amanda Palmer creating Art," 2016). Subscription-based
3


crowdfunding is one variation of the general crowdfunding platform that allows for continuing contributions from supporters. Subscription based crowdfunding sites Subbable and Patreon launched in 2013 mid the existing crowdfunding platform Pozible added a subscription option in that same year (Deamicis, 2013). Subbable mid Patreon merged in the summer of 2015 (Pham, 2015). Both Hank Green, founder of Subabble, and Jack Conte, founder of Patreon, have stated that the idea for this model of crowdfunding emerged from a belief that fans can be motivated to pay for something that they love even if that thing is already freely available (Pham, 2015). Thus, subscription crowdfunding could potentially be a way of getting music fans to make continuous contributions towards the musical artists they support.
The available research on crowdfunding has established three principle actors in the crowdfunding process: the funders, the entrepreneurs, mid the intermediaries (Valanciene & Jegeleviciute, 2013). This paper will look primarily at the motivations of funders in the crowdfunding process. Qualitative research on the motivations of funders by Gerber and Hui (2013) discovered four basic categories that funders report as to why they support crowdfunding campaigns. These motivations include the desire to collect rewards, help others, be part of a community, mid support a cause (Gerber &Hui, 2013).
A qualitative study conducted by Klaebe & Laycock (2012), reported six observations concerning donor motivations, including that they know the person, the desire to help creative people, creative belonging, engaging in cultural production, social kudos, and the perks. Boeuf, Darveau, and Legoux (2014) look at crowdfunding for theatre projects and find that the motivations of funders involved in supporting theatre differ from those of
4


other crowdfunding categories; with a stronger focus on prosocial, or philanthropic behavior, versus consumer behavior or reward seeking.
This paper looks at music fans motivations for supporting musicians through crowdfunding platforms. An online survey targeting music fans who have participated in crowdfunding campaigns shows that fans who support musical artists through a crowdfunding campaign tend more towards prosocial behavior than consumer behavior. Funders are primarily motivated to support musical artists as way of providing support. Due to the freely available nature of digital music through either file sharing, piracy, or free streaming services, we see that fans are more motivated to help musical artists because of their connection to the artist, either through a familial relationship or because of a fan/artist relationship. This information is useful to artists looking to utilize crowdfunding to monetize their artistic output. By understanding the ways in which funders are motivated to give to a crowdfunding campaign, musical artists can determine how best to appeal to their fans through the reward structures of the crowdfunding platforms. Musical artists considering a crowdfunding campaign can use this information in deciding whether they are ready for a crowdfunding project.
An overview of the current state of the music industry shows why crowdfunding has become one alternative option for independent musical artists to self-finance their musical projects outside of the record label system. In 1999, a file sharing program called Napster made its debut. With this popular program, music that was previously only available in physical formats was freely available for download over the internet (Goldman, 2010). Since 1999, when they peaked, sales of CDs have continued to decline. In 2003, the Apple corporation introduced the iTunes store for digital music
5


downloads, pricing the sale of a single song at $0.99. Sales of iTunes singles surged even as sales of CDs continued to fall (Covert, 2013). Even as sales of digital downloads grew, the overall revenue of the music industry fell (Covert, 2013).
According to 2014 sales figures, sales of digital downloads have started to decline. According to Nielson Sound Sc an, paid downloads of albums have dropped 9% and paid downloads of songs have dropped 12% (Smith, 2015). During the same time period, the use of streaming music services has grown, with an increase of 54% since 2013 (Smith, 2015). Music fans are shifting away from the purchasing of digital downloads to the use of streaming services for their music listening, with an overall increase of 58 billion songs streamed from 2013 to 2014 (Smith, 2015).
Streaming services like Spotify were initially introduced mid sold to the record industry as a way to combat online piracy. At the time that Spotify was introduced in October of 2008, file sharing networks had already been available to music fans looking for free music for nearly ten years (Sehr, 2008). According to the Recording Industry Association of America (RIAA), music sales dropped 53 percent since the introduction of Napster mid 30 billion songs were illegally downloaded on file sharing networks between 2004 and 2009 ("RIAA Scope of the Problem). Daniel Ek, the CEO of Spotify, says that his services .. .whole reason for existence is to help fans find music and help artists connect with fans through a platform that protects them from piracy and pays them for their amazing work (Ek, 2014). Ad-supported streaming services like YouTube, Spotify, and Pandora give users free access to online music. In exchange, listeners are subjected to advertisements placed between songs. The revenue generated from the sale of advertisement placement is divided up between the rights holders and the streaming
6


service (Ek, 2014). Spotify was the first music streaming service that introduced a freemium model. In freemium models, users can pay to eliminate advertisements and to gain other convenience features. In the case of Spotify, paid subscribers to the premium service have access to on demand playback of songs on mobile devices and higher quality streams and continuous playback of music uninterrupted by advertisements. (Ek, 2014).
As the revenue from CD sales and the revenue from digital downloads have both declined, the use of online streaming services has continued to grow (Smith, 2015). Several artists, such as Bjork, David Byrne, Thom Yorke, mid Taylor Swift, have expressed concerns that the revenue generated from ad-supported streaming is either insufficient to replace the loss of revenue from the sale of CDs mid digital downloads or devalues the music by providing it for free (Byrne, 2013; Brunner, 2015; Young, 2013; Swift, 2014). In a 2014 editorial written for Wired magazine, Aloe Blacc, songwriter, rapper and musician summed up his opposition to streaming services by writing that, the abhorrently low rates songwriters are paid by streaming servicesenabled by outdated federal regulationsare yet another indication our work is being devalued in todays marketplace (Blacc, 2014).
It is in this current stage of the music industry that new musicians must navigate if they are to have any financial security as artists (Owsinski, 2009). In the old business model, record labels provided a source of funding for recording and touring, with the sales of CDs constituting the primary source of return on that investment (Owsinski, 2009). In the new model, music is primarily used as a marketing mechanism to attract fans. Putting music on free services like YouTube mid Spotify acts as a low cost way of
7


reaching a large audience of potential fans. However, these services only provide small payouts on large numbers of streams. For example, in 2013, Zoe Keating, an independent artist who self-releases cello music, publicly shared her earnings figures for that year. According to her shared document, she earned $6,380.82 on over three million plays on free streaming services such as YouTube, Pandora, mid Spotify (Dredge, 2014). The majority of her earnings from that year (92%) still came from sales of digital downloads (Dredge, 2014). Keating herself considers streaming services a good positive thing to get music out there but not yet a replacement for digital sales (Dredge, 2014). Jack Conte, of the band Pomplamoose, created the crowdfunding platform Patreon with a Stanford classmate as a way to establish a revenue source for his music mid videos. His motivation came from looking at the number of people that were watching his YouTube videos and comparing that number to the amount of revenue that he was making from the views ("Jack Conte, Pomplamoose/Patreon XOXO Festival, 2013). The revenue from the video streams was insufficient to support his musical endeavors so he conceived of Patreon as a way for himself mid other artists to harness their fan base in a more efficient way ("Jack Conte, Pomplamoose/Patreon XOXO Festival, 2013).
New artists attempting to be successful in the current music climate have to reach out to large numbers of people and build a fan following as a precursor to any attempts to monetize their output. In addition to traditional methods of fan generation, which include touring and radio airplay, artists must now utilize the tools of Web 2.0 to reach potential fans. Using online tools such as the video sharing site YouTube and social media services like Twitter mid Facebook, musical artists now have low cost ways of reaching out to generate potential fans in any location that is connected to the internet. Artists must seek
8


ways to generate sharing of their content through social media platforms. The primary challenge to reaching new fans is thus generating novel content that promotes online sharing amongst the social networks. Having a video go viraf means that the content gets widely shared between numerous users on media platforms. However, even after a musician has established a fan following they then need to find a way to monetize that relationship so they can earn a living making music. Playing live performances, selling merchandise, and collecting royalties from publishing and synchronization are all ways that musical artists can still earn money in the world of Music 3.0 (Owsinski, 2009). The challenge has become replacing the lost revenue that was previously generated from the sales of CDs mid digital downloads. In this context, crowdfunding has emerged as one potential way that musicians can leverage their fan base to raise additional money.
Crowdfunding is a method of funding ventures by drawing on relatively small contributions from a relatively large number of individuals using the internet, without standard financial intermediaries, (Mollick, 2014). The idea for crowdfunding emerged from the broader category of crowdsourcing. Crowdsourcing uses the crowd to gather resources for a purpose. A crowd is a large audience of people where each individual provides a small amount of the total effort needed (Lambert & Schweinbacher, 2010). Crowdfunding uses the power of the crowd to raise money for ventures needing financial backing. The majority of crowdfunding platforms, including Kickstarter, rely on time-limited campaigns, where there is a definite start and end date for the funding period (Macht & Weatherston, 2015). In some cases, as with Kickstarter, the fundraisers only receive the pledged contributions if a predetermined amount has been raised by the end date of the campaign. Otherwise, all the pledged money for the project is never collected
9


from the donors. Alternatively, a subscription based crowdfunding platform works by creating subscription levels for an individual artists output. Once a fan decides that they want to support an artist, they then decide at what level they will pledge their support in the form of an ongoing subscription. The money that is pledged goes directly to the artists, with a percentage taken out for the service provider. The artist decides what is offered at each subscription level. The consumer then decides which subscription level best represents the emotional value they have for the art or rewards offered ("What is Patreon"). This patronage system may to be a more direct replacement for the physical CD model than streaming services. Consumers are able to decide which artists they want to support mid at what level they wish to contribute to that ml ist. Most of the money then goes to support a specific artist. The payouts are higher than streams through other ad-supported services like YouTube ("Jack Conte, Pomplamoose/Patreon XOXO Festival, 2013).
10


CHAPTER II
LITERATURE REVIEW
The existing literature on crowdfunding has established the basic foundations by which crowdfunding can be understood mid studied. There are three main entities involved in the crowdfunding process: investors, intermediaries and entrepreneurs (Valanciene & Jegeleviciute, 2013).
Investors also sometimes called funders or crowdfunders. These individuals contribute to a crowdfunding campaign. It is through numerous funders small contributions that large projects get funded and money is raised. The funders seek out projects that appeal to them mid pledge to donate money to that campaign. Funders are able to choose the amount of money to pledge, often in response to pledge levels set up by the campaign (Kickstarter).
Intermediaries are the crowdfunding platforms. These are usually websites that host the campaigns mid provide ways for money to be pledged. In exchange for the service of hosting a campaign, the company running the crowdfunding platform takes a percentage of the pledges (Valanciene & Jegeleviciute, 2013). The crowdfunding platforms provide a structure for the two other parties, the funders mid the entrepreneurs in the crowdfunding process to interact. Intermediaries also provide a page for the crowdfunding campaign. On this page the campaign is explained, the appeal for money is made either in writing or in the form of a video mid updates on the progress of the campaign are provided to the funders (Kickstarter). Some variations exist on the way a campaign page is structured. Kickstarter, one of the most well-known crowdfunding
11


intermediaries, provides a tally of the number of backers, a countdown till the end of the campaign period, mid a running total of the amount of money pledged (Kickstarter).
Entrepreneurs are the people or businesses that are seeking funding. In the case of music crowdfunding, entrepreneurs usually consist of either solo musicians or bands who are looking to raise funds for their recording projects. They initiate the process, decide the monetary goals for their project, and seek out the appropriate platform for their campaign. Musicians using a crowdfunding platform tend to be outside of the standard financing mechanisms of the industry mid are seeking alternative ways of securing funding (Manes, 2014). For musicians, crowdfunding provides a source of funding for recording activities. Amanda Palmers Kickstarter campaign in the spring of 2012 funded her first studio album since her departure from a major label. This amount raised represented 1,192% of her goal for the crowdfunding campaign (Support Amanda Palmer creating Art, 2014).
This paper looks specifically at the motivation of the funders in supporting musical artists through crowdfunding platforms. Previous qualitative research has examined the motivations that funders state for pledging support to a crowdfunding campaign.). In the study by Gerber mid Hui (2013) mid again in the study on theatre funding done by Boeuf et al. (2014), funder motivations fall into two categories: prosocial behavior and consumer behavior. Gerber and Hui (2012) found that funders are motivated to collect rewards, help others, be part of a community, mid support a cause. Boeuf et al. find that supporters of theater projects are largely motivated by prosocial behavior. This indicates that funders of crowdfunding projects exhibit both prosocial and consumer behavior depending on the type of rewards offered. When funders give to a
12


crowdfunding campaign for the sake of collecting rewards in the form of acknowledgement, experiences, or a product, they are exhibiting consumer behavior. When funders give financial support to a crowdfunding campaign for the sake of helping others, contributing to a community, or supporting a cause they are exhibiting prosocial behavior (Small & Cryder, 2016). Penner, Dovidio, Piliavin and Schroeder (2005) define prosocial behavior as represent(ing) a broad category of acts that are defined by some significant segment of society and/or ones social group as generally beneficial to other people (p. 366). In contrast, consumer behavior is the process by which individuals search for, select, purchase, use, mid dispose of goods and services, in satisfaction of their needs and wants ("What is consumer buying behavior? definition and meaning"). Boeuf et al. (2014) show that funders in performing arts are heavily motivated by prosocial behavior, and posits that this contrasts with the cultural industries wherein funders are motivated by a material reward in the form of CDs. No study has so far been done to determine whether the funders of musical projects are motivated by the material rewards.
Due to the intangible nature of digital music files being a purely information good, there is lower incentive for funders to seek them out as rewards in a crowdfunding campaign. More focus is therefore placed on appealing to the prosocial motivations of potential funders to help others, be part of a community, or support a cause (Gerber & Hui, 2013). The rewards offered tend to be based more on giving support, gaining exclusive access to content and creator, mid being part of a community of fans. In contrast, crowdfunding campaigns for tangible goods tend to place more emphasis on material rewards, such as obtaining the physical product mid receiving acknowledgments (Kickstarter Rewards).
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This study hypothesizes that since music files that are freely available other places are poor incentives for consumer behavior based motivations, survey respondents that have contributed to music focused crowdfunding campaigns should rank prosocial behaviors as higher than consumer behaviors. This would mean that music crowdfunding for musical artists exhibits some characteristics of charitable giving.
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CHAPTER III
A SURVEY OF FUNDER MOTIVATIONS
Methods
The data for this study relies on the results of an online survey designed to examine the primary motivating factors of fans who pledge support to music crowdfunding campaigns. The survey also considered the demographic makeup of respondents who reported to have supported a musical artists crowdfunding campaign, how these supporters are currently consuming music, mid whether there is a link between certain music related behaviors mid respondent participation in music crowdfunding.
The survey was distributed online, targeting music fans who are either currently supporting a music crowdfunding campaign or have done so in the recent past. The online survey used for this paper was distributed through SurveyMonkey.com. This service allows for the creation of custom surveys with a variety of question types. The three most common question types available are questions where respondents can choose between two options, questions that allow respondents to choose all applicable answers, or questions where respondents are asked to rank their preferences among a set of possible choices. To keep the survey short no comment or essay box questions were used. When necessary mi option to choose Other was offered in case there were relevant responses that were not available in the pre-selected answers.
To reach a general audience, Twitter, Facebook and email connections were utilized. Daily posts to twitter during the collection period included the hashtags for the crowdfunding sites Kickstarter, Indiegogo, GoFundMe ArtistShare, Sellaband,
15


Rockethub, Patreon and Pozible. Twitter hashtags are used to associate a message with a topic. Additional twitter posts targeted followers of artist Amanda Palmer, Jack Conte, and Pentatonix; bands and artists associated with crowdfunding. Facebook requests for survey participation were distributed through friend networks as widely as possible. Daily requests for survey respondents were posted with reminders to share the link to other people in the extended network. Personal messages were sent to those people who were deemed to have the strongest social networks mid the closest relationship with the investigator. Emails containing the survey link were sent to music related organizations and professors. The survey link was posted to one music business related website as well and three more music related Facebook pages.
Survey Questions
1. What is your age?
18-20
21-29 30-39 40-49 50-59 60 or older
Demographic data on age looks at whether crowdfunder participation is restricted to certain age groups or whether there is a wide age distribution of individuals using crowdfunding platforms.
2. Are you male or female?
Female
Male
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Demographic data on gender help determine if participation in crowdfunding platforms exhibit a gender preference. This question also breaks the respondents into subsets of males mid females for the sake of gender comparison.
3. Which genre(s) would you says best describes the type of music you enjoy? (Select up to three please)
Rock
Pop
Country
Indie
Hard Rock
Metal
R&B
Folk
Classical
Hip Hop
Electronic
Ambient
Rap
Classic Rock Oldies
Other (please specify)
This question examines whether there is a strong preference for crowdfunding activity among the fans of specific genres of music. This information could be useful for musicians or bands considering a crowdfunding campaign in deciding whether their genre is receptive to crowdfunding appeals.
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4. Rank the ways that you most often consume music. (Ifyou don't use a service at
all choose N/A)
I purchase CDs N/A
I purchase digital downloads
(iTunes, Google Play, Amazon...) N/A
I listen to the AM/FM radio in the car or at home N/A
I pay for a subscription to an internet radio service
(Pandora, Tuneln, Slacker...) N/A
I pay for a subscription to an online streaming service
(Amazon, Google Play, Spotify, Tidal, YouTube...) N/A
I listen to an ad-supported internet radio service
(Pandora, Tuneln, Slacker) N/A
I listen to an ad-supported online streaming service
(Amazon, Google Play, Tidal, Spotify, YouTube...) N/A
I listen to satellite radio (Sirius/XM) N/A
This survey question determines which other ways that music fans are consuming music. Respondents were asked to rank their music consumption behaviors from one through eight based on which activities they engage in the most often. The responses indicate whether individuals that support musicians through crowdfunding have a preference towards different means of music consumption. This information is useful in determining whether individuals that engage in music consumption using music streaming services, digital downloads or physical CD purchasing are also inclined to participate in crowdfunding as well. A not applicable (N/A) choice was included for responses that are not applicable to the respondent.
5. Have you engaged in any of these music related activities within the last six months? (Mark all that apply)
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Gone to a concert or festival
Purchased music merchandise (T-shirts, Vinyl, Videos, etc...)
Read a music focused website as Pitchfork or Stereogram for example?
Sought out new musical artists to sample
Followed musical artists on social media (Twitter, Facebook, email...)
Subscribed to one or more musical artists' email mailing list(s)
This questions examines whether individuals that are engaged in more of these music related types of activities are more likely to be music fans in the sense that they are actively engaging with musicians and the bands that they follow. Respondents were encouraged to check as many of the responses as they wanted.
6. Have you ever participated in a crowd-funding campaign for a musical artist?
Yes
No (Please skip to the end of the survey mid hit Done)
This question determines whether the respondents have ever participated in crowdfunding. Respondents that answer affirmatively continue to answer two more questions regarding their crowdfunding participations. Other respondents were instructed to skip to the bottom of the survey and submit their results.
7. Which crowd-funding platforms have you used to support a musical artist? (Select all that apply)
ArtistS hare
Indie go go
Indiegogo (subscription)
Sellaband
Patreon
Pozible
19


Pozible (subscription)
Rockethub
Pledgemusic
Feedthemuse
Kickstarter
Other (please specify)
This question discovers which crowdfunding platforms that the respondents have used in the past or are currently using. Respondents could choose as many responses as needed to describe their experience with crowdfunding.
8. Rank your motivations for supporting a musical artist on a crowd-funding
campaign. (Select N/A if its not a motivation for you)
To collect a reward in the form of an acknowledgement N/A
To collect a reward in the form of an experience N/A
To collect a reward in the form of a product N/A
To help a musical artist who is a friend or family member N/A
To help a musical artist that I am a fan of N/A
To participate in a community of like-minded people N/A
To support a cause that I believe in. N/A
This question asks respondents to rank their motivations for supporting a musical artist on a crowdfunding platform. These responses were derived from the research done by Gerber and Hui (2013), Klaebe and Laycock (2012) and Boeuf et al. (2014). The responses show which motivations are used most often when deciding to support a crowdfunding campaign. Data was captured from this question and the preceding questions to group respondents per age, gender, type of genre, type of crowdfunding, mid
20


motivational factors to draw general conclusions about the type of individuals that support crowdfunding.
Results
Eighty-four people responded to the survey. Of those respondents, twenty-two had participated in crowdfunding campaigns for musical artists. This amounts to roughly twenty six percent of the respondents. This percentage could be the result of a low adoption rate for crowdfunding among the general population, owing to its still growing popularity. Additionally, some respondents may have been unaware of crowdfunding.
Table 1. Survey responses to question one: "What is your age?"
Answer Options Response Percent Response Count
18-20 1.2% 1
21-29 14.3% 12
30-39 44.0% 37
40-49 29.8% 25
50-59 4.8% 4
60 or older 6.0% 5
The age distribution for respondents was largely restricted to the age groups between twenty-one and fifty, with most the respondents coming from the thirty to thirty-nine age bracket. This was in part due to the targeted audience consisting of participants around the age of forty-two. This was the age of the investigator. The relatively low number of respondents coming from any age over fifty is most likely due to the lower adoptions rates for social media. A Pew Research Center report on adoption rates from 2015 show this to be the case, with the age groups over fifty showing the lowest adoption rates for social media (Pew Research Center, 2015). The highest rates of social media adoption come from the age bracket of eighteen to twenty-nine. This group shows an
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adoption rate of ninety percent (Pew Research Center, 2015). Their reduced representation in this respondent group could be the result of low penetration into that network.
Table 2. Survey responses to question two: Are you male or female?
Answer Options Response Percent Response Count
Female 48.8% 41
Male 51.2% 43
A nearly even number of male mid female respondents participated in the survey. The gender distribution for respondents that have participated in music crowdfunding was more heavily skewed towards males. Within the crowdfunding group nineteen of the twenty-two respondents were male. This means that only about thirteen percent of the survey respondents that have participated in music crowdfunding were women.
Table 3. Survey responses to question three: "Which genre(s) would you say best describes the type of music you enjoy? (Select up to five)"
Answer Options Response Percent Response Count
Rock 65.5% 55
Pop 46.4% 39
Country 15.5% 13
Indie 44.0% 37
Hard Rock 17.9% 15
Metal 9.5% 8
R&B 19.0% 16
Folk 38.1% 32
Classical 23.8% 20
Hip Hop 28.6% 24
Electronic 23.8% 20
Ambient 10.7% 9
Rap 9.5% 8
Classic Rock 26.2% 22
Oldies 15.5% 13
Other (please specify) 39.3% 33
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Percentage of genre represented
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Figure 1. The difference in genre preference between crowdfunders and all survey participants.
Once the data was filtered to show only the crowdfunding group, the results tracked very closely with the general group with the genres of Indie, Folk and Electronic being slightly over-represented while the genres of Country, Hip Hop and Rap were slightly under-represented. This might suggest a preference for crowdfunding within certain musical genres.
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Table 4. Survey responses to question four: "Rank the ways that you MOST OFTEN consume music. (If you don't use a service at all choose N/A)"
Answer Options (Ranked from 1-8) 1 2 3 4 5 6 7 8 N/A
I purchase CDs 10 5 13 13 2 4 1 4 28
I purchase digital downloads (iTunes, Google Play, Amazon...) 9 17 17 9 7 2 2 0 17
I listen to AM/FM radio in the car or at home 17 24 11 11 2 2 0 0 14
I pay for a subscription to an internet radio service (Pandora, Tuneln, Slacker..) 3 2 2 0 2 3 3 4 58
I pay for a subscription to an online streaming service 23 5 3 3 1 2 3 0 39
(Amazon, Google Play, Spotify, Tidal, Youtube...)
I listen for free to an ad-supported internet radio service (Pandora, Tuneln, Slacker..) 6 12 14 11 4 2 1 0 30
I listen for free to an ad-supported online streaming 9 13 9 7 6 2 3 0 29
service (Amazon, Google Play, Tidal, Spotify, Youtube...)
I listen to satellite radio (Sirius/XM) 6 3 4 3 2 3 2 1 52
When survey participants were asked about the ways they consume music, most of the respondents indicated that they pay for an online streaming service like Spotify, Tidal, or YouTube Red. Secondarily, they listened to AM/FM. Likewise, listening to satellite radio or paying for a subscription to an internet radio service were the two least popular ways respondents indicated that they consume music.
Table 5. Survey responses to question five: "Have you engaged in any of these music related activities within the last six months? (Mark all that apply)"
Answer Options
Response
Percent
Response Count
Gone to a concert or festival
Purchased music merchandise (T-shirts, Vinyl, Videos, etc...)
Read a music focused website such as Pitchfork or Stereogum for example?
Sought out new musical artists to sample
Followed musical artists on social media (Twitter, Facebook, email..) Subscribed to one or more musical artists' email mailing list(s)__
78.5% 62
45.6% 36
39.2% 31
72.2% 57
58.2% 46
24.1% 19
Among the general population of survey respondents, we see broad representation of music related activities. Most respondents engaged in concert going mid new music discovery.
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Table 6. Survey responses to question five for the crowdfunder group.
Answer Options Response Percent Response Count
Gone to a concert or festival 86.4% 19
Purchased music merchandise (T-shirts, Vinyl, Videos, etc...) 68.2% 15
Read a music focused website such as Pitchfork or Stereogum for example? 63.6% 14
Sought out new musical artists to sample 77.3% 17
Followed musical artists on social media (Twitter, Facebook, email..) 81.6% 18
Subscribed to one or more musical artists' email mailing list(s) 36.4% 8
Engagement in music related activities
100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
Concert Merch Music Website New Music Social Media Email Lists
All Crowdfunders
Figure 2. The difference in the engagement levels of music related activities between crowdfunders and all survey participants.
Once the data has been filtered to show the group of crowdfunders, we see that they are over-represented in every music related activity. They engage in music related activities such as following musicians on social media, buying music merchandise, or reading music related websites at a higher level than others. This higher level of music-related engagement should be typical of people who are music fans. This suggests that music fans are the people who are funding music projects.
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Table 7. Survey responses to question six: "Have you ever participated in a crowdfunding campaign for a musical artist?"
Answer Options Response Percent Response Count
Yes 25.3% 22
No (Please skip to the end of the survey and hit Done) 74.7% 62
The group of respondents was broken up into two groups based on whether they had ever participated in a crowdfunding campaign for a musical artist. The seventy-four percent of respondents that responded with No were excluded from the last two questions in the survey. The last two questions dealt with the behavior mid motivations of the crowdfunding group.
Table 8. Survey responses to question seven: "Which crowd-funding platforms have you used to support a musical artist? (Select all that apply)"
Answer Options Response Percent Response Count
ArtistShare 4.0% 1
Indiegogo 24.0% 6
Indiegogo (subscription based) 0.0% 0
Sellaband 0.0% 0
Patreon 16.0% 4
Pozible 0.0% 0
Rockethub 4.0% 1
Pledgemusic 12.0% 3
Feedthemuse 0.0% 0
Kickstarter 84.0% 21
Other (please specify) 16.0% 4
All but one of the twenty-two respondents in the crowdfunding group reported that they had used Kickstarter.com to fund a music related campaign. This shows that Kickstarter has the largest market share of music related crowdfunding campaigns, with only Indiegogo, Patreon, and Pledgemusic garnering more than one response.
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Table 9. Survey responses to question eight: "Rank your motivations for supporting a musical artist on a crowd-funding campaign. (Select N/A if its not a motivation for you)"
Answer Options 1 2 3 4 5 6 7 N/A ^at'n" Response
m \ nn a mint
to collect a reward in the form of an 0 0 0 9 9 9 9 14 5.42 22
acknowledgement L L L L
to collect a reward in the form of an experience 1 1 3 0 0 2 l 14 4.00 22
to collect a reward in the form of a product 3 3 2 2 4 1 0 7 3.40 22
to help a musical artist who is a friend or family member 7 5 3 2 0 0 0 5 1.82 22
To help a musical artist that I am a fan of 10 6 4 0 0 0 0 2 1.84 22
to participate in a community of like minded people 0 1 2 5 4 0 l 9 3.94 22
to support a cause that I believe in. 1 5 5 4 1 0 0 6 3.30 22
Crowdfunders report that they are most motivated to pledge money to a music crowdfunding campaign to help their friends, their family members or as fans of musical artists. The least amount of behavioral motivation by the crowdfunding group in this study was generated by the desire to collect rewards in the form of an acknowledgement or an experience. In both cases, fourteen of the twenty-two participants stated no motivation at all. Of the crowdfunding group, there was some interest in collecting a reward in the form of a product. However, it seems as if product rewards and participating in a community are secondary motivations in regards to the funding of music campaigns.
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Rankings of motivational behaviors
to support a cause that I believe in. to participate in a community of like...
To help a musical artist that I am a fan of to help a musical artist who is a friend or... to collect a reward in the form of a product to collect a reward in the form of an... to collect a reward in the form of an...
0 5 10 15 20 25
1 2 3 4 15 6 7 N/A
Figure 3. Survey rankings of motivational behaviors for crowdfunders.
Further Research
Because of the low participation rates of online survey, a survey with a larger number of respondents would provide a more focused look at the trends presented here. This would require the use of a larger social network than was used for this study.
Ideally, a person with a larger social network would be able to appeal to enough people to add greater statistical significance.
An additional line of research into why people are motivated to give to music related crowdfunding campaigns would be to look at the prosocial versus consumer mix of successful music campaigns and see if funders are more likely to donate more in response to prosocial rewards than consumer motivated rewards. Crowdfunding rewards for successfully funded music campaigns could be divided into the two categories of consumer and prosocial. Research could determine the relative dollar amounts of each category to see which behaviors provide more funding for music projects.
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Discussion
People who support musical artists though crowdfunding websites are fans of music. They are more likely to engage in behaviors indicative of being a fan. They place a high value on music mid a high value on their relationship to music mid the artists who make music. The decline in the sale of CDs mid digital downloads shows that consumers are seeing less value in those music products. This has caused a drop in the revenue for musical artists as streaming royalties have proven insufficient to make up for the lost revenue from the sale of CDs and digital downloads. Some musical artists have turned to crowdfunding to bridge that revenue gap and to help pay to produce their music. This study shows that funders of musical artists are fans that are willing to convert the value they find in their relationship to the art and the artist into financial support, and that they are primarily motivated to do so in a prosocial manner. This contrasts with funders of projects where there is a preproduction material product and where this fan relationship does not exist. Musical artists looking to use crowdfunding to raise money should therefore focus their time and energy into establishing a strong network and building a base of fans that can be counted on to provide support during crowdfunding campaigns.
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Full Text

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CROWDFUNDING: PROSOCIAL MOTIVATION S OF FUNDERS PARTICIPATING IN MUSIC CAMPAIGNS b y BRUC E A. FORST B.S., University of Tulsa, 1996 A thesis submitted to the Faculty of the Graduate School of the University of Colorado in partial f ulfillment of the requirements for the degree of Master of Science Recording Arts 2016

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ii This thesis for the Master of Science degree by Bruce A. Forst has been approved for the Recording Arts Program by Leslie Gaston Bird Chair Storm Gloor Lorne Bregitzer Date: December 17, 2016

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iii Forst, Bruce A. (M.S., Recording Arts) Crowdfunding : Prosocial M otivation s of Funders Participating in Music C ampaigns Thesis directed by Associate Professor Leslie Gaston Bird ABSTRACT The introdu ction of digital technol ogy changed the way in which artists make money through selling their music. Online file sharing, piracy and free streaming services have led to the perception of music as a free commodity As the sales of c ompact d iscs and d igital downloads have declined, alternative busines s models are providing potential new sources of reve nue for musical artists. Crowdfunding has emerged as one potential source of revenue for musical artists This paper looks at the ways in which funders a re motivated to support musical artists through crowdfunding platforms. An online survey shows that people who support musical artists through crowdfunding platform s do so primarily as a way to provide support for friends, family members and for musical artist s of which they are fans. This highlights the ways in which crowdfunding for musical artists is more reliant on prosocial behavior and less reliant on consumer behavior. Funders are as less interested in pre buying a product as they are in providing support for an individual or group with whom they have a connection. This suggests that musical artists wishing to utilize crowdfunding platforms should focus on cultivating their network of friends, family members and fans to increase t heir chances of crowdfunding success. The form and content of this abstract are approved. I recommend its publication. Approved: Leslie Gaston Bird

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iv TABLE OF CONTENTS CHAPTER I. INTRO D UCTION ................................ ................................ ............................. 1 II. LITERATURE REVIEW ................................ ................................ ................ 1 1 III. A SURVEY OF FUNDER MOTIVATIONS ................................ .................. 1 5 Methods ................................ ................................ ................................ ............ 1 5 Survey Questions ................................ ................................ ............................. 1 6 Results ................................ ................................ ................................ .............. 2 1 Further Research ................................ ................................ .............................. 28 Discussion ................................ ................................ ................................ ........ 29 REFERENCES ................................ ................................ ................................ .................. 3 0

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v LIST OF TABLES TABLE 1. ................................ .............. 2 1 2. ................................ .... 2 2 3. Survey responses to question t says best describes the type of music you enjoy? (Select up to five) .......................... 22 4. .................... 2 4 5. Survey respo ................. 24 6. Survey responses to question five for the crowdfunder group ................................ .... 25 7. cipated in a crowd ................................ ........................... 2 6 8. funding platforms ............................. 26 9. ations for supporting a musical artist on a crowd funding campaign. (Select ................................ ................................ ........... 27

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v i LIST OF FIGURES FIGURE 1. The difference in genre preference between crowdfunders and all survey participants. ................................ ................................ ................................ ............ 2 3 2. The difference in the engagement levels of music related activities between crowdfunders and all survey participants ................................ .............................. 25 3. Survey rankings of motivational behaviors for crowdfunders ............................... 28

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1 CHAPTER I INTRODUCTION In the summer of 2012, Emily White, an intern at the media organiza tion National Public Radio (NPR) t she came to acquire he r music collection through file shar ing The digital files in her c ompact d iscs (CDs) and file sharing programs. She says of her attitude towards music tha Soon after this article appeared a response was posted by David Lowery, of the bands Camper Van Beethoven and Cracker In his response, Lowery outlined the case for why people should be willing to pay for music by purchasing CDs and digital downloads. He argues that music has value, and by not paying for music consumers are hurting musicians and everyone in the music indust ry. He asks Why are we willing to pay for computers, iPods, smartphones, data plans, and high speed internet access but not This echoes a sentiment made two years later by art is important and rare. Important rare Swift make the argument that music is valuable, and that without someone willing to pay for this music then there will be n o way for musical artists to survive. They advocate that people should be willing to buy digital downloads and CDs as an act of support for music. They are appealing to a sense of fairness and compassion for musical artists. Buying a CD or a digital downlo ad should be more like an act of philanthropy and less

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2 like the act of a consumer. Even though t here is no need to buy music that is freely available through friends, family, websi tes and streaming services, fans should buy CDs and digital downloads to sho w financial support. This marks a shift away from consumer behavior towards prosocial behavior. Music fans are encouraged to make purchases to donate money to artists they wish to support. But as Emily White points out, why should consumers buy a digital file they already have, or buy a plastic disc if they already have access to the music? Potentially, crowdfunding could be a way for fans of music to act prosocially in a way that financially supports musical artists. Since the late eighties and the early nineties software advances made it possible for the information encoded on a Compact Disc to be transferred to a personal computer and then shared to another personal computer through the internet. This opened a way for music files to be shared freely am ong computer users. Since that time, musicians have had to struggle with ways to monetize their music even as the value of music has dropped to zero in the eyes of consumers (Owsinski, 2009) Digital m usic song files are an example of a purely digital info rmation good that is both nonrival and nonexcludable (Varian, 1998). This means that the digital file exists in infinite supply and that there is no barrier to one being able to freely consume this good. Attempts to create barriers to digital files have in cluded legal mechanisms like intellectual property rights, various digital copyright protections and the bundling of the music with excludable goods such as exclusive artwork and/or packaging. Free streaming services like Spotify bundle the music with adve rtisements. Because of the dwindling revenue from loss of CD sales r ecord labels have become more selective in their support for musical artists. Less revenue means that

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3 record labels have less money to fund the development of s maller musical acts. This leaves many smaller artists in search of capital to fund recording projects. One way that independent artists are raising money for their recording projects and other financial needs is through the use of crowdfunding platforms Crowdfunding has opened up an additional avenue for artists to tap directly into their fan base as a source of revenue. Crowdfunding is a relatively new phenomenon, with the first music oriented crowdfunding platform, Arti s t S hare, launching its first fa Garden Since then, numerous crowdfunding platforms have been launched. Different variants of the crowdfunding platform have be en tailored for different types of fundraising. Vari ations exist for small lending, charitable giving, scientific research, education and other specific crowdfunding endeavors. Crowdfunding is a variation on the idea of crowdsourcing, a term that was lutions of a distributed network Kickstarter.com, which was started in 2009 has, according to their own data, successfully funded over 100,000 projects with over $2.3 billion pledged. Musician crowdfu nding campaign in 2012 garnered significant media attention when she was able to raise nearly 1.2 million dollars through Kickstarter (Franco, 2012) Other artists like De La Soul and TLC have each also raised over $600,000 and over $400,000 respectively ( Palmer has since switched to Patreon, a subscription based crowdfunding platform where 8885 fans have agreed to mak e a combined contribution of $35 286 for each artistic creation that she produces ("Supp ort Amanda Palmer creating Ar t," 2016 ) Subscription based

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4 crowdfunding is one variation of the general crowdfunding platform that allows for continuing contributions from supporters. Subscription based crowdfunding sites Subbabl e and Patreon launched in 2013 and the existing crowdfu nding platform Pozible added a subscription option in that same year (Deamicis 2013). Subbable and Patreon merge d in the summer of 2015 (Pham, 2015) Both Hank Green founder of Subabble and Jack Conte founder of Pa treon, have stated that the idea for this model of crowdfunding emerged from a belief that fans can be motivated to pay for something that they love even if that thing is already freely available (Pham, 2015 ). Thus, s ubscription crowdfunding could potenti ally be a way of getting music fans to make continuous contributions towards the musical artists they support. The a vailable research on crowdfunding has established three principle actors in the crowdfunding process: the funders, the entrepreneurs and t he intermediaries (Valanciene & Jegeleviciute, 2013). This paper will look primarily at the motivations of funders in the crowdfunding process. Qualitative research on the motivations of funders by Gerber and Hui (2013) discovered four basic categories tha t funders report as to why they support crowdfunding campaigns. These motivations include t he desire to collect rewards, help others be part of a community and support a cause (Gerber &Hui, 2013) A qualitative study conducted by Klaebe & Laycock (2012 ) reported six observations concerning donor motivations, including that they know the person, the desire to help creative people, creative belonging, engaging in cultural production, social kudos, and the perks. Boeuf Darveau, and Legoux (2014) look at crowdfundin g for theatre projects and find that the motivations of funders involved in supporting theatre differ from those of

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5 other crowdfunding categories; with a stronger focus on prosocial, or philanthropic behavior, versus consumer behavior or reward seeking. This paper motivations fo r supporting musicians through crowdfunding platform s An online survey targeting music fans who have participate d in crowdfunding campaigns shows that fans who support musical artists thr ough a crowdfunding campaign tend more towards pr osocial behavior than consumer behavior. Funders are primarily motivated to support musical artists as way of providing support. Due to the freely available nature of digital music through either file sharin g, piracy or free streaming services we see that fans are more motivated to help musical artists because of their connection to the artist, either through a familial relationship or because of a fan/artist relationship. This information is useful to arti sts looking to utilize crowdfunding to mo netize their artistic output. By understanding the ways in which funders are motivated to give to a crowdfunding campaign, musical artists can determine ho w best to appeal to their fans through the reward structures of the crowdfunding platforms. Musical artists considering a crowdfunding campaign can use this information in deciding whether they are ready for a crowdfunding project An overview of the current state of the music industry shows why crowdfunding has become one alternative option for independent musical artists to self finance their musical projects outside of the record label system. In 1999, a file sharing program called Napster made its debut. With this popular program music that was previously onl y available in physical formats w as freely available for download over the internet (Goldman, 2010). Since 1999, when they peaked s ales of CDs have continued to decline In 2003, the Apple corporation introduced the iTunes s tore for digital music

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6 downloads, pricing the sale of a single song at $0.99. Sales of i Tunes singles surged even as sales of CDs continued to fall (Covert, 2013) Even as sales of digital downloads grew, the overall revenue of the music industry fell (Cov ert, 2013) A ccording to 2014 sales figures, sales of digital downloads have started to decline According to Nielson SoundScan, paid downloads of albums have dropped 9% and paid downloads of songs have dropped 12% (Smith, 2015). During the same time pe riod, the use of streaming music services has grown, with an increase of 54% since 2013 (Smith, 2015). Music fans are shifting away from the purchasing of digital downloads to the use of streaming services for their music listening with an overall increas e of 58 billion songs streamed from 2013 to 2014 (Smith, 2015) Streaming services like Spotify were initially introduced and sold to the record industry as a way to combat online piracy. At the time that Spotify was introduced in October of 2008, file s haring networks had already been available to music fans looking for free music for nearly ten years (Sehr 2008). According to the Recording Industry Association of America (RIAA), music sales dropped 53 percent since the introduction of Napster and 30 bi llion songs were illegally downloaded on file sharing networks between 2004 and 2009 ( "RIAA Scope of t he Problem ). Daniel Ek, the CEO o f Spotify says that whole reason for existence is to help fans find music and help artists connect wi th fans through a platform that protects them from piracy and pays them for their amazing work (Ek, 2014) Ad supported streaming services like YouTube, Spotify and Pandora give users free access to online music I n exchange listeners are subjected to a d vertisements placed between songs. The revenue generated from the sale of advertisement placement is divided up between the right s holders and the streaming

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7 service (Ek, 2014) Spotify was the first music streaming service that introduced a freemium model In freemium models, users can pay to eliminate advertisements and t o gain other convenience features In the case of Spot ify, paid subscribers to the premium service have access to on demand playback of songs on mobile devices and higher quality stream s and continuous playback of music uninterrupted by advertisements. (Ek, 2014) As the revenue from CD sales and the re venue from digital downloads have both declined the use of online streaming services has continued to grow (Smith, 2015) Several artists, such as Bjork, David Byrne, Thom Yorke and Taylor Swift, have expressed concerns that the revenue generated from ad supported streaming is either insufficient to replace the loss of revenue from the sale of CDs and digital downloads or de values the music by providing it for free (Byrne, 2013 ; Brunner, 2015; Young, 2013 ; Swift 2014 ). In a 2014 editorial written for Wired magazine, Aloe Blacc, songwriter, rapper and musician summed up his opposition to streaming services by writing tha he abhorrently low rates songwriters are paid by streaming services enabled by outdated federal regulations marketplace (Blacc, 2014). It is in this curre nt stage of the music industry that new musicians must navigate if they are to have any financial security as artists (Owsinski, 2009). In the old business model, record labels provided a source of funding for recordin g and touring, with the sales of CDs constituting the primary source of return on that investment (Owsinski, 2009). In the new model, music is primarily used as a marketing mechanism to attrac t fans. Putting music on free services like YouTube and Spotify acts as a low cost way of

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8 reaching a large audience of potential fans However, these services only provide small payouts on large numbers of streams. For example, i n 2013, Zoe Keating, an ind ependent artist who self releases cello music, publicly shared her earnings figures for that year. According to her shared document, she earned $6,380.82 on over three million plays on free streaming services such as YouTube, Pandora, and Spotify (Dredge, 2014). The majority of her earnings from that year (92%) still came from sales of digital downloads (Dredge, 2014). Keating herse lf considers streaming services (Dredge, 2014). Jack Conte, of the band Pomplamoose created the crowdfunding platform Patreon with a Stanford classmate as a way to establish a revenue source for his music and videos. His motivation came from looking at the number of people that were wat ching his YouTube videos and comparing that number to the amount of revenue that he was making from the views ("Jack Conte, Pomplamoose/Patreon the video streams was insufficient to support his musical endeavors so he conceived of Patreon as a way for himself and other artists to harness their fan base in a more efficient way ("Jack Conte, Pomplamoose/Patreon New artists attempting to be successful in the current music climate have to reach out to large numbers of people and build a fan following as a precursor to any attempts to monetize their output In addition to traditional methods of fan generation, which include touring and radio airplay, artist s must now utilize the tools of Web 2.0 to reach potential fans. Using online tools such as the video sharing site YouTube and s ocial media services like Twitter and Facebook musical artists now have low cost ways of reaching out to generate potential fans in any location that is connected to t he i nternet Artists must seek

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9 ways to generate sharing of their content through social media platforms. The primary challenge to reaching new fans is thus generating novel content that promotes online sharin g amongst the social networks. mean s that the content gets widely shared between numerous users on media platforms. However even a fter a musician has established a fan following they then need to find a way to monetize that relationship so they can earn a living making music. Playing live performances, selling merchandise, and collecting royalties from publishing and synchronization are all ways that musical artists can still earn money in the worl d of Music 3. 0 (Owsinski, 2009). The challenge has become replacing the lost revenue that was previously generated from the sales of CDs and digital downloads. In this context, c rowdfunding has emerged as one potential way that musicians can leverage their fan base to raise additional money. contributions from a relatively large number of individuals using the internet, without st andard financial intermediaries The idea for c rowdfunding emerged from the broader category of crowdsourcing. Crowdsourcing resources for a purpose A crowd is a large audience of people where each individual provides a s mall amount of the total effort needed (Lambert & Schw einbacher, 2010) Crowdfunding uses the power of the crowd to raise money for ventures needing financial backing The majority of crowdfunding platforms, including Kickstarter, rely on time limited campaigns, where there is a definite start and end date fo r the funding period (Macht & Weatherston, 2015). In some cases, as with Kickstarter, the fundraisers only receive the pledged contributions if a predetermined amount has been raised by the end date of the campaign. Otherwise, all the pledged money for the project is never collected

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10 from the donors. Alternatively, a subscription based crowdfunding platform works by want to support an artist, they then decide at what level they will pledge their support in the form of an ongoing subscription. The money that is pledged goes directly to the artists with a percentage taken out for the service provider. The artist decides what is offered at each subscription level. The consumer then decides which subscription level best represents the emotional value they have for the art or rewards offered ("What is Patreon"). This patronage system may to be a more direct replacement for the physical CD model than streaming services. Co nsumers are able to decide which artists they want to support and at what level they wish to contribute to that artist. Most of the money then goes to support a specific artist. The payouts are higher than streams through other ad supported services like Y ouTube ("Jack Conte, Pomplamoose/Patreon 2013).

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11 CHAPTER II LITERATURE REVIEW The existing literature on crowdfunding has established the basic foundations by which crowdfunding can be understood and studied. There are three main entitie s involved in the crowdfunding process : investors, intermediaries and entrepreneurs (Valanciene & Jegeleviciute, 2013) Investors al so sometimes called funders or crowdfunders. These individuals contribute to a crowdfund ing campaign. It is through numero us funder s small contributions that large projects get funded and money is raised. The funders seek out projects that appeal to them and pledge to donate mon ey to that campaign. Funders are able to choose the amount of money to pledge, often in response t o pledge levels set up by the campaign ) Intermediaries are the crowdfunding platforms. These are usually websites that host the campaigns and provide ways for money to be pledged. In exchange for the service of hosting a campaign, the com pany running the crowdfunding platform takes a percentage of the pledges (Valanciene & Jegeleviciute, 2013) The crowdfunding platforms provide a structure for the two other parties the funders and the entrepreneurs in the crowdfunding process to interact Intermediaries also provide a page for the crowdfunding campaign. On this page the campaign is explained, the appeal for money is made either in writing or in the form of a video and updates on the progress of the campaign are provided to the funders Some variations exist on the way a campaign page is structured. Kickstarter, one of the most well known crowdfunding

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12 intermediaries, the campaign period and a running t otal of the amount of money pledged Entrepreneurs are the people or businesses that are seeking funding. I n the case of music crowdfunding entrepreneurs usually consist of eith er solo musicians or bands who a re looking to raise funds fo r their recording project s They initiate the process, d ecide the monetary goals for their project, and seek out the appropriate platform for their campaign. Musicians us ing a crowdfunding platform tend to be outside of the standard financing mechanisms o f the industry and are seeking alternative ways of securing funding (Manes, 2014) For musicians, crowdfunding provides a source of funding for recording a ctivities. Amanda Palmer her first studio album s ince her departure from a major label. This amount raised represented 1,192% of her goal for the crowdfunding campaign This paper looks specifically at the motivation of the funders in supporting musical arti sts through crowdfunding platforms. Previous qualitative research has examined the motivations that funders state for pledging support to a crowdfunding campaign .). In the study by Gerber and Hui (2013) and again in the study on theatre funding done by Boe uf et al. (2014), funder motivations fall into two categories: prosocial behavior and consumer behavior. Gerber and Hui (2012) found that funders are motivated to collect rewards, help others, be part of a community, and support a cause. Boeuf et al. fin d that supporters of theater projects are largely motivated by prosocial behavior. This indicates that funders of crowdfunding projects exhibit both prosocial and consumer behavior depending on the type of rewards offered. When funders give to a

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13 crowdfund ing campaign for the sake of collecting rewards in the form of acknowledgement, experiences, or a product they are exhibiting consumer behavior. When funders give financial support to a crowdfunding campaign for the sake of helping others, contributing to a community, or supporting a cause they are exhibiting prosocial behavior (Small & Cryder, 2016 ) Penner, Dovidio, Piliavin and Schroeder (2005) define significant se search for, select, purchase, use, and dispose of goods and services, in satisfaction of their needs and wants ("What is consumer buying behavior? definition and meaning"). Boeuf et al. (2014) show that funders in performing arts are heavily motivated by prosocial behavior, and posits that this contrasts with the cultural industries wherein funder s are motivated by a material reward in the form of CDs. No study has so far been done to determine whether the funders of musical projects are motivated by the material rewards. Due to the intangible nature of digital music files being a purely informa tion good, there is lower incentive for funders to seek them out as rewards in a crowdfunding campaign. More focus is therefore placed on appealing to the prosocial motivations of potential funders to help others, be part of a community, or support a caus e (Gerber & Hui, 2013). The rewards offered tend to be based more on giving support gaining exclusive access to content and creator, and being part of a community of fans. In contrast, crowdfunding campaigns for tangible goods tend to place more emphasis on material rewards, such as obtaining the physical product and receiving acknowledgments ( ).

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14 This study hypothesizes that since music files that are freely available other places are poor incentives for consumer behavior based mo tivations, survey respondents that have contributed to music focused crowdfunding campaigns should rank prosocial behaviors as higher than consumer behaviors. This would mean that music crowdfunding for musical artists exhibits some characteristics of char itable giving.

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15 CHAPTER III A SURVEY OF FUNDER MOTIVATIONS Methods Th e data for this study relies on the results of a n online survey designed to examine the primary motivating factors of fans who pledge support to music crowdfunding campaigns The survey also considered the demographic makeup of respondents who report ed campaign, how these supporters are currently consuming music and whether there is a link between certain music related behaviors and respo ndent participation in music crowdfunding. The survey was distributed online targeting music fans who are either currently supporting a music crowdfunding campaign or have done so in the recent past. The online survey used for this paper was distribute d through SurveyMonkey.com This service allows for the creation of custom surveys with a variety of question types. The three most common question types available are questions where respondents can choose between two options questions that allow respon dents to choose all applicable answers, or questions where respondents are asked to rank their preferences among a set of possible choices. To keep the survey shor t no comment or essay box questions were used. offered in case there were relevant responses that were not available in the pre selected answers. To reach a general audience, Twitter, Facebook and email connections were utilized. Daily p osts to twitter during the collection period included the hashta gs for the crowdfunding sites Kickstarter, Indiegogo, GoFundMe ArtistS hare, Sellaband,

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16 Rockethub, Patreon and Pozible. Twitter hashtags are used to associate a message with a topic. Additional twitter posts targeted followers of artist Amanda Palmer, Jack Conte and Pentatonix; bands and artists associated with crowdfunding. Facebook requests for survey participation were distributed through friend networks as widely as possible. Daily requests for survey respondents were posted with reminders to share the link to other people in the extended network. Personal messages were sent to those people who were deemed to have the strongest social networks and the closest relationship with the investigator. Emails containing the survey link were sent to music relate d organizations and professors. The survey link was posted to one music business related website as well and three more music related Facebook pages. Survey Q uestions 1. What is your age? 18 20 21 29 30 39 40 49 50 59 60 or older De mographic data on age looks at whether crowdfunder participation is restricted to certain age groups or whether there is a wide age distribution of individuals using crowdfunding platforms. 2. Are you male or female? Female Male

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17 D emographic data on gender help determine if participation in crowdfunding platforms exhibit a gender preference. This question also breaks the respondents into subsets of males and females for the sake of gender comparison. 3. Which genre(s) would you says best describes the type of music you enjo y? (Select up to three please) Rock Pop Country Indie Hard Rock Metal R&B Folk Classical Hip Hop Electronic Ambient Rap Classic Rock Oldies Other (please specify) This question examines whether there is a strong preference for crowdfunding activity among the fans of specific genres of music This information could be useful for musicians or bands considering a crowdfunding campaign in deciding whether their genre is receptive to crowdfunding appeals.

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18 4. Rank the ways that you most often consume music. ( If you don't use a service at all choose N/A) I purchase CDs N/A I purchase digital downloads N/A I listen to the AM/FM radio in the car or at home N/A I pay for a subscription to an internet radio service (Pandora, N/A I pay for a subscription to an on line streaming service N/A I listen to an ad supported internet radio service (Pandora, TuneIn, Slacker) N/A I listen to an ad s upported online streaming service ( Am a N/A I listen to satellite radio (Sirius/XM) N/A This survey question determine s which other ways that music fans are consuming music. Respondents were asked to rank their music consumption behaviors from one through eight based on which activities they engage in the most often. The responses indicate whether individuals that support musicians through crowdfunding have a preference towards different means of music consumption This information is useful in determining whether individuals that engage in music consumption using music streaming services, digital downloads or physical CD purchasing are also inclined to participate in crowdfunding as well. A not applicable (N/A) choice was included for responses that are not applicable to the respondent. 5. Have you engaged in any of these music related activities within the last six months? (Mark all that apply)

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19 Go ne to a concert or festival Purchase d music merchandise (T shirts, Vinyl, Videos, etc...) Read a music focused website as Pitchfork or Stereogram for example? Sought out new musical artists to sample Follow ed musical artists on social media (Twitt er, Subscribe d to one or more musical artists' email mailing list(s) This questions examines whether individuals that are engaged in more of these music related types of activities are more likely to be music fans in the sense that they are actively engaging with musicians and the bands that they follow. Respondents were encouraged to check as many of the responses as they wanted. 6. Have you ever participated in a crowd funding campaign for a musical artist? Yes No (Please skip to the end of the survey and hit Done) This question deter mines whether the respondent s have ever participated in crowdfunding. Respondents that answer affirmatively continue to answer two more questions regarding their crowdfunding participations. Other respond ents were instructed to skip to the bottom of the survey and submit their results. 7. Which crowd funding platforms have you used to support a musical artist? (Select all that apply) Artist S hare Indiegogo Indiegogo (subscription ) Sellaband P atreon Pozible

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20 Pozible (subscription) Rockethub Pledgemusic Feedthemuse Kickstarter Other (please specify) This question discovers which crowdfunding p latforms that the respondent s have used in the past or are currently using. Respondents could choose as many responses as needed to describe their experience with crowdfunding. 8. Rank your motivations for supporting a musical artist on a crowd funding campaign (Select N/A if it s not a motivation for you) To collect a reward in the form of an acknowledge ment N/A To collect a reward in the form of an experience N/A To collect a reward in the form of a product N/A To help a musical artist who is a friend or family member N/A To help a musical artist that I am a fan of N/A To participate in a community of like minded people N/A To support a cause that I believe in. N/A This question asks respondents to rank their motivations for supporting a musical artist on a crowdfunding p latform. These responses were derived from the research done b y Gerber and Hui (2013) Klaebe and Laycock (2012) and Boeuf et al. (2014). The r esponses show which motivations are used most often when deciding to support a crowdfunding campaign. Data was captured from this question and the preceding questions to group respondents per age, gender, type of genre, type of crowdfunding, and

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21 motivation al factors to draw general conclusions about the type of individuals that support crowdfunding. Results Eighty four people responded to the survey. Of those respondents, twen ty two had participated in crowdfunding campaigns for musical artists. This amounts to roughly twenty s ix percent of the respondents. This percentage could be the result of a low adoption rate for crowdfunding among the general population, owing to its sti ll growing popularity. Additionally, s ome respondents may have been unaware of crowdfunding. Table 1 Survey responses to question one: "What is your age?" Answer Options Response Percent Response Count 18 20 1.2% 1 21 29 14.3% 12 30 39 44.0% 37 40 49 29.8% 25 50 59 4.8% 4 60 or older 6.0% 5 The age distribution for respondents was largely restricted to the age groups between twenty one and fifty, with most the respondents coming from the thirty to thirty nine age bracket. This was in part due to t he targeted audience consisting of participants around the age of forty two. This was the age of the investigator. The relatively low number of respondents coming from any age ov er fifty is most likely due to the lower adoptions rates for social media. A Pew Research Center report on adoption rates from 2015 show this to be the case, with the age groups over fifty showing the lowest adoption rates for social media (Pew Research Ce nter, 2015) The highest rates of social media adoption come from the age bracket of eighteen to twenty nine. This group shows an

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22 adoption rate of ninety percent (Pew Research Center, 2015) Their reduced representation in this respondent group could be t he result of low penetration into that network. Ta ble 2 Survey responses to question Are you male or female? Answer Options Response Percent Response Count Female 48.8% 41 Male 51.2% 43 A nearly even number of male and female respondents par ticipated in the survey. The gender distribution for respondents that have participated in music crowdfunding was more heavily skewed towards males. Within the crowdfunding group nineteen of the twenty two respondents were male. This means that only about thirteen percent of the survey respondents that have participated in music crowdfunding were women. Table 3. Survey responses to question three : "Which genre(s) would you say best describes the type of music you enjoy? (Select up to five)" Answer Option s Response Percent Response Count Rock 65.5% 55 Pop 46.4% 39 Country 15.5% 13 Indie 44.0% 37 Hard Rock 17.9% 15 Metal 9.5% 8 R&B 19.0% 16 Folk 38.1% 32 Classical 23.8% 20 Hip Hop 28.6% 24 Electronic 23.8% 20 Ambient 10.7% 9 Rap 9.5% 8 Classic Rock 26.2% 22 Oldies 15.5% 13 Other (please specify) 39.3% 33

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23 Figure 1. The difference in genre preference between crowdfunders and all survey participants. Once the data was filtered to show only the crowdfunding group, the results tracked very closely with the general group with the genres of Indie, Folk and Electronic being slightly over represented while the genres of Country, Hip Hop and Rap were slightly under represented. This might suggest a preference for crowdfunding within certain music al genres. 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% Percentage of genre represented All Crowdfunders

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24 Table 4 Survey responses to question four: "Rank the ways that you MOST OFTEN consume music. (If you don't use a service at all choose N/A)" Answer Options (Ranked from 1 8) 1 2 3 4 5 6 7 8 N/A I purchase CDs 10 5 13 13 2 4 1 4 28 I pu rchase digital downloads (iTunes, Google Play, Amazon...) 9 17 17 9 7 2 2 0 17 I listen to AM/FM radio in the car or at home 17 24 11 11 2 2 0 0 14 I pay for a subscription to an internet radio service (Pandora, TuneIn, Slacker..) 3 2 2 0 2 3 3 4 58 I p ay for a subscription to an online streaming service (Amazon, Google Play, Spotify, Tidal, Youtube...) 23 5 3 3 1 2 3 0 39 I listen for free to an ad supported internet radio service (Pandora, TuneIn, Slacker..) 6 12 14 11 4 2 1 0 30 I listen for free to an ad supported online streaming service (Amazon, Google Play, Tidal, Spotify, Youtube...) 9 13 9 7 6 2 3 0 29 I listen to satellite radio (Sirius/XM) 6 3 4 3 2 3 2 1 52 When survey participants were asked about the ways they consume music, most of th e respondents indicated that they pa y for an online streaming service like Spotify, Tidal or YouTube Red Secondarily, they listened to AM/FM Likewise, listening to satellite radio or paying for a subscription to an internet radio service were the two least popular ways respondents indicated that they consume music. Table 5. Survey responses to question five : "Have you engaged in any of these music re lated activities within the last six months? (Mark all that apply)" Answer Options Response Percent Response Count Gone to a concert or festival 78.5% 62 Purchased music merchandise (T shirts, Vinyl, Videos, etc...) 45.6% 36 Read a music focused websi te such as Pitchfork or Stereogum for example? 39.2% 31 Sought out new musical artists to sample 72.2% 57 Followed musical artists on social media (Twitter, Facebook, email..) 58.2% 46 Subscribed to one or more musical artists' email mailing list(s) 24 .1% 19 Among the general population of survey respondents, we see broad representation of music related activities. Most respondents engaged in concert going and new music discovery.

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25 Table 6 Survey responses to question five for the crowdfunder group. Answer Options Response Percent Response Count Gone to a concert or festival 86.4% 19 Purchased music merchandise (T shirts, Vinyl, Videos, etc...) 68.2% 15 Read a music focused website such as Pitchfork or Stereogum for example? 63.6% 14 Sought o ut new musical artists to sample 77.3% 17 Followed musical artists on social media (Twitter, Facebook, email..) 81.6% 18 Subscribed to one or more musical artists' email mailing list(s) 36.4% 8 Figure 2. The difference in the engagement levels of mus ic related activities between crowdfunders and all survey participants. Once the data has been filtered to show the group of crowdfunders, we see that they are over represented in every music related activity. They engage in music related activities suc h as following musicians on social media, buying music merchandise or reading music related websites at a higher level than others. This higher level of music related engagement should be typical of people who are music fans. This suggests that music fan s are the people who are funding music projects. 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Concert Merch Music Website New Music Social Media Email Lists Engagement in music related activities All Crowdfunders

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26 Table 7 Survey responses to question six: "Have you ever participated in a crowd funding campaign for a musical artist?" Answer Options Response Percent Response Count Yes 25.3% 22 No (Please skip to the end of the survey and hit Done) 74.7% 62 The group of respondents was broken up into two groups based on whether they had ever participated in a crowdfunding campaign for a musical artist. The seventy four percent of respondents that responded with questions in the survey. The last two questions dealt with the behavior and motivations of the crowdfunding group. Table 8 Survey responses to question seven: "Which crowd funding platforms have you used to support a musical artist? (Select all that apply)" Answer Options Response Percent Response Count Artist S hare 4.0% 1 Indiegogo 24.0% 6 Indiegogo (subscription based) 0.0% 0 Sellaband 0.0% 0 Patreon 16.0% 4 Pozible 0.0% 0 Rockethub 4.0% 1 Pledgemusic 12.0% 3 Feedthemuse 0.0% 0 Kickstarter 84.0% 21 Other (please specify) 16.0% 4 All but one of the twenty two respondents in the crowdfunding group reported that they had used Kickstarter.com to fund a music related campaign. This shows that Kickstarter ha s the largest market share of music related crowdfunding campaigns, with only Indiegogo, Patreon and Pledgemusic garnering more than one response.

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27 Table 9 Survey responses to question eight: "Rank your motivations for supporting a musical artist on a crowd you)" Answer Options 1 2 3 4 5 6 7 N/A Rating Average Response Count to collect a reward in the form of an acknowledgement 0 0 0 2 2 2 2 14 5.42 22 to collect a reward in the form of an experience 1 1 3 0 0 2 1 14 4.00 22 to collect a reward in the form of a product 3 3 2 2 4 1 0 7 3.40 22 to help a musical artist who is a friend or family member 7 5 3 2 0 0 0 5 1.82 22 To help a musical artist that I am a fan of 10 6 4 0 0 0 0 2 1.84 22 to participate in a community of like minded people 0 1 2 5 4 0 1 9 3.94 22 to support a cause that I believe in. 1 5 5 4 1 0 0 6 3.30 22 Crowdfunders report that they are most motivated to pledge money to a music crowdfunding campaign to help their friends, their family members or as fans of musical artists. The least amount of behavioral motivation by the crowdfunding group in this study was generated by the desire to collect rewards in t he form of an acknowledgement or an experience. In both cases, fourteen of the twenty two participants stated no motivation at all. Of the crowdfunding group, there was some interest in collecting a reward in the form of a product. However, it seems as if product rewards and participating in a community are secondary motivations in regards to the funding of music campaigns.

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28 Figure 3. Survey rankings of motivational behaviors for crowdfunders. Further Research Because of the low participation rates of o nline survey, a survey with a larger number of respondents would provide a more focused look at the trends presented here. This would require the use of a larger social network than was used for this study. Ideally, a person with a larger social network wo uld be able to appeal to enough people to add greater statistical significance. An additional line of research into why people are motivated to give to music related crowdfunding campaigns would be to look at the prosocial versus consumer mix of successf ul music campaigns and see if funders are more likely to donate more in response to prosocial rewards than consumer motivated rewards. Crowdfunding rewards for successfully funded music campaigns could be divided into the two categories of consumer and pro social. Research could determine the relative dollar amounts of each category to see which behaviors provide more funding for music projects. 0 5 10 15 20 25 to collect a reward in the form of a product To help a musical artist that I am a fan of to support a cause that I believe in. Rankings of motivational behaviors 1 2 3 4 5 6 7 N/A

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29 Discussion People who support musical artists though crowdfunding websites are fans of music. They are more li kely to engage in behaviors indicative of being a fan. They place a high value on music and a high value on their relationship to music and the artists who make music. The decline in the sale of CDs and digital downloads shows that consumers are seeing les s value in those music products. This has caused a drop in the revenue for musical artists as streaming royalties have proven insufficient to make up for the lost revenue from the sale of CDs and digital downloads. Some musical artists have turned to crowd funding to bridge that revenue gap and to help pay to produce their music. This study shows that funders of musical artists are fans that are willing to convert the value they find in their relationship to the art and the artist into financial support, and that they are primarily motivated to do so in a prosocial manner. This contrasts with funders of projects where there is a preproduction material product and where this fan relationship does not exist. Musical artists looking to use crowdfunding to raise money should therefore focus their time and energy into establishing a strong network and building a base of fans that can be counted on to provide support during crowdfunding campaigns.

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31 Manes, N. (2014, June 19). Indie Artists Find Sustainability in Crowdfunding. Retrieved May 1, 2015, from http://revuewm.com/music/item/2499 indie artists find sustainability in crowdfunding Mollick, E. (2014), The dynamics of crowdfunding: An exploratory study. Journal of Business Venturing, 29, 1 16. Owsinski, B. (2009). Music 3.0: A Survival G uide for Making Music in the Internet Age. New York, NY: Hal Leonard Penner, L., Dovidio, J., Piliavin, J., & Schroeder, D. (2005) Prosocial Behavior: Multilevel Perspectives. Annual Review of Psychology, 56, 365 392. Pew Research Center. (2015).Social Me dia Usage: 2005 2015. Retrieved from http://www.pewinternet.org/2015/10/08/social networking usage 2005 2015/ http://www.nytimes.com/2007/10/14/opinion/14sun3.html?_r=1& R IAA Scope Of The Problem (n.d.). Retrieved April 27, 2015, from https://www.riaa.com/physicalpiracy.php?content_selector=piracy online scope of the problem Sehr, A. (2008, October 7). We've only just begun! Retrieved April 27, 2015, from https://news.spo tify.com/us/2008/10/07/weve only just begun/ Small, D., Cryder, C., (2016). Prosocial consumer behavior Current Opinion in Psychology, 10, 107 111. Smith, E. (2015, January 1). Music Downloads Plummet in U.S., but Sales of Vinyl Records and Streaming Surg e. Retrieved April 27, 2015, from http://www.wsj.com/articles/music downloads plummet in u s but sales of vinyl records and streaming surge 1420092579 Support Amanda Palmer creating Art. (n.d.). Retrieved October 20, 2016 from https://www.patreon.com/aman dapalmer Swift, T. (July 7 2014) For Taylor Swift, the Future of Music Is a Love Story. The Wall Street Journal. Retrieved from http://www.wsj.com/articles/for taylor swift the future of music is a love story 1404763219. Valanciene, L., Jegeleviciute, S., (2014). Crowdfunding for creating value: stakeholder approach. Procedia Social and Behavioral Science. 156. 599 604. Valanciene, L., Jegeleviciute, S., (2013). Valuation of crowdfunding: benefits and drawbacks. Economics and Management 18 (1), 39 48. Wh at is consumer buying behavior? definition and meaning. (n.d.). Retrieved April 29, 2015, from http://www.businessdictionary.com/definition/consumer buying behavior.html What is Patreon. (n.d.). Retrieved May 1, 2015, from https://www.youtube.com/watch?v=w H IDF809fQ

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32 White, E. (June 16, 2012). I never owned any music to begin with. NPR: All Songs Considered. Retrieved from: http://www.npr.org/blogs/allsongs/2012/06/16/154863819/i never owned any music to begin with.