A Change of Tune: The Democratization of Market Mediation and Crossover Production in the U.S. Commercial Music Industry

In: Administrative science quarterly: ASQ, Band 68, Heft 2, S. 319-354

Abstract

This article examines whether intermediaries and consumers exert similar influence on producers' boundary-spanning efforts. I propose that boundary spanning is primarily constrained by intermediaries specialized in the market, not by consumers. Consequently, producers are more likely to obscure boundaries when intermediaries' power weakens. To test these ideas, I exploit a natural experiment that shifted the hitmaking power of genre-specific radio stations to general consumers and thus partially democratized the market mediation structure of the U.S. commercial music industry. The results indicate that after democratization occurred in 2012, record labels were more likely to introduce crossover offerings that incorporated features from other popular genres. Through mechanism triangulation efforts, I found that strategic reorientation, or producers' attempt to appeal to a broader spectrum of consumers across genre lines, plausibly explains the crossover effect. This study highlights democratizing changes that dilute intermediaries' influence as a novel explanation of why constraints on producers' boundary decisions have weakened in some markets. The findings suggest that intermediaries' and consumers' expectations may diverge, acting as conflicting forces that organizations must carefully manage. Many organizations closely monitor intermediaries that are deemed influential, but their influence should not be taken for granted as marketplaces empower consumers and become more democratized.