Blockchain as an external enabler of new ventures: emerging industry value architectures

We apply the external enabler concept to examine how blockchain technology facilitates new venture creation. We integrate the concept of industry architecture to explain why particular enabling mechanisms are activated by new ventures using a single foundational technology. Through our analysis of 36 white papers published by early stage ventures, we identify a radical redistribution of value creation and appropriation in the music sector. Artists and rights holders are benefiting from smart contracts and tokenization while many actors in the incumbent value chain are being disintermediated. Significantly, music fans are moving from a simple consumption role to co-creators of value. They can now participate in a reward economy where they benefit from supporting an artist. We conclude our theorizing by reflecting on implications for blockchain technology and entrepreneurship beyond the music industry.