TikTok and Spotify Two Music Industry Giants A Qualitative Study About Platform Complementarity

Abstract: Platforms have become increasingly important to many industries and the economy in general. Hitherto, most platform literature has focused on network externalities, suggesting a winner-takes-it-all scenario. However, in the music industry, there are two influential platforms to which this scenario seemingly does not apply to - namely TikTok and Spotify. Thus, the purpose of this thesis is to investigate whether complementarity prevails between the TikTok and the Spotify platforms, and how these platforms and their complementors can benefit from this possible complementarity. To conduct the research, a qualitative method was applied, primarily through in-depth interviews. In addition to this, by using a narrative approach, the data sheds light on the platformisation process of the music industry and how TikTok's and Spotify's influential positions within the industry were established. Thus, emphasising the importance of the relationship between the two platforms. Through applying service-dominant logic, the findings suggest that complementarity exists between TikTok and Spotify, and that the platforms have a coopetitive relationship. Furthermore, the findings illustrate how different platform actors can benefit from the prevailing complementarity between the two platforms through value co-creating activities.