Consider the moving hip. Consider two moving hips, and two pairs of feet dancing together to the same rhythm. Consider the conversation.
I am not saying that the fundamental service of musicians and music is matchmaking. But in the story of Tiffany and Dan, the opportunity to connect with another human being using a common interest, a common song, a common concert, and a shared emotional experience is clearly a value proposition offered by music providers. And in the service ecosystem of music and musical concerts, a romantic relationship is just one example of the types of value users can co-create and attain.
Here, I argue that S-D logic (Ballantyne & Varey 2008; Vargo & Lusch, 2016) is an appropriate perspective through which one can understand marketing in the music industry. I examine empirical evidence of resource integration and value co-creation (Vargo & Lusch 2017) on the TikTok platform, a rapidly growing platform in which users generate short videos in which they dance to, lip-sync with, and create memes based on short (15 to 30 s) clips of songs. I discuss how both music providers and users interact on the platform in order to demonstrate that (a) the theoretical lens of S-D logic is useful in understanding music marketing; (b) with their music, music providers can be considered to be making value propositions to other actors, such as music consumers, who then integrate musical resources into their lives through platforms like TikTok; (c) changes in technology affect such resource integration and how actors, whether individuals or organisations, in the music industry can adapt to such change; (d) value-in-social-context (Edvardsson, Tronvoll & Gruber 2010) is a driver of resource integration by users on the platform; and (e) this example of value created by users on TikTok is just one example of the many types of value which guide action and interaction on today’s music platforms.
The paper is organised as follows. First, I review the relevant literature on S-D logic, resource integration, social media platforms, and the music industry to demonstrate why this study is particularly interesting. Second, I present my methodology and approach. Third, I present the case of TikTok, illustrating how users, producers and music marketers integrate resources, co-create, and derive value-in-social-context on the TikTok platform. This follows with evidence of actors in the music industry whom are using a strategic S-D logic approach early on in the production stages to take advantage of the co-creation and resource integration opportunities afforded by the platform as they engage in a
Internet platform companies (e.g., AirBnB) are actors performing innovative activities that involve the reconfiguration of resources and the integration of such resources within service ecosystems (Koskela-Huotari et al. 2016). Note that actors is a term used to describe either the individuals or organisations which engage in some form of
Festa, Cuomo and Metallo (2019) show how actors in the Italian wine sector currently using S-D logic and could use S-D logic approaches based on the evolution of electronic commerce technology and that
The historical review of marketing in the music industry done by Ogden, Ogden and Long (2011) provide a record of evidence demonstrating how technological changes have affected marketing practices in the industry—whether it was Thomas Edison’s invention of the phonograph, the subsequent creation of the gramophone, the emergence of broadcast radio, the beginning of the cassette and compact disc era, or the disruption of the Internet and MP3 file sharing services such as Napster. And while the authors ultimately introduce the concept of S-D logic and argue that it is applicable to the music industry, using examples of co-creative activities and approaches taken by artists such as
Gamble and Gilmore (2013) also describe how the technological driver of the internet is fundamentally changing marketing in the music industry and perform a literature review of the marketing literature to provide a compelling argument why the music industry should embrace S-D logic. While they provide a typology of co-creational marketing practices and empirical examples of how these examples are implemented in the music industry (through platforms such as YouTube), they fail to mention resource integration or provide an in-depth examination of how all actors (including consumers of music, producers of music and platforms like YouTube) are benefitting and attaining higher value from co-creative activity. Given that to S-D logic value is always created by multiple actors (Vargo & Lusch 2016), a more thorough examination that includes the perspectives of all actors while looking at a single co-creational marketing practice, may provide more valuable theoretical and practical insight.
Finally, Saragih’s (2019) systematic literature review, which is perhaps the most comprehensive overview of S-D logic and co-creative activities in the music industry to date, finds that co-creation has been used in all phases of the music industry value chain, whether they are festival producers, independent musicians, talent agencies, DJs, or software developers. Saragih uses a large body of evidence to illustrate the prevalence of the S-D logic amongst music industry actors. But since the concepts of resource integration and value propositions are absent in the review, Saragih effectively demonstrates that these aspects of S-D logic are largely untreated in the literature examining the music industry. Nonetheless, Saragih provides several interesting suggestions for future research, all of which aligns with this study and provide additional justification for its necessity. Identifying gaps in literature which examines the music industry using an S-D logic approach, Saragih argues that:
Thus, this study attempts to the following research questions: how are actors in the music industry employing co-creational strategies in the distribution of their music? How does resource integration occur under such strategies? How do actors make value propositions under such strategies? In order to answer these questions and explore several core aspects of S-D logic (resource integration on platforms and value propositions) which are neglected by past literature, I examine TikTok, a rapidly growing platform with a reported monthly active user base of 500 million people who integrate short (15–30 s) clips of commercial music to make short videos in which they dance to, lip-sync with, accept social challenges, integrate hashtags and create memes based on musical content. By describing evidence of resource integration and co-creational activities on the TikTok platform, I provide a more detailed elaboration of how co-creational strategies are being used to leverage both the social and monetary interests of actors, how such strategies are being employed in the distribution stage of music, how technology continues to affect how actors in the music industry do approach marketing through S-D logic, and the various types of value creation which guides interaction on contemporary music platforms.
A study of an individual empirical case can be a valuable way to make a conceptual contribution by showing readers how the concept may be applied in other empirical settings (Siggelkow 2007). Here, the empirical case is the TikTok platform, and the broad concept of interest is S-D logic. Research strategies which use a case have been described as
The data used in this study to describe TikTok and the behaviour of actors on the TikTok platform is archival and is based on secondary data. This approach may be characterised as desk research or secondary research (Stewart & Kamins 1993), which is chosen for several reasons. First, by means of gathering existing data and knowledge about newly emerging phenomena, secondary research may be viewed as an effective strategy for defining subsequent primary research questions for subsequent studies, especially when existing theoretical perspectives—such as S-D logic—may be used in applied research, as in this study (Stewart & Kamins 1993). Second, it has been suggested that there are multiple sources and types of evidence which are appropriate when using a case study approach (Yin 1994), including archival data such as press or other secondary articles (Gibbert Ruigrok & Wicki 2008). Press and newspaper articles, including interview content conducted therein, may be a useful resource for research while providing a timely description of empirical phenomena in business (Cowton 1998). Third, while many of the objections to the qualitative analysis of secondary interview data relate to confidentiality or ethical concerns (Medjedović 2011), the interview data and direct quotes from music industry actors used in this study have been published and made publicly available, which would negate any concerns about confidentiality of such data. Fourth, while this study uses music industry chart data and metrics from TikTok to demonstrate the extent of value creation and resource integration occurring on the platform, secondary data available in the press archives is used as they are relevant information on the research topic and that such use
TikTok, also known as
There are arguably a confluence of technological factors that have enabled the possibility of growth as well as driven the growth of TikTok. These factors include the individual processing power of smart phones, the widespread availability of high speed mobile internet, advances in software programming, artificial intelligence and user-friendly rapid video editing, and improved technical accessibility to online music catalogues. It is important to acknowledge that the starting of TikTok would not have been possible in 2009, and probably not even in 2014.
First, it is important to note that ByteDance Ltd, the owner and operator of the TikTok platform, is the actor responsible for designing and deploying various instruments on the platform (such as the algorithms, user interfaces, technological features and policies). This may mean that ByteDance Ltd. wields considerable power compared to other actors on the platform. These instruments govern how both users and music providers can and do act and interact with each other on the platform, including enabling and constraining their action. ByteDance Ltd., in turn, has to comply with the legal, political and regulatory regimes in which it operates. This is in addition to its relationships with its shareholders and stakeholders. This aspect of and influence of governance has received increasing amounts of attention in the literature on platforms (Gorwa 2019; Poell, Nieborg, & Van Dijck 2019), and while it is not the focus of this study, the role of platforms (and governance) in service ecosystems perhaps merits its own dedicated study.
On TikTok, songs can be considered operand resources—meaning a resource on which an action or operation is performed—and the users are operant resources—meaning resources which act on other operand resources (Constantin & Lusch 1994). Actually, the bottom line is, users co-create with music providers by means of creating video content. The resources that users integrate are the music providers’ music (including the music’s lyrical, rhythmic, melodic, or other musical attributes). TikTok can be viewed as the institution, or the
Figure 1
The process of value co-creation on TikTok.

Value propositions have been defined as
Many users on TikTok co-create with music producers by embodying their music through dance. Given that music and dance are
Many users on TikTok make videos of themselves lip-syncing to music. In this circumstance, the value proposition music providers propose to users is the lyrics and the melody, but also the opportunity to pretend like they are singing the words which are being sung. This could be interpreted as an opportunity for such a user to identify with or express feelings from the lyrical content itself. Interestingly, in Fischer’s (2016) analysis of popular rock lyrics, they propose the possibility that a central activity of music audiences is the mental appropriation of lyrical content (Fischer 2016). Framing songwriters and music providers as
The other way that music providers (and also users) on TikTok create value propositions is through issuing social challenges. These challenges, which are often linked with a #hashtag, serve as a prompting mechanism which initiates users to generate content and also as an organisational mechanism for the platform to organise related content and maintain the
A challenge may be considered a type of meme. On TikTok, these memes are a popular way through which users respond to value propositions and integrate resources on the platform. Internet memes can be defined as
One may infer that users on TikTok are motivated by creation and receiving of values, and that these values are coordinated by the institution (TikTok). TikTok shares many similar features with other large platforms like Facebook, Instagram and Snapchat, such as the ability to follow users, comment on content, or like/heart a piece of content—and these features play a prominent role in how users create and derive value-in-social-context (Edvardsson, Tronvoll, & Gruber 2010). Other research describes the ways in which users of social media derive and benefit from value-in-social-context. Eranti and Lonkila (2015) find that the Facebook like button has been used to regulate conversations, develop and maintain social relationships, signal acknowledgement of other users’ content, and to build and/or maintain face with others. Oh and Syn (2015) found that social media use is motivated by reciprocity, personal gain, altruism and social engagement. Nadkarni and Hofman (2012) performed a literature review and found that Facebook use is predominantly motived by the need to belong and the need for self-presentation. Again, considering Nuttall’s (2008) view concerning the importance of music in the lives of adolescents, one can begin to imagine how the younger demographic on TikTok benefits from co-creative activity. In addition to using social media for the purposes of satisfying these social-psychological needs, other evidence indicates that value generated from social media use may also have a deeper neurobiological basis in the human brain (Montag 2019). The same brain regions involved in
Value creation on the social media platforms is not limited to that of the social, psychological, or neurobiological type. Social media platforms generate and represent significant economic activity. The market capitalisation of Facebook was $566.67 billion USD as of 4 December 2019. Snapchat had a market capitalisation of $21billion USD on the same date. Users with followers on these platforms have built their businesses providing marketers with access to their audience; it has been estimated that in 2018, advertisers spent $1.6 billion USD on messages disseminated through these so-called influencers on Instagram alone, with the influencer marketing industry growing to $5–10 billion USD by 2020 (Mediakix 2018). These influencers essentially operate as business people who document their lives in exchange for money, and are considered to be
Further, music providers are actors on the platform who benefit from financial, attentional and publicity value. I now present several anecdotes of music providers who have been beneficiaries of resource integration on the platform.
Stunna Girl is a 21 year-old rapper from Sacramento, California, who released a single called
Whether or not Stunna Girl’s strategy was to optimise her music for TikTok (it has been reported that she did not even know the platform existed before the song went viral), established firms in the music industry such as Capital Music Group seem to be aware of the platform’s ability to create stars (Locker 2019). Devain Doolaramani manages content creators on TikTok, such as @thebaileybaker, a bakery which makes cookie decoration videos, and claims to get
Possibly the most notable example of TikTok’s apparent role in catapulting musicians to sudden fame and large audiences is the previously mentioned rap/country artist Lil Nas X and his song
The result is that Hill used a strategy to create a meme which challenges users to transform themselves into cowboys and cowgirls. See
A Ventura, California rapper named Kyle claims that his single
Other music producers discuss about how they are now making music considering how TiKTok users will integrate the music and relate to a song’s value proposition. After a successful collaboration with TikTok user Andre Swiller, Australian producer Adam Friedman said he:
Apart from using TikTok to acquire talent and perform artist and repertoire (A&R) work, record labels are also using the platform as a deliberate marketing strategy to promote their existing artists and music catalogue. And this may be due to their acknowledgement of how the user driven resource integration and co-creation on the platform is powerful and also good business. Zac Abroms, a project manager for music publisher and distributor eOne, reflected upon the success of British music producer Riton’s collaboration with Nigerian singer/songwriter Kah-Lo, whose song
Not only new songs are used on TikTok. There are numerous examples of older songs which have been given a new breath of life on TikTok. As Jeff Vaughn, VP of A&R at Artist Partner Group told
Absofacto (real name Jonathan Visger) originally released
As of 12 December 2019 the song has been used in approximately 1.1 million videos on TikTok. Users integrated the song via lip-syncs, dances, and other types of memes. One example of such a meme is what some call the
Andrew Gold originally released
Exactly how the 23-year-old song has been integrated and used by users of TikTok is also covered by
Jay Sean originally released
Users integrate the song in many ways, may be through a dance or playing off the lyrical content (like a video of a small capuchin monkey riding a running Saint Bernard dog at an NFL football game). Over 2.7 million videos on TikTok use DJ Regard’s remix of
Irrespective of the degree by which music producers and music industry actors like record labels deliberately create and promote music while contemplating how users will use the music on TikTok, these examples show that users on the platform generate content by intentionally considering the value proposition of each song (whether it is the lyrics, chorus, the beat, the title, or other musical elements) and use it as a resource to integrate it into their video. As a helpful summary, Table 1 provides a review of this discussion with examples of actors, co-creative activities, and the co-creation and exchange of value on the TikTok platform.
Examples of actors, co-creative activities, and types of values exchanged on the TikTok platform.
Music Providers | Make value propositions through melodic, lyrical, cultural and other musical properties of their songs, and make musical content available as a resource for user integration in content | |
TikTok Users | Consider the value propositions of songs, and integrate musical resources in their generation of content on TikTok through a variety of means (such as dances, lip-syncs, memes, challenges) | |
TikTok Platform (ByteDance Ltd.) | Creates technological and institutional infrastructure which enables and constrains action of users and music providers on the platform |
Going back to our story about Tiffany and Dan—perhaps the year in which they met at that concert was 1980. But what if the year was 2020—would they have met over TikTok instead, and started a conversation through direct messages? Music is an essential and perfect resource which brings people together on TikTok. Whether it may be at a concert or over the internet, it is difficult to discredit the view that music fundamentally provides a service of bringing people together—and this service is the basis of exchange between multiple actors. I have provided evidence that demonstrates how users on TikTok respond to value propositions made by music providers and integrate musical resources into their user generated content. Both the users and music providers, in turn, receive benefits and attain various types of value from this co-creative activity. I have also provided a few anecdotal examples of new artists who have achieved rapid stardom and also the old songs which have become popular again. This evidence should be indicative of the size, magnitude and effect of the value attained from S-D logic in the music industry. Further, there are a few implications for both research and practice resulting from this study.
First, the case presented supports the view that actors in the music industry should, if they aren’t already, actively monitor technological changes and consider how people adopt and use technology. The development of the TikTok platform is an example of one such change, and early adopters (like Lil Nas X) who are purported to have considered what this change meant did so to their benefit and advantage. Second, those music providers who continue to characterise music as a
Fourth, this case provides a clear example of how users and music providers are co-creating value on the TikTok platform—and in this case, one apparent type of value created is value-in-social-context. But, this is just one type of value guiding and shaping action on the platform. There is a attentional value which music providers receive as their music is used and listened for millions of time in content; also, there is a monetary value music providers receive depending upon the terms of their licensing agreement with ByteDance Ltd; the brand awareness value marketers receive in strategic influencer content and the money influencers make from those relationships; and there is the neurobiological value which average users may derive from sharing their content and receiving likes through reciprocity mechanisms. Then, of course, there is a significant commercial value that ByteDance generates for itself as the platform upon which all of these activities occur. It is important to note, again, that TikTok is not the only music platform which exists today. Spotify, as an example of a music streaming platform, shows how users create and generate other types of value—whether it’s the social-relational value of sharing a playlist with someone you’ve just met (maybe Tiffany shares her favourite playlist with Dan?) or whether it is the motivational, emotional value of using one of Spotify’s many mood or activity-based playlists (Skog, Wimelius & Sandberg 2018). Additionally, future research should look into whether there exists
Lastly, by using the TikTok platform as a subject (Thomas 2011), this case study has shown that S-D logic is an appropriate theoretical lens through which how music marketing can be examined. While it was not the aim of this study to thoroughly investigate the role of the platform’s owner (ByteDance Ltd.), nor the creation and adjustment of the algorithms and functionality which govern how users and music providers interact on the platform, the influence of these governing instruments (Poell, Nieborg, & Van Dijck 2019) could be a promising topic for another study. Theorists (Breidbach & Brodie 2016) within the S-D logic literature have elsewhere noted the enabling role these platforms have in service ecosystems. Lusch and Nambisan (2015) have argued that these digital service platforms, such as TikTok, enable value-co creation by guaranteeing a form of
Figure 1

Examples of actors, co-creative activities, and types of values exchanged on the TikTok platform.
Music Providers | Make value propositions through melodic, lyrical, cultural and other musical properties of their songs, and make musical content available as a resource for user integration in content | |
TikTok Users | Consider the value propositions of songs, and integrate musical resources in their generation of content on TikTok through a variety of means (such as dances, lip-syncs, memes, challenges) | |
TikTok Platform (ByteDance Ltd.) | Creates technological and institutional infrastructure which enables and constrains action of users and music providers on the platform |