Associations in the creative industries as operators of digital platforms : ´failure factors´, with an example from the German book industry in the focus

Abstract

The specific economics of platforms provide an ideal situation for new entrants to national digital cultural markets, also for entrants from abroad and/or from a different industry. In situations like this, incumbents in SME-dominated cultural industries often look for support – typically first of all with the state. Since support from this side is often problematic, sometimes legally outright impossible, associations of cultural industries under pressure are often seen as alternative top-level actors to stand in for manifest interests of the enterprises.

I will focus on the situation on the German book market in the late 2000s, when Amazon developed into the dominating ebook distribution platform. Since this threatened to kick national actors, typically SMEs, out of the ebook distribution business on the long run, the Börsenverein des Deutschen Buchhandels, the industry association, set up a competing platform. This attempt failed. Mainly based on witnesses, I will sketch the history of this project and try to distill some of its ´failure factors´. Moreover, I will triangulate the corresponding findings by looking at two similar attempts by associations, Phonoline and MO3T. Finally, I will present an unintended, but very successful late effect of failed ´Libreka!´, the Tolino Alliance.