The limits of platforms: Why disintermediation has failed in the art market

Abstract

Platforms have disintermediated the markets for books, film, television, and music, but the online art market has reproduced offline structures, leaving intermediaries intact. This study explores the limits of platforms by describing why disintermediation failed in the art market. Along with museums and other intermediaries, the most important function of galleries is to co-create artistic value. They not only sell art but also form a central part of the status system of art. We examine #artistsupportpledge (ASP) on Instagram. ASP uncovered a market for art that had no place in the existing system. ASP facilitated direct sales to consumers while allowing artists to maintain links to galleries for reputation, career development, exhibitions, and sales of large, expensive work. The art market experienced unique partial disintermediation under narrow conditions with continued allegiance to existing intermediaries and status structures. We conclude by discussing four implications for the theory of platforms.