Superstars and the long tail: The impact of technology on market structure in media industries
AbstractTechnological change has transformed creative media industries. Digitization lowers the costs of recording, storage, reproduction and distribution, while computer-based editing facilitates quality enhancement and special effects. Digital technology has altered the distribution of sales in ways that remain poorly understood: while some commentators have highlighted the growth of the “long tail”, others find digitization has raised the importance of “superstars”. This paper develops a theoretical model of differentiated goods with endogenous quality to investigate the impact of digitization on the distribution of firms. It finds that supply-side factors can generate superstars and long tail outcomes, and that coexistence of both phenomena can be explained by either a fall in fixed costs for basic products or a decline in market size.
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Bibliographic InfoArticle provided by Elsevier in its journal Information Economics and Policy.
Volume (Year): 24 (2012)
Issue (Month): 1 ()
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Web page: http://www.elsevier.com/locate/inca/505549
Digital media; Creative industries; Superstars; Long tail;
Other versions of this item:
- Helen Weeds, 2009. "Superstars and the Long Tail: The impact of technology on market structure in media industries," Economics Discussion Papers 669, University of Essex, Department of Economics.
- Weeds, Helen, 2011. "Superstars and the Long Tail: The impact of technology on market structure in media industries," CEPR Discussion Papers 8719, C.E.P.R. Discussion Papers.
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
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