The dynamics of product differentiation in the British record industry
AbstractThe paper conducts a statistical analysis of the dynamics of the sale of new music (product differentiation innovation) in the record industry. In pursuing this goal the paper generates new data and analyses a previously unutilized data set. The paper finds that there is a strong correlation between new music innovation in the audio singles and albums market. This is found to be mainly concurrent in the same quarter and to have a reasonably short product life. The paper discovers that these features also characterise the dynamics of record company performance. The research indicates that record companies are willing to sell singles at a loss due to advertising rather than learning externalities. At the industry level, the paper finds that new music innovation does not effect market size significantly and mainly causes ‘business stealing’ effects between record companies, with exceptional cases of multiplier effects. Copyright Kluwer Academic Publishers 1996
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Springer in its journal Journal of Cultural Economics.
Volume (Year): 20 (1996)
Issue (Month): 2 (June)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100284
music industry; product differentiation; econometric methodology; demand;
Other versions of this item:
- Andrew E. Burke, 1995. "The Dynamics of Product Differentiation in the British Record Industry," Economics Technical Papers 951, Trinity College Dublin, Department of Economics.
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
- L30 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - General
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Osborn, Denise R., 1990. "A survey of seasonality in UK macroeconomic variables," International Journal of Forecasting, Elsevier, vol. 6(3), pages 327-336, October.
- Davidson, James E H, et al, 1978. "Econometric Modelling of the Aggregate Time-Series Relationship between Consumers' Expenditure and Income in the United Kingdom," Economic Journal, Royal Economic Society, vol. 88(352), pages 661-92, December.
- Johansen, Søren & Juselius, Katarina, 1992. "Testing structural hypotheses in a multivariate cointegration analysis of the PPP and the UIP for UK," Journal of Econometrics, Elsevier, vol. 53(1-3), pages 211-244.
- Osborn, Denise R, et al, 1988. "Seasonality and the Order of Integration for Consumption," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 50(4), pages 361-77, November.
- Andrea Ordanini, 2006. "Selection models in the music industry: How a prior independent experience may affect chart success," Journal of Cultural Economics, Springer, vol. 30(3), pages 183-200, December.
- Mark Lorenzen & Lars Frederiksen, 2005. "On the Economics of Innovation Projects Product Experimentation in the Music Industry," DRUID Working Papers 05-23, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- David Giles, 2007.
"Increasing returns to information in the US popular music industry,"
Applied Economics Letters,
Taylor and Francis Journals, vol. 14(5), pages 327-331.
- David E. Giles, 2005. "Increasing Returns to Information in the U.S. Popular Music Industry," Econometrics Working Papers 0510, Department of Economics, University of Victoria.
- Andrew E Burke, 1995.
"How Effective are International Copyright Conventions in the Music Industry?,"
CRIEFF Discussion Papers
9516, Centre for Research into Industry, Enterprise, Finance and the Firm.
- Andrew Burke, 1996. "How effective are international copyright conventions in the music industry?," Journal of Cultural Economics, Springer, vol. 20(1), pages 51-66, March.
- David Giles, 2007.
"Survival of the hippest: life at the top of the hot 100,"
Taylor & Francis Journals, vol. 39(15), pages 1877-1887.
- David E. Giles, 2005. "Survival of the Hippest: Life at the Top of the Hot 100," Econometrics Working Papers 0507, Department of Economics, University of Victoria.
- Eric Strobl & Clive Tucker, 2000.
"The Dynamics of Chart Success in the U.K. Pre-Recorded Popular Music Industry,"
Journal of Cultural Economics,
Springer, vol. 24(2), pages 113-134, May.
- Strobl, E. & Tucker, C., 1999. "The Dynamics of Chart Success in the UK Pre-Resorded Popular Music Industry," Papers 99/10, College Dublin, Department of Political Economy-.
- Jonathan Gander & Alison Rieple, 2004. "How Relevant is Transaction Cost Economics to Inter-Firm Relationships in the Music Industry?," Journal of Cultural Economics, Springer, vol. 28(1), pages 57-79, February.
- Harrie Hansman & Clara Mulder & René Verhoeff, 1999. "The Adoption of the Compact Disk Player: An Event History Analysis for the Netherlands," Journal of Cultural Economics, Springer, vol. 23(3), pages 221-232, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.