Music or Hi-Tech Lovers? An Empirical Analysis of the Digital Music Market in Italy
AbstractUsing survey data on cultural consumption by about 650 university students, this article proposes a market segmentation and some rule-of-thumb policy implications for the music industry. Consumption behaviors, listening habits and musical preferences are explained by a large number of variables Nevertheless it is possible to reduce this overload of information into two common factors (using factor analysis). Cluster analysis is accordingly used to group the students-consumers: the digital music lovers cluster is the most profitable for the music industry, whilst those of uninterested subjects and pure hi-tech lovers are the least. The analysis shows that the new digital technologies (for example file sharing) may be harmful for the music industry only within one specific group of consumers. New technologies can instead promote music consumption (especially of live music) by the other categories. By investing in music knowledge and enjoyment, it is possible to make consumers buy digital music legally from authorized sites.
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Bibliographic InfoPaper provided by Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali in its series Working Papers with number 324.
Date of creation: Jul 2008
Date of revision:
market segmentation; media; music; technological change;
Find related papers by JEL classification:
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-07-20 (All new papers)
- NEP-CUL-2008-07-20 (Cultural Economics)
- NEP-ICT-2008-07-20 (Information & Communication Technologies)
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.:
- Donata Favaro & Carlofilippo Frateschi, 2005. "A Discrete Choice Model of Consumption of Cultural Goods in Italy: the Case of Music," "Marco Fanno" Working Papers 0010, Dipartimento di Scienze Economiche "Marco Fanno".
- Rafael Rob & Joel Waldfogel, 2004.
"Piracy on the High C's: Music Downloading, Sales Displacement, and Social Welfare in a Sample of College Students,"
NBER Working Papers
10874, National Bureau of Economic Research, Inc.
- Rob, Rafael & Waldfogel, Joel, 2006. "Piracy on the High C's: Music Downloading, Sales Displacement, and Social Welfare in a Sample of College Students," Journal of Law and Economics, University of Chicago Press, vol. 49(1), pages 29-62, April.
- Lonnie Stevans & David Sessions, 2005.
"An Empirical Investigation Into the Effect of Music Downloading on the Consumer Expenditure of Recorded Music: A Time Series Approach,"
Journal of Consumer Policy,
Springer, vol. 28(3), pages 311-324, 09.
- Lonnie K. Stevans, 2005. "An Empirical Investigation into the Effect of Music Downloading on the Consumer Expenditure of Recorded Music: A Time Series Approach," Microeconomics 0502002, EconWPA.
- Eralba CELA & Tineke FOKKEMA & Elena AMBROSETTI, 2012. "Links Between Transnationalism Integration and Duration of Residence: The Case of eastern European Migrants in Italy," Working Papers 386, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
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