The Dynamics of Product Differentiation in the British Record Industry
AbstractThe paper conducts a statistical analysis of the dynamics 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 affect market size significantly and mainly causes the transfer of sales between record companies, with exceptional cases of multiplier effects.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Trinity College Dublin, Department of Economics in its series Economics Technical Papers with number 951.
Date of creation: 1995
Date of revision:
Other versions of this item:
- Andrew Burke, 1996. "The dynamics of product differentiation in the British record industry," Journal of Cultural Economics, Springer, vol. 20(2), pages 145-164, June.
- 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.:
- 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.
- 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.
- 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., 1990. "A survey of seasonality in UK macroeconomic variables," International Journal of Forecasting, Elsevier, vol. 6(3), pages 327-336, October.
- 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.
- 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.
- 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-.
- 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 & 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.
- 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.
- 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.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Patricia Hughes).
If references are entirely missing, you can add them using this form.