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Superstars and the Long Tail: The impact of technology on market structure in media industries

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  • Weeds, Helen

Abstract

Technological change is transforming creative media industries. Digitisation lowers recording, storage, reproduction and distribution costs, while computer-based editing facilitates higher quality and special effects. With electronic distribution a vast range of content can be made available to consumers across global markets. The distribution of industry sales appears to be shifting: the late 20th century was the era of the 'hit parade' but attention has now shifted to the 'long tail'. This paper develops a model of differentiated products with endogenous quality and heterogeneous firms to examine the implications of technological change for product variety, quality, and the distribution of firms in media industries.

Suggested Citation

  • 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.
  • Handle: RePEc:cpr:ceprdp:8719
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    References listed on IDEAS

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    Cited by:

    1. Anderson, Simon P. & Jullien, Bruno, 2016. "The advertising-financed business model in two-sided media markets," TSE Working Papers 16-632, Toulouse School of Economics (TSE).

    More about this item

    Keywords

    creative industries; digital media; long tail; superstars;

    JEL classification:

    • 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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