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Stars in social media: New light through old windows?

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  • Gaenssle, Sophia
  • Budzinski, Oliver

Abstract

We review the economics of superstars, originally developed for stars in traditional media, and discuss whether they are applicable for the (allegedly) novel phenomenon of stars in social media (influencer, micro-celebrities). Moreover, we analyse potentially new factors for creating social media superstardom that may be special to the nature of social media. Our overall result is that the economics of superstars, like the role of talent, market concentration effects, MacDonald-style and Adler-style effects, remain applicable and relevant for social media stars. In line with this assessment, we find that several (allegedly) new star factors in social media, like user-generated content, prosumption, disappearance of gatekeepers and authenticity, turn out to be only partly applicable or just slightly different to traditional concepts. However, algorithm management and upload strategies represent novel success factors relevant for social media superstardom that are not captured by traditional superstar theories.

Suggested Citation

  • Gaenssle, Sophia & Budzinski, Oliver, 2019. "Stars in social media: New light through old windows?," Ilmenau Economics Discussion Papers 123, Ilmenau University of Technology, Institute of Economics.
    • Handle: RePEc:zbw:tuiedp:123
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    3. Łaszkiewicz Anna, 2022. "Areas of influence in influencer marketing. To what extent is the communication under brand control?," Marketing of Scientific and Research Organizations, Sciendo, vol. 46(4), pages 1-16, December.
    4. Budzinski, Oliver & Lindstädt-Dreusicke, Nadine, 2019. "The new media economics of video-on-demand markets: Lessons for competition policy (updated version)," Ilmenau Economics Discussion Papers 125, Ilmenau University of Technology, Institute of Economics.
    5. Stöhr, Annika & Budzinski, Oliver & Jasper, Jörg, 2019. "Die Neue E.ON auf dem deutschen Strommarkt - Wettbewerbliche Auswirkungen der innogy-Übernahme," Ilmenau Economics Discussion Papers 132, Ilmenau University of Technology, Institute of Economics.
    6. Gänßle, Sophia & Kunz-Kaltenhaeuser, Philipp, 2020. "What drives binge-watching? An economic theory and analysis of impact factors," Ilmenau Economics Discussion Papers 138, Ilmenau University of Technology, Institute of Economics.

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    More about this item

    Keywords

    social media; digital media; popularity; superstars; cultural economics; media economics; influencer; micro-celebrities; creators; user-generated content; prosumer; algorithm management; YouTube; Instagram; entertainment markets;
    All these keywords.

    JEL classification:

    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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