Two empirical issues in the analysis for the effect of free streaming on music CD and concerts

Jin, Hyun Mi; Oh, Hyunseokdara

doi:10.1080/13504851.2018.1528331

Cited by 3 publications

(1 citation statement)

References 13 publications

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“…Krueger, in particular, recognised this limitation in his 2005 article. Artists now benefit from promotion on social media and music streaming that has reduced search costs (Hyun & Hyuseokdara, 2019), which Adler referenced as ‘establishing consumption capital’ (Adler, 1985). The growth of music streaming (from 27% of recording industry revenue in 2014 to 79% in 2019) and the availability of social media buzz via Google Trends facilitate an updated assessment of Adler and Rosen’s theories.…”

Section: Literature Review and Backgroundmentioning

confidence: 99%

Promotional Effects of Recorded Music and Superstars on Concert Financial Outcomes

Hogue

2023

Journal of Interdisciplinary Economics

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Using a comprehensive data set of hand-collected observations of top touring performing artists, I examine the complementary relationship between recorded music and concert financial outcomes. I find that music streaming derives substantive financial benefit to the top 100 touring artists as a means to promote their live performances. Using empirical estimates from a panel model with artist fixed effects, an artist can derive an incremental $46K to $49K per show when achieving a 20% increase in music streaming. Additionally, using a 2SLS model with artist fixed effects to account for potential endogenous promotional effects, I identify top performers (or ‘superstars’) who derive significant additional concert revenue because of their back catalogue of hit songs. These top performers earn an incremental $15K per show for every week they have a song from their catalogue in the Billboard Top 20. These findings indicate that artists can use their legacy to build lifelong earnings from their music and performances. JEL Classifications: D12, D22, L82, Z10

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Section: Literature Review and Backgroundmentioning

confidence: 99%