Video Killed the Radio Star? Online Music Videos and Digital Music Sales

Kretschmer, Tobias; Peukert, Christian

doi:10.2139/ssrn.2425386

Cited by 10 publications

(7 citation statements)

References 70 publications

(25 reference statements)

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“…The list of songs is compiled using the online platform MusicBrainz, which offers user-generated meta-information 3 See, for example, http://www.ft.com/intl/cms/s/0/5bb2092e-117e-11e3-a14c-00144feabdc0. html#axzz3C9p8fdZK and also (Kretschmer and Peukert, 2014) 4 See http://apps.opendatacity.de/gema-vs-youtube/en. on a total of 1.3 million releases in over 60 countries from the 1950s until recently.…”

Section: Experimental Settingmentioning

confidence: 99%

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Youtube Decade: Cultural Convergence in Recorded Music

George

Peukert

2014

SSRN Journal

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The YouTube platform reduces fixed entry costs for local artists but also lowers the cost of access to international superstars. The net effect is an empirical question.We study the effect of YouTube on the market for music, focusing on converging tastes for international hits. We consider Austria and Germany, which share a common culture and technological development but differ in access to music videos on YouTube. Exploiting a contract dispute that has blocked official music videos in Germany since 2009, we find that YouTube increases the number of US hits on European charts. We further find evidence that YouTube speeds the hitmaking cycle and brings more unique titles to top charts. Although the superstar effect dominates, the magnitude of estimated effects are modest, suggesting that YouTube will not drive out the market for local music.

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Section: Experimental Settingmentioning

confidence: 99%

“…Kretschmer and Peukert (2014) look at digital song and album sales dynamics using variation from the contract dispute that kept official videos off of German YouTube. Hiller and Kim (2014) The two studies produce opposite results: YouTube videos in Germany complement album sales while reducing them in the US.…”

Section: Introductionmentioning

confidence: 99%

Youtube Decade: Cultural Convergence in Recorded Music

George

Peukert

2014

SSRN Journal

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“…For instance, Hiller (2016), using data that are contemporary to this paper's, finds that a music video's presence on YouTube may reduce album sales for chart-topping albums, but that a "promotional" effect similar to the word-of-mouth effect here may moderate reductions to sales for lower-ranked albums. Kretschmer and Peukert (2014) also find evidence of countervailing "promotional" and "displacement" effects in a similar market. And Peukert et al (2017) find that a negative capacity shock for pirated movies led to an increase in box office revenues for movies with a wide release but a decrease in revenues for more limited-release movies, reflecting the greater importance of word-of-mouth for these less-popular offerings.…”

Section: Discussionmentioning

confidence: 71%

Purchase, pirate, publicize: Private-network music sharing and market album sales

Lee

2018

Information Economics and Policy

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I quantify the effects of private-network music sharing on aggregate album sales in the BitTorrent era using a panel of US sales and private-network downloads for 2,109 albums during 2008. Exogenous shocks to the network's sharing constraints address the simultaneity problem. In theory, privatenetwork activity could crowd out sales by building aggregate file sharing capacity or increase sales through word of mouth. I find evidence that privatenetwork sharing results in decreased album sales for top-tier artists, though the economic impact is quite modest. However, private-network activity seems to help mid-tier artists. The results are consistent with claims that word of mouth is stronger for lesser-known artists and that digital sales are more vulnerable to increases in file sharing capacity. I discuss policy implications and alternatives to costly legal efforts to shut down private file sharing networks.

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“…The Loudness War, however, is likely to continue on different battlefields, such as automated or user-generated recommendations on online-platforms, i.e. blog posts (Dewan and Ramaprasad, 2012), playlists on Deezer and Spotify; likes, shares and retweets on Facebook and Twitter; videos on YouTube (Kretschmer and Peukert, 2014), and by continuing to turn live performances back into the lifeblood of the music industry (Tonon et al, 2014).…”

Section: Discussionmentioning

confidence: 99%

Loudness War: How Record Labels Compete for Consumer Attention

2014

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In markets with thousands of products, firms cannot take it for granted that consumers are even aware of their articles' existence. Advertising and actions to attract consumer attention are therefore integral components of a firm's competitive toolbox. We study firms' behavior in a perfect example for such a market: The music industry, in which consumers can choose from a plethora of albums and songs. We study a specific strategic instrument of firms, single releases, applying unique micro-level data. Arguing that the digitization of the industry via MP3, filesharing, and iTunes amounts to forced unbundling, the role of singles has changed from individual revenue generators (pre-digital era) to pure attention gatherers. In accordance with this driving hypothesis, we observe an inverse U-shaped relationship between competition intensity and the number of singles released in the digital era, while previously competition had a purely negative effect.

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Video Killed the Radio Star? Online Music Videos and Digital Music Sales

Cited by 10 publications

References 70 publications

Youtube Decade: Cultural Convergence in Recorded Music

Youtube Decade: Cultural Convergence in Recorded Music

Purchase, pirate, publicize: Private-network music sharing and market album sales

Loudness War: How Record Labels Compete for Consumer Attention

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