An Empirical Investigation Into the Effect of Music Downloading on the Consumer Expenditure of Recorded Music: A Time Series Approach

The downloading of music from the internet has been proliferating over the past three years. The recording industry believes that this phenomenon is responsible for the decline in recorded music sales since the year 2000, and to a certain extent this is supported by consumer surveys and previous studies that have used panel or cross-sectional data. In this analysis, an econometric, time-series model of consumer spending on tapes, LPs, and CDs is estimated which takes into account factors that are posited as effecting the consumption of recorded music, but not used in previous studies. The most significant finding is that music downloading, subsequent to 2000, affects consumer spending on tapes, LPs, and CDs through the price elasticity of demand. Falling DVD prices have also served to reduce the demand of recorded music during this same period.     

“It's MY Service,it's MY Music”: The role of psychological ownership in music streaming consumption

Music streaming services have become today's most popular way of consuming music. These services give their users access to a comprehensive music library without providing legal ownership of that music. However, recent research suggests that music streaming users still continue to experience feelings of ownership. To advance our understanding, this study investigates the role of psychological ownership in music streaming consumption. In particular, based on the theory of psychological ownership, it is analyzed how service‐ and music‐based psychological ownership emerge. The study further investigates the relationship between these two targets of ownership and whether music‐based psychological ownership is positively related to users' intention to switch from a music streaming service's free version to its paid premium version. Using structural equation modeling, the results indicate that service‐based psychological ownership, stemming from users' investment of self into the service, is positively related to music‐based psychological ownership, which is positively influenced by the sense of control over the music accessed. The results also show that music‐based psychological ownership is strongly related to users' intention to switch from free to premium, which highlights the importance of psychological ownership for providers of music streaming services, particularly those operating a feature‐limited freemium model.     

Engineering great moments: The production of live music

The paper investigates the people who organize live music concerts: promoters. In contrast to recent contributions analysing the production of music, I argue that the work done by promoters must be analysed separately from the co‐production of live music. Drawing on interviews with promoters in the UK, I show how promoters invest aesthetic values into their live music products to attract “like‐minded” people and “engineer great moments” for audiences. I also show that promoters do more than create spaces for aesthetic experiences. Much of their work involves accounting for their audience's aesthetic consumption. I argue, then, that we must recognize that cultural producers both invest aesthetic values into their products and use their everyday interactions with consumers to evaluate the extent to which their products have released those aesthetic values.     

Meanings of the home in popular song lyrics: A feminist critique examining rock and country music

The paper examines the meanings of home as portrayed in the lyrics of popular country and rock songs. These two genres were selected because they loosely represent two American subcultural traditions. The home was chosen because of the central role that it plays in most people's lives and because it is commonly mentioned in the lyrics of popular songs. Because the main role of women in American society is integrally associated with their position and activities in the home, it is hard to separate the two. The authors use an interpretive approach and a feminist perspective to analyze the treatment of women's roles in the home in popular music lyrics. They conclude that, while some representations of women are being questioned by both the performers and the lyric writers, the popular music industry, with its many gatekeepers, continues to promote predominantly stereotypical and traditional images of women.     

Streaming or stealing? The complementary features between music streaming and music piracy

Among young consumers, music streaming can be perceived as a substitute for music piracy. However, streaming can provide a venue for discovering and listening to new releases, and then, gaining access to these new tracks illegally. The objective of this study is to determine if music streaming acts as a buffer (substitute) or enabler (complement) of piracy. Using a logit model, we found that streaming complements piracy, providing evidence that these two modes of music consumption will coexist in the market. In addition, we found that social and peer behavior, risk perceptions, and consumption time online are elements contributing to music piracy.     

The rhythm of shopping: How background music placement in live streaming commerce affects consumer purchase intention

There is growing evidence indicating that background music has a significant impact on consumer purchasing behavior. However, there is limited research on the placement of background music in live streaming commerce. This study conducted a single-factor experiment with three conditions (playing during purchase phase, continuous playing, and control group) to investigate the effects on arousal, consumer memory, and purchase intention. Results show that live streaming with background music increase consumer's purchase intention and arousal. Specifically, background music playing during purchase phase leads to higher purchase intention and consumer memory than continuous playing. Continuous playing induces higher arousal than background music playing during purchase phase. Process measures reveal that playing during purchase phase (vs. continuous playing) reduces arousal, thus enhancing consumer memory and leads to higher purchase intention. Continuous playing, however, induces arousal but impairs consumer memory, subsequently leading to lower purchase intention.     

A distribution revolution: Changes in music distribution in the UK 1950–76

Little business history has been written on the popular music industry while sociological study has tended to focus on the effect of the industry on society. This paper concentrates on how recorded popular music reached the customer, charting the evolution of the industry in the UK from a cartel structure distributing only to specialists, into an industry which allowed upstream entry freely but increasingly emphasised large-scale distribution through mass retailers by the mid-1970s. The paper examines the structure of music distribution in the UK prior to 1965 and how the industry adapted its distribution strategy to the changing environment after 1965.     

The Effects of Following Islam in Decisions about Taboo Products

This study tests the role of consumers’ religious motivation (intrinsic and extrinsic) in their decision making regarding the consumption of a prohibited brand or product category because of a religious declaration called Fatwa. Despite numerous studies on the effects of religion in consumers’ marketplace behaviors, little is known of about consumers’ decision making under a religious ruling like Fatwa. A Fatwa is a decree issued by religious scholars for Muslim communities. A survey based on the Theory of Planned Behavior asked young adult Muslims about their responses to a brand, and two product categories that were subject to Fatwa. The data concerning the respondents’ decision making were analyzed using structural equation modeling to test hypotheses based on the available literature. The analyses found that the respondents’ motivation in following Islamic teachings had the greatest effects in their deciding to smoke, listen to contentious popular music, but was not relevant for buying the Coca Cola brand. The results are discussed in terms of the study's theoretical contributions, managerial implications, and future research.     

The need to touch: Exploring the link between music involvement and tangibility preference

Amid the increasing consumption of digital music and generally declining sales of recorded music, physical formats persist as the preferred means of storing and listening to music for many consumers. The purpose of this paper is to increase the understanding of the relationship between music involvement and preference for tangible music formats. To achieve this, we test a research model and perform a segmentation analysis based on music involvement. Findings indicate that high music involvement is positively correlated with subjective music knowledge, tangibility preference, and portable player use. Quite naturally, involvement increases music consumption in all formats, including digitized forms, but high involvement appears connected to a perception of tangible records as more valuable. The behavior of highly involved consumers suggests that digital music is not necessarily eradicating physical formats but possibly fulfilling different needs; for example, sampling and complementing vs. collecting and displaying.     

Death-related publicity as informational advertising: evidence from the music industry

The sales of books, DVDs, and music albums frequently increase substantially after the death of an artist. Yet, the mechanism behind this stylized fact remains unclear. In this paper, we examine whether after-death sales increases reflect primarily an affective reaction of existing customers or informative advertising for previously uninformed new customers. In our main study, we use weekly sales data for 446 music albums of 77 artists who died between 1992 and 2010. We show that album sales increase on average by 54.1 % after death and that the relative increase in sales is higher for the artist’s better albums. This suggests that death-related publicity serves primarily as informational advertising that attracts new customers who buy the artist’s best albums after death. Complementary evidence from a survey study with more than 2,000 participants confirms this interpretation and shows that information-based motives are relatively more important for after-death consumption than affect-based motives.     

IMC in an emerging economy: the Chinese perspective

Integrated marketing communications (IMC) planning and implementation vary greatly by market and country. This study, based on the survey data compiled from 135 Chinese marketing executives, focuses on IMC in China's emerging economy, with the goal of providing an outlook of IMC's current development in China while uncovering factors in the country's socioeconomic and business infrastructures that may cause IMC to deviate from the traditional Western model. The study also explores Chinese responses to the rising proliferation of digital media and its implications for IMC development.

The study concludes that despite uneven business development and a current lack of training in IMC-related skills, IMC appears to be the inevitable course or the future of Chinese marketing communications. Due to factors unique to the Chinese business landscape, such as government-owned business structures, political nuances in marketing channel relationships, and uneven development of consumer culture, IMC in China will likely evolve differently than in the US. Survey respondents reveal that IMC is progressing much faster in local, privately owned firms than in their state-owned counterparts. The rise of digital media will also disrupt traditional media outlets, providing challenges to the Chinese marketer.     

Shifting Demand: Online Music Piracy,Physical Music Sales,and Digital Music Sales

Traditionally, music has been sold to consumers by recording several individual songs/tracks in physical media such as CDs and cassettes. Sales of such physical music have been declining for the past several years. Many academic studies have attributed the decline of physical music sales to online music piracy, yet some other studies have not found evidence to support a negative relationship between online music piracy and physical music sales. Interestingly and importantly, we have observed that while many of the studies that found the negative relationship between online music piracy and physical music sales used data before 2003, other studies that do not find similar results have used post-2003 data. In fact, there was a significant structural change in the music market in 2003. Legal (iTunes-like) online channels for digital music that allow consumers to buy individual tracks became available during that year. This article complements the existing literature by analyzing the impact of online music piracy and physical music sales in the presence of iTunes-like legal channels for digital music using bivariate Granger testing. Our results show that the availability of legal channels for digital music has weakened the negative effect of online music piracy on physical music sales. Moreover, in the presence of legal channels for music distribution, digital music, not online music piracy, substitutes for physical music.     

China and the WTO: The implications of membership in historical context

China's accession to the WTO can be seen as the culmination of not just a 15‐year negotiation but also of a process that actually began 150 years ago with the projection of Western imperialist power into the Chinese mainland. China now appears to have joined the global community on mutually agreeable terms. The commitments China has made are significant and, if implemented, will facilitate continued change in the nation's legal/regulatory structure for economic growth. WTO accession has many implications, both economic and political, for China and the rest of the world; it is important not to forget historical context and current realities in assessing them. © 2003 Wiley Periodicals, Inc.     

Traditional culture,political ideologies,materialism and luxury consumption in China

China is now the second largest luxury market in the world. This study examines the effect of traditional Chinese cultural values and support for political ideologies on materialism and interest in luxury products. Results showed that both traditional Chinese cultural values (face, harmony and guanxi) and political ideology (Maoism vs. Deng's theory) influenced materialistic aspirations and interest in luxury products. This suggests that researchers should also consider the influence of political ideology as much as they consider cultural values, as many developing societies are in transition.     

International heterogeneity in the associations of new business models and broadband Internet with music revenue and piracy

Broadband Internet has fundamentally changed business models in many industries. In the music industry, for instance, old business models were challenged by illegal competitors, and broadband Internet has enabled value creation through new business models. The changes that established business models experienced in the wake of broadband Internet, however, differed vastly across national markets, and these differences are not well understood. We build a conceptual framework and study the extent to which differences in economic and cultural factors are associated with different market outcomes in the wake of the proliferation of broadband Internet. Thus, we compile two unique data sets from the music industry, comprising (1) revenue data for 36 countries and 22 years and (2) piracy data for 47 countries and >2 years. We use a Bayesian multilevel model to explore between-country heterogeneity in the associations between these variables and broadband Internet adoption and business model innovations. Our results show that the negative association between broadband Internet penetration and music revenue is weaker in high-income countries, where income restrictions are less likely to drive demand towards illegitimate piracy services. In terms of cultural factors, we find that a market's response to the introduction of broadband Internet is less negative in countries scoring high on Hofstede's individualism and uncertainty avoidance dimensions. Furthermore, we find that overall revenues only recover after the latest generation of streaming services (e.g., Spotify) has been introduced, and the adoption of these services is associated with lower levels of online music piracy.     

When a few minutes sound like a lifetime: Does atmospheric music expand or contract perceived time?

In the first of two experiments, the estimated duration of a given interval was shorter when familiar as opposed to unfamiliar music was played, but only for respondents waiting idly; music had little or no effect on respondents engaged in a memory task during the interval. In the second experiment, respondents waiting idly again reported shorter estimates of duration when they heard familiar as opposed to unfamiliar music, but only when they heard a sufficient number of songs during the interval. On the other hand, respondents engaged in a memory task reported longer estimates of duration when they heard familiar as opposed to unfamiliar music, but again only when they heard a sufficient number of songs. These results are consistent with attentional (i.e., waiting condition) versus discrete events (i.e., memory task condition) models of duration judgments, respectively.     

About the authors

This article is inspired by a somewhat counter-intuitive phenomenon that has recently been highlighted in the contemporary business literature, but which does not appear to have been examined within a peer-reviewed environment. We are witnessing increasing successes by domestic brands in China, often at the expense of established multinational brands. Given that China is the world's largest national market in terms of population, this trend is worthy of investigation. Our approach is neither causal nor confirmatory. Instead, we undertake an exploratory review of robust secondary data sources. Our goal is to shed empirical light on what appears to be a ‘Sinosyncratic anomaly’, and then to provide a framework and springboard for future research in this domain. Clearly, our approach is not without limitations, which we do consider. However, there is a pressing need for global marketers to recognise and understand the reasons behind the mixed fortunes being experienced by some of the world's most admired (Western) brands in China, with a view to making empirical generalisations to other emerging markets.     

Selling digital music: business models for public goods

This paper considers the market for digital music. We claim that the combination of the MP3 format and peer-to-peer networks has made music non-excludable and this feature is essential for the understanding of the economics of the music market. We study optimal business models for selling non-excludable goods and show that despite promising theoretical results, adding just a slight uncertainty about the number of customers has significant negative implications for profitability. Indeed, as the average number of customers tends to infinity the average payment per customer converges to zero. Therefore, the music industry should concentrate on alternative ways of creating profit such as selling access to listeners, concerts, merchandise, ringtones etc.