A discrete choice model of consumption of cultural goods: the case of music

In this article we present an empirical analysis of the ‘patterns of cultural choice’ in the musical domain in Italy. The main goal of the article is to verify whether musical tastes in Italy are diversified, with the presence of a group of ‘cultural omnivores’. Our study is based on the theoretical model of the demand for cultural goods proposed by Lévy-Garboua and Montmarquette (1996). In the empirical analysis we simultaneously evaluate the probability of choosing different musical genres. Through the specification of the set of alternatives into three groupings of musical genres —“only classical music”, “only popular music” and “all music”—we were able to detect the relative impact of several socio-economic characteristics on the probability of having “univorous” or “omnivorous” musical likings. In addition, our approach allows us to verify the existence of different patterns of music consumption by testing the significance of differences among the estimated coefficients of the probability functions related to the three groupings of musical genres. We find that age, gender and education are important predictors of an omnivorous taste.

Music consumption at the dawn of the music industry: the rise of a cultural fad

This paper discusses the extent to which sociodemographic characteristics of consumers and their past consumption are less effective in explaining the decision of purchasing a cultural good than the characteristics of the product itself, which allow for imitative behaviors and are at the basis of distinction. While the former approaches are well documented in the literature, the latter refers to Bourdieu’s idea of objectified cultural capital, which has been revisited and empirically explored. Because the various causal effects interact with each other, this paper tests a theoretical model which matches individual characteristics of the consumer with the properties of the cultural product. Specifically, we discussed the emergence of a new version of a cultural good, which is able to broaden the dimension of the market by gaining rapid success in its audience. This diffusion pattern is a quite rare event, but disruptive for the market and extremely profitable for the producer. The authors label this occurrence a disruptive cultural fad and try to understand the determinants of its adoption. The hypotheses of the model are tested on a unique dataset of microdata of purchasing transactions in Milan in the early nineteenth century, when the music by Gioachino Rossini emerged as a disruptive cultural fad at the dawn of the music industry. Results show that key features of a successful disruptive cultural fad are the role of some specific patterns of personal past consumption, the capabilities of generating positive network externalities in the consumption, and, surprisingly, the lack of negative ones due to any possible hip or snob effect.     

From description to depiction: free indirect discourse and online graphical chat

Iconographic avatars in web-based graphical chat environments work to create a ‘shattered’ sense of self through the use of emblematics (the bringing together of text and image) coupled with a reformulated use of free indirect discourse, a style of indirect address found in the modern bourgeois novel. Free indirect discourse, or ‘middle voice’, is crafted by the novelist but takes on the characteristics of the person described, even as the difference between novelist and character creates an ironic distance directed at both the character and the reader who may be encouraged by the style to identify with the character. Avatar-driven graphical chat suggests a synthesis of the value of an avatar external to oneself and that of the ironic distance provided by free indirect discourse. The ‘middle ground’ of iconographic graphical chat environments exemplifies how images reformulate and seemingly mitigate the tensions inherent in text-based free indirect discourse – with its suggestion of ‘experience without a subject’ – to create greater ambiguity, irony and abstraction of the self and others. This mirrors how various forces of global capital work to reformulate the subject.     

Economics of music publishing: copyright and the market

The paper argues that the paradigmatic shift from the sale of printed music to exploiting and managing musical rights that took place in music publishing during the early years of the twentieth century was due to the changing market rather than to changes in copyright law. On the one hand, copyright law was ineffectual in controlling piracy throughout the nineteenth century, and on the other hand, performing rights were ignored by music publishers for over 70 years; these points suggest that copyright was not the main reason behind the success of the industry. Rather than leading entrepreneurially (the current view of dynamism in the creative industries), publishers ‘followed the money’ and adapted their business models only when new streams of income from new forms of exploitation through sound recording, broadcasting and film became available as a result of exogenous technical progress. Publishers were locked-in to sales revenue as their business model, though when switching to the new business model of rights management took place, the costs seem not to have been greatly significant. The paper takes an historical approach to the development of music publishing viewed through the lens of present-day issues. The research has resonance for the transition from sales to licensing digital works that is taking place in the creative industries today and puts into perspective the relative significance of market forces and copyright law in the process.     

Past,present and future: music economics at the crossroads

This paper contextualises research on the economics of music. The papers considered represent a crossroad in economics music research. One branch is the most heavily explored area of the impact of digital technology on consumption of music. The others comprise one entirely new topic which is crowd-sourced funding of new music recordings. The other topics are extremely old in terms of relevance but very new in terms of there being little prior economic analysis. These are environmental damages from musical activity and the efficiency of belonging to a pop–rock musical ensemble versus being a solo artist.     

New technology and market structure: Evidence from the music recording industry

This paper explores how new scale-reducing technology induced two periods of substantial new entry into the music recording industry. Many of the new firms were product innovators, whose products became popular with consumers. This in turn leads to shifts in the distribution of industry market share, and hence market structure. Reconcentration in the industry resulted largely from horizontal mergers, among other reasons. New digital distribution networks may induce a third-wave of industry deconcentration.     

Trust the artist versus trust the tale: performance implications of talent and self-marketing in folk music

Based on a unique dataset of artists that are active in the German market for folk music—the third largest music genre in terms of popularity and sales—I study what factors determine the artists’ success. Following Rosen (Am Econ Rev 71(5):845–858, 1981), I test if differences in artistic performance have a direct effect on financial rewards as regards physical and digital record sales (“direct superstar effect”). Following Adler (Handbook on the economics of art and culture. Elsevier, Amsterdam, 1985), I also study sales effects of a media presence of artists (“classical superstar effect”). Controlling for various contingency factors (e.g., record labels’ support, artists’ socio-demographics), I deal with an economic issue of general interest: Does it pay more to develop your skills in your core business to perfection or to maintain the current level of skills and invest in self-marketing; and do these effects apply to all folk artists alike? Rather contrary to studies on pop and rock genres, I find that higher ability increases artists’ revenues disproportionately, but simultaneously, openly competing for the recognition of one’s talent holds substantial economic risk. I also observe a positive effect of various types of media presence on financial rewards. However, these income determinants have different impacts on sales in physical versus in digital markets, and their effects vary across the success distribution from low- to top-selling artists as well.     

Motivation,satisfaction and loyalty in the case of a film festival: differences between local and non-local participants

The last few years have seen a remarkable increase in the number of cultural events and festivals. The increasing competitiveness among them and the need to safeguard their future viability make it necessary to identify factors that not only attract and satisfy new participants, but also retain previous attendees. Accordingly, this article examines the relations between motivation, satisfaction and loyalty in the case of a cinema event the Valdivia International Film Festival (Chile), distinguishing, in turn, between local attendees and visitors. To achieve this goal, a structural equation modelling is performed based on the data obtained through a survey conducted among festival attendees. The results show there are different motivations for attending a festival (leisure, professional motives and cinema) and that some directly affect satisfaction and loyalty. Similarly, satisfaction is presented as an unquestionable antecedent of loyalty, the latter being measured by means of different concepts. Finally, the research highlights some significant differences between residents and tourists and seems to point to the existence of a kind of cultural tourism focused on an interest in the cinema, which contributes to the festival’s continuity and sustainability. All of this allows us to extract some implications for the managers of this type of event and for those responsible for the destination’s cultural and tourist policy.     

The editorial playlist as container technology: on Spotify and the logistical role of digital music packages

ABSTRACT

This article explores the role of editorial playlists in Spotify’s streaming economy. In particular, it approaches Spotify’s playlists as container technologies – i.e. technical solutions that assemble, preserve, and transport music objects and thereby uphold logistical operations within the music industry. Such an approach seeks to complement previous research concerning playlists, which has often analyzed their emotional and affective dimensions but paid less attention to how playlists enhance calculative, mathematical, and logistical retail flows within the online music economy. On the one hand, the article considers how playlists – like containers in general – materialize principles of modularization and automation in ways that enhance control and remote oversight. On the other hand, it discusses how the playlist is far from a perfected means of measurement and control, and sometimes acts as an unruly transport device. Ultimately, the article shows how the playlist format occupies an uneasy position between order and disorder within the digital music economy which has not yet been fully accounted for in the context of music-oriented media studies.     

The prosumer economy and the sex industry: the creation of an online community of sex prosumers

ABSTRACT

In this article, I discuss how changes in the economic infrastructure of mass consumption have changed the values and attitudes of consumer culture. By focusing on an online community of Israeli sex consumers and applying the theoretical framework of the prosumer economy, this article suggests its innovative potential for understanding the intersections of cyberspace, capitalism, and sex work consumption. Using the context of the dynamic cultural terrain of prosumerism, the article examines how commercial way of thinking is encouraged, understood, and adopted by sex consumers in the practice of purchasing sexual encounters and sharing them online. The main argument is that the online community of sex consumers has become a collaborative project in which consumers simultaneously produce and consume – that is, they become ‘prosumers’ and thus occupy positions of power within the capitalist market-place. They, therefore, not only responding to market rules but also producing them. I claim that the change in the nature of the community has impacted both the nature of online writing and the way clients perceive sex workers.     

Cultural intermediaries in the making of branded music events: digital cultural capital in tension

ABSTRACT

Previous studies have overlooked how intermediaries and their digital cultural capital enhance the relationship between brand values and consumer identities; their specific uses of digital technologies; and how those uses are displayed in activities where intermediaries create consumer experiences. This paper thus explores the role that cultural intermediaries (music bloggers and an advertising agency) and their digital cultural capital play in making and communicating a branded music event. Briefly, intermediaries used a set of digital technologies (social media, guest lists, blogs, and websites) to create and orchestrate an authentic and exclusive experience between brands and consumers. We draw on empirical material from interviews and ethnographic work conducted in Santiago, Chile. Our study identifies digital technologies used by cultural intermediaries in communicating branded music events, including as: promotional tools; advertising campaign efficacy evaluation mechanisms; and relational objects that connect advertising agencies, music bloggers, brands, and consumers. By exploring the tensions and conflicts that arise among bloggers and advertising executives, we shed light on the uses and exchanges of digital cultural capital for commercial purposes, resulting from the connections between intermediaries that come from different fields of cultural production.     

Digitalizing consumer society: equipment and devices of digital consumption

ABSTRACT

This special issue of the Journal of Cultural Economy focuses on the digitalization of consumption and its social, cultural, ethical, political, and gendered implications. It thus answers the call for more research on how digital devices spread from the purely personal domain to multiple sociocultural domains. Through their use, new cultural practices have emerged between consumers and these devices, and devices and markets, that lead to change, in terms of consumer demand, consumption norms, and issues of ethics, culture, and power. Closely examining the role that devices play in consumption behavior enables us to address the supposed manipulative power of hi-tech companies, infrastructures, and systems at the global level, and the view ordinary market actors hold of digital appliances as empowering tools at the local level. The papers in this volume bridge ‘actor network theory' and ‘consumer culture theory' from the perspective of market ‘agencements.’ Ruckenstein-Granroth and Beauvisage-Mellet, and Arriagada-Concha focus on the device-mediated relationship between large digital market infrastructures and consumer behavior; Petersson McIntyre and Licoppe unveil the societal and cultural underpinnings of digitalized markets. Last but not least, Sörum and Soujtis address the political dimensions and implications of our new digital consumer equipment and society.     

The concentration of commercial success in popular music: An analysis of the distribution of gold records

This paper examines whether commercial success in the popular recorded-music industry, as measured by gold-record output, conforms to an empirical concentration. We find that Lotka's Law overestimates the number of artists with one gold record and underestimates the number of multiplegold-record performing artists. However, for all measures of successful records, theGeneralized Lotka's Law provides an excellent fit, which suggests that the number of performers producingn gold records in about 1/n ^c of those producing one gold record.     

On the relationship between reserve prices and low estimates in art auctions

Using a unique hand-collected dataset comprising all auctions held by a major Italian auction house in Italy from 1994 to 1997 and including confidential information on reserve prices, we find empirical evidence in support of several studies in cultural economics literature that reserve prices are set in a range of approximately 75 % of low presale estimates.     

Breaking up is hard to do: the resilience of the rock group as an organizational form for creating music

Though there is a long tradition of band members quitting the group or taking a hiatus, the rock group as an organization to produce music continues to be both popular and economically viable. The research question addressed in this paper is whether or not it is a good idea to quit or take a hiatus from the group. We begin with a discussion of the framework for understanding why groups are formed and why they may be difficult to keep together. We then discuss differences between groups in the decade of the 1960s versus today. We argue that there is something unique about the output of the group even with the changes in the structure of contracts, compensation, and consumer focus on the artist that explain the resilience of the rock band as an organizational form within which to create music. We compare the charting success of bands that have members leave the group with the charting success of the members who left the group. We identified the groups in five representative years: 1965, 1975, 1985, 1995, and 2005. We then analyzed the entire Billboard Hot 100 charting careers of those groups and the artists who quit those groups. Our main finding is that when charting success is divided equally among members, going solo pays off—there is a clear economic rationale because solo acts have greater average charting success than the original bands they started in. The other ensuing side projects: duos, collaborations, and other groups are not as lucrative as the original bands. These findings are valid for members of charting groups from each of the 5 years examined. Despite the difficulties in keeping a rock band together, there are fewer band breakups today and remaining with the group generally results in a longer and more productive charting career. Thus, the rock group remains an important organization for producing contemporary music. However, there remains a compelling incentive to go solo. Superstars may benefit from solo projects, but for the average, non-superstar group member, in many circumstances it is better for the band to stay together if the income is divided equally.     

Analysis of the consumption of artistic-cultural goods and services in Brazil

This work aims to evaluate the determinants of the consumption of artistic-cultural goods and services in Brazil, conceiving this consumption as an activity with positive effects on the consumer and on the society as a whole. Using the human capital approach, we estimate a model in which the expenditures on artistic-cultural goods and services depend on socio-economic, educational and socio-demographic characteristics of the head of the household, and on variables that indicate the location of the household. The results indicate that artistic-cultural expenditures are strongly determined by income and by the education of the consumer. Furthermore, the expenditure differs regionally, which may occur due to supply variations or historic-cultural distinctions.