Promotional Effects of Recorded Music and Superstars on Concert Financial Outcomes

Eric Hogue

Journal of Interdisciplinary Economics, 2024, vol. 36, issue 2, 166-203

Abstract: 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

Keywords: Music industry; music streaming; industry disruption; public performance (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:sae:jinter:v:36:y:2024:i:2:p:166-203

DOI: 10.1177/02601079231168750

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