Music or Hi-Tech Lovers? An Empirical Analysis of the Digital Music Market in Italy

Francesco Balducci ()
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Francesco Balducci: Universita' Politecnica delle Marche, Dipartimento di Economia

No 324, Working Papers from Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali

Abstract: Using survey data on cultural consumption by about 650 university students, this article proposes a market segmentation and some rule-of-thumb policy implications for the music industry. Consumption behaviors, listening habits and musical preferences are explained by a large number of variables Nevertheless it is possible to reduce this overload of information into two common factors (using factor analysis). Cluster analysis is accordingly used to group the students-consumers: the digital music lovers cluster is the most profitable for the music industry, whilst those of uninterested subjects and pure hi-tech lovers are the least. The analysis shows that the new digital technologies (for example file sharing) may be harmful for the music industry only within one specific group of consumers. New technologies can instead promote music consumption (especially of live music) by the other categories. By investing in music knowledge and enjoyment, it is possible to make consumers buy digital music legally from authorized sites.

Keywords: market segmentation; media; music; technological change (search for similar items in EconPapers)
JEL-codes: L82 O33 Z11 (search for similar items in EconPapers)
Pages: 40
Date: 2008-07
New Economics Papers: this item is included in nep-cul and nep-ict
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:anc:wpaper:324

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