Models of Online Music Consumption: Definition and Implications for Management

Abstract:     
This paper focuses on the new models of consumption emerging in the music business, especially due to downloading opportunities, and the implications for managers of labels and newcomers in the recording industry. Using multivariate statistics techniques (factor and cluster analysis), the paper highlights the different approaches to online music consumption and their determinants. Elementary data were collected through a field analysis in a sample of Internet users. The main outcome of the paper is the identification of five heterogeneous models of online music consumption, whose differences suggest a more complex picture of technological changes acting in the music business. The final section illustrates the strategic implications for record labels and new online operators and also provides suggestions for future research.

Number of Pages in PDF File: 23

Keywords: Consumption, cluster analysis, music, Internet

JEL Classification: M10, M31, L82

working papers series