Models of Online Music Consumption: Definition and Implications for Management

23 Pages Posted: 25 Feb 2003

See all articles by Luca Molteni

Luca Molteni

SDA Bocconi; Bocconi University - Department of Decision Sciences

Andrea Ordanini

Bocconi University - Department of Marketing

Date Written: June 2002

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.

Keywords: Consumption, cluster analysis, music, Internet

JEL Classification: M10, M31, L82

Suggested Citation

Molteni, Luca and Ordanini, Andrea, Models of Online Music Consumption: Definition and Implications for Management (June 2002). SDA BOCCONI, Research Division Working Paper No 02-70. Available at SSRN: https://ssrn.com/abstract=319505 or http://dx.doi.org/10.2139/ssrn.319505

Luca Molteni (Contact Author)

SDA Bocconi ( email )

Via Bocconi 8
Milan, Milan 20136
Italy

Bocconi University - Department of Decision Sciences ( email )

Via Roentgen 1
Milan, 20136
Italy

Andrea Ordanini

Bocconi University - Department of Marketing ( email )

Via Roentgen 1
Milan, 20136
Italy

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