IDEAS home Printed from https://ideas.repec.org/a/sae/jinter/v36y2024i2p166-203.html
   My bibliography  Save this article

Promotional Effects of Recorded Music and Superstars on Concert Financial Outcomes

Author

Listed:
  • Eric Hogue

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

Suggested Citation

  • Eric Hogue, 2024. "Promotional Effects of Recorded Music and Superstars on Concert Financial Outcomes," Journal of Interdisciplinary Economics, , vol. 36(2), pages 166-203, July.
    • Handle: RePEc:sae:jinter:v:36:y:2024:i:2:p:166-203
    DOI: 10.1177/02601079231168750
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/02601079231168750
    Download Restriction: no
    File URL: https://libkey.io/10.1177/02601079231168750?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Giles, David E., 2006. "Superstardom in the US popular music industry revisited," Economics Letters, Elsevier, vol. 92(1), pages 68-74, July.
    2. Chung, Kee H & Cox, Raymond A K, 1994. "A Stochastic Model of Superstardom: An Application of the Yule Distribution," The Review of Economics and Statistics, MIT Press, vol. 76(4), pages 771-775, November.
    3. Aguiar, Luis & Waldfogel, Joel, 2018. "As streaming reaches flood stage, does it stimulate or depress music sales?," International Journal of Industrial Organization, Elsevier, vol. 57(C), pages 278-307.
    4. Brinja Meiseberg, 2014. "Trust the artist versus trust the tale: performance implications of talent and self-marketing in folk music," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(1), pages 9-42, February.
    5. Hamlen, William A, Jr, 1991. "Superstardom in Popular Music: Empirical Evidence," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 729-733, November.
    6. MacDonald, Glenn M, 1988. "The Economics of Rising Stars," American Economic Review, American Economic Association, vol. 78(1), pages 155-166, March.
    7. Christopher Klein & Shea Slonaker, 2010. "Chart Turnover and Sales in the Recorded Music Industry: 1990–2005," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 36(4), pages 351-372, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nela Filimon & Jordi López-Sintas & Carlos Padrós-Reig, 2011. "A test of Rosen’s and Adler’s theories of superstars," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 35(2), pages 137-161, May.
    2. Budzinski, Oliver & Kohlschreiber, Marie & Kuchinke, Björn & Pannicke, Julia, 2019. "Does music quality matter for audience voters in a music contest?," Ilmenau Economics Discussion Papers 122, Ilmenau University of Technology, Institute of Economics.
    3. Aloys Prinz, 2017. "Rankings as coordination games: the Dutch Top 2000 pop song ranking," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 41(4), pages 379-401, November.
    4. Daniel Kaimann & Ilka Tanneberg & Joe Cox, 2021. "“I will survive”: Online streaming and the chart survival of music tracks," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(1), pages 3-20, January.
    5. Andrés González-Moralejo, S & Compés López, R, 2009. "Problemas contractuales y acuerdos de subcontratación: El caso de la logística frigorífica en la industria alimentaria valenciana/," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 27, pages 279(30á)-27, Abril.
    6. Joel Hellier, 2023. "Asymmetric Globalization, Top Performers’ Income and Inequality," Working Papers 634, ECINEQ, Society for the Study of Economic Inequality.
    7. Brinja Meiseberg, 2014. "Trust the artist versus trust the tale: performance implications of talent and self-marketing in folk music," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(1), pages 9-42, February.
    8. Sudip Bhattacharjee & Ram D. Gopal & Kaveepan Lertwachara & James R. Marsden & Rahul Telang, 2005. "The Effect of P2P File Sharing on Music Markets: A Survival Analysis of Albums on Ranking Charts," Working Papers 05-26, NET Institute, revised Oct 2005.
    9. Eric Strobl & Clive Tucker, 2000. "The Dynamics of Chart Success in the U.K. Pre-Recorded Popular Music Industry," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 24(2), pages 113-134, May.
    10. Sudip Bhattacharjee & Ram D. Gopal & Kaveepan Lertwachara & James R. Marsden & Rahul Telang, 2007. "The Effect of Digital Sharing Technologies on Music Markets: A Survival Analysis of Albums on Ranking Charts," Management Science, INFORMS, vol. 53(9), pages 1359-1374, September.
    11. Luc Champarnaud, 2014. "Prices for superstars can flatten out," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(4), pages 369-384, November.
    12. Xi, Ning & Zhang, Zi-Ke & Zhang, Yi-Cheng & Ge, Zehui & She, Li & Zhang, Kui, 2014. "Cultural evolution: The case of babies’ first names," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 406(C), pages 139-144.
    13. Shu Han & S. Abraham Ravid, 2020. "Star Turnover and the Value of Human Capital—Evidence from Broadway Shows," Management Science, INFORMS, vol. 66(2), pages 958-978, February.
    14. Egon Franck & Stephan Nüesch, 2005. "Talent, Past Consumption and/or Popularity - Are German Soccer Celebrities Rosen or Adler Stars?," Working Papers 0005, University of Zurich, Center for Research in Sports Administration (CRSA), revised 2006.
    15. Giles, David E., 2006. "Superstardom in the US popular music industry revisited," Economics Letters, Elsevier, vol. 92(1), pages 68-74, July.
    16. Ordanini, Andrea & Nunes, Joseph C., 2016. "From fewer blockbusters by more superstars to more blockbusters by fewer superstars: How technological innovation has impacted convergence on the music chart," International Journal of Research in Marketing, Elsevier, vol. 33(2), pages 297-313.
    17. Elmer Sterken, 2014. "Collective Memory and Nostalgia in The Dutch Radio2 Top2000 Chart 1999-2013," CESifo Working Paper Series 4632, CESifo.
    18. Francesco Angelini & Massimiliano Castellani, 2019. "Cultural and economic value: a critical review," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 43(2), pages 173-188, June.
    19. Hofmann, Julian & Schnittka, Oliver & Johnen, Marius & Kottemann, Pascal, 2021. "Talent or popularity: What drives market value and brand image for human brands?," Journal of Business Research, Elsevier, vol. 124(C), pages 748-758.
    20. Francisco Alcalá & Miguel González‐Maestre, 2012. "Artistic Creation and Intellectual Property: A Professional Career Approach," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 21(3), pages 633-672, September.

    More about this item

    Keywords

    Music industry; music streaming; industry disruption; public performance;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • Z10 - Other Special Topics - - Cultural Economics - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jinter:v:36:y:2024:i:2:p:166-203. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.