Pirate or subscriber? An exploratory study on italian consumers' music habits

Purpose of the paper: This paper analyzes Italian consumers’ music habits in terms of online piracy behaviors and their interest toward subscription-based music services (SBMS), i.e. services that for a small monthly fee give users legal access to vast music libraries across multiple devices. The objective is to try and profile a piracy-prone consumer and explore if SBMS could be a viable alternative to online music piracy in Italy, where the general piracy rate is very high. Methodology: The study is based on an empirical quantitative analysis through the collection of 505 questionnaires completed by Italian consumers. Findings: The paper highlights how Italian consumers reflect the ‘attitude-behavior gap’ in music consumption, as they perceive online music piracy as ethically wrong, yet they still show low preference for the legal, reasonably priced choice (such as SBMS). Younger, male, lower education, students have the highest propensity towards online piracy. In addition, consumers’ awareness, familiarity and interest in subscriptionbased music services are still very low. Research limitations: The limitations of the paper are linked mainly to the adapted scales, to the omission of alternative determinants of attitude towards piracy, to the composition of the sample and for analyzing only two subscription-based music services (Napster and Spotify). Managerial implications: The results call for greater efforts by music industry actors and public institutions to educate Italian consumers about the consequences of their online piracy behavior and the possible solutions offered by SBMS. Originality of the paper: This paper is the first to focus on Italian consumers’ music habits, their attitude and behavior towards online piracy and their interest toward subscription-based music services as a viable alternative

The Economics of Music Production. The Narrow Paths for Record Companies to Enter the Digital Era

On the basis of an in depth analysis of the flow of revenues within the music industry and of the emerging practices, we attempt to understand the logic at play in the current evolution of the structure of the industry. We claim that the record companies used to play a role that was useful for the dynamic and for the quality of music production, and analyze whether it can be maintained despite the impossibility for them to further control the formation and distribution of revenues generated by recorded music. Two antagonistic strategies, corresponding to different segments of the market, are highlighted in this paper. One targets the mass market and relies on the recognition by the on-line distributors of the mutual dependency between them and the record companies. It also admits that this music is characterized by short commercial life cycles and that it should be marketed as a consumer product. Moreover revenues are not necessarily generated by sales, but by the value of temporally exclusive release in some channels. The second model targets the wide number of niches at the fringe of this mass market and relies on the building of communities of customers sharing common tastes and values and on the development of their loyalty. The model is commercial, but relies clearly on the cooperation among the various stakeholders that build a common safe harbor enabling specific types of music to sustainably develop. Value added services funded by ubscription have to be developed.economics of culture, cultural industries, digital business model, P2P, industrial organization.

Criminal Minded? : Mixtape DJs, The Piracy Paradox, and Lessons for the Recording Industry

For at least the past three years, leading American fashion designers have lobbied for passage of copyright-like protection for the design aspects of their apparel creations. For at least as long, the recorded music industry has been engaged in an aggressive campaign to enforce its copyrights in recorded music against a number of technology-enabled and/or culturally sympathetic alleged infringers, including twelve year-olds and grandmothers. Although the record labels already have protection under the copyright law while the fashion houses seek it, they have at least one thing in common: some portion of the piracy that they seek to eradicate is more valuable to them than they publicly let on. In their recent article The Piracy Paradox: Innovation and Intellectual Property in Fashion Design, Kal Raustiala and Chris Sprigman explore the low-IP equilibrium of the fashion design industry, as well as the unexpected value created by a low-protection regime. One might ask whether there is anything wrong with chilling an unlawful activity such as large-scale copyright infringement. The article argues that there is something wrong with such a result, but that the owners of the copyright in the recordings either fail to appreciate the problem or fail to account for the problem in executing their enforcement strategy. Hip-hop mixtape DJs are engaged in productive infringement – infringing activity or improper appropriation that adds value to the infringed asset, rather than leading to losses for the copyright owner. Dealing with such infringement requires an approach different from typical recording industry tactics. This article argues that, in order to preserve and enhance the value of their own assets, the record labels should practice strategic forbearance

Rockonomics: The Economics of Popular Music

This paper considers economic issues and trends in the rock and roll industry, broadly defined. The analysis focuses on concert revenues, the main source of performers ' income. Issues considered include: price measurement; concert price acceleration in the 1990s; the increased concentration of revenue among performers; reasons for the secondary ticket market; methods for ranking performers; copyright protection; and technological change.

Rockonomics: The Economics of Popular Music,

Rockonomics, concerts, superstars

Empire State\u27s Cultural Capital at Risk? Assessing Challenges to the Workforce and Educational Infrastructure of Arts and Entertainment in New York

New York State is a world center for the arts and entertainment industry and its vast and uniquely diversified workforce is its main competitive advantage. Commissioned by the New York Empire State Development Corporation, this report examines the strengths and the challenges facing this industry and its workforce in the state, providing an assessment of the education and training infrastructure that supports this vital industry, and identifying issues that offer a potential role for public and private policy

Cultural Capital: Challenges to New York State’s Competitive Advantages in the Arts and Entertainment Industry

This is a report on the findings of the Cornell University ILR planning process conducted with support of a grant from the Alfred P. Sloan Foundation to investigate trends in the arts and entertainment industry in New York State and assess industry stakeholders’ needs and demand for industry studies and applied research. Building on a track record of research and technical assistance to arts and entertainment organizations, Cornell ILR moved toward a long-term goal of establishing an arts and entertainment research center by forging alliances with faculty from other schools and departments in the university and by establishing an advisory committee of key players in the industry. The outcome of this planning process is a research agenda designed to serve the priority needs and interests of the arts and entertainment industry in New York State

Entertainment in the 21st Century: Is an Independent Networked Multimedia Production and Promotion Firm a Viable Business Option in the Modern Entertainment Industry?

“Artists are being stifled by the ‘major label’ stance that exclusively demands what’s ours is ours and can only be handled by us. It should be more about creative freedom” (Monstercat Manifesto). Over the past fifteen years, we have witnessed how the internet has changed how entertainment is distributed and consumed. This has led to a change in behavior from major entertainment production firms, and has given way to the surge of independent labels and production houses. Now, entertainers can lead successful careers by reaching their audience through digital platforms, successfully decreasing production and distribution costs. Consumers can find an unlimited amount of ad-supported content that they can access for free. Understanding these change is vital in finding and solving the problems these changes have produced

Music Aggregators and Intermediation of the Digital Music Market

This article demonstrates that, contrary to popular belief, the advent of the Internet has not made intermediaries in the music market obsolete. Individual artists and independent record labels who want to sell their music in digital music stores must deliver their records via third-party companies called music aggregators. Drawing on the concepts of new institutional economics, the article demonstrates that the emergence of music aggregators is a market response to the high level of transaction costs and bargaining asymmetry associated with selling digital music online. The conclusion suggests that the major music conglomerates may seek ownership links with music aggregators, leading to the emergence of vertically integrated companies, which may have profound consequences for cultural markets

State of the Artist: Challenges to the New York State Arts & Entertainment Industry and its Workforce

[Excerpt] In 2009, with support from Empire State Development (ESD), the Cornell University ILR School published its first report on the state of the New York arts and entertainment (A&E) workforce, Empire State’s Cultural Capital at Risk? Assessing Challenges to the Workforce and the Educational Infrastructure for New York State’s Arts and Entertainment Industry. The report analyzed a number of key characteristics of the A&E workforce across electronic media, live performing, and visual arts, identifying the most pressing issues for New York A&E workers and the support structures in place to protect their interests. The report concluded by proposing a number of questions to policymakers to be considered in future legislation. State of the Artist both updates this analysis of the State A&E workforce and analyzes trends in recent years based on comparable data presented in the 2009 report. The current report draws from government surveys, industry reports, and interviews with key stakeholders to assess the condition of the NYS A&E industry and its workforce, identifying key issues faced by workers in each sector of the industry. In addition to an extensive review of current literature, data from primary and secondary sources was analyzed to assess the state of the industry and major trends by sector. Survey data from the US Census Bureau and Department of Labor, notably from the American Community Survey (ACS), were retrieved to isolate trends in A&E workforce employment patterns, demographics, and income by occupational group. This analysis, including a conference attended by industry leaders and representatives to assess reactions to preliminary findings, served to identify current challenges facing this vital workforce to the state economy. Often left out of discussions about precarious workers, many working within the A&E industry continue to face high rates of contingent and project-based employment, low average income, and inadequate employment protections—all of which are explored here. State of the Artist concludes with a summary of public policies currently in place as well as those under consideration, providing an updated set of questions for New York policymakers