The Release of “Greatest Hits” in the Italian Recording Industry: An Empirical Analysis of Strategies and Timing

Abstract

The release of a greatest hits album is a way of extending a record company’s product line. It follows one of two strategies: take advantage of the success of current artists (exploitation), or resuscitate the careers of long-standing artists (revival). This paper analyses the relationship between the success of greatest hits and the timing of their launch. Through an empirical analysis of 402 greatest hits releases in the Italian market, the authors discuss fi ve hypotheses based on both strategies, in order to determine which time-to-market features are related to the product’s success. The findings reveal a strong relationship between timing and market performance, leading to several implications: exploitation and revival strategies have different time-to-market requirements; these requirements are not met in the case of many greatest hits releases; and a greatest hits album should not be used as a means of reviving an artist’s career