Review of Industrial Organization

, Volume 36, Issue 4, pp 351–372

Chart Turnover and Sales in the Recorded Music Industry: 1990–2005

Article

DOI: 10.1007/s11151-010-9250-z

Cite this article as:
Klein, C.C. & Slonaker, S.W. Rev Ind Organ (2010) 36: 351. doi:10.1007/s11151-010-9250-z

Abstract

Chart turnover and sales in the recorded music industry are examined before and during the growth of the Internet as a music source. Chart turnover is measured as the monthly turnover in Billboard’s Top 200 albums chart. Monthly data on expenditures and price indices for music and related goods, as well as demographic and income data, are used in a multivariate structural time series analysis that allows the capture of an unobserved component. We find that turnover positively affects sales, but also that sales are affected positively by an unobserved component that declines in magnitude after 2000.

Keywords

Chart turnover Music industry Unobserved component 

JEL Classification

L82 L86 

Copyright information

© Springer Science+Business Media, LLC. 2010

Authors and Affiliations

  1. 1.Economics and Finance DepartmentMiddle Tennessee State UniversityMurfreesboroUSA
  2. 2.Bethel UniversityNashvilleUSA