Starjournal Quotation Wlömert, Nils, Papies, Dominik. 2019. International Heterogeneity in the Associations of New Business Models and Broadband Internet with Music Revenue and Piracy. International Journal of Research in Marketing. 36 (3)


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Abstract

Broadband Internet has fundamentally changed business models in many industries. In the music industry, for instance, old business models were challenged by illegal competitors, and broadband Internet has enabled value creation through new business models. The changes that established business models experienced in the wake of broadband Internet, however, differed vastly across national markets, and these differences are not well understood. We build a conceptual framework and study the extent to which differences in economic and cultural factors are associated with different market outcomes in the wake of the proliferation of broadband Internet. Thus, we compile two unique data sets from the music industry, comprising (1) revenue data for 36 countries and 22 years and (2) piracy data for 47 countries and more than 2 years. We use a Bayesian multilevel model to explore between-country heterogeneity in the associations between these variables and broadband Internet adoption and business model innovations. Our results show that the negative association between broadband Internet penetration and music revenue is weaker in high-income countries, where income restrictions are less likely to drive demand towards illegitimate piracy services. In terms of cultural factors, we find that a market’s response to the introduction of broad-band Internet is less negative in countries scoring high on Hofstede’s individualism and uncertainty avoidance dimensions. Furthermore, we find that overall revenues only recover after the latest generation of streaming services (e.g., Spotify) has been introduced, and the adoption of these services is associated with lower levels of online music piracy.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal International Journal of Research in Marketing
Citation Index SSCI
WU Journalrating 2009 A+
Starjournal Y
Language English
Title International Heterogeneity in the Associations of New Business Models and Broadband Internet with Music Revenue and Piracy
Volume 36
Number 3
Year 2019
Reviewed? Y
DOI https://doi.org/10.1016/j.ijresmar.2019.01.007
Open Access N

Associations

People
Wlömert, Nils (Details)
External
Papies, Dominik (University of Tuebingen, Germany)
Organization
Interactive Marketing and Social Media IN (Details)
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