Digitization and Recorded Music Sales: Whither the Long Taill?

Abstract

Recently, business models have reformed in the recorded music industry. Many have seen promise in the leveling of the playing field referred to as the ‘long tail effect’. Others predict a scaled-up presence of pop stars with an enhanced ‘superstar effect’. So which effect is evident in the data? In this research, point of sale data is tested during a transitional period from 2004 to 2008 for a ‘superstar’, ‘long-tail’, and combined effect. It is evident there is a superstar effect in digital formats, a long tail effect in non-digital formats, and a shrinking middle class of artists.