Does pop music exist? Hierarchical structure in phonographic markets

Abstract

I find a topological arrangement of assets traded in phonographic markets which has associated a meaningful economic taxonomy. I continue using the Minimal Spanning Tree and the correlations between assets, but now outside the stock markets. This is the first attempt to use these methods on phonographic markets where we have artists instead of stocks. The value of an artist is defined by record sales. The graph is obtained starting from the matrix of correlation coefficients computed between the world’s most popular 30 artists by considering the synchronous time evolution of the difference of the logarithm of weekly record sales. This method provides the hierarchical structure of the phonographic market and information on which music genre is meaningful according to customers. Statistical properties (including the Hurst exponent) of weekly record sales in the phonographic market are also discussed.