Chapter 3 Music Economy

The music.dataobservatory.eu monitors the music markets with an economic methodology: we not only measure market volumes and prices, but we also measure both demand- and supply side indicators so that we can forecast future market volumes or prices. (See 6 Innovation pillar?? Forecasting)

Music is not a purely market activity. Music and music services have consumers who pay for it one way or another, but there are non-market forms of music (for example, in liturgy) and music markets are overshadowed by a very large illegal market. Therefore, instead of “music consumption” we use the more appropriate statistical terms of access and participation.

3.1 Music Industry

3.2 Music Demand

3.2.1 Audience data

We measure audience data with statistically well-designed surveys.

A working group of Eurostat and many national statistical offices within the ESSnet Culture working group has reviewed the best practices in survey design and survey harmonization in 2012. Standardized CAP surveys allow the use of comparison with international surveys, for example CAP surveys carried out by the European Union and with other countries, and they allow the use of standardized evaluation of the survey results.

The Final Report of the Woking Group European Statistical System Network on Culture (in short: ESSnet-Culture) (Bína, Vladimir et al. 2012) contains a rather detailed guideline in the report of the Task Force on Cultural Practices And Social Aspects Of Culture, which contains a very mature social scientific model to measure participation, and survey methodology and samples description how to carry out such surveys. CEEMID has carried out so far 7 detailed, nationally representative CAP surveys for music and audiovisual use, which it retrospectively harmonized with EU 2007 and EU 2013 surveys (see ?? Annex - Survey harmonization.)

We have analyzed the differences among various regional markets of music in Europe in the Chapter 2 The Audience of Music of the Central European Music Industry Report 2020.

3.2.2 Demand drivers

Cultural economics and our statistical analysis has identified important drivers of demand. These are measurable indicators that increase the likelihood of a person visiting a concert or buying a record — or that in a smaller or larger territory, many concert tickets and records will be sold.

These indicators will be reported in downloadable format here.

  • Household spending on culture and recreation (in euros and adjusted for purchasing power)
  • Education level
  • Percentage of population in the 15-24 years cohort

3.2.2.1 Ownership of CD players

The following two indicators are use cases of our eurobarometer software package that allows us to create statistical indicators from the usually unpublished, unused questionnaire data of Eurobarometer.

We can create exclusive, international indicators, or comparisons with Latin-America, Africa and the Arab world.

3.2.2.2 Ownership of smartphones

3.2.3 Seasonality

One of the most important aspects of the viability of live music is seasonality. While cultural infrastructure and the income of performers, composers, technicians and managers must be financed throughout the year, concert demand in Europe is extremely seasonal. In emerging markets as much as 25% of all the demand concentrates (in non-pandemic years) to December. (See: CEE Music Industry Report 2020 - 2.1 Seasonality Concentrated Demand)

There are no centralized data sources for ticket sales in Europe. Therefore, we are sampling various “big data” APIs, such as Google Trends or Foursquare. Our experience shows that where we can cross-check with actual sales, these API data follows actual demand with about 95% precision.

Google Trends does not have a documented API, and only gives out a sample of search intensities, relative to the peak search intensity for up to 5 territories. This means that an EU-wide indicator must be created with several, consistent, standardized and normalized queries. This information is available on national or regional level, and for major cities.

Foursquare gives far more precise information, but its API does not allow the storage of individual information for beyond 30 days. Analytical tools can be built on research data, or statistically aggregated information can be stored about relative visiting intensities for cities, metropolitan areas, regions or countries.

3.3 Private Copying

3.3.1 Use Of Cloud Services

3.3.1.1 Among Students

#### Among Prime Music Age Group

The primary age group of music listening, and also for forming listening habits and tastes is the age group of 16-24.

3.3.2 Music Storage & Sharing In The Cloud

3.4 Music Supply

3.4.1 Creators

3.4.2 Recorded Market

3.4.3 Publishing Market

3.4.4 Live Market

References

Bína, Vladimir, Chantepie, Philippe, Deboin, Valérie, Kommel, Kutt, Kotynek, Josef, and Robin, Philippe. 2012. “ESSnet-CULTURE, European Statistical System Network on Culture. Final Report.” Edited by Frank, Guy. http://ec.europa.eu/culture/our-policy-development/documents/ess-net-report-oct2012.pdf.