Monday, February 11, 2008

Music Blogs = Album Sales

Via Yahoo! Finance

"In his new research paper entitled, Does Chatter Matter, co-authored with former student Elaine Chang, NYU Stern Professor Vasant Dhar, an expert in the strategic implications of information technology, finds that the volume of blog posts featured on the Internet before an albums release can significantly affect future album sales, and in turn predict sales for record labels. This is the first study to quantify the economic impact of user-generated content for the music industry."

Based on a sample of 108 albums released during the first two months of 2007, Professor Dhar found:

  • When legitimate blog posts exceeded a threshold of 40 before an albums release, sales were three times the average
  • If the albums blogged about were associated with a major record label, sales increased five-fold
  • When blog activity reached more than 250 posts, sales were six times the average regardless of an association with a major or independent label
  • The number of an artists MySpace friends also contributed to higher future sales, but had a weaker correlation as compared to blog chatter

Click here to read the full study

3 comments:

ng2000 said...

Valuable resource of music news summaries: http://www.ng2000.com/fw.php?tp=music

Klimbsac said...

I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.


Sarah

http://www.lyricsdigs.com

Dean said...

This is perfect for my current research. Thanks a lot for posting this.