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26-10-02, 12:54 PM | #1 |
Join Date: May 2001
Location: New England
Posts: 10,023
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File Swapping Helping Sales? It’s More Than Possible
From Knowledge@Wharton
Special to CNET News.com Advance publicity is key to a record albums' success, according to Wharton marketing professor Peter Fader, and by trying to stamp out peer-to-peer music trading, record companies are shooting themselves in the foot. In a new report, Fader proposes a statistical model for using advance orders to predict future sales of albums. His results lead to a clear conclusion: "The more buzz you generate, the more you sell," he says. Fader’s thinking is controversial. Many people, including the record companies, disagree with the idea that peer-to-peer music networks such as Kazaa, Gnutella and the now-departed Napster have done more to boost record sales through creating buzz than have done to depress them by replacing buying with downloading. Fader says music downloading is a "form of advertising"--and that music companies should shift from making an album just a "collection of songs" into making it a gateway to a complex, multilayered entertainment experience. http://news.com.com/2009-12-963196.html |
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