Influence of Digital Era on the Music Industry from the Consumer Behavior Perspective

Abstract

The music industry has long been regarded as a unique sector of the economy. The behaviors of consumers in this industry show strong implications that contradict with traditional economic theories. In this essay, some phenomena in the music industry are discussed from the perspective of behavioral economics, including altruism in the consumption of music, price discrimination in the sales of music, and the formation of super-star economy in music. Mainly qualitative tools are used to deduce the backup theories for consumer behaviors, and some quantitative analyses are also utilized for support. All the analyses in this essay are based on secondhand sources and on a case-by-case way. The essay reaches a conclusion showing that consumers in the music industry has a distinctive consumption pattern, and the coming of digital era do have a great impact on consumers.