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Research Article

Dynamics of Chart Success in Korean Digital Music Industry: Is It Different from Traditional Physical Music Records Industry?

SEUNGYOUP CHOO1 · Hyun, Changmin2 · Seong-Joon Limb1

1 Chung-Ang University, 2 Hyundai I-Park Mall

Published: January 2016 · Vol. 20, No. 4 · pp. 231-254
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Abstract

Previous research found that incidence of chart success measured by the length of chart survival of physical music records was affected by the record production system, competences of record companies, and initial popularity. More specifically, it was found that the records produced by the market based system on average outlasts the records produced by the vertically integrated system in the length of chart survival. Such findings were consistent with the network theory perspective which suggests that as the competition in Korean recording industry has become intense the market based system has been developed as a way for record companies to effectively maintain flexibility and manage risk by accessing to a variety of musicians and creative productions without costly long-term commitment. It was also found that the records produced by either major productions or major record companies on average outlasts the records produced by non-major productions or non-major record companies in the length of chart survival. Such findings were consistent with the resource based view of the firm which suggests that major productions and major record companies that possess superior resources should outperform rivals with lesser resources. Confirming bandwagon effect, it was found that initial popularity was a very important factor in chart survival in Korean recording industry. However, digital music quickly replaces traditional physical music record in Korea resulting very different business environment. The purpose of this study is to investigate whether the traditional factors of chart success in physical music equally affect chart success in digital music. Thus this study examines the dynamics of chart success in Korean digital music industry over the period of 2012 to 2013 using weekly Korean digital music chart listings. Results of the current study suggest that unlike physical music traditional factors of chart success, such as the production system of market based or vertical integration, and the power of major production and distribute companies, were not important for the success of the digital music. Only the initial popularity was an important factor for the digital music as well as physical music. Such results imply that we need a deeper understanding of distinct environment of digital music industry in order to cultivate effective strategies.
Keywords: 디지털 음원수직적 계열화제휴 네트워크편승효과메이저 음반사