In a new research paper entitled “Does Chatter Matter? The Impact of User-Generated Content on Music Sales” NYU Stern Professor Vasant Dhar and student Elaine Chang find that the volume of blog posts featured on the Internet before an album’s 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 they found:
- When legitimate blog posts exceeded a threshold of 40 before an album’s 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 artist’s MySpace friends also contributed to higher future sales, but had a weaker correlation as compared to blog chatter
They tracked changes in the volume of online chatter—blog posts and the number of friends an artist has on MySpace—four weeks before and after an album’s release date.
Download the full article.
Media Coverage
Hollywood Reporter: "Study: Blogs help album sales"
February 13, 2008
PC World: "Blog chatter can triple music sales"
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Computerworld: "Blog Chatter Can Triple Music Sales"
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Blog Hits
Ars Technica: "Blog, social network buzz correlates to better album sales"
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Daily Tech: "Study shows that the more blog posts an album gets, the more sales are made"
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Cossacks Breaking News: "Study: Blogging About Music May Triple its Sales"
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Covert Curiosity: "Music Blogs = Album Sales"
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G4-The Feed: "Daily Wrap-Up"
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Gerd Leonhard - The Future of Media, Technology & Communication: "Study: Blog Chatter Can Triple Album Sales- Digital Media Wire"
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Kofi's Hat: "Say, Heard About That Forthcoming Album Dropping Soon?!?"
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Kristin's Blog: "It's true! 'Chatter Does Matter'"
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MyMediaMusings: "Tipping Point continues to tip"
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Netmix: "Blog Chatter Can Triple Future Sales of Music Albums"
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News From the Music Industry: "NYU Researchers Study Music Blog Buzz"
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No Dessert For You: "It's quite a responsibility, being this powerful"
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PennLive.com: "Influentials--or lots of bloggers--affect music sales"
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Peter Black's Freedom to Differ: "A hardly surprising finding"
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Projector Films - new ideas for film makers: "Obviously"
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Shop Talk: "Influentials--or lots of bloggers--affect music sales"
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Spacelab: "Blogs, Social Networking Sites Lead to Higher Music Sales"
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The9513.com: "Do blogs have an impact on music sales?"
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They Were All Taken...again: "Keep reading, you're helping album sales."
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Top Ten Sources: "NYU Researchers Study Music Blog Buzz"
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What's New In?: "Word-Of-Mouth Web Promotions Boost Record Sales. Go Figure."
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Word of Mouth Marketing Association: "NYU Study Proves that Viral Chatter Matters"
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YetAnotherMusicWeblog: "Blog, Social Network buzz correlates to better album sales"
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