Friday, December 05, 2008

Music Technology, a brief history lesson

Every successful new technological innovation in music recording and playback has led to an expansion of the market for recorded music.

U.S. Music Sales, 1975-2005: Vinyl, cassettes, and CDs

MP3s are showing the same trend, their curve beginning in the late 1990s with Napster etc. There is a price effect, as new technology reduces the unit cost of a recording. There is also reported to be a replacement effect - people who bought vinyl, downsizing their record shelves to CD-size. And I think also a generational effect, as the children of the 60s and 70s continue to purchase new music in their middle age, where the generation before them did not, thereby expanding the market.

1 comment:

anikainlondon said...

intriguing graph. I'm doing my economics coursework on the music download market, hopefully it'll be easy to research.