[工程科技]Should Music Labels Pay for Radio Airplay Investigating the Relationship Between.pdf

Print Date: 8/20/2002 Should Music Labels Pay for Radio Airplay? Investigating the Relationship Between Album Sales and Radio Airplay by Alan L. Montgomery and Wendy W. Moe August 2002 The authors wish to thank Pete Fader and Capitol Records for the data used in this research. Alan L. Montgomery is an Associate Professor of Industrial Administration at Carnegie Mellon University, GSIA, 5000 Forbes Ave., Pittsburgh, PA 15213 (e-mail: alan.montgomery@) and Wendy W. Moe is an Assistant Professor of Marketing at the University of Texas at Austin, McCombs Schools of Business, Austin, TX 78712-1178 (e-mail: wendy.moe@). Copyright © 2002 by Alan L. Montgomery and Wendy W. Moe, All rights reserved Should Music Labels Pay for Radio Airplay? Investigating the Relationship Between Album Sales and Radio Airplay Abstract: Managers in the music industry closely monitor both radio airplay of an album as well as the albums sales. Their interest in radio airplay is due to the belief that airplay can increase an album’s sales. Therefore it is natural for managers to attempt to influence radio airplay so as to subsequently impact album sales and ultimately profits. Over the past several years the concept of “pay-for-play” has resurfaced. If direct payments for radio airplay are to be made, then a precise understanding of the dynamic relationship between sales and airplay is needed. Typically radio airplay and album sales both show an exponential declining pattern. It is natural to ask whether