20809 - TWO-SIDED MARKETS IN ENTERTAINMENT: THE CASE OF MUSIC
Course taught in English
Go to class group/s: 31
Markets for creative goods (e.g., movies, music, games) are characterized by a specific complex structure and peculiar working mechanisms. From an economic standpoint, they work as two-sided markets, in which the majority of players often serve two types of customers: a consumer base that consumes the creative output, and business clients that use the creative markets to promote their products. The complexity of this model lies in the fact that the two sides of the market are interdependent, and that the advent of digital technologies multiplied the sources of this interdependence. Music industry is the epitome of the two-sided market model: traditional gatekeepers such as labels or radio broadcasters target consumers of music but also serve brands that want to sponsor music content to reach their audience; streaming platforms provide curated consumption experiences but also host advertising content to support their freemium models; new digital platforms (Tik Tok, Twitch) generate viral content to consumers but also represent powerful social contagion channels for promotional activities. The course aims to explain the principles of the two-sided market model and provide the students with their application in the context of the music industry. At the end of the course, students will be equipped with novel managerial skills to navigate these complex market settings.
The course will start by outlining the working mechanisms of the two-sided market models and then provide a throrough analysis of such mechanisms in the context of the music industry.
1 - Two-sided markets: principles and mechanisms
2 - Music industry as a prototypical two-sided market
3 - Hedonic quality and social contagion in music consumption
4 - Short vs. long term success in the music market
5 - Brand promotion and targeting through music
6 - Music as a channel/tool (vs. content): breaking sectorial boundaries
- Conceptually illustrate and analyze a two-sided market model
- Empirically recognize and identify the two-sided market principles in the context of the music industry
- Practically apply the two-sided market principles to take stragegic decision making in the music industry (and other similar creative industries)
- Identify and understand the working principles of a two-sided market model
- Learn how the music industry operates on the basis of the two-sided market principles
- Properly handle the key managerial issues for music players, associated to the two-sided market principles
- Face-to-face lectures
- Guest speaker's talks (in class or in distance)
- Case studies /Incidents (traditional, online)
- Group assignments
In addition to face-to-face lecturers, this course includes:
- Guest lectures: managers working in music and other creative industries operating as two-sided markets will be invited to share with the students their concrete experience on the topic of the course, to help students' sensemaking;
- Case studies on companies operating in the two-sided music market will be discussed to appreciate the intricacies of the two-sided market model and the managerial tools learned in the course;
- Case-group assignments: students will gather in groups since the beginning of the course, and engage in a real analysis of a two-sided market critical issue, that they have to address and present its solution to the class
|Continuous assessment||Partial exams||General exam|
The written exam has the purpose of checking the conceptual and analytical learning of the students.
The group assignment has the purpose to assess the implementation skills and the presentation capabilities of the students
Course materials will mostly include academic papers and business press articles.
The full list of materials will be indicated at the beginning of the course.