Bundling Information Goods of Decreasing Value
Management Science
Inferring similarity between music objects with application to playlist generation
Proceedings of the 7th ACM SIGMM international workshop on Multimedia information retrieval
Whatever happened to payola? an empirical analysis of online music sharing
Decision Support Systems
Information Systems Research
Consumer Search and Retailer Strategies in the Presence of Online Music Sharing
Journal of Management Information Systems
Digital goods and markets: Emerging issues and challenges
ACM Transactions on Management Information Systems (TMIS)
The impacts of piracy and supply chain contracts on digital music channel performance
Decision Support Systems
Consumer Piracy Risk: Conceptualization and Measurement in Music Sharing
International Journal of Electronic Commerce
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Music bundling has been the mainstay of the music industry for decades. Record companies and producers have selected bundles of songs and sold them as albums, their most important revenue source. Digitization and piracy of music have threatened this standard business model with consumers increasingly purchasing music a la carte. In this study, we analyze a strategy for designing successful albums through using new concepts of themed bundling. Thematic bundling can lower consumer search costs and dampen the incentive to pirate music, and can potentially be a win-win strategy for both consumers and music companies. Unlike prior work in economics on bundling which typically seeks to determine the optimal price, bundle size and composition, we focus on a restricted bundling problem, since the price of the bundled product (i.e. an album) is generally set over a narrow range as is the number of items (i.e. songs) in the bundle. Our key results and insights are derived using analytic modeling and extended through numerical analysis. In addition, our key findings are supported by our empirical analysis of music album chart performance.