Turkish and international music industry : Panel data analysis

Developments in information and communication technologies also bring many changes in other areas. Recorded music industry is one of the most affected areas from these developments. Recorded music products became illegally accessible with the diffusion of Internet usage and consumer preferences have been changed according to this increased accessibility. This change flow in consumer preferences caused music makers and record companies to revises their essential production and marketing strategies as well as their firm structures. With the above mentioned current situation, it has became highly crucial to make necessary reforms and follow their practice in order to fight against illegal chains of distribution for national governments, related recorded music industry institutions and organizations. This thesis contains two main sections. First, seasonality, competition between artists, competition between recordings companies are examined through selected sample of Turkish recorded music industry and released albums. Moreover, density of both international and Turkish record companies is analyzed by using Herfindahl index. Second, situation of international recorded music industry between 2004 and 2011 is analyzed by using panel data analysis. This research aims to elaborate the structure of Turkish music industry and ongoing changes in music industries between 2004 and 2011. Further, clarifications of the current situation of Turkish and international recorded music industry is introduced by using data of physical music sales, digital music sales, GDP, Internet usage and IPR proportions of 49 IFPI member states. As finding show, there are two important results. First, recorded industry is loosing its economic significance. Second, according to Herfindahl index analysis Turkish record companies are less condensed in the sector comparing to international record companies.