An Economic Analysis of the Classical Music Market from the Perspective of Two-Sided Market Theory

Abstract

This paper employs the two-sided market theory to analyze the structure, characteristics, and development trends of the global classical music market. The study reveals that the classical music market, as a typical two-sided market, involves performance institutions, record companies, and streaming platforms acting as intermediaries to connect two distinct groups—music creators and consumers—while facing unique challenges in network externalities and pricing strategies. By examining cross-group network effects, platform competition strategies, and price structures, this paper elucidates the economic mechanisms of the classical music market during its digital transformation. It further provides a theoretical explanation for the rapid growth of classical music markets in developing countries, particularly China, offering a new analytical framework for understanding the commercialization pathways of traditional cultural arts in modern economic contexts.