Abstract
This study constructed a simultaneous equation model of CD sales and rentals, using the data by title of CDs appearing on the Rental Top 100 from 2005 to 2009 in order to investigate the relationship between the sale of a CD and its rental as well as the relationship between a CD and music distribution via networks. The results found both that a CD with high sales was rented frequently and that a CD that was rented frequently had a large amount of sales. This study also showed that the impact of an artist's previous performance on CD sales and rental differed, implying that consumers decided whether they purchased or rented a CD by different criteria. In addition, while hit music in the network distribution market was likely to become hit music in the CD retail market, a similar relationship between hits in the network distribution and rental markets was not found.
