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File Sharing and International Sales of Copyrighted Music: An Empirical Analysis with a Panel of Countries

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  • Zentner Alejandro

    (University of Texas at Dallas. School of Management)

Abstract

Global music sales have substantially fallen in the last four years. This paper uses a panel of country-level data to investigate the extent to which this is a consequence of file sharing. I find that countries with higher internet and broadband penetration have suffered higher drops in music sales, suggesting that music downloads may explain at least part of the recent reduction in sales. I also find some evidence that file sharing may explain a change in the composition of sales by types of repertoires, with a higher reduction of sales of types of music that are being shared more heavily.

Suggested Citation

  • Zentner Alejandro, 2005. "File Sharing and International Sales of Copyrighted Music: An Empirical Analysis with a Panel of Countries," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-17, October.
    • Handle: RePEc:bpj:bejeap:v:topics.5:y:2005:i:1:n:21
    DOI: 10.1515/1538-0653.1452
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    Cited by:

    1. Chiang, Eric P. & Assane, Djeto, 2008. "Music piracy among students on the university campus: Do males and females react differently?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(4), pages 1371-1380, August.
    2. Cox, Joe & Collins, Alan, 2014. "Sailing in the same ship? Differences in factors motivating piracy of music and movie content," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 50(C), pages 70-76.
    3. Ratchford, Brian & Soysal, Gonca & Zentner, Alejandro & Gauri, Dinesh K., 2022. "Online and offline retailing: What we know and directions for future research," Journal of Retailing, Elsevier, vol. 98(1), pages 152-177.
    4. Stan J. Liebowitz & Richard Watt, 2006. "How To Best Ensure Remuneration For Creators In The Market For Music? Copyright And Its Alternatives," Journal of Economic Surveys, Wiley Blackwell, vol. 20(4), pages 513-545, September.
    5. Joel Waldfogel, 2012. "Music Piracy and Its Effects on Demand, Supply, and Welfare," Innovation Policy and the Economy, University of Chicago Press, vol. 12(1), pages 91-110.
    6. Handke, Christian, 2012. "Digital copying and the supply of sound recordings," Information Economics and Policy, Elsevier, vol. 24(1), pages 15-29.
    7. Yuki Takara, 2018. "Do cultural differences affect the trade of cultural goods? A study in trade of music," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 42(3), pages 393-417, August.
    8. Zentner, Alejandro, 2008. "Online sales, Internet use, file sharing, and the decline of retail music specialty stores," Information Economics and Policy, Elsevier, vol. 20(3), pages 288-300, September.
    9. Cho, Daegon & Smith, Michael D. & Telang, Rahul, 2017. "An empirical analysis of the frequency and location of concerts in the digital age," Information Economics and Policy, Elsevier, vol. 40(C), pages 41-47.
    10. Adermon, Adrian & Liang, Che-Yuan, 2014. "Piracy and music sales: The effects of an anti-piracy law," Journal of Economic Behavior & Organization, Elsevier, vol. 105(C), pages 90-106.
    11. Stan J. Liebowitz, 2014. "The impacts of internet piracy," Chapters, in: Richard Watt (ed.), Handbook on the Economics of Copyright, chapter 13, pages 225-240, Edward Elgar Publishing.
    12. George Barker & Tim Maloney, 2015. "The impact of internet file-sharing on the purchase of music CDs in Canada," Journal of Evolutionary Economics, Springer, vol. 25(4), pages 821-848, September.
    13. Burmester, Alexa B. & Eggers, Felix & Clement, Michel & Prostka, Tim, 2016. "Accepting or fighting unlicensed usage: Can firms reduce unlicensed usage by optimizing their timing and pricing strategies?," International Journal of Research in Marketing, Elsevier, vol. 33(2), pages 343-356.
    14. Brett Danaher & Samita Dhanasobhon & Michael D. Smith & Rahul Telang, 2010. "Converting Pirates Without Cannibalizing Purchasers: The Impact of Digital Distribution on Physical Sales and Internet Piracy," Marketing Science, INFORMS, vol. 29(6), pages 1138-1151, 11-12.
    15. Cox, Joe & Collins, Alan & Drinkwater, Stephen, 2010. "Seeders, leechers and social norms: Evidence from the market for illicit digital downloading," Information Economics and Policy, Elsevier, vol. 22(4), pages 299-305, December.
    16. Eric Chiang & Djeto Assane, 2007. "Determinants of music copyright violations on the university campus," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 31(3), pages 187-204, September.
    17. J. McKenzie & W. D. Walls, "undated". "File Sharing and Film Revenues: An Empirical Analysis," Working Papers 2013-01, Department of Economics, University of Calgary.
    18. Juan Montoro Pons & Manuel Cuadrado García, 2008. "Legal origin and intellectual property rights: an empirical study in the prerecorded music sector," European Journal of Law and Economics, Springer, vol. 26(2), pages 153-173, October.
    19. Christophe Bellégo & Romain De Nijs, 2020. "The Unintended Consequences of Antipiracy Laws on Markets with Asymmetric Piracy: The Case of the French Movie Industry," Information Systems Research, INFORMS, vol. 31(4), pages 1064-1086, December.
    20. Ivan Png, 2006. "Copyright: A Plea for Empirical Research," Levine's Working Paper Archive 321307000000000484, David K. Levine.
    21. Christophe BELLEGO & Romain DE NIJS, 2020. "The Unintended Consequences of Anti-Piracy Laws on Markets with Asymmetric Piracy: The Case of the French Movie Industry," Working Papers 2020-03, Center for Research in Economics and Statistics.
    22. David Waterman & Sung Ji & Laura Rochet, 2007. "Enforcement and Control of Piracy, Copying, and Sharing in the Movie Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 30(4), pages 255-289, June.
    23. Emmi Martikainen, 2014. "Does file-sharing reduce DVD sales?," Netnomics, Springer, vol. 15(1), pages 9-31, July.

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