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Pirates or Explorers ?Analysis of Music Consumption in French Graduate Schools

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  • David Bounies
  • Marc Bourreau
  • Patrick Waelbroeck

Abstract

This paper analyzes the impact of music file sharing on CD purchases. Traditionally, two arguments are opposed concerning the impact of music file sharing on CD sales. On the one hand, MP3 downloads only reduces sales of legitimate CDs (the "competition effect"). On the other hand, consumption of free MP3s could lead people to buy CD which they would never have bought otherwise (the “sampling effect”). Because the court in the Napster case and some academic researchers have dismissed this sampling effect, this article seeks to assess whether sampling does indeed occur and in the affirmative what are the relative contributions of the positive sampling and the negative competition effects of MP3 files on CD purchases. To do so, we administered an anonymous online survey in two French graduate schools from May 26 to June 3, 2004. We find that there are two populations: explorers and pirates. For the explorers, MP3 downloading from P2P networks has a positive impact on CD consumption. For the pirates, anonymous file-sharing on the internet and intranets has a negative effect on CD consumption, while physical exchanges have a positive effect.

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File URL: https://dipot.ulb.ac.be/dspace/bitstream/2013/80196/1/Bounie1.pdf
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Bibliographic Info

Article provided by ULB -- Universite Libre de Bruxelles in its journal Brussels economic review.

Volume (Year): 50 (2007)
Issue (Month): 2 ()
Pages: 167-192

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Handle: RePEc:bxr:bxrceb:2013/80196

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Related research

Keywords: Internet; Peer-to-Peer; File-Sharing; Piracy; Music; Students;

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Cited by:
  1. Joel Waldfogel, 2012. "Music Piracy and Its Effects on Demand, Supply, and Welfare," NBER Chapters, in: Innovation Policy and the Economy, Volume 12, pages 91-109 National Bureau of Economic Research, Inc.
  2. 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, 09.
  3. Philipp Mandel & Bernd Suessmuth, 2012. "Determinants of Digital Piracy: A Re-examination of Results," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 232(4), pages 394-413, July.
  4. Grazia Cecere & Nicoletta Corrocher & Fabio Scarica, 2012. "Why do pirates buy music online? An empirical analysis on a sample of college students," Economics Bulletin, AccessEcon, vol. 32(4), pages 2955-2968.
  5. Jonathan Dörr & Thomas Wagner & Alexander Benlian & Thomas Hess, 2013. "Music as a Service as an Alternative to Music Piracy?," Business & Information Systems Engineering, Springer, vol. 5(6), pages 383-396, December.

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