IDEAS home Printed from https://ideas.repec.org/a/kap/atlecj/v46y2018i1d10.1007_s11293-017-9567-1.html
   My bibliography  Save this article

Did the RIAA’s Prosecution of Music Piracy Impact Music Sales?

Author

Listed:
  • David M. Mitchell

    (Missouri State University)

  • C. Patrick Scott

    (Lousiana Tech University)

  • Keneth H. Brown

    (Missouri State University)

Abstract

Between 2004 and 2009 it is estimated that over 30 billion songs were downloaded illegally on different peer-to-peer sharing networks according to the Recording Industry Association of America (RIAA). In an attempt to stop this during the late 1990’s and early 2000s the RIAA and other music labels engaged in a very public and vigorous campaign of prosecution of firms, such as Napster and Limewire, for copyright violations in order to reduce piracy. Due to the public backlash, in late 2008 the RIAA announced that they would begin to stop litigation on a grand scale. This paper examines the impact that this model of piracy prosecution had on music sales. We find evidence that the RIAA’s model of litigation actually backfired and led to decreased legitimate album sales. Additionally, we find that variation in per capita seasonally adjusted album sales cannot be explained by the existence of both Limewire and Napster file sharing services.

Suggested Citation

  • David M. Mitchell & C. Patrick Scott & Keneth H. Brown, 2018. "Did the RIAA’s Prosecution of Music Piracy Impact Music Sales?," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 46(1), pages 59-71, March.
  • Handle: RePEc:kap:atlecj:v:46:y:2018:i:1:d:10.1007_s11293-017-9567-1
    DOI: 10.1007/s11293-017-9567-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11293-017-9567-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s11293-017-9567-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Martin Peitz & Patrick Waelbroeck, 2004. "The Effect of Internet Piracy on CD Sales: Cross-Section Evidence," CESifo Working Paper Series 1122, CESifo.
    2. Rob, Rafael & Waldfogel, Joel, 2006. "Piracy on the High C's: Music Downloading, Sales Displacement, and Social Welfare in a Sample of College Students," Journal of Law and Economics, University of Chicago Press, vol. 49(1), pages 29-62, April.
    3. Eric P. Chiang & Djeto Assane, 2009. "Estimating The Willingness To Pay For Digital Music," Contemporary Economic Policy, Western Economic Association International, vol. 27(4), pages 512-522, October.
    4. Lonnie Stevans & David Sessions, 2005. "An Empirical Investigation Into the Effect of Music Downloading on the Consumer Expenditure of Recorded Music: A Time Series Approach," Journal of Consumer Policy, Springer, vol. 28(3), pages 311-324, September.
    5. Leung, Tin Cheuk, 2015. "Music piracy: Bad for record sales but good for the iPod?," Information Economics and Policy, Elsevier, vol. 31(C), pages 1-12.
    6. Zentner, Alejandro, 2006. "Measuring the Effect of File Sharing on Music Purchases," Journal of Law and Economics, University of Chicago Press, vol. 49(1), pages 63-90, April.
    7. Bhattacharjee, Sudip & Gopal, Ram D & Lertwachara, Kaveepan & Marsden, James R, 2006. "Impact of Legal Threats on Online Music Sharing Activity: An Analysis of Music Industry Legal Actions," Journal of Law and Economics, University of Chicago Press, vol. 49(1), pages 91-114, April.
    8. Waldfogel, Joel, 2010. "Music file sharing and sales displacement in the iTunes era," Information Economics and Policy, Elsevier, vol. 22(4), pages 306-314, December.
    9. Felix Oberholzer-Gee & Koleman Strumpf, 2007. "The Effect of File Sharing on Record Sales: An Empirical Analysis," Journal of Political Economy, University of Chicago Press, vol. 115(1), pages 1-42.
    10. Liebowitz, Stan J, 2006. "File Sharing: Creative Destruction or Just Plain Destruction?," Journal of Law and Economics, University of Chicago Press, vol. 49(1), pages 1-28, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brett Danaher & Michael D. Smith & Rahul Telang, 2014. "Piracy and Copyright Enforcement Mechanisms," Innovation Policy and the Economy, University of Chicago Press, vol. 14(1), pages 25-61.
    2. Tyrowicz, Joanna & Krawczyk, Michal & Hardy, Wojciech, 2020. "Friends or foes? A meta-analysis of the relationship between “online piracy” and the sales of cultural goods," Information Economics and Policy, Elsevier, vol. 53(C).
    3. 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.
    4. Wojciech Hardy & Michal Krawczyk & Joanna Tyrowicz, 2015. "Friends or foes? A meta-analysis of the link between "online piracy" and sales of cultural goods," Working Papers 2015-23, Faculty of Economic Sciences, University of Warsaw.
    5. Leung, Tin Cheuk, 2015. "Music piracy: Bad for record sales but good for the iPod?," Information Economics and Policy, Elsevier, vol. 31(C), pages 1-12.
    6. Chao, Hong & Ho, Chun-Yu & Leung, Tin Cheuk & Ng, Travis, 2017. "To root or not to root? The economics of jailbreak," Journal of Comparative Economics, Elsevier, vol. 45(3), pages 481-497.
    7. Lee, Jonathan F., 2018. "Purchase, pirate, publicize: Private-network music sharing and market album sales," Information Economics and Policy, Elsevier, vol. 42(C), pages 35-55.
    8. Herings, P. Jean-Jacques & Peeters, Ronald & Yang, Michael S., 2018. "Piracy on the Internet: Accommodate it or fight it? A dynamic approach," European Journal of Operational Research, Elsevier, vol. 266(1), pages 328-339.
    9. 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.
    10. Scott Hiller, R., 2016. "Sales displacement and streaming music: Evidence from YouTube," Information Economics and Policy, Elsevier, vol. 34(C), pages 16-26.
    11. 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.
    12. 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.
    13. Dilmperi, Athina & King, Tamira & Dennis, Charles, 2011. "Pirates of the web: The curse of illegal downloading," Journal of Retailing and Consumer Services, Elsevier, vol. 18(2), pages 132-140.
    14. 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.
    15. Michael Arnold & Éric Darmon & Sylvain Dejean & Thierry Pénard, 2014. "Graduated Response Policy and the Behavior of Digital Pirates: Evidence from the French Three-strike (Hadopi) Law," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201401, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    16. Aguiar, Luis & Martens, Bertin, 2016. "Digital music consumption on the Internet: Evidence from clickstream data," Information Economics and Policy, Elsevier, vol. 34(C), pages 27-43.
    17. Markus Pasche, 2014. "Welfare Effects of Endogenous Copyright Enforcement - the Case of Digital Goods," Jena Economics Research Papers 2014-008, Friedrich-Schiller-University Jena.
    18. Robert G. Hammond, 2014. "Profit Leak? Pre‐Release File Sharing and the Music Industry," Southern Economic Journal, John Wiley & Sons, vol. 81(2), pages 387-408, October.
    19. Handke, Christian, 2012. "Digital copying and the supply of sound recordings," Information Economics and Policy, Elsevier, vol. 24(1), pages 15-29.
    20. Imke Reimers, 2016. "Can Private Copyright Protection Be Effective? Evidence from Book Publishing," Journal of Law and Economics, University of Chicago Press, vol. 59(2), pages 411-440.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:atlecj:v:46:y:2018:i:1:d:10.1007_s11293-017-9567-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.