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The Effect of Internet Piracy on CD Sales: Cross-Section Evidence

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Author Info
Peitz, Martin
Waelbroeck, Patrick

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Abstract

We analyze the role of music downloading on the current downturn in CD sales. We provide 2000-2001 cross-country evidence in support of the claim of losses due to internet piracy made by the music industry. For the U.S. we also assess the potential loss from internet piracy using detailed survey data. We conclude the empirical analysis by forecasting CD sales for 2002. The results suggest that internet piracy played a significant role in the decline in CD sales in 2001, but can hardly account for the subsequent drop in 2002.

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File URL: http://www.cesifo-group.de/DocCIDL/cesifo1_wp1122.pdf
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Publisher Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 1122.

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Date of creation: 2004
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Handle: RePEc:ces:ceswps:_1122

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Related research
Keywords: piracy; music; peer-to-peer; internet; survey data; cross-country regressions;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Martin Peitz & Patrick Waelbroeck, 2003. "Piracy of Digital Products: A Critical Review of the Economics Literature," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  2. Kai-Lung Hui & Ivan Png, 2003. "Piracy and the Legitimate Demand for Recorded Music," Contributions to Economic Analysis & Policy, Berkeley Electronic Press, vol. 2(1), pages 1160-1160. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Herings, P. Jean-Jacques & Peeters, Ronald & Yang, Michael, 2008. "Competition against peer-to-peer networks," Research Memoranda 020, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization. [Downloadable!]
  2. Alejandro Zentner, 2005. "File Sharing and International Sales of Copyrighted Music: An Empirical Analysis with a Panel of Countries," Topics in Economic Analysis & Policy, Berkeley Electronic Press, vol. 5(1), pages 1452-1452. [Downloadable!] (restricted)
  3. Lonnie K. Stevans, 2005. "An Empirical Investigation into the Effect of Music Downloading on the Consumer Expenditure of Recorded Music: A Time Series Approach," Microeconomics 0502002, EconWPA. [Downloadable!]
    Other versions:
  4. Ivan Png, 2006. "Copyright: A Plea for Empirical Research," Levine's Working Paper Archive 321307000000000484, David K. Levine. [Downloadable!]
  5. Iacopo Grassi, 2007. "The Music Market in the Age of Download," Working Papers 2007.80, Fondazione Eni Enrico Mattei. [Downloadable!]
  6. Becchetti Leonardo & Eleuteri Simone, 2006. "Piracy repression and “Proustian” effects in popular music markets," Departmental Working Papers 243, Tor Vergata University, CEIS. [Downloadable!]
  7. Ville Oksanen & Mikko Välimäki, 2007. "Theory of Deterrence and Individual Behavior. Can Lawsuits Control File Sharing on the Internet?," Review of Law & Economics, Berkeley Electronic Press, vol. 3(3), pages 4. [Downloadable!] (restricted)
  8. Martin Peitz & Patrick Waelbroeck, 2004. "An Economist's Guide to Digital Music," Discussion Papers 32, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
    Other versions:
  9. Martin Peitz & Patrick Waelbroeck, 2004. "File-Sharing, Sampling, and Music Distribution," Discussion Papers 31, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
  10. 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. [Downloadable!] (restricted)
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