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The Impact of Digital File Sharing on the Music Industry: An Empirical Analysis

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  • Michel Norbert J

    (Nicholls State University)

Abstract

The first file-sharing software, Napster, was shut down in 2001, but the copying technology's impact on the music industry is still passionately debated. This paper uses micro-level data from the Consumer Expenditure Survey to examine the impact of Internet file sharing on music sales. Music industry representatives argue that the practice decreases CD sales, while supporters of file-sharing allege the practice could actually increase sales. Using household-level data from the Consumer Expenditure Survey, we find support for the claim that file-sharing has decreased sales.

Suggested Citation

  • Michel Norbert J, 2006. "The Impact of Digital File Sharing on the Music Industry: An Empirical Analysis," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 6(1), pages 1-24, September.
    • Handle: RePEc:bpj:bejeap:v:topics.6:y:2006:i:1:n:18
    DOI: 10.2202/1538-0653.1549
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    Citations

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    Cited by:

    1. Godefroy Nguyen & Sylvain Dejean & François Moreau, 2014. "On the complementarity between online and offline music consumption: the case of free streaming," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(4), pages 315-330, November.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. Stefano Comino & Fabio Maria Manenti, 2015. "Intellectual Property and Innovation in Information and Communication Technology (ICT)," JRC Research Reports JRC97541, Joint Research Centre.
    9. J. McKenzie & W. D. Walls, "undated". "File Sharing and Film Revenues: An Empirical Analysis," Working Papers 2013-01, Department of Economics, University of Calgary.
    10. 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.
    11. 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).
    12. Warr, Richard & Goode, Mark M.H., 2011. "Is the music industry stuck between rock and a hard place? The role of the Internet and three possible scenarios," Journal of Retailing and Consumer Services, Elsevier, vol. 18(2), pages 126-131.
    13. Emmi Martikainen, 2014. "Does file-sharing reduce DVD sales?," Netnomics, Springer, vol. 15(1), pages 9-31, July.
    14. Oberholzer-Gee, Felix & Strumpf, Koleman, 2016. "The effect of file sharing on record sales, revisited," Information Economics and Policy, Elsevier, vol. 37(C), pages 61-66.
    15. Joëlle Farchy & Mathilde Gansemer & Jessica Petrou, 2013. "E-book and book publishing," Chapters, in: Ruth Towse & Christian Handke (ed.), Handbook on the Digital Creative Economy, chapter 31, pages 353-364, Edward Elgar Publishing.
    16. Talha Harcar & Abdul Naveed Tariq, 2014. "Student’S Attitude Towards Peer-To-Peer Music File Sharing And Downloading From Internet-A Cross Sectional Study Of American And Moroccan Students," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 10(1), pages 10-10.
    17. Hayakawa, Kazunobu & Mukunoki, Hiroshi, 2022. "How does additive manufacturing change trade?: evidence from trade in sound recordings," IDE Discussion Papers 848, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    18. Talha Harcar & Abdul Naveed Tariq, 2014. "Student’S Attitude Towards Peer-To-Peer Music File Sharing And Downloading From Internet-A Cross Sectional Study Of American And Moroccan Students," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 10(1), pages 137-149.
    19. 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.
    20. Stan J. Liebowitz, 2013. "Internet piracy: the estimated impact on sales," Chapters, in: Ruth Towse & Christian Handke (ed.), Handbook on the Digital Creative Economy, chapter 23, pages 262-273, Edward Elgar Publishing.
    21. 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.
    22. Arianna Martinelli & Alessandro Nuvolari & Elisa Palagi & Emanuele Russo, 2022. "Digitalization, copyright and innovation in the creative industries: an agent-based model," LEM Papers Series 2022/03, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    23. Morris, Robert G. & Higgins, George E., 2010. "Criminological theory in the digital age: The case of social learning theory and digital piracy," Journal of Criminal Justice, Elsevier, vol. 38(4), pages 470-480, July.
    24. 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.
    25. Bae Sang Hoo & Kim Myungsup & Yoo Kyeongwon, 2017. "The Effect of Piracy and Digital Rights Management on Vertically Related Content Industries," Review of Network Economics, De Gruyter, vol. 16(1), pages 1-26, March.

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