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Digital copying and the supply of sound recordings

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  • Handke, Christian

Abstract

One concern with digitization in markets for information goods is that unauthorized, digital copying will reduce the number and quality of original works supplied. Despite a substantial literature on the effects of piracy on demand for recorded music, information on the supply-effects of digital copying is limited. This paper presents empirical evidence that digital copying has not reduced the supply of new, copyrighted sound recordings in Germany. Even with a strong reduction in sales of sound recordings that coincided with the diffusion of digital copying technology, the annual number of new titles released to the market continued to expand. Results indicate that the number of new titles released has not deviated significantly from a long-term upward trend. The paper also presents evidence that the amount of time listening to sound recordings has not fallen over this period, suggesting no strong decline in the quality of new work.

Suggested Citation

  • Handke, Christian, 2012. "Digital copying and the supply of sound recordings," Information Economics and Policy, Elsevier, vol. 24(1), pages 15-29.
  • Handle: RePEc:eee:iepoli:v:24:y:2012:i:1:p:15-29
    DOI: 10.1016/j.infoecopol.2012.01.009
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Handke, Christian & Girard, Yann & Mattes, Anselm, 2015. "Fördert das Urheberrecht Innovation? Eine empirische Untersuchung," Studien zum deutschen Innovationssystem 16-2015, Expertenkommission Forschung und Innovation (EFI) - Commission of Experts for Research and Innovation, Berlin.
    2. Aguiar, Luis & Waldfogel, Joel, 2016. "Even the losers get lucky sometimes: New products and the evolution of music quality since Napster," Information Economics and Policy, Elsevier, vol. 34(C), pages 1-15.
    3. repec:eee:joreco:v:32:y:2016:i:c:p:244-252 is not listed on IDEAS
    4. 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.
    5. Christian Handke, 2013. "Empirical evidence on copyright," Chapters,in: Handbook on the Digital Creative Economy, chapter 22, pages 249-261 Edward Elgar Publishing.
    6. 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.
    7. repec:eee:iepoli:v:43:y:2018:i:c:p:1-11 is not listed on IDEAS
    8. Joel Waldfogel, 2015. "Digitization and the Quality of New Media Products: The Case of Music," NBER Chapters,in: Economic Analysis of the Digital Economy, pages 407-442 National Bureau of Economic Research, Inc.
    9. repec:bla:jindec:v:64:y:2016:i:4:p:755-772 is not listed on IDEAS

    More about this item

    Keywords

    File-sharing; Digital copying; Copyright policy; Record industry; Event study;

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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