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Sales displacement and streaming music: Evidence from YouTube

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  • Scott Hiller, R.

Abstract

In this paper I exploit the removal of Warner Music content from YouTube in January 2009, and its restoration in October 2009, as a plausible natural experiment to investigate the impact of online content availability on album sales. I find that this blackout on YouTube had both statistically and economically significant positive effects on Warner albums, which are quickly moderated as top-selling albums are dropped from the sample. Results also show that albums that have a very successful debut face more displacement from YouTube videos, while the effect on lower debuting albums may be moderated by a promotional effect.

Suggested Citation

  • Scott Hiller, R., 2016. "Sales displacement and streaming music: Evidence from YouTube," Information Economics and Policy, Elsevier, vol. 34(C), pages 16-26.
    • Handle: RePEc:eee:iepoli:v:34:y:2016:i:c:p:16-26
    DOI: 10.1016/j.infoecopol.2015.12.002
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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