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On the complementarity between online and offline music consumption: the case of free streaming

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  • Godefroy Nguyen
  • Sylvain Dejean
  • François Moreau

Abstract

From a representative survey of 2,000 individuals, we study whether consumption of music through streaming services, like Spotify or YouTube, is a substitute or a complement to physical music consumption modes, such as CDs and live music. Controlling for the taste for music, various socio-demographic characteristics and the usual determinants of music consumption either offline (radio, TV, friends/relatives) or online (online recommendations, social networks), our results show that free music streaming (where the consumer does not possess the music but only has access to it) has no significant effect on CD sales and affects positively live music attendance, but only for national or international artists who are more likely to be available on streaming services. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • 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.
    • Handle: RePEc:kap:jculte:v:38:y:2014:i:4:p:315-330
    DOI: 10.1007/s10824-013-9208-8
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    Cited by:

    1. Ramadan Aly-Tovar & Maya Bacache-Beauvallet & Marc Bourreau & Francois Moreau, 2020. "Why would artists favor free streaming?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 44(2), pages 255-280, June.
    2. Hendrik Sonnabend, 2016. "Fairness constraints on profit-seeking: evidence from the German club concert industry," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 40(4), pages 529-545, November.
    3. Trilce Navarrete & Karol J. Borowiecki, 2015. "Change in access after digitization: Ethnographic collections in Wikipedia," ACEI Working Paper Series AWP-10-2015, Association for Cultural Economics International, revised Oct 2015.
    4. Marco Palomeque & Juan de-Lucio, 2024. "The Soundtrack of a Crisis: More Positive Music Preferences During Economic and Social Adversity," Journal of Happiness Studies, Springer, vol. 25(5), pages 1-24, June.
    5. Christian Peukert, 2019. "The next wave of digital technological change and the cultural industries," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 43(2), pages 189-210, June.
    6. Samuel Cameron, 2016. "Past, present and future: music economics at the crossroads," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 40(1), pages 1-12, February.
    7. Luis Aguiar, 2015. "Let the Music Play? Free Streaming, Product Discovery, and Digital Music Consumption," JRC Working Papers on Digital Economy 2015-16, Joint Research Centre.
    8. Tobias Kretschmer & Christian Peukert, 2020. "Video Killed the Radio Star? Online Music Videos and Recorded Music Sales," Information Systems Research, INFORMS, vol. 31(3), pages 776-800, September.
    9. Victoria Ateca-Amestoy & Concetta Castiglione, 2023. "Live and digital engagement with the visual arts," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 47(4), pages 643-692, December.
    10. Shinichi Yamaguchi & Kotaro Iyanaga & Hirohide Sakaguchi & Tatsuo Tanaka, 2017. "The Substitution Effect of Mobile Games on Console Games: An Empirical Analysis of the Japanese Video Game Industry," The Review of Socionetwork Strategies, Springer, vol. 11(2), pages 95-110, December.
    11. Victoria Ateca-Amestoy & Concetta Castiglione, 2016. "The consumption of cultural goods through the internet. How is it affected by the digital divide?," ACEI Working Paper Series AWP-04-2016, Association for Cultural Economics International, revised May 2016.
    12. Romeu, Andrés & Martinez-Sanchez, Francisco, 2015. "Technological Development and Software Piracy," UMUFAE Economics Working Papers 43702, DIGITUM. Universidad de Murcia.
    13. Karla Borja & Suzanne Dieringer, 2022. "Is music piracy over? Comparing music piracy attitudes and behaviors between young generations," Journal of Consumer Affairs, Wiley Blackwell, vol. 56(2), pages 899-924, June.
    14. Shinichi Yamaguchi & Hirohide Sakaguchi & Kotaro Iyanaga & Hidetaka Oshima & Tatsuo Tanaka, 2023. "The impact of licensed and unlicensed free goods: an empirical analysis of music, video, and book industries in Japan," SN Business & Economics, Springer, vol. 3(3), pages 1-22, March.
    15. Orçun Kasap & Altug Yalcintas, 2021. "Commodification 2.0: How Does Spotify Provide Its Services for Free?," Review of Radical Political Economics, Union for Radical Political Economics, vol. 53(1), pages 157-172, March.
    16. Christensen, Finn, 2022. "Streaming Stimulates the Live Concert Industry: Evidence from YouTube," International Journal of Industrial Organization, Elsevier, vol. 85(C).
    17. Pablo De la Vega & Sara Suarez-Fernández & David Boto-García & Juan Prieto-Rodríguez, 2020. "Playing a play: online and live performing arts consumers profiles and the role of supply constraints," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 44(3), pages 425-450, September.
    18. Hidetaka Oshima & Shinichi Yamaguchi, 2023. "The impact of user-generated content authorization on demand in the game industry," SN Business & Economics, Springer, vol. 3(11), pages 1-26, November.
    19. Martínez-Sánchez, Francisco & Romeu, Andrés, 2018. "Development and software piracy," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 12, pages 1-21.

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    More about this item

    Keywords

    Music consumption; Streaming; Substitutability; L2; L86; Z1;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • Z1 - Other Special Topics - - Cultural Economics

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