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Video killed the radio star? Evidence from YouTube and iTunes

Author

Listed:
  • Tobias Kretschmer
  • Christian Peukert

Abstract

Making video clips of a song unavailable on YouTube has no effect on its sales on iTunes; but album sales suffer when video clips of a song from it are made unavailable on YouTube. These findings of a study by Tobias Kretschmer and Christian Peukert suggest that we need not worry too much about today's equivalent of the old slogan 'Home taping is killing music'. Their research investigates whether digital sales of songs and albums suffer from videos of the material being freely available online, using a performing rights controversy in Germany that led to far more videos being blocked there than elsewhere: no other country in the world has less access to popular music content on YouTube than Germany, not even South Sudan or Afghanistan. The findings suggest that different digital channels interact in intricate ways - and availability on one can influence success on another.

Suggested Citation

  • Tobias Kretschmer & Christian Peukert, 2014. "Video killed the radio star? Evidence from YouTube and iTunes," CentrePiece - The magazine for economic performance 431, Centre for Economic Performance, LSE.
  • Handle: RePEc:cep:cepcnp:431
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    File URL: https://cep.lse.ac.uk/pubs/download/cp431.pdf
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    Cited by:

    1. Lee, Jonathan F., 2018. "Purchase, pirate, publicize: Private-network music sharing and market album sales," Information Economics and Policy, Elsevier, vol. 42(C), pages 35-55.
    2. Essling, Christian & Koenen, Johannes & Peukert, Christian, 2017. "Competition for attention in the digital age: The case of single releases in the recorded music industry," Information Economics and Policy, Elsevier, vol. 40(C), pages 26-40.

    More about this item

    Keywords

    Sampling; displacement; promotion; natural experiment;
    All these keywords.

    JEL classification:

    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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