IDEAS home Printed from https://ideas.repec.org/p/ipt/decwpa/2013-04.html
   My bibliography  Save this paper

Digital music consumption on the internet

Author

Abstract

The goal of this paper is to analyze the behaviour of digital music consumers on the Internet. Using clickstream data on a panel of more than 16,000 European consumers, we estimate the effects of illegal downloading and legal streaming on the legal purchases of digital music. Our results suggest that Internet users do not view illegal downloading as a substitute to legal digital music. Although positive and significant, our estimated elasticities are essentially zero: a 10% increase in clicks on illegal downloading websites leads to a 0.2% increase in clicks on legal purchases websites. Online music streaming services are found to have a somewhat larger (but still small) effect on the purchases of digital sound recordings, suggesting complementarities between these two modes of music consumption. According to our results, a 10% increase in clicks on legal streaming websites lead to up to a 0.7% increase in clicks on legal digital purchases websites. We find important cross country difference in these effects.

Suggested Citation

  • Luis Aguiar & Bertin Martens, 2013. "Digital music consumption on the internet," JRC Working Papers on Digital Economy 2013-04, Joint Research Centre.
    • Handle: RePEc:ipt:decwpa:2013-04
    as

    Download full text from publisher

    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC79605
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stefan Bechtold & Catherine Tucker, 2014. "Trademarks, Triggers, and Online Search," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 11(4), pages 718-750, December.
    2. 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.
    3. Belleflamme,Paul & Peitz,Martin, 2015. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9781107069978, September.
    4. Joost Poort & Jarst Weda, 2015. "Elvis Is Returning to the Building: Understanding a Decline in Unauthorized File Sharing," Journal of Media Economics, Taylor & Francis Journals, vol. 28(2), pages 63-83, June.
    5. 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.
    6. Markus Pasche, 2014. "Welfare Effects of Endogenous Copyright Enforcement - the Case of Digital Goods," Jena Economics Research Papers 2014-008, Friedrich-Schiller-University Jena.
    7. BELLEFLAMME, Paul & PEITZ, Martin, 2014. "Digital piracy: an update," LIDAM Discussion Papers CORE 2014019, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    8. Steven James Watson & Daniel John Zizzo & Piers Fleming, 2015. "Determinants of Unlawful File Sharing: A Scoping Review," PLOS ONE, Public Library of Science, vol. 10(6), pages 1-23, June.
    9. Tatsuo Tanaka, 2019. "The Effects of Internet Book Piracy: Case of Comics," Keio-IES Discussion Paper Series 2019-016, Institute for Economics Studies, Keio University.
    10. Frosio, Giancarlo F., 2016. "Digital piracy debunked: a short note on digital threats and intermediary liability," Internet Policy Review: Journal on Internet Regulation, Alexander von Humboldt Institute for Internet and Society (HIIG), Berlin, vol. 5(1), pages 1-22.

    More about this item

    Keywords

    Digital Music; Copyright; Downloading; Streaming; Piracy on the internet;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • Z1 - Other Special Topics - - Cultural Economics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ipt:decwpa:2013-04. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Publication Officer (email available below). General contact details of provider: https://edirc.repec.org/data/ipjrces.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.