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The economic impact of streaming beyond GDP

Author

Listed:
  • Edquist, Harald
  • Goodridge, Peter
  • Haskel, Jonathan

Abstract

This paper finds that the shift from buying music as a physical product towards subscribing to music services implies a decrease of 85 percent in the price paid per song. We estimate that in 2019 the global quality adjusted value from streamed music was $76 billion compared to current revenues of $11.4 billion. Thus, the shift from consuming music in physical form towards subscribing to music services creates an enormous consumer surplus that is not recorded in GDP.

Suggested Citation

  • Edquist, Harald & Goodridge, Peter & Haskel, Jonathan, 2020. "The economic impact of streaming beyond GDP," ITS Conference, Online Event 2020 224851, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itso20:224851
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    References listed on IDEAS

    as
    1. Aguiar, Luis, 2017. "Let the music play? Free streaming and its effects on digital music consumption," Information Economics and Policy, Elsevier, vol. 41(C), pages 1-14.
    2. 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.
    3. Erik Brynjolfsson & Felix Eggers & Avinash Gannamaneni, 2018. "Measuring Welfare with Massive Online Choice Experiments: A Brief Introduction," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 473-476, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Streaming; price index; mobile broadband;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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