The Joint Research Centre (JRC) of the EU Commission recently published a study entitled “Digital Music Consumption on the Internet: Evidence from Clickstream Data” with remarkable results. The authors, Luis Aguiar and Bertin Martens, concluded that music file sharing as well as music streaming have a significant positive impact on legal music downloads. The study is based on Clickstream data from Nielsen NetView. The database contains all the clicks of 25,000 Internet users in France, Germany, Italy, Spain and the United Kingdom for the calendar year 2011. In the following the main finding “(…) that digital music piracy does not displace legal music purchases in digital format” will be further investigated.
Posts Tagged ‘music file sharing
Tags: Bertin Martens, clickstream data, digital music consumption, Joint Research Centre of the EU Commission, JRC, Luis Aguiar, music consumption behaviour, music download, music file sharing, music purchase, music sales, music streaming, NetView, p2p music file sharing
In this blog the early music industry in Australia was analysed in great detail (The Early Record Industry in Australia – part 1, part 2, part 3, part 4, part 5 and part 6). In a four part series on the Australian music business I would like to highlight the recent economic situation of the Australian music industry. In the first part of this series the charts of the Australian Recording Industry Association (ARIA) are analysed to understand the consumers’ taste downunder especially in respect to the Australian national repertoire. In the second part the question is answered, which labels benefit from the chart successes of international and domestic artists. In a third part the development of the recorded music sales in Australia from 2000 to 2011 is analysed to give an explanation for the ups and downs in the observed period. In the fourth and last part of the series the economic role of collecting societies in Australia is highlighted especially from the licensing income’s perspective.
In the following the Australian recorded music market is analysed in detail to answer the question why the market was hit by the recession not earlier than 2006.
In a recent working paper by Robert G. Hammond of North Carolina State University the impact of album pre-releases in file-sharing networks on physical and digital album sales is analyzes. The paper comes to the conclusion that album sales benefit from album leaks. “[A]n album that became available in file-sharing networks one month earlier would sell 60 additional units”. In addition the results also suggest that popular artists benefit more from file-sharing than newcomers and less establised artists. In the following the analytical and methodolocigal background and the results of this paper are highlighted.
The economist Jordi McKenzie of the University of Sydney published the first study on the impact of music file sharing on music sales (physical and digital) in Australia. His article in the Australian Economic Papers entitled “Illegal Music Downloading and Its Impact on Legitimate Sales: Australian Empirical Evidence” is based on a working paper from August 2009 and was published in December 2009.
With a similar methodological approach to Oberholzer-Gee and Strumpf (2007) he came to the conclusion that “(…) the evidence suggests no discernible impact of dowloading activity on legitimate sales“. More details on his approach and his findings are given here: Continue reading ‘How Bad Is Music File Sharing? – Part 23′
The objective of Brigitte Andersen and Marion Frenz’s study entitled “The Impact of Music Downloads and the P2P File-Sharing on the Purchase of Music”,(2007/08), which was later published in the Journal of Evolutionary Economics under the title “Don’t blame the P2P file-sharers: The Impact of Free Music Downloads on the Purchase of Music CDs in Canada” (2010) was to determine how the downloading of music files through P2P networks influences music purchases in Canada. They used data from a representative survey of the Canadian population aged 15 and older collected by Decima Research for Industry Canada, in which 2,100 repondents were also asked how many CDs and non-physical music tracks they purchased in the last two months and how much they paid for it on average. They show in their paper “(…) that P2P file-sharing is not to blame for the decline in CD markets. Music markets are not simply undermined by free music downloading and P2P file-sharing, due to the sampling effect” (2010: 735).
On 17 January 2011 Dennis Collopy and David Bahanovivh from the University of Hertfortshire presented the results of the panel study on “Music Experience and Behavior in Young People” in a workshop at the Institute of Culture Management and Culture Studies at University of Music and Performing Arts Vienna. Until now results are available for 2008 and 2009, but the next wave of interviews will be conducted in spring 2011.
In the following the results of both studies will be highlighed: Continue reading ‘Music Experience and Behavior in Young People in the UK – a workshop presentation’
A widely discussed study on music file sharing is Felix Oberholzer-Gee’s and Koleman Strumpf’s paper ”The Effect of File Sharing on Record Sales: An Empirical Analysis”, which was originally made accessable online to the public as a Harvard Business School working paper in 2004 and was eventually published, after revisions, in the Journal of Political Economy 2007.
In an article entitled “The Effect of Digital Sharing Technologies on Music Markets: A Survival Analysis of Albums on Ranking Charts” published in Management Science, Bhattacharjee et al. (2007) made a comparative analysis if the survival time of albums in the U.S. Billboard top 100 weekly charts differs after the time period of mid 1998 to 2000. This time span represented a watershed period in der music industry’s history. In these years the MP3 format was introduced and rapidly gain popularity. The Digital Millenium Copyright Act was passed in the U.S. Napster was emerged und popularized the use of P2P file sharing networks. DVDs gained popularity as well as online chat rooms and computer games and it was the beginning of a downturn of the overall economy after the dot.com bubble bursted. Continue reading ‘How Bad Is Music File Sharing? – Part 20′
The study of Tanaka (2004) “Does File Sharing Reduce Music CD Sales?” was based on the the one hand on micro data of CD sales, which were collected on a weekly basis of 30 best selling CDs from June to November 2004 in Japan. On the other, download figures were obtained on each weekend in the sample period from the completely decentralized and most popular Japanese file sharing network Winny. In addition, the author also carried out a non-representative user survey among students on file sharing and CD purchases. Neither the micro data based estimation results nor the students’ survey indicated a negative impact of music file sharing on record sales. Continue reading ‘How Bad Is Music File Sharing? – Part 19′
After several revisions (Hong 2004, 2005, 2007), Hong published in July 2011 a working paper entitled “Measuring the Effect of Napster on Recorded Music Sales”, in which he tried to measure the effect of file sharing on recorded music sales. Since he did not directly observe file sharing activity, the author compared a treatment group of Internet users with a control group of non-Internet users before and after the advent of Napster in 1999 and attempted to eliminate the time effect and isolate the so-called “Napster-effect”. Continue reading ‘How Bad Is Music File Sharing? – Part 18′