Handke (2012b)

From Copyright EVIDENCE

Advertising Architectural Publishing of books, periodicals and other publishing Programming and broadcasting Computer programming Computer consultancy Creative, arts and entertainment Cultural education

Film and motion pictures Sound recording and music publishing Photographic activities PR and communication Software publishing (including video games) Specialised design Television programmes Translation and interpretation

1. Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare 2. Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)? 3. Harmony of interest assumption between authors and publishers (creators and producers/investors) 4. Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption) 5. Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)

A. Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right) B. Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction) C. Mass digitisation/orphan works (non-use; extended collective licensing) D. Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability) E. Fair remuneration (levies; copyright contracts) F. Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Source Details

Handke (2012)
Title: Digital Copying and the Supply of Sound Recording
Author(s): Handke, C.
Year: 2012
Citation: Handke, C. (2012). Digital copying and the supply of sound recordings. Information Economics and Policy, 24(1), 15-29.
Link(s): Definitive , Open Access
Key Related Studies:
Discipline:
Linked by:
About the Data
Data Description: The basic data includes the number of new, long-play titles released in the German market each year from 1984 to 2006 from the BV report. The data does not include imports and the second-hand market. The data accounts for all titles that are marketed through the more professional/commercial end of the market for sound-recordings and excludes hobbyists, singles, and compilations.

The time series is partitioned into two segments: (1) 1984-1998, with low rates of unauthorized copying; and (2) 1999-2006, where copying occurred on a massive scale using file-sharing and CD-burning technology. The series contains 23 observations, with 15 between 1984-1999 and 8 between 1999-2006.

Data Type: Secondary data
Secondary Data Sources:
Data Collection Methods:
Data Analysis Methods:
Industry(ies):
Country(ies):
Cross Country Study?: No
Comparative Study?: No
Literature review?: No
Government or policy study?: No
Time Period(s) of Collection:
  • 1984 to 2006
Funder(s):
  • Not stated

Abstract

One concern with digitization in markets for information goods is that unauthorized, digital copying will reduce the number and quality of original works supplied. Despite a substantial literature on the effects of piracy on demand for recorded music, information on the supply effects of digital copying is limited. This paper presents empirical evidence that digital copying has not reduced the supply of new, copyrighted sound recordings in Germany. Even with a strong reduction in sales of sound recordings that accompanied the diffusion of digital copying technology, the annual number of new titles released to the market continued to expand. Results indicate that the number of new titles released has not deviated significantly from a long-term upward trend. The paper also presents evidence that the amount of time listening to sound recordings has not fallen over this period, suggesting no strong decline in the quality of new work.

Main Results of the Study

  • The analysis found no significant impact of digital copying and severe sales declines between 1999 and 2006 on the number of new titles supplied in the German market for sound recordings.
  • Eight years into the recession, the number of new titles supplied continued to expand. There is no evidence that the rate of growth of the number of new titles released to the market would have declined in the presence of digital copying.
  • Germans spent more time listening to sound recordings after 1998/1999 than before, which suggests that the quality of supply has not deteriorated substantially.


Policy Implications as Stated By Author

  • It may be misleading to base copyright policy on the assumption that there is a strong, positive relationship between excludability and content creation under current market conditions.



Coverage of Study

Coverage of Fundamental Issues
Issue Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)?
Harmony of interest assumption between authors and publishers (creators and producers/investors)
Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption)
Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)
Green-tick.png
Coverage of Evidence Based Policies
Issue Included within Study
Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right)
Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction)
Mass digitisation/orphan works (non-use; extended collective licensing)
Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability)
Fair remuneration (levies; copyright contracts)
Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)
Green-tick.png

Datasets

Sample size: 1
Level of aggregation: Industry
Period of material under study: 1994 to 2006


Sample size: 22
Level of aggregation: Years of sales data
Period of material under study: 1994 to 2006