Hong (2007)

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

Hong (2007a)
Title: The recent growth of the internet and changes in household-level demand for entertainment
Author(s): Hong, S.H.
Year: 2007
Citation: Hong, S. H. (2007). The recent growth of the internet and changes in household-level demand for entertainment. Information Economics and Policy, 19(3), 304-318.
Link(s): Definitive
Key Related Studies:
Discipline:
Linked by:
About the Data
Data Description: The main data for the study are drawn from the 1996–2002 Interview surveys of the consumer expenditure survey (CEX) by the US Bureau of Labor Statistics (BLS). The CEX consists of random samples of households designed to be representative of the total US population. It is a repeated cross-section containing quarterly expenditures on various items.
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:
  • 1996-2002
Funder(s):
  • Stanford Institute for Economic Policy Research

Abstract

This paper investigates whether the recent growth of the Internet complements or substitutes for consumption of existing entertainment goods. Applying a difference-in-differences approach to the Consumer Expenditure Survey, I find varying degrees of potential substitutability between Internet growth and consumer expenditures across different entertainment goods. For most goods, these negative effects appear to be sensitive to changes in specifications. In contrast, the negative effect on recorded music expenditure is statistically significant and robust to different specifications.

Main Results of the Study

Main results:

  • For most entertainment goods, average expenditure for Internet users has declined over time, indicating negative correlations between the development of the Internet and consumption of existing entertainment goods.
  • The magnitude of the decline varies across different entertainment goods. In the case of recorded music, books, and admissions to movies and concerts, the average expenditures for Internet users have decreased considerably, whereas the decline appears to be relatively moderate for other entertainment goods.
  • The decline in Internet users’ expenditures may simply reflect a common time trend.
  • The apparent negative correlations between the growth of the Internet and expenditures on most entertainment goods may be confounded by compositional changes in Internet users in that non-users who tend to spend less on entertainment may have begun to use the Internet over time.
  • Varying degrees of negative correlations across different entertainment goods may rather reflect changes in relative prices among these goods.
  • The author finds varying degrees of potential substitutability between Internet growth and consumer expenditures across different entertainment goods. The growth of the Internet therefore seems to have substituted for consumption of existing entertainment goods.
  • For most goods, these negative effects appear to be sensitive to changes in specifications.
  • In contrast, the negative effect on recorded music expenditure is significant and robust to different specifications.

Policy Implications as Stated By Author

Policy implications:

  • The results provide further evidence on potential substitutability between the growth of the Internet and consumption of various entertainment goods.
  • The results contribute to existing research examining other copyrighted goods in addition to recorded music, and by investigating other factors such as the effect of changes in relative prices.


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)
Green-tick.png
Fair remuneration (levies; copyright contracts)
Green-tick.png
Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Datasets