Zentner (2005)

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

Zentner (2005)
Title: File sharing and international sales of copyrighted music: An empirical analysis with a panel of countries
Author(s): Zentner, A.
Year: 2005
Citation: Zentner, A. (2005). File sharing and international sales of copyrighted music: An empirical analysis with a panel of countries. Topics in Economic Analysis & Policy, 5(1).
Link(s): Definitive , Open Access
Key Related Studies:
Discipline:
Linked by: Cox, Collins and Drinkwater (2010), Danaher, Dhanasobhon, Smith and Telang (2010), Handke (2012b), Liebowitz (2008), Martikainen (2011), Michel (2006), Zentner (2006), Zentner (2009)
About the Data
Data Description: This study combines the aggregate music sales by country for the years 1997-2002 for 65 countries with country-level data on internet and broadband usage.

Data was obtained on music sales from the IFPI, which published a panel of sales for 71 countries for the years 1997-2002, and combined with a panel of data on internet and broadband usage by country from the International Telecommunication Union, with a panel of software piracy from the Business Software Alliance, and with panels of total and per capita GDP and exchange rates from the World Bank and IMF, respectively.

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

Abstract

Global music sales have substantially fallen in the last four years. This paper uses a panel of country-level data to investigate the extent to which this is a consequence of file sharing. I find that countries with higher internet and broadband penetration have suffered higher drops in music sales, suggesting that music downloads may explain at least part of the recent reduction in sales. I also find some evidence that file sharing may explain a change in the composition of sales by types of repertoires, with a higher reduction of sales of types of music that are being shared more heavily.

Main Results of the Study

  • Countries with higher internet and broadband penetration have suffered higher reductions in music sales, suggesting that file sharing may explain at least part of the recent reduction in sales.
  • The recording industry may increase or decrease prices as a consequence of privacy.
  • File sharing may be behind the recent increase in the share of sales of domestic repertoire in total sales, with a higher reduction of sales of types of music that are being shared more heavily. The percentage increased in this share from 64% of all sales in 1997 to 67.5% in 2001 (within a sample limited to 51 countries).
  • File sharing has a negative effect on the share of sales of international repertoire on total music sales. The percentage decreased in this share between years 1997 and 1998 (within a sample limited to 51 countries).


Policy Implications as Stated By Author

  • Knowledge of the estimates of the impact of file-sharing on sales is an essential part of the information needed to determine the strength of intellectual property rights.
  • The development of fast connections will very likely increase the importance of the impact of file sharing on sales of digital copyrighted goods.



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)
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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