Source Details
Liebowitz (2005)
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Title: |
Testing file-sharing's impact by examining record sales in cities
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Author(s): |
Liebowitz, SJ
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Year: |
2005
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Citation: |
Liebowitz, S. J. (2005). Testing file-sharing's impact by examining record sales in cities. School of Management University of Texas Paper, September, 1-31.
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Link(s): |
Definitive , Open Access
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Key Related Studies: |
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Discipline: |
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Linked by: |
Albinsson (2013), Andersen and Frenz (2008), Giletti (2012), Grolleau, Mzoughi and Sutan (2008), Handke (2012a)
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About the Data
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Data Description: |
Using a data set for 99 American cities containing information on Internet use, record sales, and other demographic variables, an econometric analysis is undertaken to explain the change in record sales before and after file-sharing
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Data Type: |
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Secondary Data Sources: |
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Data Collection Methods: |
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Data Analysis Methods: |
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Industry(ies): |
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Country(ies): |
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Cross Country Study?: |
No
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Comparative Study?: |
No
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Literature review?: |
No
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Government or policy study?: |
No
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Time Period(s) of Collection: |
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Funder(s): |
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Abstract
The transmission of digitized music files, particularly on filesharing networks, is having a profound impact on the consumption and production of music. Although previous forms of copying have been found to often have benign effects on copyright owners, the rise in file -sharing has coincided with a steep decline in the sale of sound recordings. This paper attempts to empirically examine whether file -sharing has caused the decline in record sales. It examines the size and pattern of file-sharing and its theoretical impact on record sales. Using a data set for 99 American cities containing information on Internet use, record sales, and other demographic variables, an econometric analysis is undertaken to explain the change in record sales before and after file-sharing. The results imply that file-sharing has caused the entire decline in record sales that has occurred and also appears to have vitiated what otherwise would have been fairly robust growth in the industry. Looking at sales in individual musical genres reinforces the primary conclusions. The record industry’s risky strategy of assiduously fighting filesharing, therefore, appears to have a rational basis.
Main Results of the Study
Policy Implications as Stated By Author
Coverage of Study
Datasets
Sample size:
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99
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Level of aggregation:
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City
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Period of material under study:
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Non stated
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