Savelkoul (2019)

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

Savelkoul (2019)
Title: Superstars vs the long tail: How does music piracy affect digital song sales for different segments of the industry?
Author(s): Savelkoul, R.
Year: 2019
Citation: Savelkoul, R. (2020). Superstars vs the long tail: How does music piracy affect digital song sales for different segments of the industry?. Information Economics and Policy, 50, 100847.
Link(s): Definitive , Open Access
Key Related Studies:
Discipline:
Linked by:
About the Data
Data Description: A dataset of weekly digital song downloads in French, Belgian and Dutch market between 2008 and 2012 is obtained from Nielsen.
Data Type: Secondary data
Secondary Data Sources:
Data Collection Methods:
Data Analysis Methods:
Industry(ies):
Country(ies):
Cross Country Study?: Yes
Comparative Study?: No
Literature review?: No
Government or policy study?: No
Time Period(s) of Collection:
  • 2008
  • 2012
Funder(s):
  • the KU Leuven PF program financing

Abstract

This paper estimates the causal effect of illegal downloading on recorded music sales volumes. We explicitly allow for differing effects of piracy on superstars versus other songs (i.e. songs or artists that are respectively ranked at the top or lower in the sales distribution), with an extension about product variety. We use a difference-in-difference approach, exploiting the natural experiment of the introduction of the HADOPI anti-piracy law in France in 2009, using Belgium and the Netherlands as a control group. We find a positive effect on music sales after the introduction of the law, thus implying a negative effect of music piracy. The effect is greater for top selling songs compared to lower ranked songs. It is stronger shortly after the introduction of the law and diminishes in later periods for all songs except the top sellers or superstars. After the introduction of the law, consumption became more concentrated in terms of musical genre and style, indicating that piracy increases consumed product variety.

Main Results of the Study

The music sales significantly increase by 38% after the introduction of the law. The effect is greater for top selling songs (45% sales increase) compared to lower ranked songs (31% to 36% sales increase). It is stronger shortly after the introduction of the law and diminishes in later periods for all songs except the top sellers or superstars. After the introduction of the law, consumption became more concentrated in terms of musical genre (HHI increase of 1.3%) and style (HHI increase of 0.5%). Particularly, the concentration seems to increase mainly in genres that are likely to be popular on piracy websites, such as Pop and Hip Hop.

Policy Implications as Stated By Author

Deterring piracy by strengthening laws against copyright infringement is dubious due to several reasons: (1) we are not taking into account revenues from live performances of music; (2) the deterring effects vary in a long term; (3) the implementation and enforcement of HADOPI was very costly and individuals who were informed about the law and piracy alternatives, were able to substitute away from monitored networks and find desired illegal content elsewhere.


Coverage of Study

Coverage of Fundamental Issues
Issue Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
Green-tick.png
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)
Green-tick.png
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:
Level of aggregation: macro country level data
Period of material under study: 2008, 2012