Waldfogel (2012)
Contents
Source Details
| Waldfogel (2012) | |
| Title: | Copyright Protection, Technological Change, and the Quality of New Products: Evidence from Recorded Music since Napster |
| Author(s): | Waldfogel, J. |
| Year: | 2012 |
| Citation: | Waldfogel, J. (2012). Copyright Protection, Technological Change, and the Quality of New Products: Evidence from Recorded Music since Napster. Journal of Law and Economics, 55(4), 715-740. |
| Link(s): | Definitive |
| Key Related Studies: | |
| Discipline: | |
| Linked by: | Peukert, Claussen and Kretschmer (2015), Raustiala and Sprigman (2019) |
| About the Data | |
| Data Description: | The basic data for constructing the critic-based index are professional critics’ retrospective rankings of songs and albums from multiple years, such as best-of-the-decade lists. |
| 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: |
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| Funder(s): |
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Abstract
While some recent technological changes reduced revenue for digital products, other changes reduced the costs of bringing creative works to market. Therefore, we do not know whether copyright protection now provides weaker incentives to bring forth new products. This paper assesses the quality of new recorded music since Napster was established in 1999. First, I create an index of high-quality music from critics’ retrospective lists. Next, I rely on music sales and airplay data, using the idea that if one vintage’s music is better than another’s, its superior quality should generate higher sales or greater airplay through time, after accounting for depreciation. I find no evidence of a reduction in the quality of music released since 1999, and the two usage-based indices suggest an increase since then. Researchers and policy makers thinking about the strength of copyright protection should supplement their attention to producer surplus with concern for consumer surplus.
Main Results of the Study
- While it may be true that the recording industry has experienced substantial declines in its revenue and perhaps its profitability as well since the introduction of Napster, there is no evidence that the quality of new recorded music has suffered from a withdrawal of creative effort.
- While the supply of new music appears robust despite changes in technology, it is difficult to say whether this finding carries over to other contexts,such as motion pictures, in which bringing products to market is far more costly.
- Much of the debate about appropriate copyright in the digital era has focused on the effect of Napster on firms' revenue. However, emerging results suggests that research should also focus on producer surplus in creative industries.
Policy Implications as Stated By Author
Emerging results on the continued availability of new recorded music products suggest that policy makers thinking about the strength of copy-right protection should supplement their attention to producer surplus in creative industries with a concern for consumer surplus as well.
Coverage of Study
Datasets
| Sample size: | 88 |
| Level of aggregation: | Music critics' rankings |
| Period of material under study: | 1960-2010 |
Waldfogel, J., (2012). Copyright Protection, Technological Change, and the Quality of New Products: Evidence from Recorded Music since Napster, Journal of Law and Economics, 55(4), 715-740 [1]
Abstract: While some recent technological changes reduced revenue for digital products, other changes reduced the costs of bringing creative works to market. Therefore, we do not know whether copyright protection now provides weaker incentives to bring forth new products. This paper assesses the quality of new recorded music since Napster was established in 1999. First, I create an index of high-quality music from critics’ retrospective lists. Next, I rely on music sales and airplay data, using the idea that if one vintage’s music is better than another’s, its superior quality should generate higher sales or greater airplay through time, after accounting for depreciation. I find no evidence of a reduction in the quality of music released since 1999, and the two usage-based indices suggest an increase since then. Researchers and policy makers thinking about the strength of copyright protection should supplement their attention to producer surplus with concern for consumer surplus.
Propositions
- There is no evidence of a reduction in the quality of music released since 1999, when the music-sharing system Napster introduced, while the two usage-based indices suggest an increase since then.
Method
- Quantitative analysis: regression analysis
Discipline
Data
- Large-scale dataset on recorded music releases since 1960, radio airplay data
Interventions-Response
- Future policies could relax copyright protection in digital economies without harming creators’ incentives but more evidence is required on this.
- Potential welfare gains especially if policies that relax copyright protection are combined with other non-IP policies successfully.
