Differences in Peer-to-Peer Networks Adoption Across Countries and the Structure of Entertainment Markets: The Case of Music in Europe

Abstract

This study explores the existence of different P2P adoption rates at the national level. Adopting a new approach, focusing on the supply side of the entertainment markets, the paper analyses the impact of the current processes of concentration both in the music industry and in the retail distribution in Europe on the P2P rate adoption. Using country-level panel data, the research finds empirical evidence supporting an inverse relationship between P2P adoption and music market concentration in Europe. Therefore, P2P networks and online distribution of music and other entertainment products may be more valuable to music consumers in fragmentated markets.

Keywords: internet, music, product variety, market concentration, retail, Europe

JEL Classification: L13, L82