Supply Responses to Digital Distribution: Recorded Music and Live Performances
Julie H. Mortimer
Boston College; National Bureau of Economic Research (NBER); Harvard University - Department of Economics
Alan T. Sorensen
National Bureau of Economic Research (NBER)
affiliation not provided to SSRN
October 1, 2010
Changes in technologies for reproducing and redistributing digital goods (e.g., music, movies, software, books) have dramatically affected profitability of these goods, and raised concerns for future development of socially valuable digital products. However, broader illegitimate distribution of digital goods may have offsetting demand implications for legitimate sales of complementary non-digital products. We examine the negative impact of file-sharing on recorded music sales and offsetting implications for live concert performances. We find that file-sharing reduces album sales but increases live performance revenues for small artists, perhaps through increased awareness. The impact on live performance revenues for large, well-known artists is negligible.
Number of Pages in PDF File: 33
Keywords: distribution, digital, goods, technologies
Date posted: November 6, 2010
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