Digital File Sharing and the Music Industry: Was There a Substitution Effect?

12 Pages Posted: 15 Jun 2008

Abstract

Several empirical studies exist that measure the impact of filesharing services on music sales, and most suggest that there was a negative impact on sales. Still, most of these studies do not examine (at the household level) whether consumers substituted out of music and into movies. This paper uses micro-level data from the Consumer Expenditure Survey (1998 through 2003) to test for this possible substitution effect. The data do not support the hypothesis that music consumers spent less on music because they spent more on either movie tickets or prerecorded movies (purchases or rentals).

Keywords: Substitution Effect, Music Industry, Sharing

Suggested Citation

Michel, Norbert J., Digital File Sharing and the Music Industry: Was There a Substitution Effect?. Review of Economic Research on Copyright Issues, Vol. 2, No. 2, pp. 41-52, 2005, Available at SSRN: https://ssrn.com/abstract=1145842

Norbert J. Michel (Contact Author)

The Heritage Foundation ( email )

214 Massachusetts Ave NE
Washington, DC 20002-4999
United States

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