Supply Responses to Digital Distribution: Recorded Music and Live Performances

33 Pages Posted: 1 Nov 2010

See all articles by Julie H. Mortimer

Julie H. Mortimer

Boston College; National Bureau of Economic Research (NBER); Harvard University - Department of Economics

Chris Nosko

University of Chicago - Booth School of Business

Chris Nosko

National Bureau of Economic Research (NBER)

Alan T. Sorensen

National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: October 2010

Abstract

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.

Suggested Citation

Mortimer, Julie H. and Nosko, Chris and Nosko, Chris and Sorensen, Alan T., Supply Responses to Digital Distribution: Recorded Music and Live Performances (October 2010). NBER Working Paper No. w16507, Available at SSRN: https://ssrn.com/abstract=1699607

Julie H. Mortimer (Contact Author)

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National Bureau of Economic Research (NBER) ( email )

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Harvard University - Department of Economics ( email )

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Chris Nosko

University of Chicago - Booth School of Business ( email )

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Chicago, IL 60637
United States

Chris Nosko

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Alan T. Sorensen

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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