The Metric is the Message: How Much of the Decline in Sound Recording Sales is Due to File-Sharing?
Stan J. Liebowitz
University of Texas at Dallas - School of Management - Department of Finance & Managerial Economics
November 1, 2011
Journal of Cultural Economics, Forthcoming
The file-sharing literature has focused mainly on whether file-sharing has decreased record sales, with less attention paid to the size of any decline. Although there is still some contention, most studies have concluded that file-sharing has decreased record sales. What has not been noted is that most estimates indicate that the file-sharing has caused the entire enormous decline in record sales that has occurred over the last decade. This heretofore hidden result is due to the lack of a consistent metric that would allow easy comparability across studies. The task of this paper is to provide such a metric, translate the results reported in the literature into that metric, and then summarizes the results from this exercise.
Number of Pages in PDF File: 20
Keywords: file sharing, piracy, sound recordings
Date posted: October 1, 2011 ; Last revised: October 19, 2015